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FedEx Freight Reports First Earnings as Stand-Alone Company
CEO Smith Cites Shift to 'Hunting Phase to Go After New Business'
Key Takeaways:
- FedEx Freight is pursuing data center infrastructure, grocery and healthcare business after its spinoff from FedEx Corp. earlier this month.
- CEO John Smith said the company built a dedicated sales force to target higher-margin segments where it historically had a smaller presence.
- FedEx Freight issued guidance through the end of 2026, forecasting adjusted profit of $2.40 to $2.60 per share.
FedEx Freight Holding Co. is pursuing new business in sectors including data center infrastructure, grocery and healthcare to chart its future as a newly independent company.
Before its spinoff from parcel carrier FedEx Corp. earlier this month, FedEx Freight spent the last year building out a sales force dedicated to winning business in segments offering attractive profit margins where it has had a smaller presence historically, said John Smith, the company’s CEO.
“We’re transitioning to the hunting phase to go after new business,” Smith said June 25. “Building out that sales team is really one of the differentiators from where we were to where we are now.”
FedEx Freight ranks No. 1 among less-than-truckload carriers on Transport Topics' list of the largest players in the freight segment.
It’s entering the market as the trucking industry works to capture an early recovery in shipping rates following a prolonged freight recession. At the same time, inflation and higher fuel prices brought on by the war in Iran are adding pressure.
SMITH: Recovery Won’t Be in a Straight Line
The logistics industry also faces increasing competition from Amazon.com Inc., which said earlier this month that it’s expanding its freight offerings, causing shares of FedEx Freight and other less-than-truckload peers to plunge.
RELATED: What Amazon Supply Chain Services Means for Logistics
Smith’s comments come as the company reported earnings June 25 following its separation from the parcel giant. The company also initiated guidance for the period between June 1 and the end of 2026, forecasting an adjusted profit of $2.40 to $2.60 per share, excluding costs related to its spinoff.
Shares of FedEx Freight were unchanged at 4:11 p.m. in New York after the close of regular trading.
