A FedEx truck at the New York Stock Exchange on June 1. (Michael Nagle/Bloomberg)
key takeaways:
- Earlier this month, FedEx Corp. FedEx is pursuing freight data center infrastructure, grocery and healthcare businesses after being separated from FedEx.
- CEO John Smith said the company has created a dedicated sales force to target higher-margin areas where it historically had less of a presence.
- FedEx Freight issued guidance by the end of 2026, projecting an adjusted profit of $2.40 to $2.60 per share.
FedEx Freight Holding Co. is spinning off new business in sectors including data center infrastructure, grocery and healthcare to plan its future as a newly independent company.
Before its spinoff from parcel carrier FedEx Corp. earlier this month, FedEx Freight last year built a sales force dedicated to winning business in areas offering attractive profit margins, where it has historically had a small presence, company CEO John Smith said.
“We are transitioning into the hunting phase for new business,” Smith said on June 25. “Building the sales team has really been one of the difference makers from where we were to where we are now.”
FedEx Freight ranks No. 1 among less-than-truckload carriers on Transportation Topics’ list of the largest players in the freight segment.
It is entering the market as the trucking industry works to quickly recover shipping rates after a long freight downturn. Also, inflation and high fuel prices due to the war in Iran are adding pressure.
Smith: Recovery will not be in a straight line
The logistics industry is controlled by Amazon.com Inc. It also faces increasing competition from FedEx Freight, which said earlier this month it was expanding its freight offering, sending shares of FedEx Freight and other less-than-truckload peers falling.
Connected: What Amazon Supply Chain Services means for logistics
Smith’s comments come as the company reports earnings on June 25 following its separation from the parcel giant. The company also introduced guidance for the period between June 1 and the end of 2026, estimating an adjusted profit of $2.40 to $2.60 per share, excluding costs related to its spinoff.
FedEx Freight shares were unchanged at 4:11 p.m. in New York after the close of regular trading.
