Official FedEx press release or SEC filings confirming the completion of the spin-off.

FedEx to Spin Off Freight Unit Within 18 Months; Q2 Adjusted EPS of $4.05 Beats Estimates

Dec 19, 2024, 09:07 PM

FedEx Corp. (NYSE: FDX) reported its fiscal second-quarter earnings, with adjusted earnings per share (EPS) of $4.05, surpassing analysts' expectations of approximately $3.98 to $4.02. The company posted revenue of $22.0 billion, slightly below estimates and a decrease from $22.2 billion in the same period last year. Adjusted operating income was $1.38 billion, and the adjusted operating margin improved to 6.3%, exceeding projections. "Our second-quarter results demonstrate that our efforts to transform our operations are working," said Raj Subramaniam, FedEx CEO. Despite the slight revenue decline, the Federal Express segment delivered operating profit growth amidst a soft industrial economy. In a significant strategic move, FedEx's Board of Directors approved the separation of FedEx Freight, its less-than-truckload (LTL) freight transportation division, into a standalone, publicly traded company. FedEx Freight reported revenue of $9.4 billion for fiscal year 2024. The spin-off, expected to be completed within 18 months, aims to unlock shareholder value, enhance operational focus, and enable tailored growth strategies for both entities. Following the announcements, FedEx shares surged over 11% in after-hours trading. However, the company lowered its full-year guidance for fiscal 2025 adjusted EPS to a range of $19.00 to $20.00, down from its prior outlook of $19.75 to $21.00, reflecting cautious expectations amid ongoing economic challenges.