From Yahoo Finance: 2025-05-20 09:23:00

FedEx Corp. names new leaders for its less-than-truckload unit, set to become a separate publicly traded company by June 2026. John Smith, with 25 years at FedEx Freight, will be CEO, while Brad Martin becomes chairman. The move aims to drive $4 billion in cost savings.

Smith will continue overseeing FedEx Freight and ground operations until the separation. Martin, who led the strategic review, will also stay on FedEx’s board post-spinoff. Wall Street analysts express concern over the leadership change, hoping for external talent to drive transformation.

FedEx Freight appoints Tom Connolly as VP of LTL sales, part of recent moves ahead of the spinoff. The company establishes a separation management office and completes a $16 billion debt exchange. Despite the changes, shares of FDX were down 1.9% pre-market.

FedEx Freight generates $9 billion in revenue annually from 360 terminals. Analysts predict potential stock pressure following the leadership announcement. Investors express preference for external expertise to drive significant transformation. FedEx aims for successful independence for the spinoff company.

Read more: FedEx taps leaders from within for LTL spinoff, to Wall Street’s dismay