FedEx Freight reports 6% drop in operating income due to market weakness

From Yahoo Finance: 2025-06-25 14:14:00

FedEx Freight reports LTL market weakness in Q4 2025, citing challenges in the industrial sector. Operating income fell 6% to $477 million due to lower fuel surcharges and higher costs. LTL shipments were flat in March, down 2% in April, and 1% in May. Despite this, a better-than-expected May helped offset softer April results.

The quarter delivered the best operating margin in 12 months at 20.8%, slightly lower than the previous year’s 21.2% margin. Revenue exceeded analyst projections by $144 million. FedEx Freight is planning a spinoff in June 2026 and recently sold a facility for a $33 million gain, although the property was not disclosed.

Competitors like Knight-Swift Transportation Holdings are taking advantage of FedEx Freight’s reconfigured operations and property sales to expand their own LTL networks. FedEx Freight has hundreds of terminals across the U.S., with ongoing adjustments to their operations.



Read more at Yahoo Finance: FedEx Freight operating income drops 6%