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Research Alert: Fedex Completes Freight Spin-off; Legacy Business Less Attractive Post-split

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

FedEx completed the spin-off of FedEx Freight as FDXF on June 1, 2026, with shares beginning NYSE trading and FDX up modestly after adjusting for the 1:2 distribution. FDX retains 19.9% of FDXF shares for release over 24 months through debt repayment, special dividend, or share exchange options. We view the spin-off as a net positive for existing shareholders, allowing them to benefit from less-than-truckload firms' typical premium valuations over diversified shipping companies while essentially maintaining combined exposure. FDX will report FY 26 (May) results on June 23 reflecting the combined company through May 31. However, we see the legacy FDX business as less attractive due to the shift toward B2C from B2B customers, which comprised the majority of FedEx Freight volume. We think this business mix change dilutes a key competitive advantage over UPS, particularly given our concerns about unsustainable consumer spending habits and the Iran conflict accelerating pullback likelihood.

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