(Reuters) - FedEx said on Wednesday it would allot its shareholders one share of the trucking unit it is hiving off for every two shares they hold in the parcel delivery firm.
The unit, FedEx Freight, will list as an independent company on the New York Stock Exchange on June 1 under the symbol 'FDXF'.
FedEx Freight, the largest provider of less-than-truckload services in the U.S., lists at a time when companies have seen an improvement in truckload rates, as federal regulators drastically restrict commercial driver licenses to non-citizens.
However, most trucking executives have said they are yet to see a meaningful improvement in demand.
FedEx Freight said last month it expects an operating margin of 12% in 2026, on projected revenue of $8.7 billion and adjusted operating income of $1.1 billion.
Over the medium term, average revenue growth is expected to be in the range of 4% to 6% and core profit is seen rising between 10% and 12% annually, FedEx Freight's finance chief Marshall Witt said last month.
FedEx Freight competes with the likes of XPO, Saia and Old Dominion Freight Line .
Analysts have been positive about FedEx's move to spin off its freight trucking unit, announced in late 2024, saying that FedEx Freight's assets were not fully appreciated within the parcel delivery behemoth.
As part of the spinoff, FedEx Freight will pay a dividend of around $4.1 billion to its parent FedEx ahead of its June 1 separation.
Reporting by Nandan Mandayam in Bengaluru; Editing by Leroy Leo
Source: Reuters