FedEx Freight is now targeting high-margin business segments as an independent company, President and CEO John Smith said on an earnings call Thursday. The carrier reported fourth-quarter revenues of $2.4 billion, up 4.8% year over year, while adjusted operating income fell 23.9% to $363 million. Average daily shipments declined 5.9%, but revenue per shipment rose 11.5%, reflecting a strategic pivot toward more profitable freight. Smith highlighted opportunities in small and medium-sized businesses, healthcare, grocery, and data centers, where the company has historically underpenetrated. He emphasized that FedEx Freight's dual-service model, offering both priority and economy shipping, helps retain customers and supports growth in these higher-margin verticals.
FedEx CorporationFedEx Freight spinoff and strategic pivot to high-margin segments reported on earnings call, with revenue up 4.8% and revenue per shipment up 11.5%.
As the subject of the article, FedEx Freight reported Q4 revenue growth and a strategic shift to higher-margin shipments, despite a decline in operating income.