Fedex Corp.

Integrated Freight & Logistics • Industrials • Memphis, TN, United States • FDX (NYQ)

901 818 7500 942 South Shady Grove Road, Memphis, TN 38120, United States

Quarter: Q4 2025 Reported: November 6, 2025 Sentiment: Neutral

FedEx Corporation, together with its subsidiaries, provides transportation, e-commerce, and business services in the United States and internationally. It operates through Federal Express and FedEx Freight segments. The company offers transportation services, including express, freight, less-than-truckload freight, and time-specific freight-shipping; and small-package ground delivery services. It also provides e-commerce and digital solutions; dataworks; printing and shipping management, including digital printing, professional finishing, document creation, design solutions, direct mail, signs and graphics, custom-branded boxes, copying, computer rental, free Wi-Fi, corporate print solutions, shredding, expedited U.S. passport processing and renewal, and digital notarization; packing services, as well as packing supplies and boxes; document and business services; and retail access for package transportation. In addition, the company offers logistics services, air and ocean freight-forwarding and cargo transportation, specialty transportation, customs brokerage and clearance, trade management tools and data, and door-to-door solutions; and third party logistics and supply chain management solutions, such as inbound logistics, warehousing and distribution, fulfillment, contract packaging and product configuration, systems integration, returns process and disposition, test, repair, refurbishment, and product liquidation. Further, it provides sales, marketing, administrative, information technology, and back-office support services. FedEx Corporation was founded in 1971 and is headquartered in Memphis, Tennessee.

Analysis Summary

FedEx Corporation announced significant amendments to its $1.75 billion three-year and $1.75 billion five-year credit agreements, a strategic move directly preceding the planned spin-off of FedEx Freight, Inc. by June 2026. This spin-off will establish FedEx Freight as a new publicly traded company, "Freight SpinCo." The amendments are designed to facilitate this separation by releasing FedEx Freight from its guarantees under the credit agreements upon consummation of the spin-off. Key financial covenant adjustments include the exclusion of debt incurred by Freight SpinCo for distributions to FedEx and other spin-off related transactions from the debt-to-adjusted EBITDA ratio. Furthermore, up to $600 million (with a potential 10% increase) in transaction costs, fees, expenses, synergies, and cost savings related to the spin-off will be excluded from adjusted EBITDA calculations, providing significant operational flexibility. The commitment termination dates for both credit agreements have been extended to March 15, 2028, and March 15, 2030, respectively, with options for two additional one-year extensions, enhancing long-term financial stability. Minor adjustments to interest rate calculations, including the removal of a 10 basis point credit spread adjustment and modification of certain pricing grid margins, were also implemented. Management's commentary, implicitly through these actions, signals a clear strategic direction towards portfolio optimization and value creation, though specific financial performance metrics for Q4 2025 were not disclosed in this 8-K filing. The company acknowledges potential risks related to the successful implementation and realization of anticipated benefits from the FedEx Freight Spin-Off.

Key Highlights

• Amendments made to $3.5 billion in credit agreements ($1.75B three-year, $1.75B five-year).
• Amendments are in anticipation of the FedEx Freight spin-off by June 2026.
• FedEx Freight will be released from credit agreement guarantees upon spin-off.
• Financial covenants adjusted to exclude spin-off related debt and up to $600M in transaction costs from adjusted EBITDA.
• Credit agreement commitment termination dates extended to March 2028 and March 2030.
• Strategic move to create a new publicly traded company, "Freight SpinCo."

Financial Metrics

eps

YoY: N/A - Not provided in 8-K filing

revenue

N/A

YoY: N/A - Not provided in 8-K filing

guidance

net income

N/A

YoY: N/A - Not provided in 8-K filing

Stock Performance (90 Days)

Data through Dec 29, 2025

Layoff Events

Earnings Calls

Positive Signals

• Proactive amendment of significant credit facilities ($3.5B) to support strategic spin-off.
• Securing favorable financial covenant adjustments for the spin-off process.
• Extension of credit agreement commitment terms, providing long-term financial stability.
• Clear timeline provided for the FedEx Freight Spin-Off (by June 2026).
• Demonstrates commitment to portfolio optimization and value creation.

Risks & Concerns

— Ability to successfully implement the FedEx Freight Spin-Off.
— Ability to achieve the anticipated benefits of the spin-off transaction.
— Other factors which can be found in FedEx’s press releases and filings with the U.S. Securities and Exchange Commission.