FedEx Freight Holding Company, Inc. · NYSE:FDXF
FedEx Freight — Investor Day (April 2026)
83 slides from FedEx Freight's investor day presentation, Apr 8, 2026
Slide 1: Welcome
Welcome Fed Freight. Investor Day 1
Slide 2: FedEx Freight Investor Day 2026
FedEx. Investor Freight Day 2026
Slide 3: Opening
Opening Marianna Rose Managing Director, Investor Relations 3
Slide 4: Forward-looking statements and non-GAAP financial measures
Forward-looking statements and non-GAAP financial measures References in this presentation to the “Company,” “FedEx Freight,” “we,“ “us,” or “our” are references to transactions or dis-synergies and other costs incurred in connection with the spin-off exceeding FedEx and FedEx Freight Holding Compan
Slide 5: Agenda
Agenda THE NEW FEDEX FREIGHT ADVANCING TECHNOLOGY CAPABILITIES John Smith, Incoming President & CEO Mike Rodgers, Chief Technology Officer OPTIMIZING THE NETWORK FINANCIAL VALUE CREATION Clint McCoy, Chief Operating Officer Marshall Witt, Chief Financial Officer LEADING COMMERCIAL OFFERING Mike Lyo
Slide 6: Delivering the new FedEx Freight
Delivering the new FedEx Freight John Smith Incoming President & Chief Executive Officer 7
Slide 7: The new FedEx Freight
The new FedEx Freight A vibrant future driven by a clear, disciplined strategy built around our key stakeholders Our people Our customers Our shareholders Safety above all, collective responsibility Best-in-class experience Profitable growth, strong balance sheet 8
Slide 8: Foundation built on lasting legacy
Foundation built on lasting legacy 1998 2006 2024 Market entrance Enhanced capability Network optimization • Acquired Viking Freight • Acquired Watkins Motor • Custom Critical service line in the western U.S. Lines, expanding our long- moved under FedEx Freight haul freight capabilities • Network in
Slide 9: FedEx Freight: At a glance
FedEx Freight: At a glance FY26E: REVENUE $8.7B ADJUSTED OPERATING INCOME ~$1.1B ADJUSTED OPERATING MARGIN ~12% See Appendix for reconciliations of and additional information regarding non-GAAP financial measures. 10
Slide 10: Established leader in attractive LTL industry
Established leader in attractive LTL industry Firmly positioned to win, today SUSTAINED LEADERSHIP SCALE SPEED SERVICE IN LTL MARKET Top 6 LTL carriers by volume1 365+ 40% ~90% Total locations, including ~355 Faster than our nearest Revenue from customers shipping terminals and ~10 competitor (Prior
Slide 11: Underpinned by a world-class, experienced team
Underpinned by a world-class, experienced team DEDICATED SKILLED DRIVER WORLD-CLASS, DECADES OF EXECUTIVE TEAM WORKFORCE WINNING TEAM LEADERSHIP EXPERIENCE 40K 14+ Years 112 100+ Years Number of team members Average years of experience FedEx Freight drivers at the Collective experience in the at Fed
Slide 12: Unlocking FedEx Freight's value
Unlocking FedEx Freight’s value Led by safety, driven by market-leading scale, published transit times, and service OPTIMIZING THE NETWORK LEADING COMMERCIAL OFFERING • Smarter and more efficient infrastructure • Industry-leading salesforce • Lowering cost to serve • Targeted go-to-market strategy •
Slide 13: Positioned to deliver strong results
Positioned to deliver strong results REVENUE GROWTH ADJ. OI GROWTH 4-6% Medium-term CAGR 10-12% Medium-term CAGR CAPITAL DISCIPLINE FCF CONVERSION ~5% Medium-term capex as % of revenue >90% Medium-term expectation See Appendix for reconciliations of and additional information regarding non-GAAP fina
Slide 14: Converting strength into sustainable outcomes
Converting strength into sustainable outcomes WE HAVE WE ARE BUILDING WE ARE DELIVERING Structural advantage Industry-leading execution Value creation • Largest and fastest 1 • Improving • High-quality growth network operational efficiency • Improving profitability • Best-in-class • Leading service
Slide 15: Optimizing FedEx Freight's network
Optimizing FedEx Freight’s network Clint McCoy Chief Operating Officer 16
Slide 16: Unlocking FedEx Freight's value
Unlocking FedEx Freight’s value Led by safety, driven by market-leading scale, published transit times, and service OPTIMIZING THE NETWORK LEADING COMMERCIAL OFFERING • Smarter and more efficient infrastructure • Lowering cost to serve • Heightened productivity • Increasing visibility through techno
Slide 17: Firmly positioned to win, today
Firmly positioned to win, today Scale Speed Service • 365+ locations • ~90% of LTL volume can be delivered • Flexibility: dual-service offering choice • 26,000 doors within 3 days or less between speed and cost • 30,000 motorized vehicles • Priority service is 40% faster than • Reliability: on-time
Slide 18: Acquired Viking Freight, 1998
1998 ACQUIRED viking freight FedEx Freight. we Investor Day 2026 19
Slide 19: Acquired 2001
2001 ACQUIRED Ez Le se bs tt FedEx Freight. Investor Day 2026 20
Slide 20: FedEx Freight was established through these acquisitions
2002 FedEx Freight was established, through these acquisitions — offering convenient shipping for LTL customers 21
Slide 21: Acquired 2006
2006 — ACQUIRED “s Tet ; LWATKINS aN | > poe . * . ° “ \ So; a, . FedEx Freight. Investor Day 2026 22
Slide 22: Market-leading scale and density
Market-leading scale and density • Acquisitions have driven unmatched scale • Consolidated 39 service centers and ~1,000 doors1 • Added 9 locations and 600 doors in strategic markets1 1. January 2023 – February 2026. 23
Slide 23: Market-leading scale and density
Market-leading scale and density • Concentrated in densest freight markets 80% outbound industry volume1 1. For illustrative purposes. 24
Slide 24: Market-leading scale and density
Market-leading scale and density • Concentrated in densest freight markets • Chicago Metro Area: representative of 6% of LTL outbound volume • 11 service centers • Nearly 1,500 doors, ~50% more than nearest competitor 80% outbound industry volume1 1. For illustrative purposes. 25
Slide 25: Industry's fastest and most reliable
Industry’s fastest 1 and most reliable • Time to destination: Priority (3 days) vs. industry (4-5 days); Economy (6 days) • FedEx Freight Direct reaches residential • Leveraging rail for cost advantage 1. Based on published transit times. 26
Slide 26: Further optimizing our network
Further optimizing our network Focused on lowering cost to serve and increasing efficiency Driving the future forward through Linehaul network Dock Fleet rigor, operational optimization optimization modernization excellence, and strategic investment 27
Slide 27: Linehaul network optimization
Linehaul network optimization Structurally removed 187M (5%) linehaul miles through strategic planning over past 5 years Volume forecasting by Network simulation Mode optimization Schedule and origin-destination pair and lane design (truck vs. rail) capacity engineering • Model historical • Simulate
Slide 28: Dock optimization
Dock optimization DIM-in-motion Handling reduction RFID technology optimizing trailer increasing efficiency enhancing utilization and speed tracking ~12% higher cube utilization since last year Fewer touchpoints Increased visibility 29
Slide 29: Fleet modernization
Fleet modernization Matching the Reduced fleet age Enhancing safety right asset to the through lifecycle with new right route management technologies Lowered average age of linehaul fleet by one year since 2023 3% miles per gallon improvement over past two years Reduced accidents by 30% over past fi
Slide 30: Customer experience in focus
Customer experience in focus Pick-up reliability On-time service Quality focus 31
Slide 31: Enabled by our people, assets, and technology
…enabled by our people, assets, and technology World-class team Industry-leading fleet Business-led technology • Best team in the industry • Largest fleet in North America • Provides real-time visibility • Culture of collective responsibility • Right-sized and modernized • Optimizes routes and resou
Slide 32: Key takeaways
Key takeaways Positioned to win now and grow profitably, with additional upside when market recovers Market-leading scale, published transit times, service, and reliability enable long-term profitable growth Further optimizing operations to reach full potential 34
Slide 33: Delivering for FedEx Freight's customers
Delivering for FedEx Freight’s customers Mike Lyons Chief Specialized Services & Commercial Officer 35
Slide 34: Unlocking FedEx Freight's value
Unlocking FedEx Freight’s value Led by safety, driven by market-leading scale, published transit times, and service OPTIMIZING THE NETWORK LEADING COMMERCIAL OFFERING • Industry-leading salesforce • Targeted go-to-market strategy • Improving customer experience • Higher-quality revenue growth THE FU
Slide 35: Leading commercial value proposition
Leading commercial value proposition FY26E REVENUE BY OFFERING1 32% • Only provider with dual-offering – Priority ECONOMY 64% and Economy • Customers have choice PRIORITY between speed vs. cost • Diversified offering proves 3% resilient through demand OTHER2 environments 1. Percentages may not total
Slide 36: Uniquely differentiated offering
Uniquely differentiated offering Versatile multi-pronged service network offers customers the choice to trade up for speed or maximize value Core services Priority Economy Custom Critical Value-added capabilities Dimension-Based Volume Services Retail Flex Freight Direct Priority Plus Pricing 38
Slide 37: Long-term partner to stable, quality, and diverse customer base
Other Long-term partner to stable, Aerospace Automotive quality, and diverse customer base Healthcare ~140K Industrial Active customers Services ~17% REVENUE BY INDUSTRY (FY26YTD2) Revenue from top 25 Technology ~90% customers (FY26YTD2) Energy, Revenue from chemicals, Transportation customers with
Slide 38: Well-positioned to deliver for customers
Well-positioned to deliver for customers Strengthen go-to-market strategy Generate high-quality revenue growth Enhance the customer experience 40
Slide 39: Investing in dedicated LTL salesforce
Investing in dedicated LTL salesforce Targeted approach focused on yield management and specialized service • All bring specialized 500+ LTL industry expertise • Reengineered incentives aligned with commitment to quality revenue growth Dedicated LTL sales team • Streamlined, fit-for-LTL Priority and
Slide 40: Enhancing pricing transparency
Enhancing pricing transparency From To Complex, lengthy contracts that use Clear contract language tailored to the LTL industry general industry terminology Pricing platform designed for broad suite Fit-for-LTL pricing platform Committed to of shipping and services improving customer outcomes and El
Slide 41: Streamlining the billing and invoicing process
Streamlining the billing and invoicing process From To Manual touch required on majority of On path to reduce manual touchpoints by 60%, bills, ratings, or invoices leveraging modernized technology capabilities Majority of invoices handled offshore by Majority of invoice resolution insourced with so
Slide 42: Improving the digital experience
Improving the digital experience • Dedicated site for FedEx Freight with improved tracking capabilities • Launching customer service portal with enhanced support pages • Deploying virtual assistant / live chat capability 44
Slide 43: Raising the standard of service
Raising the standard of service • Strategically scaling premier customer support and enhancing service offering for corporate customers • Reducing friction for customer service • Simplifying processes and reducing complexity for customers and agents 45
Slide 44: Targeting high-quality revenue opportunities
Targeting high-quality revenue opportunities SMB Healthcare Grocery Data centers & energy Empowering high-margin small Leveraging FedEx Custom Growing share within ~$1B1 Expanding share within the and medium business growth Critical to lean more heavily into channel by ensuring timely, ~$2B1 address
Slide 45: Key takeaways
Key takeaways Deepening our leadership in the North American LTL market Delivering a differentiated value proposition centered on speed, choice, and reliability Strengthening our commercial foundation Thoughtfully elevating the customer experience Maintaining a disciplined focus on yield 47
Slide 46: Q&A session 1
Q&A session 1 ue ats . we . wy . “ . ee _ °° ee . On woe OP Ora an rare FedEx Freight. Investor Day 2026 49
Slide 47: Q&A session #1
Q&A session #1 John Smith Clint McCoy Mike Lyons Incoming President COO CCO & CEO 50
Slide 48: Q&A session 1
Q&A session 1 ue ats . we . wy . “ . ee _ °° ee . On woe OP Ora an rare FedEx Freight. Investor Day 2026 51
Slide 49: Reengineering the future of FedEx Freight
Reengineering the future of FedEx Freight Mike Rodgers Chief Technology Officer 53
Slide 50: Unlocking FedEx Freight's value
Unlocking FedEx Freight’s value Led by safety, driven by market-leading scale, published transit times, and service OPTIMIZING THE NETWORK LEADING COMMERCIAL OFFERING THE FUTURE ADVANCING TECHNOLOGY FINANCIAL VALUE CREATION CAPABILITIES • Enabling operational and commercial outcomes • Modernizing te
Slide 51: Freight industry technology landscape
Freight industry technology landscape Technology powers the industry and our business Information quality is Customers expect Integrated digital as important as increased visibility, capabilities differentiate freight movement speed, and accuracy FedEx Freight 55
Slide 52: Our business-led technology strategy
Our business-led technology strategy Designed to deliver for our customers and bring the FedEx Freight strategy to life Simplify Enhance Enable Streamline tech stack, maintain service Improve customer experience by Day 1, Leverage AI and partnerships for further continuity, position for spin strengt
Slide 53: Priorities through spin and beyond
Priorities through spin and beyond Building the future of logistics with cutting-edge technology Ahead of Day 1 Post Spin Medium-Term Priority FY26 TY26 CY27-CY28+ Tech stack Simplify tech stack Separation Achieve tax-free spin execution Exit Transition Service Agreements (TSAs) Maintain service con
Slide 54: Modernize tech platform and foundational capabilities
Modernize tech platform and foundational capabilities Advancing commercial and operational strategies Data-first approach through clean, proprietary data Modernize with intention – Contributing to enterprise-wide focus on lowering AI at the forefront cost to serve and supporting data-first priority
Slide 55: Enabling the commercial strategy
Enabling the commercial strategy Strategy support Launching new, fit-for-LTL CRM1 Designed specifically for the needs of FedEx Freight’s customers, ensuring all sales, service, and marketing considerations are customer-focused in one platform Generating business-specific analytics Enable more precis
Slide 56: Enabling the commercial strategy
Enabling the commercial strategy Frictionless transactions Robust pricing tool • Fit-for-LTL pricing platform designed to align to industry-standard practices that reduces manual pricing; positions us to provide first-in- industry dimension-based pricing model • Modernized rating process tightly int
Slide 57: Enabling the commercial strategy
Enabling the commercial strategy Enhanced digital services Unified customer case management Provides 360-degree view of the customer – sales, delivery, service – increases transparency, and improves issue resolution time Guided, AI-driven migration support Leveraging AI and automation to provide cus
Slide 58: Enabling network operations
Enabling network operations Leveraging technology to optimize the network for greater visibility and precision NOW Handling Unit Visibility • Digital representation of every handling unit across the network “we know WHERE each handling unit is” Impact • Improved safety NOW DIM-in-Motion • Automatic
Slide 59: Enabling network operations
Enabling network operations Leveraging technology to optimize the network for greater visibility and precision NOW Handling Unit Visibility • Digital representation of every handling unit across the network “we know WHERE each handling unit is” Impact • Improved safety NOW DIM-in-Motion • Automatic
Slide 60: Key takeaways
Key takeaways Capturing unique opportunity to position new, standalone company to deliver on its strategic priorities Rethinking, reimagining, and rebuilding a fit-for-LTL technical foundation for lower cost to serve, improved experience, and enhanced profitability Leveraging critical enablers, incl
Slide 61: Financial strategy driving long-term value creation
Financial strategy driving long-term value creation Marshall Witt Chief Financial Officer 67
Slide 62: Unlocking FedEx Freight's value
Unlocking FedEx Freight’s value Led by safety, driven by market-leading scale, published transit times, and service OPTIMIZING THE NETWORK LEADING COMMERCIAL OFFERING THE FUTURE ADVANCING TECHNOLOGY FINANCIAL VALUE CREATION CAPABILITIES • Accelerating profitable growth • Free cash flow durability •
Slide 63: Committed to high-quality growth
Committed to high-quality growth REVENUE ($B) ADJUSTED OPERATING INCOME ($B) 4-6% Revenue CAGR Accelerating $8.7 profitable growth 10-12% Adj. OI CAGR by leveraging strength across $1.1 four key areas… FY26E Medium-term FY26E Medium-term See Appendix for reconciliations of and additional information
Slide 64: Delivering long-term profitable growth
Delivering long-term profitable growth Highly attractive LTL Multi-faceted Tech-enabled go-to- Disciplined pricing, industry with commercial market strategy with optimized growing and diverse initiatives to enhance differentiated offerings productivity, and end markets revenue quality and and dedica
Slide 65: Driving operating leverage
Driving operating leverage Key levers to improve operating leverage Adjusted operating margin (%) • Investments in LTL-focused capabilities, automation, ~15% and technology will drive operating leverage over time Adj. OI Margin • Enhancing customer mix through the addition of higher-yielding custome
Slide 66: Expect significant improvement in gross profit flow-through
Expect significant improvement in gross profit flow-through Functional support costs Drivers of lower cost to serve per gross profit ratio1 • Utilize technology-led and AI capabilities 70% • Simplify organizational structure and drive greater agility in decision-making 60% • Optimize and streamline
Slide 67: Balancing near-term dynamics
Balancing near-term dynamics Actions underway Considerations for transition period (June 2026 – December 2026) Strengthening investments in • Expect modest top-line growth technology and salesforce • Sequential adjusted operating margin pressure expected due to TSAs and technology investment • Dedic
Slide 68: Capital allocation framework
Capital allocation Invest in organic growth framework 1 Maintaining capex at ~5% of revenue over the medium-term Designed to grow ROIC and generate returns above cost of capital Reduce outstanding debt FCF GENERATION 2 Gross leverage ratio expected to decrease to ~2.5x within 12 months of spin-off >
Slide 69: Prudent and responsible capital spending
Prudent and responsible capital spending FY26E CAPITAL EXPENDITURES ~45% • Maintaining capex at ~5% of ~25% revenue in medium-term EQUIPMENT FACILITIES • Prioritizing highest-return opportunities • Investing to expand margins and reduce cost to serve ~25% TECHNOLOGY ~5% OTHER 75
Slide 70: Strong, investment-grade balance sheet
Strong, investment-grade balance sheet WEIGHTED AVG. ANNUAL INTEREST LONG-TERM DEBT MATURITY SCHEDULE1 ($M) COST OF DEBT EXPENSE Secured Notes Term Loan 4.79% Weighted average interest rate for $180M Expected annual interest expense debt outstanding on June 1, 2026 in CY26 $600 SIGNIFICANT GROSS LEV
Slide 71: Attractive shareholder value creation model
Attractive shareholder value creation model REVENUE GROWTH ADJ. OI GROWTH 4-6% Medium-term CAGR 10-12% Medium-term CAGR CAPITAL DISCIPLINE FCF CONVERSION ~5% Medium-term capex as % of revenue >90% Medium-term expectation Note: See Appendix for reconciliations of and additional information regarding
Slide 72: Key takeaways
Key takeaways Building off a base of durable revenue and strong profitability through business cycles Core strategies expected to drive consistent, reliable, and profitable growth for FedEx Freight Multiple levers to drive operating leverage, increase free cash flow generation, and lower the cost to
Slide 73: Q&A session 2
Q&A session 2 FedEx Freight Investor Day 2026 79
Slide 74: Q&A session #2
Q&A session #2 John Smith Marshall Witt Mike Rodgers Incoming President CFO CTO & CEO 80
Slide 75: Q&A session 2
Q&A session 2 FedEx Freight Investor Day 2026 81
Slide 76: Closing remarks
Closing remarks John Smith Incoming President & Chief Executive Officer 82
Slide 77: Converting strength into sustainable outcomes
Converting strength into sustainable outcomes WE HAVE WE ARE BUILDING WE ARE DELIVERING Structural advantage Industry-leading execution Value creation • Largest and fastest 1 • Improving • High-quality growth network operational efficiency • Improving profitability • Best-in-class • Leading service
Slide 78: Thank you
FedEx Freight. Investor Day 2026 84
Slide 79: FedEx Freight Investor Day 2026
FedEx. Investor Freight Day 2026
Slide 80: Upcoming Key Dates
Upcoming Key Dates MID-APRIL 2026: Updated Form 10, including Q3 FY26 Carveout Results JUNE 1, 2026: FedEx Freight Spin-Off JUNE 23, 2026: FedEx Corp. Q4 FY26 Earnings Call* LATE-JUNE 2026: FedEx Freight Investor Call BY MID-AUGUST 2026: Recast historical financials for FedEx Freight for CY24 and CY
Slide 81: Appendix
FedEx. Freight Investor Day 2026 Appendix FedEx Freight. Investor Day 2026 89
Slide 82: Non-GAAP financial measures
Non-GAAP financial measures FedEx Freight reports its financial results in accordance with accounting principles FedEx Freight’s core operating performance and to assist investors with assessing generally accepted in the United States (GAAP or reported). The company supplements trends in its underly
Slide 83: Reconciliations of GAAP to non-GAAP financial metrics
Reconciliations of GAAP to non-GAAP financial metrics FY26 OUTLOOK ($ amounts in millions) Operating Income Operating Margin GAAP Measure $600 6.5% Estimated spin-off costs $500 5.5% Non-GAAP Measure 1,100 12.0% 91
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