stockrowLatest quarter
FedEx Freight reported free cash flow of −$196.0 million in Q1 FY2027, compared with $1.1 billion a year earlier.
For the preceding fiscal fourth quarter, the company reported revenue growth of 4.80%, while average daily shipments changed −5.90%. Those shipment figures measure the number of loads handled each day, while revenue also reflects factors such as pricing and fuel surcharges.
FedEx Freight combines customers’ shipments in shared trailers and moves them through service centers before delivery. The company says its results are affected by volumes, service mix, pricing and fuel costs. In its filing, FedEx Freight also said that higher fuel surcharges during calendar year 2026 more than offset the effect of higher fuel expenses on operating income.
| Q1 FY2027 | Q1 FY2026 | Change | |
|---|---|---|---|
| Free cash flow | −$196.0 million | $1.1 billion | −117.1% |
What management said on the call
In its filing, FedEx Freight described the costs of establishing itself as a stand-alone company, including spending on employees, technology systems and corporate functions. It said changes in shipment weight can reflect shifts in demand and transportation choices, while typically having an inverse effect on revenue per hundredweight.
The company also said its business is cyclical and that fuel-price changes can affect earnings when surcharges do not adjust to match them.
Guidance
FedEx Freight said in its filing that it will continue to incur expenditures associated with becoming a stand-alone company. It also said it will keep looking for operational cost improvements using technology across its business and corporate functions.