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FedEx Announces Leadership for Independent FedEx Freight Company Upon Separation

1. John A. Smith named CEO of FedEx Freight amid upcoming spin-off plans. 2. R. Brad Martin appointed as Chairman for the new FedEx Freight entity. 3. Spin-off of FedEx Freight from FedEx Corp. expected by June 2026. 4. John Smith has a proven record of managing FedEx Freight's growth. 5. FedEx aims to enhance focus on LTL operations with dedicated leadership.

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Why Bullish?

The leadership roles indicate strategic direction for upcoming spin-off, positively influencing investor sentiment. For context, similar spin-offs have often resulted in short-term stock price gains.

How important is it?

The new leadership roles directly influence FedEx Freight’s operational effectiveness, impacting overall company strategy and performance, significantly relevant to FedEx Corp.'s future market perception.

Why Long Term?

The successful separation and establishment of independent management aim to unlock value. Historical spin-offs, such as Honeywell's separation of Garrett Motion, demonstrate increased long-term shareholder value.

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-John A. Smith named President and CEO; R. Brad Martin to serve as Chairman of the Board. MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Corp. (NYSE: FDX) announced today several leadership roles as the company makes progress to separate its less-than-truckload (LTL) freight division. John A. Smith, chief operating officer, U.S. and Canada, of Federal Express, has been selected to serve as the president and CEO of FedEx Freight, and R. Brad Martin, vice chairman of the FedEx Corp. board of directors, has agreed to serve as chairman of the board of FedEx Freight. Both appointments will be effective upon completion of the previously announced separation of FedEx Freight from FedEx Corp. Plans for the spin-off, which is expected to occur by June 2026, remain on track. “I cannot think of two individuals with more knowledge of, or commitment to, the long-term success of the FedEx Freight business than John Smith and Brad Martin,” said Raj Subramaniam, president and CEO of FedEx Corp. “Together they have the track record and expertise to successfully lead this new and exciting chapter for the independent FedEx Freight company.” Prior to the separation, Smith will continue in his current role, which includes leadership of the FedEx Freight business in addition to U.S. and Canada ground operations of Federal Express. He has been a member of the FedEx Freight team (and its predecessor companies) for 25 years of his more than 30 years in the industry. From 2018 until 2021, as president and CEO of the FedEx Freight business, Smith successfully grew the company’s revenue and operating income while safely navigating the team through the challenging dynamics associated with the pandemic. Martin chairs the FedEx Corp. Audit and Finance Committee and led the board’s strategic analysis of the FedEx Freight business that resulted in the separation decision. It is expected that he will remain on the FedEx Corp. board of directors while also serving as chairman of the board of the new FedEx Freight entity. The company previously appointed Tom Connolly as vice president of LTL Sales. With more than 30 years of industry experience, Connolly is leading the expansion of FedEx Freight’s dedicated LTL salesforce. Additional biographical information: John A. Smith: https://www.fedex.com/en-us/about/leadership/john-a-smith.html R. Brad Martin: https://investors.fedex.com/governance/board-of-directors/default.aspx About FedEx Corp. FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenue of $88 billion, the company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 500,000 employees to remain focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about. Cautionary Statement Regarding Forward-Looking Information Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding the expected timing of the separation or its completion at all, and statements regarding the future FedEx Corp. and FedEx Freight board of directors and management. Forward-looking statements include those preceded by, followed by or that include the words “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “forecasts,” “anticipates,” “plans,” “estimates,” “targets,” “projects,” “intends” or similar expressions. Such forward-looking statements are based on management’s current expectations and are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to: our ability to successfully execute the separation transaction; our ability to obtain any consents or approvals required to complete the separation; potential uncertainty during the pendency of the separation transaction that could affect FedEx Corp.’s financial performance; the possibility that the separation transaction will not be completed within the anticipated time period or at all; the possibility that the separation transaction will not result in the intended benefits; the possibility of disruption, including changes to existing business relationships, disputes, litigation, or unanticipated costs in connection with the separation transaction; uncertainty of the expected financial performance of FedEx Corp. or FedEx Freight following completion of the transaction; negative effects of the announcement or pendency of the transactions on the market price of FedEx Corp.’s securities and/or on the financial performance of FedEx; evolving legal, regulatory, and tax regimes; changes in the economic conditions in the global markets in which we operate; actions by third parties, including government agencies; our ability to successfully implement our business strategy and global transformation program and optimize our network through Network 2.0; our ability to achieve our cost-reduction initiatives and financial performance goals; and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended May 31, 2024, and subsequently filed Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which it is made. Neither FedEx Corp. nor anyone else undertakes or assumes any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. More News From FedEx Corp.

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