FedEx Freight Holding (FDXF) Shifting to Calendar Year

Equity Research 21 September 2026 | 5:01AM EDT

FedEx Freight Holding (FDXF) Shifting to Calendar Year; Reiterate Buy on Long-Term Earnings Power & Idiosyncratic Opportunity

FDXF 12m Price Target: $171.00 Price: $120.13 Upside: 42.3% BUY Jordan Alliger Bottom Line: We take the opportunity to update our FDXF model | Goldman Sachs & Co. LLC (and lower our price target) to a calendar year-end basis from Paul Stoddard fiscal year ending May, following recently provided pro forma | Goldman Sachs & Co. LLC calendar financials for 2024 and 2025 by quarter. As we noted in our initiation (see our launch note), we had to calendarize our Andrzej Tomczyk, CFA | Goldman Sachs & Co. LLC fiscal forecasts at that time while we awaited calendar numbers from the company. The final set of pro forma calendar financials are to be provided in October for 1H 2026 - at which point we Key Data _____________________________________ Market cap: $17.8bn may yet need to make modifications based on those to be Enterprise value: $17.3bn 3m ADTV: $210.3mn released historical results. With this model iteration, we wanted to United States get closer to how FDXF will look on an ongoing calendar basis, while Americas Transportation M&A Rank: 3 noting that quarterly variability may yet arise once the final set of GS Forecast __________________________________ numbers is provided by the company. That said, we think the 12/25 12/26E 12/27E 12/28E

overall revenue and EBIT trajectory largely maps to the Revenue ($ mn) New Revenue ($ mn) Old 8,778.0 8,887.0 9,076.0 8,790.0 9,673.2 9,398.6 10,327.0 10,097.5 company’s long term 2029 calendar targets – which remain EBITDA ($ mn) 1,700.0 1,537.6 1,684.9 1,965.6 EBIT ($ mn) 1,228.0 1,049.8 1,164.3 1,409.6 unchanged. EPS ($) New EPS ($) Old Net, net we are Buy rated on FDXF and although there is some P/E (X) NM Dividend yield (%) -- 0.0 0.0 0.0 noise still likely left related to modeling, and adjustments may Net debt/EBITDA (X) 0.0 (0.3) (0.7) (1.0) yet need to be made to our model in the future to reflect the final 6/26 9/26E 12/26E 3/27E recast financials to be provided by the company, the larger point EPS ($) is that with operational execution, helpful macro, and a GS Factor Profile ______________________________ company running as a standalone entity - the medium to longer Growth

term profit and EPS trajectory seem to be in good stead. We do Financial Returns think the -20% share price downdraft post spin is related in part to Multiple the noise surrounding the ability to make firm calendar EPS projections as well as coming in tandem with the broad based Integrated

downdraft to peer LTL stock prices (-22% from FDXF spin-out). Percentile 20th 40th 60th 80th 100th

New Numbers and Near Term: We update our FDXF estimates FDXF relative to Americas Coverage

(and lower our price target; details below) to a calendar year FDXF relative to Americas Transportation

basis from fiscal year ending May following FDXF’s release of Source: Company data, Goldman Sachs Research estimates. See disclosures for details. quarterly 2024 and 2025 financial data. Our 2026/2027/2028/2029 adjusted EPS estimates are now at

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs FedEx Freight Holding (FDXF)

FedEx Freight Holding (FDXF) Balance Sheet ($ mn) _______________________________________ BUY Rating since Jul 1, 2026 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 100.0 4,914.9 5,607.3 6,460.7 Accounts receivable 979.0 1,157.0 1,225.4 1,322.7 Inventory Ratios & Valuation __________________________________________ Other current assets -- -- -- -- 12/25 12/26E 12/27E 12/28E Total current assets 1,155.0 6,187.2 6,954.8 7,915.3 P/E (X) NM Net PP&E 2,820.0 2,786.0…