An announcement made at FedEx’s quarterly earnings call June 25 set analysts and markets twittering about the prospect that the company will spin off its freight division, FedEx Freight, as a separately traded public company.

“With the recent completion of the FY25 planning process, FedEx has turned its focus to the next phase of its long-term stockholder value-creation plans,” the earnings statement said. “As a part of this work, FedEx management and Board of Directors are conducting an assessment of the role of FedEx Freight in the company’s portfolio structure and potential steps to further unlock sustainable shareholder value. The company is committed to completing this review thoroughly and deliberately, by the end of the calendar year.”

The Wall Street Journal said transportation analysts and experts expect FedEx to spin off its non-union, LTL freight unit as a separate publicly traded company. 

Word of the potential divestment sent shares of FedEx soaring more than 15% to more than $296 on June 26, the highest level since mid-2021. The company’s market capitalization is now nearly $73 billion.

The statement added, “FedEx Freight operating results increased due to higher yield and effective cost management. FedEx Freight has announced plans to further optimize its operations and match capacity with demand through the planned permanent closure of seven facilities.”

FedEx operates the largest for-hire trucking fleet in the U.S., with more than 155,000 power units. FedEx Freight generated an operating profit of $1.8 billion on revenues of $9.1 billion in the company’s just-completed fiscal year.

Rival UPS sold its freight business to TFI International for $800 million in 2021, before the trucking market downturn.