FedEx Freight's operating margins are 20%, making it the best-performing segment within the company. In comparison, the Ground segment has operating margins of 11.8%, while the Express segment has margins of 2%.
The operating ratio of FedEx Freight is 80%, making it the second-most efficient less-than-truckload (LTL) carrier in the nation, just behind Old Dominion Freight Line (ODFL). This ratio indicates that FedEx Freight is able to effectively manage its costs, as it spends $80 to generate $100 in revenue.
FedEx is conducting a strategic review of its FedEx Freight business, assessing its role in the company's value-creation plans. The review is expected to be completed by the end of the calendar year.