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FedEx Corp. continued efforts to improve profitability during its fiscal third quarter despite navigating an especially challenging operating environment, the company said.

FedEx is the latest U.S. company to sound the alarm over weakening consumer confidence and potential fallout from President Donald Trump’s escalating trade war.

FedEx said its bondholders agreed to remove its freight business from its lending documents, making it easier for the shipping giant to spin the business off into a new company.

Substantial change is expected in the U.S. less-than-truckload sector in 2025, according to market observers and executives, headed by the long-awaited freight market turnaround.

Shares in companies that are spun off from existing firms tend to outperform the S&P 500 by an average of 10% over the subsequent 18-24 months, data compiled by Trivariate show.

Wall Street analysts offered overall positive initial reactions to the Dec. 19 news that FedEx Corp. plans to by 2026 spin off its LTL division into a separate, publicly traded company.

The Memphis, Tenn.-based transportation services company on Dec. 19 reported net income of $740 million, or $3.03 a diluted share, for the three months ending Nov. 30.

FedEx Corp. on Dec. 19 announced its intent to spin off its FedEx Freight unit into a separate company, creating the largest publicly traded LTL carrier in North America in the process.

Adobe Analytics expects consumers to spend a record $13.2 billion on Dec. 2, 6.1% more than last year. That would make it the season’s — and the year’s — biggest shopping day for e-commerce.

Two of the largest for-hire carriers are making operational and financial preparations for an anticipated upturn in the freight market after months of weak demand, executives said.