Forward Air Corporation

What they do

Forward Air provides ground transportation, air and ocean forwarding, intermodal drayage and contract logistics, plus high-touch supply chain management for time-sensitive freight. Its Expedited Freight segment runs an expedited LTL network in the continental U.S., including local pick-up and delivery, truckload, consolidation, warehousing and customs brokerage. Omni Logistics offers international freight forwarding, fulfillment, customs brokerage and value-added services to U.S.-based B2B customers. Intermodal provides first- and last-mile container drayage to and from seaports and railheads, mainly in the Midwest and Southeast.

Revenue drivers

• Omni Logistics — Full-suite global logistics including air and ocean freight forwarding, customs brokerage, time-definite transportation and contract logistics; accounted for approximately 50% of consolidated revenue in 2025.
• Expedited Freight — Expedited regional, inter-regional and national LTL plus truckload, consolidation, warehousing and handling; approximately 40% of consolidated revenue in 2025.
• Intermodal — First- and last-mile intermodal container drayage to and from seaports and railheads, plus dedicated contract and CFS warehouse and handling services; approximately 10% of consolidated revenue in 2025.
• Product groups (estimated) — For 2025, estimated revenue was approximately 63% ground transportation, 13% air and ocean forwarding, 9% intermodal drayage and 15% contract logistics.

Recent performance

Second quarter 2026 consolidated operating revenue was $673.0 million, up 8.8% from $618.8 million a year earlier and the highest quarterly revenue in company history. The quarter included a $244 million non-cash goodwill impairment charge related to Omni Logistics, producing an operating loss of $201.3 million and a net loss from continuing operations of $243.9 million, or $6.33 per diluted share. Excluding the impairment, operating income was $42.7 million versus $19.5 million in the prior-year quarter. Consolidated EBITDA was $93.0 million, up from $79.1 million. Management reported liquidity of $401 million at quarter end, comprising $139 million of cash and $261 million of credit facility availability.

Strategy

In January 2025 the Board initiated a comprehensive review of strategic alternatives, including a potential sale, merger or other transaction, alongside the standalone plan. The company emphasizes asset-light operations, minimizing equipment and facilities investment and capital expenditures. It is integrating the legacy Omni business and pursuing synergies across segments, particularly sharing fleet resources with Expedited Freight. Management's operating priorities include LTL pricing discipline and freight mix, density and yield improvement measured by revenue per hundredweight, and service reliability.

Risks

• Tariffs and trade policy — The 10-K cites widespread baseline and country-specific U.S. tariffs and reciprocal tariffs as reducing global trade activity, which could cut freight volumes.
• Freight cycle and volume sensitivity — The business is sensitive to customer shipping volumes, industry freight demand and truck capacity, which have historically been cyclical.
• High fixed-cost network — Hubs and terminals represent substantial fixed costs, so earnings depend on increasing freight volume and revenue per pound or shipment.
• Balance sheet and equity deficit — At June 30, 2026, total liabilities of $2.53 billion exceeded total assets of $2.41 billion, leaving shareholder equity of negative $115.4 million, with $1.69 billion of long-term debt.

Outlook

CEO Shawn Stewart said the company is seeing momentum from transformational efforts combined with an improving freight market. Management reported that Expedited Freight had its best operating revenue, operating income, Reported EBITDA and margin in two and a half years, and that Omni Logistics saw increased demand for contract logistics and air and ocean services. Intermodal posted its best Reported EBITDA in five quarters and best margin in six quarters, which management attributes to a strong pipeline and strategic rate increases to several accounts.