FWRD · Forward Air Corporation

Forward Air Corporation reported first quarter 2026 results with operating income of $20.4 million, a significant improvement from $4.8 million in the same period last year, driven by cost controls and operational execution. Consolidated revenue declined 5.1% to $582 million, primarily due to softness in the Intermodal segment and lower Omni Logistics ground revenue. The Expedited Freight segment was a bright spot, with revenue up 9.4% to $273 million and Reported EBITDA improving to $28 million from $26 million year-over-year, as pricing actions and higher weight per shipment offset lower tonnage. Omni Logistics revenue fell 6.5% to $302 million, but EBITDA margin improved to 8.3% from 7.9% due to growth in higher-margin contract logistics. Intermodal continued to struggle, with revenue down 15% and EBITDA margin halving to 10.1% due to reduced port activity and customer softness. Management highlighted strong liquidity of $402 million, the highest cash balance in two years, and improved operating cash flow of $46 million. A key disclosure was the potential transition of a large customer representing approximately $250 million of FY2025 revenue, expected to begin in early 2027. The Board ended its strategic review without a sale proposal but will pursue divestiture of non-core assets, including the Intermodal segment and two smaller Omni businesses, to delever and focus on core services.