Forward Air Corporation

Forward Air reported first-quarter operating income of $20 million, up from $5 million a year ago. Consolidated EBITDA was $70 million versus $73 million in the prior-year quarter; on an adjusted EBITDA basis, it was $70 million versus $69 million. Segment EBITDA was $28 million for Expedited Freight (vs. $26 million), $25 million for Omni Logistics (vs. $26 million), and $5 million for Intermodal (vs. $10 million), with Intermodal margin at 10.1% versus 16.4% last year. Net cash provided by operating activities was $46 million, up $18 million year over year, and liquidity ended at $402 million, including $141 million of cash and $261 million of revolver availability. Management did not provide formal quarterly or full-year financial guidance, but said there is no meaningful impact expected in 2026 from the customer transition and that any material effect would likely begin in early 2027.

Shawn Stewart emphasized that the company is navigating a difficult backdrop—integration work, weak industry conditions, tariffs, and Middle East disruption—while still improving execution and earnings quality. He framed the customer transition as a diversification decision by the customer, not a service issue, and said Forward Air is actively trying to retain as much business as possible. Stewart also said the company is pivoting toward selling noncore assets to delever and sharpen focus on core logistics, while sounding optimistic that freight conditions are starting to improve.

Jamie Pierson highlighted that consolidated EBITDA was $70 million, with the year-ago comparison aided by $4 million of annualized cost reductions that were retroactively included under the credit agreement. He pointed to cash generation and balance-sheet strength: operating cash flow of $46 million, liquidity of $402 million, and $141 million in cash, which he said was the highest ending cash balance in eight quarters. Pierson also said the company ended the quarter with about a $40 million cushion and described liquidity as being at the upper end of peers relative to assets and LTM revenue.

Analysts pressed management on the large customer transition, asking whether it was a service or pricing problem, how much revenue was at risk, and how quickly it could be backfilled. Management repeatedly said the issue is about the customer’s diversification strategy, not service quality, that conversations are active and constructive, and that there should be no meaningful 2026 impact; the total 2025 revenue from that customer was about $250 million, but management said any eventual loss would be less than that. Questions also focused on the strategic review and the sale of noncore assets; management said the smaller Omni sales could close in 60 to 90 days and the Intermodal sale is expected by year-end. On market trends, management said pricing remains disciplined, recent volume readings have improved into April, and higher spot rates, tender rejections, and PMIs suggest better freight conditions, though macro risks remain.