Forward Air (FWRD) investor relations material

Executive summary

• Q3 revenue reached a second consecutive quarterly record of $673.9M, up 6.7% YoY; operating income rose to $43.9M from $15.0M.

• Consolidated EBITDA under the credit agreement was $101.5M, up from $77.7M; LTM EBITDA was $341.7M.

• All three segments contributed; Expedited Freight posted its strongest revenue, operating income and EBITDA since early 2024.

Financial highlights

• Q3 continuing-operations net income was $9.1M, or diluted EPS of $0.34, versus a $23.8M loss and $(0.52) diluted EPS in Q3 2025.

• Operating margin was 6.5%, up 410 bps YoY; consolidated EBITDA margin under the credit agreement was 15.1%, up 280 bps.

• Q3 operating cash flow was $35.3M versus $52.7M; 9M operating cash flow rose to $76.2M from $67.1M.

• 9M revenue grew 3.5% to $1.929B; reported operating loss was $137.0M, including a $244.0M goodwill impairment.

• Q3 purchased transportation rose 8.6% to $343.6M, salaries and benefits fell 6.8% to $123.0M, and total operating expenses increased 2.1% to $630.0M.

Outlook and guidance

• An October agreement retains a significant portion of the largest customer's services for two years; selected services are expected to transition from November 2026 through March 2027, with no material 2026 revenue impact expected.

• Retained-service revenue grew during 2026 and is expected to continue growing in 2027; revenue in each contract year from 2026–2028 is expected to exceed the 2025 contribution.

• Q4 trends early in the quarter were similar to Q3 exit trends; usual seasonality and fewer working days are expected.

• Strategic priorities include profitable growth, service quality, cost rationalization, post-Omni synergies, operational improvements and deleveraging.