Forward Air (FWRD) investor relations material

Executive summary

• Operating income rose to $20 million from $5 million year-over-year, reflecting improved operational performance.

• Consolidated revenue declined 5.1% to $582 million compared to the same quarter last year, primarily due to declines in Omni Logistics and Intermodal, partially offset by Expedited Freight growth.

• Net loss narrowed to $40.2 million from $61.2 million year-over-year, driven by cost controls and lower transaction costs.

• Management is addressing a major customer transition, with discussions ongoing to retain as much business as possible; the transition is expected to begin in early 2027 and is attributed to the customer's diversification strategy.

• The company received industry recognition, including being named 2026 Surface Carrier of the Year and inclusion in Newsweek's Most Trustworthy Companies in America 2026.

Financial highlights

• Consolidated EBITDA was $70.4 million, down 4% year-over-year; adjusted EBITDA was $70 million, up from $69 million.

• Operating margin improved to 3.5% from 0.8% year-over-year.

• Cash provided by operating activities increased 65.6% to $45.7 million.

• Net loss per diluted share improved to $(1.09) from $(1.68) year-over-year.

• Liquidity at quarter-end was $402 million, including $141 million in cash and $261 million in revolver availability.

Outlook and guidance

• No material impact from the customer transition is expected in 2026; the majority of the transition is anticipated for 2027.

• Management is pursuing the sale of non-core assets, including the Intermodal segment and two smaller Omni businesses, to streamline operations and deleverage.

• Management is cautiously optimistic about improving freight demand, supported by positive macro indicators such as rising PMIs and spot rates.

• Margin improvement initiatives and cost rationalization are expected to drive further EBITDA margin gains.

• The company expects to maintain compliance with leverage covenants and sufficient liquidity for the next twelve months.