Forward Air Corporation Reports Second Quarter 2026 Results

About this update from Forward Air Corporation

Forward Air Corporation (NASDAQ:FWRD) (the “Company,” “Forward,” “we,” “our,” or “us”) today reported financial results for the three months ended June 30, 2026, as presented in the tables below. “We are pleased to deliver another solid quarter and we are seeing momentum from our transformational efforts, combined with an improving freight market,” said Shawn Stewart, President and Chief Executive Officer. “This contributed to reporting $673 million in consolidated operating revenue, which is the best in Forward Air Corporation’s history. Consolidated EBITDA for the quarter was $93 million, an improvement of $14 million, compared to $79 million a year ago. “On a segment basis, the Expedited Freight segment made significant strides and reported its best operating revenue, operating income, Reported EBITDA and margin in the last two and a half years. The Omni Logistics segment saw an increase in demand for its contract logistics and air and ocean services and, excluding the impact of goodwill impairment, achieved its best Reported EBITDA and margin since the transaction in early 2024. Finally, the Intermodal segment had its best Reported EBITDA result in five quarters and best margin in six quarters. We believe the Intermodal segment is beginning to see the benefits of a strong pipeline and recently enacted strategic rate increases to several accounts. “Our overall performance demonstrates the strength of our strategy, our portfolio of logistics offerings across a spectrum of services and the commitment and resilience of our team. As market conditions continue to improve, we remain focused on executing our plan and delivering sustainable, long-term value for our stakeholders,” concluded Stewart. Jamie Pierson, Chief Financial Officer, added, “We reported consolidated operating revenue of $673 million in the second quarter compared to $619 million a year ago. In the second quarter, we reported an operating loss of $201 million that included a non-cash goodwill impairment charge of $244 million related to the Omni Logistics segment. Operating income, excluding the goodwill impairment charge, was $43 million, which is more than double the $20 million in operating income we reported in the second quarter last year. “On a last twelve months basis Consolidated EBITDA, a non-GAAP measure calculated pursuant to our Term Loan Credit Agreement, was $319 million. “Liquidity remained very strong at $401 million at the end of the second quarter comprised of $139 million in cash and $261 million of availability under our credit facility. This is in line with where we ended the first quarter 2026 and an improvement of $33 million compared to $368 million in total liquidity at the end of the second quarter 2025,” concluded Pierson.   Three Months Ended June 30,         (in thousands, except per share data) 2026   2025   $ Change   % Change Operating revenues $ 673,036     $ 618,844     $ 54,192     8.8 % Operating (loss) income $ (201,312 )   $ 19,522     $ (220,834 )   nm Operating margin   (29.9 )%     3.2 %   (3,310) bps                 Loss from continuing operations $ (243,856 )   $ (20,364 )   $ (223,492 )   nm Net loss from continuing per diluted share $ (6.33 )   $ (0.41 )   $ (5.92 )   nm Net cash (used in) provided by operating activities $ (4,883 )   $ (13,217 )   $ 8,334     63.1 %                 Non-GAAP Financial Measures: (1)               Consolidated EBITDA $ 92,985     $ 79,081     $ 13,904     17.6 % Adjusted operating income $ 42,694     $ 19,522     $ 23,172     118.7 % Free cash flow $ (6,971 )   $ (17,157 )   $ 10,186     59.4 %   (1) Reconciliation of these non-GAAP financial measures are provided below the financial tables. nm = not meaningful Review of Financial Results Forward Air will hold a conference call to discuss second quarter 2026 results on Wednesday, August 5 at 4:30 p.m. ET. The Company’s conference call will be available online on the Investor Relations portion of the Company’s website at ir.forwardaircorp.com , or by dialing (800) 579-2543, Access Code: FWRDQ226. A replay of the conference call will be available on the Investor Relations portion of the Company’s website at ir.forwardaircorp.com , which we use as a primary mechanism to communicate with our investors. Investors are urged to monitor the Investor Relations portion of the Company’s website to easily find or navigate to current and pertinent information about us. About Forward Air Corporation Forward is a leading asset-light provider of transportation services across the United States, Canada and Latin America. We provide expedited less-than-truckload services, including local pick-up and delivery, shipment consolidation/deconsolidation, warehousing, and customs brokerage by utilizing a comprehensive national network of terminals. In addition, we offer truckload brokerage services, including dedicated fleet services, and intermodal, first- and last-mile, high-value drayage services, both to and from seaports and railheads, dedicated contract and Container Freight Station warehouse and handling services. Forward also operates a full portfolio of multimodal solutions, both domestically and internationally, via Omni Logistics. Omni Logistics is a global provider of air, ocean and ground services for mission-critical freight. We are more than a transportation company. Forward is a single resource for your shipping needs. For more information, visit our website at www.forwardair.com .   Forward Air Corporation Condensed Consolidated Statements of Operations (unaudited and in thousands, except per share amounts)     Three Months Ended   Six Months Ended   June 30,   June 30,   2026   2025   2026   2025 Operating revenues:               Expedited Freight $ 319,062     $ 257,696     $ 591,769     $ 507,077   Omni Logistics   338,547       328,316       640,965       651,786   Intermodal   59,724       59,146       112,816       121,638   Corporate and Eliminations   (44,297 )     (26,314 )     (90,468 )     (48,376 ) Operating revenues   673,036       618,844       1,255,082       1,232,125                   Operating expenses:               Purchased transportation   335,892       303,300       619,669       607,562   Salaries, wages and employee benefits   130,040       145,490       245,616       287,405   Operating leases   50,252       49,505       99,965       98,298   Depreciation and amortization   38,262       36,806       76,783       74,166   Insurance and claims   13,678       15,536       27,176       30,542   Fuel expense   6,644       5,278       11,571       10,927   Other operating expenses   55,574       43,407       111,167       98,940   Impairment of goodwill   244,006       —       244,006       —   Total operating expenses   874,348       599,322       1,435,953       1,207,840                   Operating (loss) income:               Expedited Freight   34,893       19,495       54,939       35,129   Omni Logistics   (230,010 )     7,186       (229,280 )     10,561   Intermodal   6,101       4,415       7,325       9,957   Corporate and Eliminations   (12,296 )     (11,574 )     (13,855 )     (31,362 ) Operating (loss) income   (201,312 )     19,522       (180,871 )     24,285                   Other income and expenses:               Interest expense, net   (43,721 )     (45,326 )     (87,308 )     (90,873 ) Foreign exchange (loss) gain   (566 )     (4,653 )     1,132       (5,575 ) Other income (expense), net   1,569       (6,656 )     (15,388 )     (6,552 ) Total other expense   (42,718 )     (56,635 )     (101,564 )     (103,000 )                 Loss from continuing operations before income taxes   (244,030 )     (37,113 )     (282,435 )     (78,715 ) Income tax (benefit) expense   (174 )     (16,749 )     1,619       2,840   Loss from continuing operations   (243,856 )     (20,364 )     (284,054 )     (81,555 ) Loss from discontinued operations, net of tax   (2,075 )     —       (2,075 )     —   Net loss   (245,931 )     (20,364 )     (286,129 )     (81,555 ) Net loss attributable to noncontrolling interest   (38,631 )     (7,781 )     (44,510 )     (18,335 ) Net loss attributable to Forward Air $ (207,300 )   $ (12,583 )   $ (241,619 )   $ (63,220 )                 Basic and diluted net loss per share attributable to Forward Air:               Continuing operations $ (6.33 )   $ (0.41 )   $ (7.49 )   $ (2.09 ) Discontinued operations   (0.05 )     —       (0.05 )     —   Net loss per basic and diluted share $ (6.38 )   $ (0.41 )   $ (7.54 )   $ (2.09 )   Expedited Freight Segment Information and Operating Statistics (unaudited and in thousands, except per shipment and per hundredweight)     Three Months Ended June 30,           2026   % of Revenue   2025   % of Revenue   $ Change   % Change Operating revenues:                       Network (1) $ 225,971   70.8 %   $ 193,829   75.2 %   $ 32,142     16.6 % Truckload   69,237   21.7 %     42,636   16.5 %     26,601     62.4 % Other   23,854   7.5 %     21,231   8.3 %     2,623     12.4 % Total operating revenues   319,062   100.0 %     257,696   100.0 %     61,366     23.8 %                         Operating expenses:                       Purchased transportation   167,936   52.6 %     124,448   48.3 %     43,488     34.9 % Salaries, wages and employee benefits   57,568   18.0 %     53,938   20.9 %     3,630     6.7 % Operating leases   16,416   5.1 %     17,355   6.7 %     (939 )   (5.4 )% Depreciation and amortization   8,495   2.7 %     10,357   4.0 %     (1,862 )   (18.0 )% Insurance and claims   10,018   3.1 %     10,693   4.1 %     (675 )   (6.3 )% Fuel expense   3,668   1.1 %     2,518   1.0 %     1,150     45.7 % Other operating expenses   20,068   6.5 %     18,892   7.4 %     1,176     6.2 % Total operating expenses   284,169   89.1 %     238,201   92.4 %     45,968     19.3 % Operating income $ 34,893   10.9 %   $ 19,495   7.6 %   $ 15,398     79.0 %           (1) Network revenue is comprised of all revenue, including linehaul, pickup and/or delivery, and fuel surcharge revenue, excluding accessorial and Truckload revenue.   Three Months Ended       June 30,       2026   2025   % Change Business days   64     64   — %             Tonnage (1)           Total pounds   665,073     623,394   6.7 % Pounds per day   10,392     9,741   6.7 %             Shipments (1)           Total shipments   749     739   1.4 % Shipments per day   11.7     11.5   1.7 %             Weight per shipment   888     843   5.3 %             Revenue per hundredweight (2) $ 33.98   $ 31.09   9.3 % Revenue per hundredweight, ex fuel (2) $ 24.26   $ 24.82   (2.3 )%             Revenue per shipment (2) $ 301.75   $ 261.82   15.3 % Revenue per shipment, ex fuel (2) $ 215.41   $ 209.24   2.9 %           (1) Excludes accessorial and Truckload products. (2) Includes intercompany revenue between the Network and Truckload revenue streams. Omni Logistics Segment Information (unaudited and in thousands)     Three Months Ended June 30,           2026   % of Revenue   2025   % of Revenue   $ Change   % Change Operating revenues:                       Ground $ 132,854     39.2 %   $ 155,430   47.3 %   $ (22,576 )   (14.5 )% Contract Logistics   112,332     33.2 %     97,469   29.7 %     14,863     15.2 % Air and Ocean   93,361     27.6 %     75,417   23.0 %     17,944     23.8 % Total operating revenues   338,547     100.0 %     328,316   100.0 %     10,231     3.1 %                         Operating expenses:                       Purchased transportation   190,166     56.2 %     185,040   56.4 %     5,126     2.8 % Salaries, wages and employee benefits   62,226     18.4 %     61,584   18.8 %     642     1.0 % Operating leases   27,466     8.1 %     25,686   7.8 %     1,780     6.9 % Depreciation and amortization   23,878     7.1 %     22,419   6.8 %     1,459     6.5 % Insurance and claims   276     0.1 %     1,248   0.4 %     (972 )   (77.9 )% Fuel expense   457     0.1 %     888   0.3 %     (431 )   (48.5 )% Other operating expenses   20,082     5.9 %     24,265   7.4 %     (4,183 )   (17.2 )% Impairment of goodwill   244,006     72.1 %     —   — %     244,006     nm Total operating expenses   568,557     167.9 %     321,130   97.8 %     247,427     77.0 % Operating (loss) income $ (230,010 )   (67.9 )%   $ 7,186   2.2 %   $ (237,196 )   nm nm = not meaningful Intermodal Segment Information (unaudited and in thousands)     Three Months Ended June 30,           2026   % of Revenue   2025   % of Revenue   $ Change   % Change Operating revenues $ 59,724   100.0 %   $ 59,146   100.0 %   $ 578     1.0 %                         Operating expenses:                       Purchased transportation   22,087   37.0 %     20,049   33.9 %     2,038     10.2 % Salaries, wages and employee benefits   13,783   23.1 %     15,385   26.0 %     (1,602 )   (10.4 )% Operating leases   6,100   10.2 %     5,336   9.0 %     764     14.3 % Depreciation and amortization   3,882   6.5 %     4,502   7.6 %     (620 )   (13.8 )% Insurance and claims   1,799   3.0 %     3,147   5.3 %     (1,348 )   (42.8 )% Fuel expense   2,541   4.3 %     1,857   3.1 %     684     36.8 % Other operating expenses   3,431   5.7 %     4,455   7.6 %     (1,024 )   (23.0 )% Total operating expenses   53,623   89.8 %     54,731   92.5 %     (1,108 )   (2.0 )% Operating income $ 6,101   10.2 %   $ 4,415   7.5 %   $ 1,686     38.2 %   Three Months Ended       June 30,       2026   2025   % Change Drayage shipments   61,909     62,313   (0.6 )% Drayage revenue per shipment $ 942   $ 862   9.3 %   Forward Air Corporation Condensed Consolidated Balance Sheets (unaudited and in thousands)     June 30, 2026   December 31, 2025 ASSETS       Current assets:       Cash and cash equivalents $ 139,448     $ 105,996   Accounts receivable, net   369,469       343,559   Other receivables   6,104       6,147   Prepaid expenses   26,465       28,045   Other current assets   41,630       37,254   Total current assets   583,116       521,001   Property and equipment, net   274,670       297,882   Operating lease right-of-use assets   361,426       412,535   Goodwill   278,706       522,712   Other intangible assets, net   860,915       906,791   Other long-term assets   52,012       58,023   Total assets $ 2,410,845     $ 2,718,944   LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY       Current liabilities:       Accounts payable $ 118,651     $ 121,752   Accrued expenses   118,551       114,422   Other current liabilities   81,911       69,130   Current portion of finance lease obligations   14,961       15,995   Current portion of operating lease liabilities   107,497       107,026   Total current liabilities   441,571       428,325   Long-term debt   1,693,340       1,687,248   Liabilities under Tax Receivable Agreement   26,794       11,548   Finance lease obligations, less current portion   16,804       22,387   Operating lease liabilities, less current portion   277,379       327,011   Deferred income taxes   24,358       27,221   Other long-term liabilities   53,265       53,540   Total liabilities   2,533,511       2,557,280   Shareholders' (deficit) equity:       Preferred stock   —       —   Common stock   337       313   Additional paid-in capital   575,818       559,551   Accumulated deficit   (690,324 )     (447,100 ) Accumulated other comprehensive income   (1,261 )     580   Total Forward Air shareholders' (deficit) equity   (115,430 )     113,344   Noncontrolling interest   (7,236 )     48,320   Total shareholders' (deficit) equity   (122,666 )     161,664   Total liabilities and shareholders' (deficit) equity $ 2,410,845     $ 2,718,944     Forward Air Corporation Condensed Consolidated Statements of Cash Flows (unaudited and in thousands)     Three Months Ended   Six Months Ended   June 30,   June 30,   2026   2025   2026   2025 OPERATING ACTIVITIES:               Net loss $ (245,931 )   $ (20,364 )   $ (286,129 )   $ (81,555 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities:               Depreciation and amortization   38,262       36,806       76,783       74,166   Impairment of goodwill   244,006       —       244,006       —   Share-based compensation expense   491       4,711       4,032       7,669   Change in Tax Receivable Agreement liability   (1,219 )     6,864       15,488       6,864   Deferred income tax benefit   (604 )     (1,933 )     (2,774 )     (4,725 ) Non-cash interest expense   3,654       3,473       7,227       6,846   Gain on sale of business   (3,649 )     —       (3,649 )     —   Other   1,774       1,326       4,191       2,399   Changes in operating assets and liabilities:               Accounts receivable   (46,494 )     4,200       (36,020 )     (16,945 ) Other receivables   (2,551 )     743       (499 )     309   Other current and noncurrent assets   4,029       8,952       932       9,719   Accounts payable, accrued expenses and other current liabilities   3,349       (57,995 )     17,267       9,651   Net cash (used in) provided by operating activities   (4,883 )     (13,217 )     40,855       14,398   INVESTING ACTIVITIES:               Proceeds from sale of property and equipment   1,125       804       2,553       1,495   Purchases of property and equipment   (3,213 )     (4,744 )     (10,159 )     (16,650 ) Proceeds from sale of business, net   8,739       —       8,739       —   Other   —       55       —       31   Net cash provided by (used in) investing activities   6,651       (3,885 )     1,133       (15,124 ) FINANCING ACTIVITIES:               Repayments of finance lease obligations   (4,149 )     (4,945 )     (8,374 )     (9,376 ) Proceeds from borrowings under credit facility   —       60,000       —       85,000   Repayments of borrowings under credit facility   —       (60,000 )     —       (85,000 ) Proceeds from common stock issued under employee stock purchase plan   734       434       734       434   Payment of minimum tax withholdings on share-based awards and other   (120 )     (107 )     (805 )     (1,001 ) Net cash used in financing activities   (3,535 )     (4,618 )     (8,445 )     (9,943 ) Effect of exchange rate changes on cash   193       353       (91 )     710   NET CHANGE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS   (1,574 )     (21,367 )     33,452       (9,959 ) Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period   141,022       116,674       105,996       105,266   Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 139,448     $ 95,307     $ 139,448     $ 95,307     Forward Air Corporation Reconciliation of Non-GAAP Financial Measures In this press release, the Company includes financial measures that are derived on the basis of methodologies other than in accordance with United States generally accepted accounting principles (“GAAP”). The Company believes that meaningful analysis of its financial performance requires an understanding of the factors underlying that performance, including an understanding of items that are non-operational. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions as well as evaluating the Company’s performance. For the three and six months ended June 30, 2026 and 2025, this press release contains the following non-GAAP financial measures: earnings before interest, taxes, depreciation and amortization for each segment (“Reported EBITDA”), Consolidated EBITDA, Adjusted Operating Income and free cash flow. All non-GAAP financial measures are presented on a continuing operations basis. The Company believes that Reported EBITDA improves comparability from period to period by removing the impact of its capital structure (interest and financing expenses), asset base (depreciation and amortization) and tax impacts. The Company believes that free cash flow is an important measure of its ability to repay maturing debt or fund other uses of capital that it believes will enhance shareholder value. The Company is also providing Consolidated EBITDA calculated in accordance with our credit agreement as we believe it provides investors with important information regarding our financial condition and compliance with our obligations under our credit agreement. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to or substitute for, the Company’s financial results prepared in accordance with GAAP. The Company has included, for the periods indicated, a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure. Investors and other readers are encouraged to review the related GAAP financial measures and the reconciliations of the non-GAAP measures to their most directly comparable GAAP measures set forth below. The following is a reconciliation of net loss to Consolidated EBITDA:   Three Months Ended   Six Months Ended   Last Twelve Months   June 30,   June 30,   (in thousands) 2026   2025   2026   2025   June 30, 2026 Net loss $ (245,931 )   $ (20,364 )   $ (286,129 )   $ (81,555 )   $ (346,299 ) Interest expense, net   43,721       45,326       87,308       90,873       177,182   Income tax (benefit) expense   (174 )     (16,749 )     1,619       2,840       (6,693 ) Depreciation and amortization   38,262       36,806       76,783       74,166       155,255   Reported EBITDA   (164,122 )     45,019       (120,419 )     86,324       (20,555 ) Impairment of goodwill   244,006       —       244,006       —       244,006   Loss from discontinued operations, net of tax   2,075       —       2,075       —       2,075   Transaction and integration costs   4,709       5,949       7,523       19,875       19,097   Severance costs   1,114       830       1,654       2,404       4,993   Change in Tax Receivable Agreement liability   (1,219 )     6,864       15,488       6,864       6,878   Optimization project costs   152       691       152       1,722       20,840   Gain on disposition of business, net   (2,874 )     —       (2,874 )     —       (2,874 ) Proforma savings   —       4,352       —       8,704       5,413   Proforma dispositions   1,078       953       1,498       864       612   Other   8,066       14,423       14,680       25,546       38,079   Consolidated EBITDA $ 92,985     $ 79,081     $ 163,783     $ 152,303     $ 318,564   The following is a reconciliation of operating (loss) income to operating income, excluding the goodwill impairment charge, or adjusted operating income:   Three Months Ended   Six Months Ended   June 30,   June 30, (in thousands) 2026   2025   2026   2025 Operating (loss) income $ (201,312 )   $ 19,522   $ (180,871 )   $ 24,285 Impairment of goodwill   244,006       —     244,006       — Adjusted operating income $ 42,694     $ 19,522   $ 63,135     $ 24,285 The following is a reconciliation of net cash (used in) provided by operating activities to free cash flow:   Three Months Ended   Six Months Ended   June 30,   June 30, (in thousands) 2026   2025   2026   2025 Net cash (used in) provided by operating activities $ (4,883 )   $ (13,217 )   $ 40,855     $ 14,398   Proceeds from sale of property and equipment   1,125       804       2,553       1,495   Purchases of property and equipment   (3,213 )     (4,744 )     (10,159 )     (16,650 ) Free cash flow $ (6,971 )   $ (17,157 )   $ 33,249     $ (757 ) Note Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements included in this press release relate to management’s expectations regarding: the Company’s beliefs regarding the Intermodal segment and changing market conditions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. The following is a list of factors, among others, that could cause actual results to differ materially from those contemplated by the forward-looking statements: economic factors such as tariffs, recessions, inflation, higher interest rates and downturns in customer business cycles, the risk of customer loss, the risk of management and employee loss, the creditworthiness of our customers and their ability to pay for services rendered, our inability to maintain our historical growth rate because of a decreased volume of freight or decreased average revenue per pound of freight moving through our network, market acceptance of our service offerings, increasing competition and pricing pressure, our dependence on our senior management team and the potential effects of changes in employee status, seasonal trends, the occurrence of certain weather events, restrictions in our charter and bylaws, and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2025, and as may be identified in our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We caution readers that any forward-looking statement made by us in this press release is based only on information currently available to us and they should not place undue reliance on any forward-looking statement, which reflect management's opinion as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise unless required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805926072/en/

View stock analysis, news, and events for Forward Air Corporation