DALLAS--(BUSINESS WIRE)--Forward Air Corporation (NASDAQ:FWRD) (the “Company,” “Forward,” “we,” “our,” or “us”) today reported financial results for the three months ended September 30, 2026, as presented in the tables below.
“We are pleased to deliver another quarter of very solid results,” said Shawn Stewart, President and Chief Executive Officer. “Consolidated operating revenue improved to $674 million compared to $632 million in the third quarter a year ago and it’s the second quarter in a row that we reported the best revenue results in Forward Air Corporation’s history. Operating income for the quarter almost tripled from last year coming in at $44 million compared to $15 million in the third quarter 2025.
“On a segment basis, we performed well across all aspects of our business and hit on all cylinders. Expedited Freight reported its best operating revenue, operating income and Reported EBITDA in nearly three years. The Omni Logistics segment continues to see an increase in demand for its contract logistics and air and ocean services and reported its best Reported EBITDA margin since the beginning of 2024. The Intermodal segment saw an increase in drayage per shipment contributing to its highest revenue in more than three years.
“These results reflect investments we have made and our focus on execution across the breadth of logistics services we provide around the world. We believe the work that has been done and the resulting foundation that has been established over the past few years has positioned the company to take advantage of current market conditions. We are encouraged by the progress, while also recognizing that there is always more work to be done to maintain momentum. Going forward, we intend to stay focused on delivering best-in-class service, and providing reliable, dependable solutions that exceed our customers’ expectations,” concluded Stewart.
Jamie Pierson, Chief Financial Officer, added, “For the third quarter we reported Consolidated EBITDA, a non-GAAP measure calculated pursuant to our Term Loan Credit Agreement, of $101 million compared to $78 million in the same quarter a year ago and yet another stair step up in performance. On a last twelve months basis, Consolidated EBITDA was $342 million as of the end of the third quarter.
“Following our improved operations and quality of earnings, liquidity also improved to $446 million at the end of the third quarter which was a sequential improvement of $45 million compared to the second quarter 2026, and we reported our lowest net leverage ratio since the first quarter of 2024,” concluded Pierson.
Three Months Ended September 30, | ||||||||||||||
(in thousands, except per share data) | 2026 | 2025 | $ Change | % Change | ||||||||||
Operating revenues | $ | 673,861 | $ | 631,763 | $ | 42,098 | 6.7 | % | ||||||
Operating income | $ | 43,895 | $ | 15,007 | $ | 28,888 | 192.5 | % | ||||||
Operating margin | 6.5% | 2.4% | 410 bps | |||||||||||
Income (loss) from continuing operations | $ | 9,120 | $ | (23,757 | ) | $ | 32,877 | 138.4 | % | |||||
Net income (loss) from continuing operations per diluted share | $ | 0.34 | $ | (0.52 | ) | $ | 0.86 | 165.4 | % | |||||
Net cash provided by operating activities | $ | 35,316 | $ | 52,714 | $ | (17,398 | ) | (33.0 | )% | |||||
Non-GAAP Financial Measures: (1) | ||||||||||||||
Consolidated EBITDA | $ | 101,471 | $ | 77,650 | $ | 23,821 | 30.7 | % | ||||||
Free cash flow | $ | 33,338 | $ | 48,893 | $ | (15,555 | ) | (31.8 | )% | |||||
____________ | ||
(1) | Reconciliation of these non-GAAP financial measures are provided below the financial tables. | |
Review of Financial Results
Forward Air will hold a conference call to discuss third quarter 2026 results on Monday, November 9 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: FWRDQ326.
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 | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||
Operating revenues: | |||||||||||||||
Expedited Freight | $ | 337,407 | $ | 258,554 | $ | 929,176 | $ | 765,631 | |||||||
Omni Logistics | 312,313 | 339,584 | 953,278 | 991,370 | |||||||||||
Intermodal | 63,453 | 58,332 | 176,269 | 179,970 | |||||||||||
Corporate and Eliminations | (39,312 | ) | (24,707 | ) | (129,780 | ) | (73,083 | ) | |||||||
Operating revenues | 673,861 | 631,763 | 1,928,943 | 1,863,888 | |||||||||||
Operating expenses: | |||||||||||||||
Purchased transportation | 343,573 | 316,390 | 963,242 | 923,952 | |||||||||||
Salaries, wages and employee benefits | 122,964 | 131,909 | 368,580 | 419,314 | |||||||||||
Operating leases | 49,775 | 52,150 | 149,740 | 150,448 | |||||||||||
Depreciation and amortization | 37,539 | 37,748 | 114,322 | 111,914 | |||||||||||
Insurance and claims | 13,251 | 12,719 | 40,427 | 43,261 | |||||||||||
Fuel expense | 6,339 | 5,029 | 17,910 | 15,956 | |||||||||||
Other operating expenses | 56,525 | 60,811 | 167,692 | 159,751 | |||||||||||
Impairment of goodwill | — | — | 244,006 | — | |||||||||||
Total operating expenses | 629,966 | 616,756 | 2,065,919 | 1,824,596 | |||||||||||
Operating income (loss): | |||||||||||||||
Expedited Freight | 36,461 | 19,445 | 91,400 | 54,574 | |||||||||||
Omni Logistics | 12,206 | 9,749 | (217,074 | ) | 20,310 | ||||||||||
Intermodal | 5,186 | 4,102 | 12,511 | 14,059 | |||||||||||
Corporate and Eliminations | (9,958 | ) | (18,289 | ) | (23,813 | ) | (49,651 | ) | |||||||
Operating income (loss) | 43,895 | 15,007 | (136,976 | ) | 39,292 | ||||||||||
Other income and expenses: | |||||||||||||||
Interest expense, net | (44,096 | ) | (44,775 | ) | (131,404 | ) | (135,648 | ) | |||||||
Foreign exchange loss | (1,344 | ) | (539 | ) | (212 | ) | (6,114 | ) | |||||||
Other income (expense), net | 10,680 | 6,935 | (4,708 | ) | 383 | ||||||||||
Total other expense | (34,760 | ) | (38,379 | ) | (136,324 | ) | (141,379 | ) | |||||||
Income (loss) from continuing operations before income taxes | 9,135 | (23,372 | ) | (273,300 | ) | (102,087 | ) | ||||||||
Income tax expense | 15 | 385 | 1,634 | 3,225 | |||||||||||
Income (loss) from continuing operations | 9,120 | (23,757 | ) | (274,934 | ) | (105,312 | ) | ||||||||
Loss from discontinued operations, net of tax | — | — | (2,075 | ) | — | ||||||||||
Net income (loss) | 9,120 | (23,757 | ) | (277,009 | ) | (105,312 | ) | ||||||||
Net loss attributable to noncontrolling interest | (2,259 | ) | (7,507 | ) | (46,769 | ) | (25,842 | ) | |||||||
Net income (loss) attributable to Forward Air | $ | 11,379 | $ | (16,250 | ) | $ | (230,240 | ) | $ | (79,470 | ) | ||||
Basic net income (loss) per share attributable to Forward Air: | |||||||||||||||
Continuing operations | $ | 0.34 | $ | (0.52 | ) | $ | (7.01 | ) | $ | (2.60 | ) | ||||
Discontinued operations | — | — | (0.05 | ) | — | ||||||||||
Net income (loss) per basic share | $ | 0.34 | $ | (0.52 | ) | $ | (7.06 | ) | $ | (2.60 | ) | ||||
Diluted net income (loss) per share attributable to Forward Air: | |||||||||||||||
Continuing operations | $ | 0.34 | $ | (0.52 | ) | $ | (7.01 | ) | $ | (2.60 | ) | ||||
Discontinued operations | — | — | (0.05 | ) | — | ||||||||||
Net income (loss) per diluted share | $ | 0.34 | $ | (0.52 | ) | $ | (7.06 | ) | $ | (2.60 | ) | ||||
Expedited Freight Segment Information and Operating Statistics | ||||||||||||||||||
(unaudited and in thousands, except per shipment and per hundredweight) | ||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
2026 | % of
| 2025 | % of
| $ Change | % Change | |||||||||||||
Operating revenues: | ||||||||||||||||||
Network (1) | $ | 242,042 | 71.7 | % | $ | 194,035 | 75.0 | % | $ | 48,007 | 24.7 | % | ||||||
Truckload | 67,540 | 20.0 | % | 42,401 | 16.4 | % | 25,139 | 59.3 | % | |||||||||
Other | 27,825 | 8.3 | % | 22,118 | 8.6 | % | 5,707 | 25.8 | % | |||||||||
Total operating revenues | 337,407 | 100.0 | % | 258,554 | 100.0 | % | 78,853 | 30.5 | % | |||||||||
Operating expenses: | ||||||||||||||||||
Purchased transportation | 179,504 | 53.2 | % | 125,265 | 48.4 | % | 54,239 | 43.3 | % | |||||||||
Salaries, wages and employee benefits | 56,370 | 16.7 | % | 54,403 | 21.0 | % | 1,967 | 3.6 | % | |||||||||
Operating leases | 17,577 | 5.2 | % | 15,797 | 6.1 | % | 1,780 | 11.3 | % | |||||||||
Depreciation and amortization | 8,563 | 2.5 | % | 10,160 | 3.9 | % | (1,597 | ) | (15.7 | )% | ||||||||
Insurance and claims | 10,355 | 3.1 | % | 10,415 | 4.0 | % | (60 | ) | (0.6 | )% | ||||||||
Fuel expense | 3,343 | 1.0 | % | 2,155 | 0.8 | % | 1,188 | 55.1 | % | |||||||||
Other operating expenses | 25,234 | 7.5 | % | 20,914 | 8.3 | % | 4,320 | 20.7 | % | |||||||||
Total operating expenses | 300,946 | 89.2 | % | 239,109 | 92.5 | % | 61,837 | 25.9 | % | |||||||||
Operating income | $ | 36,461 | 10.8 | % | $ | 19,445 | 7.5 | % | $ | 17,016 | 87.5 | % | ||||||
____________ | ||
| (1) | Network revenue is comprised of linehaul, pickup and/or delivery, and fuel surcharge revenue, and excludes accessorial and Truckload revenue. | |
Three Months Ended | ||||||||
September 30, | ||||||||
2026 | 2025 | % Change | ||||||
Business days | 64 | 64 | — | % | ||||
Tonnage (1) | ||||||||
Total pounds | 707,893 | 612,449 | 15.6 | % | ||||
Pounds per day | 11,061 | 9,570 | 15.6 | % | ||||
Shipments (1) | ||||||||
Total shipments | 787 | 729 | 8.0 | % | ||||
Shipments per day | 12.3 | 11.4 | 7.9 | % | ||||
Weight per shipment | 899 | 841 | 6.9 | % | ||||
Revenue per hundredweight (2) | $ | 34.18 | $ | 31.70 | 7.8 | % | ||
Revenue per hundredweight, ex fuel (2) | $ | 24.34 | $ | 24.98 | (2.6 | )% | ||
Revenue per shipment (2) | $ | 307.51 | $ | 266.48 | 15.4 | % | ||
Revenue per shipment, ex fuel (2) | $ | 219.01 | $ | 209.99 | 4.3 | % | ||
____________ | ||
| (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 September 30, | |||||||||||||||||||
2026 | % of
| 2025 | % of
| $ Change | % Change | ||||||||||||||
Operating revenues: | |||||||||||||||||||
Ground | $ | 106,043 | 34.0 | % | $ | 164,591 | 48.5 | % | $ | (58,548 | ) | (35.6 | )% | ||||||
Contract Logistics | 109,436 | 35.0 | % | 97,464 | 28.7 | % | 11,972 | 12.3 | % | ||||||||||
Air and Ocean | 96,834 | 31.0 | % | 77,529 | 22.8 | % | 19,305 | 24.9 | % | ||||||||||
Total operating revenues | 312,313 | 100.0 | % | 339,584 | 100.0 | % | (27,271 | ) | (8.0 | )% | |||||||||
Operating expenses: | |||||||||||||||||||
Purchased transportation | 179,156 | 57.4 | % | 196,312 | 57.8 | % | (17,156 | ) | (8.7 | )% | |||||||||
Salaries, wages and employee benefits | 46,780 | 15.0 | % | 58,373 | 17.2 | % | (11,593 | ) | (19.9 | )% | |||||||||
Operating leases | 25,221 | 8.1 | % | 29,979 | 8.8 | % | (4,758 | ) | (15.9 | )% | |||||||||
Depreciation and amortization | 23,124 | 7.4 | % | 22,832 | 6.7 | % | 292 | 1.3 | % | ||||||||||
Insurance and claims | 930 | 0.3 | % | (59 | ) | — | % | 989 | nm | ||||||||||
Fuel expense | 461 | 0.1 | % | 874 | 0.3 | % | (413 | ) | (47.3 | )% | |||||||||
Other operating expenses | 24,435 | 7.8 | % | 21,524 | 6.3 | % | 2,911 | 13.5 | % | ||||||||||
Total operating expenses | 300,107 | 96.1 | % | 329,835 | 97.1 | % | (29,728 | ) | (9.0 | )% | |||||||||
Operating income | $ | 12,206 | 3.9 | % | $ | 9,749 | 2.9 | % | $ | 2,457 | 25.2 | % | |||||||
____________ |
nm = not meaningful |
Intermodal Segment Information | ||||||||||||||||||
(unaudited and in thousands) | ||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
2026 | % of
| 2025 | % of
| $ Change | % Change | |||||||||||||
Operating revenues | $ | 63,453 | 100.0 | % | $ | 58,332 | 100.0 | % | $ | 5,121 | 8.8 | % | ||||||
Operating expenses: | ||||||||||||||||||
Purchased transportation | 24,225 | 38.2 | % | 19,331 | 33.1 | % | 4,894 | 25.3 | % | |||||||||
Salaries, wages and employee benefits | 13,055 | 20.6 | % | 14,198 | 24.3 | % | (1,143 | ) | (8.1 | )% | ||||||||
Operating leases | 6,867 | 10.8 | % | 6,288 | 10.8 | % | 579 | 9.2 | % | |||||||||
Depreciation and amortization | 3,861 | 6.1 | % | 4,382 | 7.5 | % | (521 | ) | (11.9 | )% | ||||||||
Insurance and claims | 2,999 | 4.7 | % | 2,900 | 5.0 | % | 99 | 3.4 | % | |||||||||
Fuel expense | 2,535 | 4.0 | % | 1,999 | 3.4 | % | 536 | 26.8 | % | |||||||||
Other operating expenses | 4,725 | 7.4 | % | 5,132 | 8.9 | % | (407 | ) | (7.9 | )% | ||||||||
Total operating expenses | 58,267 | 91.8 | % | 54,230 | 93.0 | % | 4,037 | 7.4 | % | |||||||||
Operating income | $ | 5,186 | 8.2 | % | $ | 4,102 | 7.0 | % | $ | 1,084 | 26.4 | % | ||||||
Three Months Ended | ||||||||
September 30, | ||||||||
2026 | 2025 | % Change | ||||||
Drayage shipments | 62,028 | 60,976 | 1.7 | % | ||||
Drayage revenue per shipment | $ | 986 | $ | 864 | 14.1 | % | ||
Forward Air Corporation | |||||||
Condensed Consolidated Balance Sheets | |||||||
(unaudited and in thousands) | |||||||
September 30, 2026 | December 31, 2025 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 184,932 | $ | 105,996 | |||
Accounts receivable, net | 392,442 | 343,559 | |||||
Other receivables | 4,172 | 6,147 | |||||
Prepaid expenses | 26,102 | 28,045 | |||||
Other current assets | 41,526 | 37,254 | |||||
Total current assets | 649,174 | 521,001 | |||||
Property and equipment, net | 264,087 | 297,882 | |||||
Operating lease right-of-use assets | 347,006 | 412,535 | |||||
Goodwill | 278,706 | 522,712 | |||||
Other intangible assets, net | 836,815 | 906,791 | |||||
Other long-term assets | 56,696 | 58,023 | |||||
Total assets | $ | 2,432,484 | $ | 2,718,944 | |||
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 124,601 | $ | 121,752 | |||
Accrued expenses | 149,584 | 114,422 | |||||
Other current liabilities | 65,601 | 69,130 | |||||
Current portion of operating lease liabilities | 104,778 | 107,026 | |||||
Current portion of finance lease liabilities | 14,464 | 15,995 | |||||
Total current liabilities | 459,028 | 428,325 | |||||
Long-term debt | 1,696,511 | 1,687,248 | |||||
Liabilities under Tax Receivable Agreement | 26,794 | 11,548 | |||||
Operating lease liabilities, less current portion | 265,636 | 327,011 | |||||
Finance lease liabilities, less current portion | 14,632 | 22,387 | |||||
Deferred income taxes | 24,162 | 27,221 | |||||
Other long-term liabilities | 54,662 | 53,540 | |||||
Total liabilities | 2,541,425 | 2,557,280 | |||||
Shareholders' (deficit) equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 337 | 313 | |||||
Additional paid-in capital | 578,788 | 559,551 | |||||
Accumulated deficit | (679,001 | ) | (447,100 | ) | |||
Accumulated other comprehensive income | 140 | 580 | |||||
Total Forward Air shareholders' (deficit) equity | (99,736 | ) | 113,344 | ||||
Noncontrolling interest | (9,205 | ) | 48,320 | ||||
Total shareholders' (deficit) equity | (108,941 | ) | 161,664 | ||||
Total liabilities and shareholders' (deficit) equity | $ | 2,432,484 | $ | 2,718,944 | |||
Forward Air Corporation | |||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||
(unaudited and in thousands) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||
OPERATING ACTIVITIES: | |||||||||||||||
Net income (loss) | $ | 9,120 | $ | (23,757 | ) | $ | (277,009 | ) | $ | (105,312 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 37,539 | 37,748 | 114,322 | 111,914 | |||||||||||
Impairment of goodwill | — | — | 244,006 | — | |||||||||||
Share-based compensation expense | 2,967 | 3,380 | 6,999 | 11,049 | |||||||||||
Change in Tax Receivable Agreement liability | — | (6,028 | ) | 15,488 | 836 | ||||||||||
Deferred income tax benefit | (195 | ) | 4,202 | (2,969 | ) | (523 | ) | ||||||||
Non-cash interest expense | 3,736 | 3,361 | 10,963 | 10,207 | |||||||||||
Gains on sales of businesses | (6,979 | ) | — | (10,628 | ) | — | |||||||||
Other | 1,195 | (112 | ) | 5,386 | 2,287 | ||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable | (36,237 | ) | 1,054 | (72,257 | ) | (15,891 | ) | ||||||||
Other receivables | 2,676 | (582 | ) | 2,177 | (273 | ) | |||||||||
Other current and noncurrent assets | (6,256 | ) | (5,337 | ) | (5,324 | ) | 4,382 | ||||||||
Accounts payable, accrued expenses and other liabilities | 27,750 | 38,785 | 45,017 | 48,436 | |||||||||||
Net cash provided by operating activities | 35,316 | 52,714 | 76,171 | 67,112 | |||||||||||
INVESTING ACTIVITIES: | |||||||||||||||
Proceeds from sale of property and equipment | 1,104 | 294 | 3,657 | 1,789 | |||||||||||
Purchases of property and equipment | (3,082 | ) | (4,115 | ) | (13,241 | ) | (20,765 | ) | |||||||
Proceeds from sales of businesses, net | 16,248 | — | 24,987 | — | |||||||||||
Other | — | (31 | ) | — | — | ||||||||||
Net cash provided by (used in) investing activities | 14,270 | (3,852 | ) | 15,403 | (18,976 | ) | |||||||||
FINANCING ACTIVITIES: | |||||||||||||||
Repayments of finance lease liabilities | (4,134 | ) | (3,610 | ) | (12,508 | ) | (12,986 | ) | |||||||
Proceeds from borrowings under credit facility | — | — | — | 85,000 | |||||||||||
Repayments of borrowings under credit facility | — | — | — | (85,000 | ) | ||||||||||
Proceeds from common stock issued under employee stock purchase plan | — | — | 734 | 434 | |||||||||||
Payment of minimum tax withholdings on share-based awards and other | (36 | ) | (52 | ) | (841 | ) | (1,053 | ) | |||||||
Net cash used in financing activities | (4,170 | ) | (3,662 | ) | (12,615 | ) | (13,605 | ) | |||||||
Effect of exchange rate changes on cash | 68 | (153 | ) | (23 | ) | 557 | |||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 45,484 | 45,047 | 78,936 | 35,088 | |||||||||||
Cash and cash equivalents at beginning of period | 139,448 | 95,307 | 105,996 | 105,266 | |||||||||||
Cash and cash equivalents at end of period | $ | 184,932 | $ | 140,354 | $ | 184,932 | $ | 140,354 | |||||||
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.
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 income (loss) to Reported EBITDA and Consolidated EBITDA:
Three Months Ended
| Nine Months Ended
| Last Twelve Months | |||||||||||||||||
(in thousands) | 2026 | 2025 | 2026 | 2025 | September 30, 2026 | ||||||||||||||
Net income (loss) | $ | 9,120 | $ | (23,757 | ) | $ | (277,009 | ) | $ | (105,312 | ) | $ | (313,422 | ) | |||||
Interest expense, net | 44,096 | 44,775 | 131,404 | 135,648 | 176,503 | ||||||||||||||
Income tax expense (benefit) | 15 | 385 | 1,634 | 3,225 | (7,063 | ) | |||||||||||||
Depreciation and amortization | 37,539 | 37,748 | 114,322 | 111,914 | 155,046 | ||||||||||||||
Reported EBITDA | 90,770 | 59,151 | (29,649 | ) | 145,475 | 11,064 | |||||||||||||
Impairment of goodwill | — | — | 244,006 | — | 244,006 | ||||||||||||||
Loss from discontinued operations, net of tax | — | — | 2,075 | — | 2,075 | ||||||||||||||
Transaction and integration costs | 3,685 | 5,852 | 11,208 | 25,751 | 16,930 | ||||||||||||||
Severance costs | 1,088 | 2,769 | 2,742 | 5,173 | 3,312 | ||||||||||||||
Change in Tax Receivable Agreement liability | — | (6,028 | ) | 15,488 | 836 | 12,905 | |||||||||||||
Optimization project costs | 199 | 1,010 | 264 | 2,732 | 20,029 | ||||||||||||||
Gains on disposition of businesses, net | (6,779 | ) | — | (9,653 | ) | — | (9,653 | ) | |||||||||||
Proforma savings | 657 | 4,063 | 1,971 | 12,767 | 3,978 | ||||||||||||||
Proforma dispositions | 1,264 | (1,096 | ) | 878 | (2,152 | ) | 269 | ||||||||||||
Other | 10,587 | 11,929 | 25,354 | 37,475 | 36,737 | ||||||||||||||
Consolidated EBITDA | $ | 101,471 | $ | 77,650 | $ | 264,684 | $ | 228,057 | $ | 341,652 | |||||||||
The following is a reconciliation of operating income (loss) to operating income, excluding the goodwill impairment charge, or adjusted operating income:
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
(in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||
Operating income (loss) | $ | 43,895 | $ | 15,007 | $ | (136,976 | ) | $ | 39,292 | |||
Impairment of goodwill | — | — | 244,006 | — | ||||||||
Adjusted operating income | $ | 43,895 | $ | 15,007 | $ | 107,030 | $ | 39,292 | ||||
The following is a reconciliation of net cash provided by operating activities to free cash flow:
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
Net cash provided by operating activities | $ | 35,316 | $ | 52,714 | $ | 76,171 | $ | 67,112 | |||||||
Proceeds from sale of property and equipment | 1,104 | 294 | 3,657 | 1,789 | |||||||||||
Purchases of property and equipment | (3,082 | ) | (4,115 | ) | (13,241 | ) | (20,765 | ) | |||||||
Free cash flow | $ | 33,338 | $ | 48,893 | $ | 66,587 | $ | 48,136 | |||||||
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 tightening supply environment, 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, the 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.