Quarterly ResultMay 7, 2026, 04:03 PM
Forward Air to Sell Non-Core Assets; Major Customer Transitioning Business
AI Summary
Forward Air reported Q1 2026 financial results, showing improved operating income and strong liquidity. The company announced active discussions with a major customer, representing $250 million in FY2025 revenue, regarding the transition of a significant portion of their business starting early 2027. Following a comprehensive review of strategic alternatives, the Board decided against a full company sale and will instead pursue the divestment of non-core assets, including the Intermodal segment and two smaller Omni businesses, to delever the balance sheet.
Key Highlights
- Board decided to pursue sale of non-core assets (Intermodal, two Omni businesses) after strategic review.
- Major customer, representing $250 million in FY2025 revenue, is transitioning significant business starting early 2027.
- Q1 2026 operating income increased 329.2% to $20.4 million from $4.8 million year-over-year.
- Consolidated revenue for Q1 2026 was $582.0 million, a 5.1% decrease from $613.3 million year-over-year.
- Net loss improved to $(40.2) million from $(61.2) million year-over-year.
- Liquidity increased to $402 million at the end of Q1, including $141 million in cash.
- Cash provided by operating activities improved 65.6% to $45.7 million from $27.6 million year-over-year.
- Expedited Freight segment's Reported EBITDA improved to $28 million from $26 million year-over-year.