Forward Air (NASDAQ:FWRD) Issues Earnings Results, Misses Expectations By $0.74 EPS

Key Points

• Forward Air missed earnings and revenue estimates for the quarter, reporting EPS of ($1.09) versus expectations of ($0.35) and revenue of $582.05 million versus the $620.23 million forecast.
• Management said it is in talks with a large customer that represented about $250 million in 2025 spend, and some of that business could shift to other providers starting in early 2027, raising concern about future revenue.
• The company is also pursuing a strategic shift by selling non-core assets, including the Intermodal segment and smaller legacy businesses, to delever the balance sheet and focus on core logistics operations.

Forward Air (NASDAQ:FWRD - Get Free Report) issued its earnings results on Thursday. The transportation company reported ($1.09) earnings per share for the quarter, missing analysts' consensus estimates of ($0.35) by ($0.74), Zacks reports. The business had revenue of $582.05 million for the quarter, compared to the consensus estimate of $620.23 million. Forward Air had a negative return on equity of 37.50% and a negative net margin of 3.71%.The company's quarterly revenue was down 5.1% on a year-over-year basis. During the same quarter in the previous year, the business posted ($1.68) earnings per share.

Here are the key takeaways from Forward Air's conference call:

• The company is in discussions with one large customer whose 2025 spend was about $250 million; management expects a significant portion may transition to other providers starting in early 2027, though they say this is a supplier-diversification decision (not service-related) and see no material 2026 impact so far.
• As part of its strategic review, Forward Air is pivoting to sell non-core assets — the Intermodal segment plus two smaller legacy Omni businesses (about $394 million of 2025 revenue) — to delever the balance sheet and sharpen focus on core service-sensitive logistics.
• First-quarter improvement included operating income of $20 million (vs. $5 million a year ago), consolidated EBITDA of $70 million (adjusted EBITDA also $70M), LTM consolidated EBITDA of $304M, and strong liquidity of $402 million (including $141M cash).
• The Intermodal segment remains challenged from reduced port activity and international trade softness, with Q1 Intermodal EBITDA down to $5 million (10.1% margin) from $10M (16.4%) a year ago.
• Management sees early signs of freight-market recovery — tightening capacity, higher spot rates and rising tender rejections, and improving PMIs — but warns geopolitical tensions and fuel-price risks could dampen demand and is prioritizing pricing for profitability over volume.

Forward Air Stock Down 43.0%

NASDAQ FWRD traded down $7.46 during trading on Friday, reaching $9.87. 9,868,307 shares of the company's stock were exchanged, compared to its average volume of 884,265. Forward Air has a fifty-two week low of $9.50 and a fifty-two week high of $32.47. The firm has a market capitalization of $320.28 million, a PE ratio of -3.37 and a beta of 1.59. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 10.58. The company's fifty day simple moving average is $19.70 and its 200-day simple moving average is $22.95.

Key Forward Air News

Here are the key news stories impacting Forward Air this week:

• Positive Sentiment: Susquehanna kept a positive view on Forward Air (FWRD), even while cutting its price target from $42 to $18, which suggests some analysts still see recovery potential from current levels.
• Neutral Sentiment: Investors are reviewing the company’s Q1 2026 earnings transcript and conference call materials for more detail on management’s outlook and any turnaround plans. Forward Air (FWRD) Q1 2026 Earnings Transcript
• Neutral Sentiment: A shareholder investigation by Johnson Fistel into possible securities-law claims may add legal overhang, but its immediate stock impact is still uncertain. Forward Air Corporation Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information About Potentially Recovering Their Losses
• Negative Sentiment: Forward Air (FWRD) posted a much larger-than-expected Q1 loss and missed revenue estimates, reinforcing concerns that profitability remains under pressure. Forward Air (FWRD) Reports Q1 Loss, Misses Revenue Estimates
• Negative Sentiment: The biggest driver for the selloff appears to be management’s disclosure of a potential major customer loss, which raised fears about future revenue and margins. Forward Air flags customer loss, stock plummets

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on FWRD. Zacks Research cut shares of Forward Air from a "hold" rating to a "strong sell" rating in a report on Tuesday, January 13th. Stifel Nicolaus set a $17.00 price objective on shares of Forward Air in a research note on Friday. Susquehanna reduced their target price on Forward Air from $42.00 to $18.00 and set a "positive" rating for the company in a report on Friday. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Forward Air in a research report on Tuesday, April 21st. Three investment analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Forward Air currently has an average rating of "Hold" and a consensus target price of $17.50.

Institutional Investors Weigh In On Forward Air

Institutional investors have recently modified their holdings of the stock. Garton & Associates Financial Advisors LLC acquired a new stake in shares of Forward Air during the 4th quarter valued at $36,000. Tower Research Capital LLC TRC boosted its stake in shares of Forward Air by 207.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,600 shares of the transportation company's stock valued at $64,000 after buying an additional 1,753 shares during the period. Kestra Advisory Services LLC acquired a new stake in shares of Forward Air during the 4th quarter valued at $74,000. Lazard Asset Management LLC acquired a new stake in shares of Forward Air during the 2nd quarter valued at $107,000. Finally, Raymond James Financial Inc. acquired a new stake in shares of Forward Air during the 2nd quarter valued at $175,000. Institutional investors and hedge funds own 97.03% of the company's stock.

About Forward Air

Forward Air Corporation is a leading North American provider of expedited ground transportation and related logistics services, specializing in time-sensitive shipments. The company offers a comprehensive suite of solutions including less-than-truckload (LTL) expedited freight, consolidation and distribution services, container drayage, and final-mile delivery. By integrating transportation management with warehousing, inventory control, and technology-driven tracking, Forward Air supports customers across a variety of industries such as manufacturing, retail, automotive and chemicals.

Founded in 1981 and headquartered in Greeneville, Tennessee, Forward Air has developed a broad network of service centers, terminals and rail ramps throughout the United States, Canada and Puerto Rico.

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