Forward Air (NASDAQ:FWRD) Releases Quarterly Earnings Results, Misses Expectations By $6.23 EPS

Key Points

• Forward Air missed earnings expectations sharply: The company reported a quarterly loss of $6.38 per share versus the consensus loss estimate of $0.15, despite revenue of $673.04 million exceeding expectations.
• Underlying operations improved: Record revenue and higher EBITDA reflected stronger performance across Expedited Freight, Omni Logistics and Intermodal, while the company sold two non-core Omni businesses for about $27 million.
• A $244 million goodwill impairment weighed heavily on results: The non-cash charge, tied to uncertainty around a major Omni customer, drove a reported operating loss, although management expects to retain at least half of the customer’s roughly $250 million in 2025 revenue.

Forward Air (NASDAQ:FWRD - Get Free Report) posted its quarterly earnings data on Wednesday. The transportation company reported ($6.38) earnings per share for the quarter, missing the consensus estimate of ($0.15) by ($6.23), FiscalAI reports. The company had revenue of $673.04 million during the quarter, compared to the consensus estimate of $634.37 million. Forward Air had a negative return on equity of 41.21% and a negative net margin of 3.71%.

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

• Record quarterly revenue and improved profitability: Operating revenue reached a company-best $673 million, while consolidated EBITDA rose to $93 million from $79 million a year earlier. Adjusted EBITDA increased to $92 million, reflecting improved earnings quality.
• All operating segments showed improvement: Expedited Freight delivered its best results since early 2024, Omni Logistics posted an 11.2% EBITDA margin excluding impairment, and Intermodal achieved its best EBITDA in five quarters after strategic rate increases.
• Management completed the sale of two non-core Omni businesses for approximately $27 million and said the Intermodal divestiture remains on schedule to close by year-end, supporting portfolio simplification and potential deleveraging.
• Forward Air recorded a $244 million non-cash goodwill impairment tied to uncertainty over a major Omni customer’s future revenue, resulting in a reported second-quarter operating loss of $201 million despite $43 million of operating income excluding the charge.
• The company expects to retain at least half of approximately $250 million in 2025 revenue from its major customer, with potential to retain up to 75% and extend the contract by at least two years; however, some services are expected to transition to other providers beginning later this year and continuing through 2027.

Forward Air Trading Up 0.7%

NASDAQ FWRD traded up $0.11 during trading on Wednesday, reaching $15.41. 691,993 shares of the stock traded hands, compared to its average volume of 972,413. Forward Air has a fifty-two week low of $7.86 and a fifty-two week high of $32.00. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 13.98. The firm has a market cap of $487.26 million, a price-to-earnings ratio of -5.26 and a beta of 1.36. The stock's 50-day moving average price is $13.17 and its 200 day moving average price is $18.14.

Wall Street Analyst Weigh In

FWRD has been the subject of a number of recent research reports. Zacks Research upgraded Forward Air from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 7th. Stifel Nicolaus set a $19.00 target price on shares of Forward Air in a research note on Tuesday, July 21st. Susquehanna reduced their target price on shares of Forward Air from $42.00 to $18.00 and set a "positive" rating on the stock in a research note on Friday, May 8th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Forward Air in a research note on Friday, July 17th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $18.50.

Hedge Funds Weigh In On Forward Air

Several institutional investors and hedge funds have recently made changes to their positions in the company. Invesco Ltd. lifted its holdings in shares of Forward Air by 20.8% during the 4th quarter. Invesco Ltd. now owns 268,960 shares of the transportation company's stock valued at $6,724,000 after purchasing an additional 46,240 shares in the last quarter. Garton & Associates Financial Advisors LLC bought a new stake in shares of Forward Air in the fourth quarter worth $36,000. SummitTX Capital L.P. acquired a new position in Forward Air during the fourth quarter worth $4,030,000. One68 Global Capital LLC bought a new position in Forward Air in the fourth quarter valued at $225,000. Finally, Inspire Investing LLC grew its position in Forward Air by 6.0% in the fourth quarter. Inspire Investing LLC now owns 18,636 shares of the transportation company's stock valued at $466,000 after purchasing an additional 1,055 shares in the last quarter. Institutional investors and hedge funds own 97.03% of the company's stock.

Forward Air Company Profile

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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