Dive Brief:
- Forward Air’s Q3 operating income soared 193% year over year to $44 million, driven by rising demand and strong performance across its business segments, the company said in an earnings release Nov. 9.
- The company’s latest quarterly results marked a quick recovery from its previous quarter where it posted a $201 million operating loss, fueled by a $244 million impairment charge tied to the firm’s Omni Logistics segment.
- President and CEO Shawn Stewart said on a call with analysts that the company’s focus on continuous improvement will help to maintain its momentum. “We plan to continue strengthening our already deep relationships and improving our value proposition,” he said.
Dive Insight:
Forward Air’s efforts to retain a major customer — one that represented about $250 million in revenues in 2025 — are paying off for the company.
The firm initially disclosed in May the potential loss of business from a major customer it had worked with for 20 years. But Forward Air continued talks with the client and by July announced it would retain some of that business for another two years via a non-binding memorandum of understanding.
That non-binding arrangement became a definitive agreement in late October that extends through 2028. Forward Air now expects annual revenue in each contract year to exceed the customer’s $250 million revenue contribution in 2025, according to the October announcement.
While Forward Air will continue working with its longtime customer another two years, it acknowledged work has started on transitioning some of the services provided to the client. Stewart said that work will continue through March.
The customer’s decision to shift away from the logistics firm was part of its operational and supplier diversification initiatives — not due to services provided by Forward Air, Stewart said on the call.
CFO Jamie Pierson said on the call that even as time winds down working with its longtime customer, the client’s continuing reliance on Forward Air services “speaks to the long-standing partnership and the quality of service we provide.”
“The agreement and organic growth exhibited by the customer in 2026 should bring stability to our earnings, profitability and cash flow profile,” Pierson said.
