Dive Brief:
- Forward Air reported a Q4 net loss of $28.3 million, which the CEO attributed to less-than-favorable freight market conditions, according to a Feb. 23 earnings release.
- The loss, however, was lower than its Q4 net loss a year ago of $36.4 million as the company’s cost-cutting efforts and integration of Omni Logistics led to operational improvements, the company said.
- President and CEO Shawn Stewart said the company is focused on what it can control, “including aligning our cost structure to match demand and executing our transformation strategy.”
Dive Insight:
Since its acquisition of Omni Logistics in 2024, Forward Air has spent the last year integrating operations, which executives expected in time would lead to cost savings and a return to positive cash flow. Quarterly operating revenues fell 0.3% year over year to $631.2 million, per the release.
Stewart said during a call with analysts that the past year was spent unifying the company’s domestic operation and aligning the business into “a more cohesive, agile and scalable operating model.” He added that the company “is well positioned once the freight environment improves.”
“It was a great year and we remain extremely confident in our strategy,” Stewart said on the call.
Stewart said in the earnings release that revenues in the Omni segment increased $34 million YoY to $360 million, driven by strong demand for its diversified service offerings, which includes express air service, customs brokerage and contract logistics.
“We delivered solid results in 2025 despite less than favorable freight market conditions,” he said.
CFO Jamie Pierson said on the call with analysts that the Omni Logistics segment in Q4 reached its highest revenues ever. Reported EBITDA in Q4 improved to $36 million compared to $32 million a year ago.
Pierson added that Omni Logistics’ margin increased 360 basis points to 9.2% in 2025 compared to 5.6% in 2024.
Despite prolonged weak freight conditions, Forward Air’s expedited segment saw mostly consistent shipments per day though the first half of 2025, which tapered off in the second half of the year, according to its Q4 earnings presentation. However, in that time, weight per shipment showed consistency, as did revenues per shipment, which in Q1 was $208 million, then rose another $1 million in Q2, before hitting $210 million in Q3 and tapering to $206 million in Q4.
Meanwhile, the company continues to make progress on its strategic review of its operations, which could include a sale of the business. Stewart said the company is nearing the conclusion of its review, noting that the difficult logistics environment contributed to the length of the process. He did not say when the review would be completed.
