Dive Brief:
- Forward Air will sell non-core assets including its intermodal segment and two legacy businesses that operated as part of Omni Logistics, the company announced Thursday. The decision follows a strategic review process announced in January 2025 that included a potential sale of the company.
- With no buyer emerging for the entire business, the company anticipates closing on the sale of the two Omni units in the next 60 to 90 days, while it may take until the end of the year to sell the intermodal business, CFO Jamie Pierson said on a call with analysts.
- “These targeted sales are expected to advance the company’s efforts to delever the balance sheet and further focus its services around continuing to provide service-sensitive logistics to its customers around the world in the air, ocean, ground and contract logistics,” the company said in an earnings release.
Dive Insight:
President and CEO Shawn Stewart said more than a year of extensive negotiations and discussions with multiple parties led to “no actionable proposals for sale of the company.”
While no specifics about the Omni units were disclosed, Stewart said the three targeted segments being sold accounted for about $394 million in revenues in 2025, with intermodal representing more than $230 million.
A cornerstone customer seeking to diversify operations is offloading its business, creating an approximately $250 million revenue hit, and that’s pressuring the business selloffs, according to Forward Air. Stewart said the company continues to have active conversations with the customer “to retain as much of the business as possible,” but noted that business will begin to transition in early 2027.
As Forward Air positions the sale of its intermodal busines, the segment reported Q1 revenue of $53.1 million, down from $62.5 million a year ago. The company said reduced port activity and softness with key customers negatively impacted the segment.
Stewart added that the company’s intermodal business focuses mainly on port and railhead drayage as well as container yard management and storage of containers on chassis.
Although the company is moving forward with selling pieces of its business, it also remains open “and intends to consider all opportunities to enhance shareholder value,” per the announcement.
Forward Air in 2023 sold its final mile business to Hub Group for $262 million. The final mile segment specialized in residential final mile delivery and installation of appliances and other big and bulky goods.
