Forward Air Corporation reported third‑quarter 2025 revenue of $632 million, a 3.7% decline from $656 million in the same period last year. The drop reflects a broader freight‑recession that has reduced tonnage and pressured rates across the industry. Despite the revenue decline, the company’s operating income fell to $15 million from $22.7 million a year earlier, a 33.9% year‑over‑year contraction driven by lower freight volumes and higher operating costs.
The quarter ended with a net loss of $16.3 million, translating to earnings per share of $‑0.52 versus the consensus estimate of a $‑0.08 loss. The miss is largely attributable to the combination of weaker demand, higher fuel and labor costs, and a one‑time charge related to the integration of Omni Logistics. Operating income’s sharp decline, coupled with the loss, underscores the pressure on Forward Air’s core freight business.
Cash and cash equivalents rose to $413 million at September 30, up from $368 million at the end of the prior quarter, giving the company a strong liquidity cushion. Cash flow from operations improved to $53 million, a modest increase over the $51 million used in the same quarter a year earlier, while free‑cash‑flow gained $48.9 million, reflecting the company’s ongoing cost‑control program.
Segment analysis shows that Omni Logistics revenue grew to $340 million, up from $320 million a year earlier, driven by higher utilization of its intermodal and truckload services. In contrast, Expedited Freight revenue fell 5% to $260 million, reflecting a shift in customer mix and tighter pricing. EBITDA margins improved in both segments—Expedited Freight’s margin rose to 11.5% from 10.4%, and Omni Logistics’ margin increased to 9.6% from 8.0%—indicating that pricing power and operational efficiencies are offsetting some of the revenue pressure.
Management highlighted the completion of the “One Ground Network” integration, which unifies U.S. and Canadian operations under a single reporting structure. CEO Shawn Stewart emphasized that the transformation is “increasingly delivering the savings we promised,” noting that cost‑reduction initiatives are generating approximately $12 million in annualized savings. CFO Jamie Pierson added that the company remains focused on rightsizing the business to match current freight demand and that the integration of Omni Logistics is “substantially complete.”
Analysts noted that Forward Air missed both revenue and earnings estimates, with consensus revenue at $656.05 million and EPS at $‑0.08. The miss reflects the company’s exposure to the extended freight recession and the impact of higher operating costs, while the improvement in segment EBITDA margins suggests that the company’s cost‑control and pricing strategies are beginning to take effect.
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