Forward Air reports stronger third-quarter earnings as logistics performance improves
Forward Air Corporation reported higher revenue and a substantial improvement in operating profitability for the third quarter of 2026, supported by growth in its expedited freight and intermodal businesses and increased demand for air and ocean freight services within Omni Logistics.
Consolidated operating revenue reached $673.9 million in the three months ended 30 September, up 6.7% from $631.8 million a year earlier. Operating income rose to $43.9 million from $15 million, while the operating margin expanded to 6.5% from 2.4%. The company also returned to quarterly profitability, reporting net income attributable to Forward Air of $11.4 million compared with a loss of $16.3 million in the corresponding period of 2025.
Consolidated EBITDA, a non-GAAP measure calculated under the company’s term loan agreement, increased by 30.7% to $101.5 million. However, operating cash flow declined to $35.3 million from $52.7 million, indicating that the improvement in reported profitability was not accompanied by a corresponding increase in cash generation.
Expedited freight growth offsets mixed logistics performance
Forward Air’s Expedited Freight segment recorded revenue of $337.4 million, representing a 30.5% year-on-year increase. Operating income advanced to $36.5 million from $19.4 million, supported by higher shipment volumes and improved revenue per shipment. Tonnage increased by 15.6%, while the number of shipments rose by 8%.
The Omni Logistics division reported a more mixed performance. Revenue declined by 8% to $312.3 million, reflecting a substantial reduction in ground transportation revenue. However, air and ocean freight revenue increased by 24.9% to $96.8 million, while contract logistics revenue rose by 12.3% to $109.4 million.
Despite the decline in total revenue, Omni Logistics improved its operating income to $12.2 million from $9.7 million, with the operating margin increasing to 3.9% from 2.9%. The results indicate improved profitability within the business, although its overall revenue base remained below the previous year’s level.
The Intermodal segment also recorded growth, with revenue increasing by 8.8% to $63.5 million and operating income advancing by 26.4% to $5.2 million. Drayage shipments increased by 1.7%, while average drayage revenue per shipment rose by 14.1% to $986.
Shawn Stewart, President and Chief Executive Officer of Forward Air, said the quarterly performance reflected improvements across the company’s transportation and logistics businesses.
“We are pleased to deliver another quarter of very solid results,” said Stewart, noting that the company had recorded consecutive quarters of historically high consolidated revenue.
Nine-month losses and financial position
Despite the stronger third-quarter performance, Forward Air remained loss-making for the first nine months of 2026. The company reported a consolidated net loss of $277 million, compared with a loss of $105.3 million in the corresponding period of 2025.
The nine-month results included a $244 million non-cash goodwill impairment charge recorded in the second quarter against the Omni Logistics business. The impairment followed a reassessment of the unit’s valuation amid concerns over a potential reduction in business from a major customer and a decline in Forward Air’s share price.
Excluding the impairment charge, adjusted operating income for the nine-month period was $107 million, compared with reported operating income of $39.3 million in the corresponding period of 2025. The adjusted figure is a non-GAAP measure and does not eliminate the company’s other financing and balance-sheet pressures.
Forward Air ended September with cash and cash equivalents of $184.9 million, compared with $106 million at the end of 2025. Long-term debt stood at approximately $1.7 billion, while total consolidated shareholders’ equity was negative at $108.9 million.
The company reported total liquidity of $446 million at the end of the third quarter, an improvement of $45 million from the previous quarter. Chief Financial Officer Jamie Pierson said the stronger operational performance had contributed to improved liquidity and the company’s lowest net leverage ratio since the first quarter of 2024.
Forward Air’s latest results point to an improvement in quarterly operating performance, particularly in expedited freight and selected international logistics activities. Nevertheless, the group’s elevated debt, negative consolidated equity and significant year-to-date losses remain important considerations as the company continues its operational and financial recovery.
