Core Insights - Forward Air (FWRD) is projected to report a quarterly loss of -$0.17 per share, marking a significant increase of 99.3% compared to the same period last year [1] - Analysts forecast revenues of $637.67 million, reflecting a slight decline of 0.9% year over year [1] - There has been no revision in the consensus EPS estimate for the quarter over the past 30 days, indicating stability in analysts' projections [1] Revenue Estimates - 'Operating Revenues- Expedited Freight' is expected to be $271.50 million, showing a year-over-year decline of 6.8% [4] - 'Operating Revenues- Omni Logistics' is projected to reach $331.60 million, indicating a year-over-year increase of 6.3% [4] - 'Operating Revenues- Intermodal' is anticipated to be $64.30 million, reflecting a year-over-year growth of 8.4% [4] Stock Performance - Forward Air shares have increased by 8.1% over the past month, outperforming the Zacks S&P 500 composite, which rose by 1.2% [5] - The company holds a Zacks Rank 2 (Buy), suggesting it is expected to outperform the overall market in the near future [5]

Company Overview - Forward Air (FWRD) shares increased by 9.5% to $30.45 in the last trading session, with a notable trading volume, and have gained 24.3% over the past four weeks [1] - The company is a contractor for the air cargo industry and is expected to report a quarterly loss of $0.17 per share, reflecting a year-over-year change of +99.3%, with revenues projected at $637.67 million, down 0.9% from the previous year [2] Earnings Estimates - The consensus EPS estimate for Forward Air has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting positive sentiment among analysts [4] Industry Context - Forward Air operates within the Zacks Transportation - Truck industry, where another company, ArcBest (ARCB), saw a 1.7% increase in its stock price, closing at $83.29, with a 10.4% return over the past month [4] - ArcBest's consensus EPS estimate has decreased by 5.7% over the past month to $1.46, representing a year-over-year change of -26.3%, and it currently holds a Zacks Rank of 3 (Hold) [5]

Core Insights - The article introduces Alps Capital as a new contributing analyst for Seeking Alpha, encouraging others to share investment ideas for publication and potential earnings [1] Group 1 - The financial analyst has a Master's degree in Corporate and Market Finance and focuses on identifying resilient and undervalued companies across various sectors, with a particular interest in the Energy sector [2] - The analyst emphasizes the importance of disciplined analysis, downside protection, and long-term thinking in a volatile market [2]

Core Insights - Forward Air (FWRD) reported revenue of $613.28 million for the quarter ended March 2025, reflecting a year-over-year increase of 13.2% [1] - The company's EPS was -$1.59, a decline from -$0.64 in the same quarter last year, indicating a significant drop in profitability [1] - Revenue fell short of the Zacks Consensus Estimate of $618 million by 0.76%, while the EPS was below the consensus estimate of -$0.47 by 238.30% [1] Financial Performance - Operating Revenues from Expedited Freight were reported at $249.38 million, which is 8.8% lower than the average estimate of $258.90 million [4] - Operating Revenues from Eliminations and other operations were -$22.20 million, slightly worse than the average estimate of -$20 million [4] - Operating Revenues from Omni Logistics reached $323.47 million, exceeding the estimated $314.20 million [4] - Operating Revenues from Intermodal were $62.49 million, surpassing the average estimate of $59.40 million, with a year-over-year increase of 11% [4] Stock Performance - Forward Air's shares have increased by 59.5% over the past month, significantly outperforming the Zacks S&P 500 composite, which rose by 10.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Group 1 - Forward Air reported a quarterly loss of $1.59 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.47, and compared to a loss of $0.64 per share a year ago, indicating an earnings surprise of -238.30% [1] - The company posted revenues of $613.28 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.76%, and this represents an increase from year-ago revenues of $541.81 million [2] - Forward Air shares have declined approximately 48.1% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] Group 2 - The earnings outlook for Forward Air is currently unfavorable, with a Zacks Rank of 4 (Sell), suggesting that the shares are expected to underperform the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $650.93 million, and for the current fiscal year, it is -$0.35 on revenues of $2.63 billion [7] - The Transportation - Truck industry, to which Forward Air belongs, is currently ranked in the bottom 1% of over 250 Zacks industries, indicating a challenging environment for the company [8]

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $613 million for the first quarter of 2025, representing a 13.2% increase or $71 million compared to the same quarter last year, primarily driven by the Omni acquisition [18] - Consolidated EBITDA was $69 million, consistent with the previous quarter and up from $63 million a year ago, resulting in an EBITDA margin of 11.2% [10][20] - Positive cash flow from operations was reported at $28 million, a significant improvement from cash used in operations of $52 million a year ago [21][22] Business Line Data and Key Metrics Changes - Revenue from the expedited freight segment decreased by $24 million or 8.8% year-over-year to $249 million, driven by a 10.9% decrease in tonnage per day [19] - Omni Logistics revenue increased by $99 million to $323 million compared to the previous year, while intermodal revenue increased by $6 million or 11% to $62 million [20] - The expedited freight segment achieved a reported EBITDA margin of 10.4%, up almost 400 basis points from the previous quarter [11] Market Data and Key Metrics Changes - Approximately 88% of the company's revenue is attributable to customers billed in the United States, with 7% from the Asia Pacific region and 4% from other regions [15] - The company estimates that 70% of its business comes from ground transportation in North America, with air and ocean forwarding contributing about 12% [13] Company Strategy and Development Direction - The company aims to double its revenue from $2.5 billion to $5 billion over the next five years, contingent on a return to a normal freight environment [9] - Management is focused on integrating legacy companies and streamlining operations to enhance growth potential [8] - The company is committed to increasing transparency and improving service quality to drive customer retention and profitability [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the global logistics market but expressed confidence in the company's ability to navigate these uncertainties and capitalize on growth opportunities [9][28] - The leadership team emphasized the importance of focusing on employees and customers to drive shareholder value [29] Other Important Information - The company is undergoing a strategic alternatives review process, with discussions ongoing with potentially interested parties [26] - Management highlighted the importance of cash conversion and liquidity, ending the quarter with $393 million in total liquidity [22][24] Q&A Session Summary Question: What is the exposure of expedited freight to international markets? - Management indicated that less than 10% of expedited freight revenue is tied to inbound China or Asian volumes, with a buffer in place for estimates [33][34] Question: Is there a pull forward in the numbers this quarter? - Management noted a slight uptick towards the end of March but could not definitively attribute it to pull forward versus seasonal projects [36] Question: What are the expectations for pricing performance in expedited freight? - Management expects a step-up in pricing performance in Q2 as corrective actions take full effect [41] Question: How does the company view competition in premium LTL services? - Management believes that while there are competitors, the company has a superior network and service quality, allowing it to maintain competitive pricing [95][96] Question: What is the impact of lower West Coast imports on the intermodal business? - Management stated that the intermodal team is focused on the East Coast and Gulf, and they expect to benefit from increased East Coast imports [81]

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $613 million for Q1 2025, a 13.2% increase or $71 million compared to the same quarter last year, primarily driven by the Omni acquisition [16][18] - Consolidated EBITDA was $69 million, representing an 11.2% margin, compared to $63 million or 10.2% margin a year ago [18][20] - Positive cash flow from operations was $28 million, a $79 million improvement from the previous year [19][20] Business Line Data and Key Metrics Changes - Revenue from the expedited freight segment decreased by $24 million or 8.8% to $249 million year-over-year, driven by a 10.9% decrease in tonnage per day [17] - Omni Logistics revenue increased by $99 million to $323 million compared to the previous year, while intermodal revenue increased by $6 million or 11% to $62 million [18] - The expedited freight segment achieved a 10.4% EBITDA margin, up almost 400 basis points from the previous quarter [10] Market Data and Key Metrics Changes - Approximately 88% of the company's revenue is attributable to customers billed in the United States, with 7% from Asia Pacific and 4% from other regions [13] - The company noted that the quality of service provided will drive customer retention and growth, which is crucial in the current competitive landscape [11] Company Strategy and Development Direction - The company aims to double its revenue from $2.5 billion to $5 billion over the next five years, contingent on returning to a normal freight environment [8] - A focus on integrating legacy companies and streamlining operations is underway to enhance growth potential [7][8] - The company is committed to improving transparency in its financial reporting and operations [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the current macroeconomic environment but expressed confidence in the company's ability to execute its strategy and enhance shareholder value [25][26] - The leadership team is focused on long-term profitability and is making necessary investments to improve operational characteristics [56] Other Important Information - The company is undergoing a strategic alternatives review process, with discussions ongoing with potentially interested parties [23] - Management emphasized the importance of customer relationships and cross-selling services to drive organic growth [58] Q&A Session Summary Question: Does expedited freight have more exposure to international markets? - Management indicated that less than 10% of expedited freight revenue is tied to inbound China or Asian volumes, with a buffer in place for estimates [31][32] Question: Is there a pull forward in numbers this quarter? - Management noted a significant uptick in the last two weeks of March but could not definitively attribute it to pull forward [34] Question: What are the expectations for pricing performance in expedited freight? - Management expects a step-up in pricing performance in Q2 as corrective actions take full effect [39] Question: How is the competition in premium LTL services? - Management stated that while there are competitors, the company focuses on quality service and competitive pricing rather than engaging in aggressive price competition [92] Question: What is the impact of lower West Coast imports on intermodal business? - Management confirmed that the intermodal team is well-positioned to benefit from increased East Coast imports and is not heavily reliant on West Coast traffic [80]

Revenue Performance - Operating revenues increased by $71,468, or 13.2%, to $613,281 for the three months ended March 31, 2025, compared to $541,813 for the same period in 2024[79] - The Omni Logistics segment contributed an increase of $98,632 in operating revenues due to an additional twenty-four days included in 2025 compared to 2024[79] - The Expedited Freight segment experienced a revenue decline of $23,914, or 8.8%, to $249,381 for the three months ended March 31, 2025[78] - The Intermodal segment reported an increase in revenue of $6,200, or 11.0%, to $62,492 for the three months ended March 31, 2025[78] - Operating revenue for Omni Logistics increased by $98,632, or 43.9%, to $323,470 for the three months ended March 31, 2025, from $224,838 in 2024[96] Operating Expenses - Operating expenses rose by $973, or 0.2%, to $608,518 for the three months ended March 31, 2025, primarily due to an increase of $66,672 from the Omni Logistics segment[80] - Total operating expenses for the Expedited Freight segment decreased by $20,050, or 7.9%, to $233,747 for the three months ended March 31, 2025, compared to $253,797 in 2024[90] - Purchased transportation for Omni Logistics increased by $41,310, or 28.6%, to $185,734 for the three months ended March 31, 2025, from $144,424 in 2024[97] - Salaries, wages, and employee benefits for Omni Logistics increased by $8,008, or 16.4%, to $56,783 for the three months ended March 31, 2025, compared to $48,775 in 2024[98] - Other operating expenses for Omni Logistics increased by $2,755, or 12.6%, to $24,626 for the three months ended March 31, 2025, from $21,871 in 2024[99] Income and Loss - Income from operations increased by $70,495, or 107.2%, to $4,763 for the three months ended March 31, 2025, compared to a loss of $65,732 for the same period in 2024[81] - Net loss attributable to Forward Air decreased by $11,075, or 17.9%, to $50,637 for the three months ended March 31, 2025, compared to $61,712 for the same period in 2024[78] - Net loss decreased by $27,603, or 31.1%, to $61,191 for the three months ended March 31, 2025, compared to a loss of $88,794 for the same period in 2024[84] - Corporate operating loss decreased to $19,788 for the three months ended March 31, 2025, from $60,231 in the same period in 2024[108] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $27,615 for the three months ended March 31, 2025, compared to a net cash used of $51,719 for the same period in 2024[110] - Capital expenditures for the three months ended March 31, 2025, were $11,906, compared to $4,970 for the same period in 2024[111] Strategic Initiatives - A comprehensive review of strategic alternatives has been initiated by the Board to maximize shareholder value, including potential sale or merger options[75] - The company continues to focus on optimizing density and yield management to enhance profitability amidst fluctuating economic conditions[65] - The company is actively monitoring macroeconomic conditions, including tariff impacts, which have affected freight demand and overall shipment volumes[74] Tax and Interest Expenses - Interest expense, net increased to $45,547 for the three months ended March 31, 2025, compared to $40,753 for the same period in 2024, primarily due to the Omni acquisition[82] - The effective tax rate for the three months ended March 31, 2025 was (47.1)%, a significant decrease from 17.1% for the same period in 2024, influenced by interest expense disallowances[83] Operational Metrics - Drayage shipments rose by 2.9% to 64,449, while drayage revenue per shipment increased by 7.4% to $883[102] - Purchased transportation expenses increased by $2,733, or 15.7%, to $20,176, representing 32.3% of operating revenues[103] - Salaries, wages, and employee benefits rose by $849, or 5.6%, to $15,931, accounting for 25.5% of operating revenues[104] - Operating leases increased by $1,086, or 23.1%, to $5,778, making up 9.2% of operating revenues[105] - Other operating expenses decreased by $496, or 8.4%, to $5,399, which was 8.6% of operating revenues[106] - Income from operations increased by $1,956, or 54.5%, to $5,542, representing 8.9% of operating revenues[107]

Financial Performance - Forward Air Corporation reported Q1 2025 revenue of $613 million[31] - The company's Consolidated EBITDA for Q1 2025 was $69 million, with a margin of 112%[31] - The company's LTM Net Leverage was 53x[31] - Expedited Freight segment revenue for Q1 2025 was $249 million[41], with Reported EBITDA of $26 million and a margin of 104%[42] - Omni Logistics segment revenue for Q1 2025 was $323 million[52], with Reported EBITDA of $26 million and a margin of 79%[53] - Intermodal segment revenue for Q1 2025 was $62 million[57], with Reported EBITDA of $10 million and a margin of 164%[58] Operational Metrics - The company's Expedited Freight segment maintained a claims ratio of approximately 01%[48] - The company realized over $100 million in annualized cost savings since closing the Omni acquisition[80] Geographic Exposure - Approximately 12% of the company's revenue is generated outside of the United States[26] - The revenue split by customer region is approximately 88% in the United States, 4% in the Americas (excluding the US), 7% in APAC, and less than 1% in EMEA[26]

Financial Results - The company reported preliminary financial results for Q1 2025, with specific figures to be detailed in the press release[4] - The press release is available as Exhibit 99.1, which includes updates on financial performance[7] - There are no specific performance guidance or future outlook details provided in the current report[4] Regulatory Compliance - The report is filed under the Securities Exchange Act of 1934, ensuring compliance with regulatory requirements[5] - The company is not classified as an emerging growth company, indicating it has opted for standard compliance timelines[3] - The company has a Commission File Number of 000-22490, indicating its registration with the SEC[2] Company Information - The common stock of Forward Air Corporation is traded under the symbol FWRD on NASDAQ[2] - The address of the company's principal executive offices is 1915 Snapps Ferry Road Building N, Greeneville, TN 37745[2] - The CEO of Forward Air Corporation is Shawn Stewart, who signed the report[11] Business Developments - The report does not include any new product or technology developments, market expansions, or acquisitions[4]