Forward Air(FWRD) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Highlights Management Commentary Management highlights strong sequential operating income and EBITDA improvement in Q2 2025, driven by cost management and pricing actions - Sequentially, Q2 income from operations increased by $15 million to $20 million, and Consolidated EBITDA increased by $5 million to $74 million compared to Q1 2025[2] - The Expedited Freight segment achieved its highest reported EBITDA margin since Q4 2023, benefiting from rigorous cost controls and pricing actions completed in February[3] - Year-to-date cash provided by operating activities showed a $111 million improvement, reaching $14 million compared to a $97 million use of cash in the first half of 2024[6] Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Sequential Change (vs Q1 2025) | | :--- | :--- | :--- | :--- | | Consolidated Revenue (Millions) | $619M | $644M | +$6M | | Income from Operations (Millions) | $20M | -$3M (ex-impairment) | +$15M | | Consolidated EBITDA (Millions) | $74M | $89M | +$5M | | Liquidity (End of Quarter, Millions) | $368M | N/A | -$25M | Consolidated Financial Performance Summary Q2 2025 consolidated revenue decreased 3.9% year-over-year, but income from continuing operations turned positive, despite a 17.1% decline in Consolidated EBITDA Q2 2025 vs Q2 2024 Consolidated Results (in thousands, except per share data) | Metric | Q2 2025 (Thousands) | Q2 2024 (Thousands) | Percent Change | | :--- | :--- | :--- | :--- | | Operating revenue | $618,844 | $643,666 | (3.9)% | | Income (loss) from continuing operations | $19,522 | $(1,095,755) | 101.8% | | Net loss from continuing operations per diluted share | $(0.41) | $(23.29) | 98.2% | | Consolidated EBITDA (Non-GAAP) | $73,813 | $88,997 | (17.1)% | | Free cash flow (Non-GAAP) | $(17,157) | $(59,069) | 71.0% | Consolidated Financial Statements Statements of Comprehensive (Loss) Income Q2 2025 net loss from continuing operations significantly improved to $20.4 million due to the absence of a prior year goodwill impairment Q2 2025 Revenue by Segment (in thousands) | Segment | Q2 2025 Revenue (Thousands) | Q2 2024 Revenue (Thousands) | | :--- | :--- | :--- | | Expedited Freight | $257,696 | $291,282 | | Omni Logistics | $328,316 | $311,856 | | Intermodal | $59,146 | $59,299 | Q2 2025 Income (Loss) from Continuing Operations by Segment (in thousands) | Segment | Q2 2025 Income (Loss) (Thousands) | Q2 2024 Income (Loss) (Thousands) | | :--- | :--- | :--- | | Expedited Freight | $19,495 | $21,946 | | Omni Logistics | $7,186 | $(1,105,871) | | Intermodal | $4,415 | $5,317 | - The significant year-over-year improvement in net loss was primarily due to the absence of the $1.09 billion impairment of goodwill charge recorded in Q2 2024[12] Balance Sheets Total assets slightly decreased to $2.76 billion, while shareholders' equity declined to $216.2 million due to accumulated deficit Key Balance Sheet Items (in thousands) | Account | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :--- | :--- | :--- | | Total current assets | $474,607 | $472,500 | | Total assets | $2,761,235 | $2,802,641 | | Total current liabilities | $396,685 | $384,046 | | Long-term debt, less current portion | $1,681,468 | $1,675,930 | | Total shareholders' equity | $216,241 | $285,868 | Statements of Cash Flows Net cash from operating activities significantly improved year-over-year, with $14.4 million provided for the six months ended June 30, 2025 Cash Flow Summary (in thousands) | Period | Net Cash from Operating Activities (Thousands) | Net Cash from Investing Activities (Thousands) | Net Cash from Financing Activities (Thousands) | | :--- | :--- | :--- | :--- | | Three Months Ended | | | | | June 30, 2025 | $(13,217) | $(3,885) | $(4,618) | | June 30, 2024 | $(45,200) | $(13,954) | $(4,231) | | Six Months Ended | | | | | June 30, 2025 | $14,398 | $(15,124) | $(9,943) | | June 30, 2024 | $(96,924) | $(1,583,406) | $(162,957) | Segment Performance Expedited Freight Expedited Freight revenue decreased 11.5% to $257.7 million, but operating margin remained stable at 7.6% due to pricing actions Expedited Freight Financials (in thousands) | Metric | Q2 2025 (Thousands) | Q2 2024 (Thousands) | Percent Change | | :--- | :--- | :--- | :--- | | Total operating revenues | $257,696 | $291,282 | (11.5)% | | Income from operations | $19,495 | $21,946 | (11.2)% | | Operating Margin | 7.6% | 7.5% | +0.1 ppt | Expedited Freight Operating Statistics | Metric | Q2 2025 | Q2 2024 | Percent Change | | :--- | :--- | :--- | :--- | | Total pounds (thousands) | 623,394 | 713,919 | (12.7)% | | Total shipments (thousands) | 739 | 870 | (15.1)% | | Weight per shipment | 843 | 821 | 2.7% | | Revenue per hundredweight, ex fuel | $24.82 | $24.38 | 1.8% | Omni Logistics Omni Logistics revenue increased 5.3% to $328.3 million, with income from operations at $7.2 million, a significant recovery from prior year's impairment loss Omni Logistics Financials (in thousands) | Metric | Q2 2025 (Thousands) | Q2 2024 (Thousands) | Percent Change | | :--- | :--- | :--- | :--- | | Operating revenue | $328,316 | $311,856 | 5.3% | | Income (loss) from operations | $7,186 | $(1,105,871) | 100.6% | | Operating Margin | 2.2% | (354.6)% | N/A | Intermodal Intermodal revenue remained flat at $59.1 million, but income from operations decreased 17.0% to $4.4 million, with operating margin contracting to 7.5% Intermodal Financials (in thousands) | Metric | Q2 2025 (Thousands) | Q2 2024 (Thousands) | Percent Change | | :--- | :--- | :--- | :--- | | Operating revenue | $59,146 | $59,299 | (0.3)% | | Income from operations | $4,415 | $5,317 | (17.0)% | | Operating Margin | 7.5% | 9.0% | -1.5 ppt | Intermodal Operating Statistics | Metric | Q2 2025 | Q2 2024 | Percent Change | | :--- | :--- | :--- | :--- | | Drayage shipments | 62,313 | 64,877 | (4.0)% | | Drayage revenue per shipment | $862 | $826 | 4.4% | Non-GAAP Financial Measures Reconciliation of Non-GAAP Measures Reconciliations show Q2 2025 Consolidated EBITDA at $73.8 million and free cash flow at negative $17.2 million, providing adjusted performance insights Reconciliation of Net Loss to Consolidated EBITDA (in thousands) | Line Item | Q2 2025 (Thousands) | Q2 2024 (Thousands) | | :--- | :--- | :--- | | Net loss from continuing operations | $(20,364) | $(966,471) | | Interest expense | 45,326 | 47,265 | | Income tax (benefit) expense | (16,749) | (174,942) | | Depreciation and amortization | 36,806 | 48,639 | | Reported EBITDA | 45,019 | (1,045,509) | | Impairment of goodwill | — | 1,092,714 | | Other Adjustments | 28,794 | 41,792 | | Consolidated EBITDA | $73,813 | $88,997 | Reconciliation of Net Cash from Operating Activities to Free Cash Flow (in thousands) | Line Item | Q2 2025 (Thousands) | Q2 2024 (Thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(13,217) | $(45,200) | | Proceeds from sale of property and equipment | 804 | 557 | | Purchases of property and equipment | (4,744) | (14,426) | | Free cash flow | $(17,157) | $(59,069) | Other Information Forward-Looking Statements This section outlines standard disclaimers for forward-looking statements, detailing risks that could cause actual results to differ materially - Forward-looking statements in the release relate to long-term growth, synergy capture from the Omni Logistics acquisition, and expectations for financial performance[35] - Key risks that could cause actual results to differ include economic factors (recessions, inflation), challenges with the Omni Logistics integration, a continued weak freight environment, and competition[36]