Forward Air(FWRD) - 2025 Q3 - Quarterly Results

Financial Performance - Forward Air Corporation reported consolidated revenue of $632 million for Q3 2025, a decrease of 3.7% from $656 million in Q3 2024[5] - Operating income for the third quarter was $15 million, down from $23 million in the same period last year, representing a decline of 33.9%[5] - Consolidated EBITDA for Q3 2025 was $78 million, compared to $86 million in Q3 2024, reflecting a decrease of 9.8%[6] - Free cash flow for Q3 2025 was $48.9 million, an increase of 16.9% from $41.8 million in Q3 2024[8] - Consolidated EBITDA for the nine months ended September 30, 2025, was $226,451, compared to $238,451 for the same period in 2024, reflecting a slight decrease[34] Segment Performance - The Omni segment achieved its highest revenue of $340 million, an increase of $5 million year-over-year, with reported EBITDA rising by $6 million to $33 million[3] - Total operating revenue for the Omni Logistics segment increased by 1.5% to $339,584,000 for the three months ended September 30, 2025, compared to $334,538,000 in 2024[19] - Income from operations for the Omni Logistics segment rose significantly by 758.2% to $9,749,000, up from $1,136,000 in the same period last year[19] - Total operating expenses for the Omni Logistics segment decreased by 1.1% to $329,835,000 in Q3 2025, down from $333,402,000 in Q3 2024[19] Cash Flow and Liquidity - Liquidity at the end of Q3 2025 was $413 million, up from $368 million at the end of Q2 2025[7] - Cash provided by operations totaled $67 million for the first three quarters of 2025, a significant improvement of $113 million compared to a cash usage of $46 million in the same period last year[7] - Cash and cash equivalents at the end of the period increased to $140,354,000 from $104,903,000 at the end of December 31, 2024[23] - The net cash provided by operating activities of continuing operations was $67,112 for the nine months ended September 30, 2025, compared to a net cash used of $45,770 in the same period of 2024[27] - The company reported a net increase in cash and cash equivalents of $35,088 for the nine months ended September 30, 2025, compared to a decrease of $1,807,904 in 2024[27] Operational Initiatives - The company implemented additional cost reduction initiatives in Q3 2025 to align with current freight demand[2] - The integration of U.S. and Canadian business operations is underway, aiming to create a cohesive One Ground Network[4] - The company expects to achieve and accelerate synergy capture and eliminate costs from its structure as part of its long-term growth strategy[35] - The company plans to enhance shareholder value through improved operational efficiency and cost control measures[35] Market and Risk Factors - Total pounds shipped decreased by 14.1% to 612,449,000 pounds in Q3 2025, down from 713,213,000 pounds in Q3 2024[17] - Revenue per hundredweight increased by 4.0% to $31.70 in Q3 2025, compared to $30.47 in Q3 2024[17] - Drayage revenue per shipment increased by 4.9% to $864 in Q3 2025, compared to $824 in Q3 2024[21] - The company anticipates potential risks including economic factors, integration challenges from acquisitions, and competition affecting future performance[36] Loss and Impairment - Net loss from continuing operations improved to $(23,757,000) in Q3 2025, compared to $(34,198,000) in Q3 2024[25] - For the nine months ended September 30, 2025, the net loss from continuing operations was $105,312, compared to a net loss of $1,089,463 for the same period in 2024, indicating a significant improvement[27] - The company incurred an impairment of goodwill of $1,107,465 in the nine months ended September 30, 2024, with no impairment recorded in 2025[34] - The company reported depreciation and amortization expenses of $111,914 for the nine months ended September 30, 2025, compared to $106,321 in 2024[27]