Forward Air announced it is “nearing the conclusion” of a strategic review. The comments were made on a call discussing fourth-quarter results on Monday after the market closed.
The company announced early last year it would undergo a review of its entire business and may sell part or all of the enterprise. The decision was made as pressure from investors mounted following a contested merger with Omni Logistics.
Forward (NASDAQ: FWRD) reported a $28.3 million net loss (“attributable to Forward Air”), or 91 cents per share, for the fourth quarter. Consolidated revenue of $631 million was down nearly $2 million year over year.
Consolidated adjusted EBITDA of $77 million was 6% higher y/y in the period, with full-year EBITDA stepping $4 million lower y/y to $307 million.
The company’s expedited segment, which includes less-than-truckload operations, reported $247 million in revenue, a 7% y/y decline. Tonnage was down 11% as shipments fell 9% and weight per shipment declined 1%. Yield (revenue per hundredweight) improved 2% y/y, excluding fuel surcharges.
The unit posted a 6.2% operating margin, which was 340 basis points better y/y. A 10.1% EBITDA margin was 350 bps better y/y. Salaries, wages and benefits expenses (as a percentage of revenue) declined 120 bps y/y as purchased transportation expenses moved 200 bps lower.
Management said on the call that the company has culled unprofitable freight from the network. Forward is also already carrying costs associated with excess capacity, which should yield significant operating leverage when volumes return.
Omni reported revenue of $360 million, an 11% y/y increase. Adjusted EBITDA of $36 million was 12% higher y/y and 10% higher sequentially.
Net debt of $1.68 billion stood at 5.5 times last 12 months’ adjusted EBITDA, one full point below the required covenant leverage ratio for the quarter. The company’s debt leverage covenant steps down 25 bps each quarter to 5.5 times by the 2026 fourth quarter.
Operating cash flow of $209 million in 2025 was largely used to service outstanding debt and pay professional fees. Liquidity at the end of the year was $367 million, $15 million lower y/y.
Shares of FWRD were up 6.8% in after-hours trading on Monday. The stock was down 9.1% during Monday’s trading session while the S&P 500 was off 1%.
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