Forward Air has reached a two-year agreement with one of its largest customers, securing a significant portion of the services it currently provides while arranging an orderly handoff of other services. The transition is expected to take place from November 2026 through March 2027.
The company expects the retained business to grow enough that revenue from the customer in each of 2026, 2027 and 2028 will exceed the customer’s total contribution in 2025.
Key details
- The customer will continue using Forward Air for a significant portion of its current services under the agreement.
- Some services will transition away from Forward Air between November 2026 and March 2027. Forward Air says this transition is not expected to materially affect its 2026 revenue.
- Revenue from the services Forward Air retains has grown during 2026 and is expected to continue growing in 2027.
- Forward Air expects annual revenue from the customer in each of the 2026, 2027 and 2028 contract years to exceed the customer’s total revenue contribution in 2025.
- The customer was not identified, and the company did not provide revenue amounts or details about the profitability of the retained services.
Implications
The agreement provides a defined period of continued business with a major customer while setting out a timetable for transferring other services. Forward Air says the arrangement should improve visibility and predictability for its business, profitability and cash flow.