Forward Air reported higher revenue and sharply improved operating income for the third quarter, with gains across its Expedited Freight, Omni Logistics and Intermodal businesses. The company also said its liquidity increased from the prior quarter and its net leverage ratio fell to its lowest level since early 2024.
Revenue reached a second consecutive quarterly record, while operating income nearly tripled from a year earlier. The company posted a separate earnings presentation alongside its results.
Key details
- Revenue rose 6.7% to $673.9 million for the three months ended Sept. 30, compared with $631.8 million a year earlier.
- Operating income increased to $43.9 million from $15.0 million. The operating margin improved to 6.5% from 2.4%.
- Forward Air reported $9.1 million in income from continuing operations, versus a $23.8 million loss in the year-ago quarter. Diluted earnings were 34 cents per share, compared with a loss of 52 cents per share.
- Consolidated EBITDA was $101.5 million, up from $78 million a year earlier. The company said this measure is calculated under its term-loan credit agreement. EBITDA for the trailing 12 months was $342 million at quarter-end.
- Liquidity totaled $446 million at quarter-end, a $45 million increase from the second quarter. The company also said its net leverage ratio was at its lowest level since the first quarter of 2024; it did not provide the ratio in the results release.
- Cash provided by operating activities was $35.3 million, down from $52.7 million a year earlier, despite the improvement in operating income.
- Expedited Freight posted its strongest operating revenue, operating income and reported EBITDA in nearly three years.
- Omni Logistics saw increased demand for contract logistics and air and ocean services. Its reported EBITDA margin was its best since the beginning of 2024.
- Intermodal revenue reached its highest level in more than three years, with higher drayage revenue per shipment contributing to the increase.
What the results show
The quarter combined stronger operating performance with improved liquidity and lower net leverage, while operating cash flow was below its year-ago level. Forward Air attributed the segment results to execution across its businesses and said it intends to maintain its focus on service and logistics solutions.