Forward Air Corporation Reports 13.2% Revenue Growth but Net Loss in Q1 2025

Forward Air Corporation reported its financial results for the first quarter of 2025, revealing a 13.2% increase in operating revenue to $613.3 million, up from $541.8 million in the same period last year. This growth was primarily driven by a significant contribution from the Omni Logistics segment, which saw revenues rise by 43.9% to $323.5 million, attributed to an additional 24 days of ownership compared to the previous year. Despite the overall revenue increase, the company recorded a net loss of $61.2 million, a 31.1% improvement from the $88.8 million loss reported in Q1 2024.

Operating expenses remained relatively stable, increasing only 0.2% to $608.5 million, with notable increases in purchased transportation costs and salaries, wages, and employee benefits. The Omni Logistics segment accounted for a substantial portion of the operating expenses, reflecting the integration costs associated with the acquisition completed in January 2024. The company reported a loss from operations of $4.8 million, a significant turnaround from the $65.7 million loss in the prior year, indicating improved operational efficiency.

In terms of strategic developments, Forward Air completed the acquisition of Omni Newco, LLC, which has expanded its service offerings and geographic reach. The acquisition is expected to enhance the company's logistics capabilities, particularly in high-growth markets. The integration of Omni has already begun to yield operational synergies, as evidenced by the improved performance in the Omni Logistics segment, which turned a loss of $28.6 million in Q1 2024 into a profit of $3.4 million in Q1 2025.

Operationally, the company reported a decrease in tonnage and shipments within its Expedited Freight segment, reflecting broader economic conditions that have impacted freight demand. The total weight of shipments fell by 10.9%, and the number of shipments decreased by 12.2%. However, the Intermodal segment experienced an 11.0% increase in revenue, driven by a rise in drayage shipments and revenue per shipment. The company’s total assets as of March 31, 2025, stood at $2.8 billion, with a slight increase in cash and cash equivalents to $116.3 million.

Looking ahead, Forward Air's management has initiated a strategic review to explore options for maximizing shareholder value, including potential mergers or acquisitions. The company remains focused on improving operational efficiencies and leveraging synergies from the Omni acquisition. However, it acknowledges the ongoing challenges posed by economic fluctuations and market conditions, which could impact future performance. The company is committed to monitoring these developments closely as it navigates the evolving landscape of the logistics and transportation industry.