Forward Air Corporation reported its financial results for the fourth quarter and full year ended December 31, 2025, outlining performance across its core segments while highlighting operational discipline, cost alignment initiatives, and strategic transformation efforts undertaken during a challenging freight market environment.
Full-Year 2025 Performance Reflects Operational Discipline Amid Freight Market Softness
The Company delivered resilient results throughout 2025 despite ongoing macroeconomic uncertainty and softer freight demand conditions across several transportation verticals. For the full year, operating income reached $36 million, while Consolidated EBITDA totaled $307 million. These figures underscore Forward Air’s ability to navigate cyclical headwinds while maintaining financial stability and executing on its long-term transformation strategy. Leadership emphasized that throughout the year, management concentrated on controllable factors, including optimizing the cost structure to align with freight demand levels, driving operational efficiencies, and strengthening network integration across regions. The Company completed the unification of its U.S. domestic ground operations, an initiative designed to streamline workflows, eliminate redundancies, and enhance service consistency across its national footprint. Additionally, the introduction of a new Latin American regional structure marked a significant step in expanding and refining its global logistics network, positioning the Company for enhanced cross-border service capabilities and long-term growth opportunities in international markets.
Fourth Quarter Overview Demonstrates Stability and Segment-Level Momentum
For the fourth quarter of 2025, Forward Air generated consolidated revenue of $631 million, compared to $633 million in the prior-year quarter, reflecting relative stability in top-line performance despite broader freight market pressures. Consolidated EBITDA for the quarter reached $77 million, an increase from $72 million in the fourth quarter of 2024, demonstrating improved profitability and effective expense management. Management noted that quarterly performance remained consistent with trends observed throughout the year, with strength in certain service lines helping offset softness in others. The Company’s diversified operating model continued to provide resilience, particularly through its Omni segment, which delivered notable growth and margin expansion.
Omni Segment Achieves Record Post-Acquisition Performance
The Omni segment emerged as a standout contributor during the fourth quarter. Since its acquisition in January 2024, the segment has progressively strengthened its market position through diversified service offerings and disciplined execution. In the fourth quarter of 2025, Omni achieved its highest revenue, highest Reported EBITDA, and highest Reported EBITDA margin since the acquisition, excluding the impact of goodwill adjustments. Revenue increased by $34 million year over year, rising to $360 million compared to the same period in 2024. Reported EBITDA improved by $4 million to $36 million, and the Reported EBITDA margin expanded by 20 basis points to 10 percent compared to the fourth quarter of 2024. The performance reflected sustained demand for Omni’s diversified logistics solutions, including time-sensitive and specialized freight services. Management attributed this growth to disciplined execution, improved pricing strategies, and operational integration efforts that enhanced efficiency while maintaining service reliability.
Expedited Freight Segment Shows Significant Margin Expansion
Within the Expedited Freight segment, Forward Air maintained a strong focus on pricing optimization and cost control. Management emphasized disciplined yield management practices, ensuring freight moving through the network was priced appropriately relative to capacity and demand conditions. During the fourth quarter of 2025, the segment delivered meaningful profitability improvements. Reported EBITDA increased by $7 million to $25 million compared to $18 million in the fourth quarter of 2024. Additionally, the segment experienced a substantial improvement in year-over-year margin performance. Reported EBITDA margin expanded by 350 basis points, reaching 10.1 percent in the fourth quarter of 2025 compared to 6.6 percent in the prior-year quarter. This margin expansion highlighted the effectiveness of expense management initiatives and network optimization strategies implemented throughout the year. Even in a subdued freight environment, the Expedited Freight segment demonstrated the Company’s ability to enhance profitability through disciplined operational execution.
Intermodal Segment Navigates Trade-Related Headwinds
The Intermodal segment faced more pronounced challenges during the fourth quarter, primarily driven by trade-related softness at ports and typical seasonal declines in shipment volumes. Reduced port activity contributed to lower shipments and decreased revenue per shipment compared to the prior year. As a result, fourth-quarter Reported EBITDA for the Intermodal segment declined to $7 million, compared to $10 million in the fourth quarter of 2024. Reported EBITDA margin also decreased to 14.2 percent from 17.5 percent in the prior-year period. Despite these headwinds, management expressed confidence in the segment’s leadership team and operational capabilities. The Company continues to leverage its experienced personnel and established intermodal network to manage through cyclical fluctuations in trade volumes while positioning the segment for recovery when freight demand strengthens.
Consolidated Financial Position and Liquidity
Forward Air concluded the fourth quarter of 2025 with total liquidity of $367 million, comprised of $106 million in cash and $261 million of availability under its credit facility. This compares to total liquidity of $382 million at the end of 2024. The Company’s liquidity position remains solid, providing financial flexibility to support ongoing operations, strategic initiatives, and potential growth investments. Consolidated EBITDA for the full year totaled $307 million, broadly in line with the $311 million reported in 2024, indicating relative stability in core earnings performance year over year. The Company calculates Consolidated EBITDA as a non-GAAP measure pursuant to its Term Loan Credit Agreement, reflecting performance metrics used for covenant compliance and financial evaluation.
Cash Flow Improvement Marks Significant Year-Over-Year Progress
A notable highlight of 2025 was the substantial improvement in operating cash flow. Cash provided by operating activities totaled $44 million during the year, compared to cash used in operating activities of $69 million in 2024. This represents a year-over-year improvement of $113 million. The positive shift in operating cash flow reflects enhanced working capital management, disciplined expense control, and stabilization in core operating performance. Management underscored that improved cash generation strengthens the Company’s financial foundation and enhances its ability to invest strategically while maintaining prudent leverage levels.
Strategic Transformation and Network Integration Initiatives
Throughout 2025, Forward Air advanced key transformation initiatives aimed at enhancing operational alignment and long-term competitiveness. The unification of U.S. domestic ground operations streamlined processes across terminals and service lines, creating a more cohesive and efficient network. This initiative is expected to generate ongoing cost efficiencies while improving service consistency for customers. In parallel, the establishment of a new Latin American regional structure expands the Company’s international capabilities and positions it to capture growth opportunities in cross-border freight movements. By strengthening its global logistics network, Forward Air aims to provide more integrated and flexible solutions to customers navigating increasingly complex supply chains.
Outlook and Management Perspective
Management reiterated confidence in the Company’s strategic direction and operational leadership, even as freight market conditions remain less than favorable. The diversified nature of Forward Air’s service portfolio, combined with disciplined cost management and pricing optimization strategies, provides resilience during cyclical downturns. While trade-related softness and seasonal trends impacted certain segments, particularly Intermodal, the strong performance of the Omni and Expedited Freight segments demonstrates the Company’s capacity to generate profitability through targeted operational focus. Leadership emphasized that ongoing transformation efforts, network integration, and disciplined financial management will remain central priorities as the Company navigates 2026. With a stable liquidity position, improved operating cash flow, and consistent EBITDA performance year over year, Forward Air is positioned to manage near-term volatility while maintaining its long-term strategic objectives.
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