Forward Air Q3 Revenue Slips as Overhaul Continues
Logistics Provider Reports Progress on One Ground Network
Key Takeaways:
- Forward Air Corp. reported a third-quarter 2025 net loss of $23.8 million as revenue fell 3.7% to $631.8 million amid its ongoing business transformation.
- The company’s performance was affected by discontinuing final-mile operations, though its Omni Logistics and intermodal segments posted modest revenue and income gains.
- Forward Air’s board continues a strategic review launched in January, exploring a potential sale, merger or other transactions to maximize shareholder value.
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Forward Air Corp. experienced a decline in revenue amid its ongoing initiatives to transform the business during the third quarter of 2025, .
The Greeneville, Tenn.-based ground transportation and logistics services provider posted a net loss of $23.8 million, or negative 52 cents a diluted share, for the three months ending Sept. 30. That compared with a loss of $35.3 million, negative $2.66, during the same time the previous year. Total revenue decreased 3.7% to $631.8 million from $655.9 million.
The earnings were impacted by initiatives to transform the company, which included the discontinuation of final-mile operations. The report showed that the net loss from continuing operations was $23.8 million, compared with $34.2 million the prior year.
The board of directors initiated a comprehensive review of strategic alternatives Jan. 6. The review includes considering a sale of the company or pursuing other strategic transactions.
“We are aware of the rumors in the market over the last several months,” Forward Air CEO Shawn Stewart said during a call with investors. “I want to be clear that the strategic alternative review process is ongoing. I also want to acknowledge the length of the process to date and emphasize a few critical points. Over the course of this review, we have had discussions with multiple interested parties and discussions are continuing. We conducted appropriate, proactive outreach to interested parties. Along the way, other parties have also initiated dialogue with us at different points in time.”
Stewart added that additional attention has contributed to the process being delayed. He stressed that the review has been thorough to explore all available opportunities to maximize value, including evaluation of a potential sale, merger or other strategic transactions.
“Over the past several quarters, as we work to transform the operations of our U.S. and Canadian businesses, we have focused on a clear and strategic goal, which was to unify our operations under a new regional structure and harmonizing our blueprint,” Stewart said. “The goal laid the foundation for the creation of our One Ground Network.”
The One Ground Network combines the company’s linehaul, pickup and delivery, brokerage, and expedited services under one structure. The company said the unified structure will improve service quality and reliability.
Expedited freight segment revenue decreased 9.2% to $258.6 million from $284.7 million a year ago. But income from operations increased 0.9% to $19.4 million from $19.3 million. The segment continued to see margins improve and stabilize as company leaders pursued their transformation strategy to integrate U.S. and Canadian business operations. The segment includes network and truckload operations, with the final-mile business being discontinued.
- Network revenue declined 10.7% to $194 million from $217.3 million.
- Truckload revenue decreased 2.8% to $42.4 million from $43.6 million.
Omni Logistics segment revenue increased 1.5% to $339.6 million from $334.5 million last year. Income from operations jumped 758% to $9.75 million from $1.14 million. The results were driven by an increase in demand for its diversified service offerings compared with a year ago. The report noted that these were the best results since the segment was acquired in January 2024.
Intermodal segment revenue increased 1.6% to $58.3 million from $57.4 million last year. Income from operations increased 0.3% to $4.1 million from $4.09 million. Drayage shipments slipped 2.6% to 60,976 from 62,616, while drayage revenue per shipment increased 4.9% to $864 from $824.
Forward Air ranks No. 37 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 1 on the air/expedited carriers sector list. It ranks No. 36 on the TT Top 100 list of the largest logistics companies.
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