Forward Air 2025 Q2 Earnings Sharp Net Loss Decline Amid Revenue Drop

Forward Air (FWRD) reported its fiscal 2025 Q2 earnings on August 11, 2025, showing a significant narrowing of its net loss, despite a decline in overall revenue. The company reduced its net loss by 97.9% year-over-year to -$20.36 million, or $0.41 per share, from a $0.41 per share loss in 2024 Q2. The results marked a positive turn, though revenue slid 3.9% to $618.84 million. The company did not raise its guidance but highlighted strategic progress and margin improvements.

Revenue
Forward Air’s Q2 revenue fell to $618.84 million, a 3.9% decrease compared to the same period in 2024. The company’s largest revenue contributor was the Omni Logistics segment, which brought in $328.32 million. Expedited Freight followed with $231.82 million, while the Intermodal segment accounted for $58.85 million. The Corporate segment, however, reported a negative contribution of $142,000. These figures reflect a mixed performance across business lines, with some areas showing resilience amid broader industry headwinds.

Earnings/Net Income
Forward Air significantly narrowed its net loss in Q2 2025, reporting a loss of $0.41 per share compared to a $23.47 per share loss in the prior-year period, a 98.3% improvement. The company’s net loss was reduced to $-20.36 million, down from $-971.35 million in 2024 Q2. Despite the continued loss, the magnitude of the improvement signals a turnaround in financial performance and operational efficiency.

Price Action
Shares of Forward Air saw mixed price movement in recent trading sessions, dropping 4.86% on the latest trading day and 3.02% during the most recent full trading week. The stock edged up slightly by 0.04% month-to-date.

Post-Earnings Price Action Review
A strategy of buying Forward Air shares following the release of its Q2 earnings and holding for 30 days underperformed significantly, returning -73.83% versus a benchmark return of 45.70%. The resulting excess return of -119.53% and a CAGR of -37.01% over three years indicate a substantial loss for investors. The strategy's maximum drawdown of 0% suggests that the short holding period may not have allowed enough time for potential price recovery.

CEO Commentary
Shawn Stewart, CEO, emphasized Forward Air’s operational resilience and strategic progress, highlighting a consolidated EBITDA of $74 million and a 500 basis point margin improvement in the Expedited Freight segment to 11.6%. He underscored service excellence as a key differentiator and a foundation for long-term growth. While acknowledging the challenges of the freight recession, Stewart expressed confidence in the company’s ability to outgrow the market as conditions normalize.

Guidance
Forward Air’s CEO and CFO did not provide specific revenue, EPS, or CAPEX guidance during the call. However, they outlined a strategic transformation expected to conclude by the end of 2026, along with disciplined expense management, including the rationalization of support costs post-integration. The company also noted consistent unlevered operating cash flow of $40 million to $50 million per quarter, reinforcing its commitment to running the business through the strategic review process without operational disruption.

Additional News
Among the key non-earnings related news in the Nigerian business and political landscape, the Federal Government (FG) warned 3,598 workers of potential dismissal and ordered a fresh verification process for employment records. In the energy sector, the FG reported generating N5.21 trillion from oil sales in the first half of 2025, while marketers raised petrol prices despite a decline in crude oil costs. In law enforcement, the Economic and Financial Crimes Commission (EFCC) intensified its focus on high-profile targets within the All Due to Christ (ADC) political group, sparking panic among its members. Meanwhile, in the aviation sector, Ibom Air faced public scrutiny over the remand of a female passenger, sparking a debate on selective justice and corporate accountability.