Forward Air's Q1 2025: Navigating Contradictions in Freight Volume, Tariffs, and Pricing Strategies

None



Strong Financial Performance Despite Market Challenges:
- Forward Air reported a consolidated EBITDA of $69 million for Q1 2025, a 10.4% margin, which is up almost 400 basis points from the previous quarter.
- This improvement was driven by strategic pricing actions that led to a reduction in poorly priced freight and cost management that aligned with volume decreases.

Pricing and Network Optimization:
- The Expedited Freight segment saw a 10.9% decrease in year-over-year tonnage per day, partially offset by a 2.5% increase in revenue per hundredweight.
- The pricing actions and network optimization efforts resulted in improved profitability, despite the decrease in volume.

Impact of Omni Acquisition:
- After acquiring Omni Logistics, Forward Air's revenue increased by $99 million to $323 million compared to the prior year.
- This increase was driven by the combined effect of owning Omni for more than a year and stable operational performance.

Liquidity and Cash Flow Improvement:
- Forward Air generated positive cash flow during Q1 2025 and increased liquidity by $11 million to $393 million.
- This improvement is attributed to strong operational performance and better management of working capital.