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- **Strategic Review Ongoing**: Multiple parties engaged; Board evaluating all options to maximize value.
- **Q3 EBITDA $78M**: Stable performance amid freight recession, up 12% YoY in LTM basis.
- **Cost Savings $12M/yr**: Rightsizing and tech upgrades driving cash flow improvement (+$113M YoY).
- **Expedited Margin Up 500bps**: Pricing and efficiency gains offset volume decline.
- **TL Booming**: High-tech freight driving TL growth; LTL recovery contingent on Cass Index >$1.50/mile.
- **Omni Segment Strength**: 22% YoY EBITDA growth, margin expansion to 9.6%.
- **Liquidity at $413M**: Strong cash position supports covenant compliance.


**【CEO Opening Remarks】**
- **Strategic Alternatives Update**: Ongoing review with multiple interested parties; Board prioritizes thorough evaluation of potential transactions, including sale or merger, to maximize shareholder value. Process length due to inbound inquiries and need for comprehensive analysis.
- **Transformation Progress**: Unified under One Ground Network, streamlining operations across line haul, pickup/delivery, truckload brokerage, and expedited services. Tech stack rationalization underway, including ERP consolidation by end-2026.
- **Q3 Financials**: Consolidated EBITDA of $78M, in line with Q2 2025. Expedited segment EBITDA at $30M (11.5% margin), up from $18M in Q4 2024. Omni segment EBITDA $33M (9.6% margin), up 22% YoY. Intermodal EBITDA stable at $8M.

**【CFO Financial Commentary】**
- **Cost Savings**: $12M annualized cost reductions via rightsizing and transformation, improving LTM EBITDA by $100M YoY. Operating cash flow $67M (first 9 months), up $113M YoY.
- **Segment Performance**: Expedited margin up 500bps YoY; Omni margin up 160bps YoY. Intermodal resilience in challenging port environment.
- **Liquidity**: $413M total liquidity (Q3 2025), up $45M QoQ. Credit covenant step-down begins Q4 2025, targeting 5.5x by 2026.
- **Tech Initiatives**: One ERP project to consolidate financial systems, expected completion end-2026. Optimizers reduce miles per shipment by 10%+.

**【Q&A Highlights】**
- **Omni Segment**: Margins near upper end of peer range; contract logistics driving growth. Seasonality muted due to warehouse stability. Q4 EBITDA expected to match Q3 levels.
- **LTL vs. TL**: LTL volume down due to modal shift to TL (boom in high-tech asset-only freight). EBITDA stable at $30M/Q due to pricing and efficiency gains. TL spot rates need to rise above $1.50/mile for LTL reversal.
- **Strategic Process**: No timeline for resolution; Board focused on maximizing value. Team remains disciplined, delivering results despite process distractions.


Forward Air Corporation (FWRD) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FWRD

FWRD fundamentals

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