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1. Company Snapshot

1.a. Company Description

Forward Air Corporation, together with its subsidiaries, operates as an asset-light freight and logistics company in the United States and Canada.It operates in two segments, Expedited Freight and Intermodal.The Expedited Freight segment provides expedited regional, inter-regional, and national less-than-truckload services; local pick-up and delivery services; and other services, which include final mile, truckload, shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling.


This segment also offers expedited truckload brokerage, dedicated fleet, and high security and temperature-controlled logistics services.The Intermodal segment provides intermodal container drayage services; and contract, and container freight station warehouse and handling services.It serves freight forwarders, third-party logistics companies, integrated air cargo carriers and passenger, passenger and cargo airlines, steamship lines, and retailers.


Forward Air Corporation was founded in 1981 and is headquartered in Greeneville, Tennessee.

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1.b. Last Insights on FWRD

The recent 3-month performance of Forward Air Corporation was negatively impacted by the imposition of broad tariffs on most of the world, announced on April 2, 2025, under the International Emergency Economic Powers Act (IEEPA) order. This move led to a decline in revenue from shipments, as evident from the company's preliminary financial results for the three months ended March 31, 2025. The tariffs, which affect most of the world, have roiled markets, causing transportation companies like Forward Air to lose ground.

1.c. Company Highlights

2. Forward Air's 2025 Earnings: A Resilient Performance Amidst Challenges

Forward Air reported a consolidated EBITDA of $307 million for 2025, slightly lower than the $311 million recorded in 2024. However, adjusted EBITDA showed a significant improvement, increasing by $40 million year-over-year to $293 million. The company's actual EPS for 2025 came out at -$0.28, slightly worse than the estimated -$0.265. The Expedited Freight segment's full-year reported EBITDA margin improved by 110 basis points to 10.9%, while the Omni Logistics segment's reported EBITDA almost doubled to $124 million, with a margin increase of 360 basis points to 9.2%. The company's cash and liquidity position remains strong, with $367 million in liquidity.

Publication Date: Mar -08

📋 Highlights
  • Consolidated EBITDA Decline but Adjusted EBITDA Growth:: 2025 EBITDA dropped to $307M (-$4M YoY), but adjusted EBITDA rose by $40M to $293M.
  • Segment Performance Boost:: Expedited Freight EBITDA margin improved 110 bps to 10.9%, while Omni Logistics EBITDA nearly doubled to $124M (+360 bps margin).
  • Strategic Operational Reorganization:: Launched "One Ground Network" for U.S. operations and a new Latin America structure to enhance global logistics agility.
  • Leadership and Tech Upgrades:: Appointed new presidents for Latin America and Asia-Pacific, and a CIO, alongside a 2026 ERP consolidation initiative.
  • Liquidity and Market Position:: Maintained $367M in liquidity, with management confident in closing EBITDA margin gap (10% vs. industry 20%) via capacity flexibility and diversification.

Operational Highlights

In 2025, Forward Air unified its U.S. domestic operations with the creation of the One Ground Network, creating a more cohesive and agile operating model. The company also unveiled a new Latin America regional structure, strengthening its global logistics network. The company is focused on profitable long-term growth through expanding synergistic service offerings and has added new leadership to drive this growth.

Segment Performance

The Omni segment performed well in 2025, with strong growth driven by a rebuilt commercial organization and a focus on selling solutions. The company expects to continue this growth in 2026 and beyond. The Intermodal business saw a decline in revenue per shipment due to lower port volumes, which is a supply and demand issue. However, the company's contract logistics business, which includes data center exposure, accounts for around 15% of revenue and is growing, with a focus on high-value and complex end markets.

Valuation and Outlook

Forward Air's current valuation metrics indicate a mixed picture, with a P/E Ratio of -6.3, P/B Ratio of 6.0, and EV/EBITDA of 16.47. Analysts estimate next year's revenue growth at 6.6%. The company's EBITDA margins are currently around 10%, significantly lower than the industry average of 20%. However, the company believes it can close this gap due to its flexibility in adding capacity, particularly in the ground segment. With a strong cash and liquidity position, Forward Air is well-positioned for long-term success and growth as the freight market recovers.

Growth Prospects

The company expects volume to drive incremental margins in the expedited business, with a focus on increasing density in the network. Forward Air sees a trade-off between price and volume but believes its cost structure and operating leverage will allow it to benefit from incremental shipments. With a diverse portfolio in its Omni segment, the company is well-positioned to offset fluctuations in individual areas and drive long-term growth.

3. NewsRoom

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SG Americas Securities LLC Buys 34,303 Shares of Forward Air Corporation $FWRD

Apr -08

Source: defenseworld.net

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Here's Why Investors Should Give Forward Air Stock a Miss Now

Apr -07

Source: zacks.com

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Forward Air Corporation (NASDAQ:FWRD) Given Average Recommendation of “Hold” by Analysts

Apr -04

Source: defenseworld.net

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Forward Air Named to Newsweek's List of Most Trustworthy Companies in America 2026

Apr -02

Source: businesswire.com

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Forward Air and Omni Logistics Leaders Recognized as 2026 Pros to Know by Supply & Demand Chain Executive

Mar -24

Source: businesswire.com

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Forward Air Corporation (NASDAQ:FWRD) Receives Consensus Recommendation of “Hold” from Brokerages

Mar -10

Source: defenseworld.net

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Counterpoint Mutual Funds LLC Invests $485,000 in Forward Air Corporation $FWRD

Feb -25

Source: defenseworld.net

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Forward Air Named 2026 Surface Carrier of the Year by the Airforwarders Association

Feb -24

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.69%)

6. Segments

Expedited Freight

Expected Growth: 4.65%

The 4.65% growth in Expedited Freight from Forward Air Corporation is driven by increasing e-commerce demand, rising need for time-sensitive shipments, and expansion into new markets. Additionally, investments in digitalization and process improvements have enhanced operational efficiency, allowing for faster transit times and higher customer satisfaction.

Intermodal

Expected Growth: 4.83%

The 4.83% growth in Intermodal from Forward Air Corporation is driven by increasing demand for efficient and cost-effective transportation solutions, expansion of e-commerce, and investments in digitalization and infrastructure. Additionally, the company's strategic partnerships and capacity additions have enabled it to capitalize on the growing need for intermodal services.

Eliminations

Expected Growth: 4.65%

Forward Air Corporation's 4.65% growth is driven by increasing demand for expedited freight services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost savings initiatives, and investments in technology have contributed to its growth. Furthermore, the rise of e-commerce and the need for fast and reliable transportation solutions have also fueled the company's growth.

7. Detailed Products

Truckload Services

Forward Air's truckload services provide expedited and time-definite transportation solutions for high-priority freight, offering flexible and customized logistics solutions.

Less Than Truckload (LTL) Services

Forward Air's LTL services offer cost-effective and efficient transportation solutions for smaller shipments, with a focus on speed, reliability, and flexibility.

Intermodal Services

Forward Air's intermodal services combine the efficiency of rail transportation with the flexibility of trucking, providing a cost-effective and environmentally friendly solution.

Final Mile Services

Forward Air's final mile services provide customized, last-mile delivery solutions for high-value, time-sensitive, and oversized shipments.

Warehouse and Distribution Services

Forward Air's warehouse and distribution services offer customized logistics solutions, including inventory management, order fulfillment, and freight consolidation.

Dedicated Fleet Services

Forward Air's dedicated fleet services provide customized, dedicated transportation solutions for businesses with unique logistics requirements.

8. Forward Air Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Forward Air Corporation is moderate due to the availability of alternative transportation modes such as trucking and rail.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Forward Air Corporation's services, which limits the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the availability of multiple suppliers for fuel, equipment, and other essential inputs.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the air cargo transportation industry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the air cargo transportation industry, with multiple players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 70.74%
Debt Cost 3.95%
Equity Weight 29.26%
Equity Cost 9.25%
WACC 5.50%
Leverage 241.74%

11. Quality Control: Forward Air Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Intevac

A-Score: 5.5/10

Value: 8.0

Growth: 4.3

Quality: 3.2

Yield: 3.0

Momentum: 9.5

Volatility: 5.0

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Pitney Bowes

A-Score: 5.4/10

Value: 6.7

Growth: 1.1

Quality: 5.2

Yield: 7.0

Momentum: 8.0

Volatility: 4.3

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Cryoport

A-Score: 4.7/10

Value: 8.3

Growth: 4.2

Quality: 7.0

Yield: 0.0

Momentum: 7.5

Volatility: 1.3

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Radiant Logistics

A-Score: 3.9/10

Value: 5.8

Growth: 4.0

Quality: 4.4

Yield: 0.0

Momentum: 2.5

Volatility: 6.7

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Air T

A-Score: 3.6/10

Value: 7.0

Growth: 5.4

Quality: 2.1

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

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Forward Air

A-Score: 2.3/10

Value: 5.8

Growth: 2.4

Quality: 2.0

Yield: 0.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.19$

Current Price

19.19$

Potential

-0.00%

Expected Cash-Flows