Forward Air (NASDAQ:FWRD) reported record quarterly revenue and nearly tripled its operating income in the third quarter of 2026, as stronger performance across its freight, logistics and intermodal businesses lifted margins.
Operating revenue rose to $674 million from $632 million a year earlier, while operating income increased to $44 million from $15 million. Consolidated EBITDA, calculated under the company’s credit agreement, climbed to $101 million from $78 million. Its margin expanded to 15.1% from 12.3%, Chief Financial Officer Jamie Pierson said.
President and CEO Shawn Stewart said the company had posted its highest quarterly revenue for two consecutive quarters. He attributed the improvement to gains across all three segments rather than to any single business.
Freight volumes and margins improve
Expedited Freight reported $45 million in EBITDA, up 50% from $30 million a year earlier, while its EBITDA margin rose to 13.3% from 11.5%. The segment’s operating ratio improved to 89.2% from 92.5% as shipments and tonnage per day increased.
Pierson said shipments were up 7.9%, weight increased 6.9% and revenue excluding fuel was up 4.3%. He said the company was focused on freight characteristics, network density and using its infrastructure more efficiently.
Stewart said Forward Air had added more than 50 drivers since the beginning of the year and estimated that the network had 15% to 18% excess capacity. He said he was not concerned about the company’s ability to add drivers as volumes grow.
Omni Logistics reported EBITDA of $35 million, compared with $33 million a year earlier, and its margin rose to 11.3% from 9.6%. Management cited demand and efficiency improvements in its air and ocean and contract logistics services.
Intermodal EBITDA increased to $9 million from $8 million, although its margin slipped to 14.3% from 14.5%. Stewart said the segment posted its strongest revenue in more than three years, led by higher drayage revenue per shipment.
Major customer agreement and intermodal sale
Forward Air recently reached a two-year agreement with one of its largest customers to retain a significant portion of the services it provides. Stewart said the customer’s decision to transition some services reflected its operational and supplier diversification initiatives, not dissatisfaction with Forward Air’s service.
The transition of services began this month and is expected to run through March 2027. Stewart said revenue from the retained services has grown during 2026 and is expected to exceed the $250 million the company recorded from the customer in all of 2025. He also said he expects Omni Logistics as a whole to grow revenue.
Meanwhile, Forward Air is pausing its planned sale of the Intermodal business. Pierson said the process had not yielded the valuation the company wanted, and management would seek to add more quarters of strong performance before potentially revisiting a sale.
“We very well may revisit the sale if and when the market reflects what we believe is the fair value,” Pierson said, adding that a transaction remained possible but would not occur on the previously communicated timeline.
Cash flow and outlook
Third-quarter cash provided by operating activities fell to $35 million from $53 million a year earlier. For the first nine months, however, operating cash flow rose to $76 million from $67 million. Liquidity stood at $446 million at quarter-end, including $185 million in cash and $261 million available under the company’s revolving credit facility.
Pierson said the sale of two smaller legacy Omni businesses benefited liquidity by approximately $25 million with minimal effect on consolidated EBITDA. He also said leverage ended the quarter below five times, nearly one full turn lower than a year earlier.
Asked about the fourth quarter, Pierson said trends were similar to those at the end of the third quarter, though he cautioned that the fourth quarter has fewer working days and that the third is typically among the company’s strongest. Management declined to provide specific 2027 margin guidance.
About Forward Air (NASDAQ:FWRD)
Forward Air Corporation (NASDAQ: FWRD) is a transportation and logistics company that provides time-definite freight and supply chain services. Its offerings include expedited less-than-truckload transportation, truckload services, intermodal and drayage operations, final-mile delivery, and other logistics solutions designed for shipments requiring reliable transit times.
The company serves businesses across North America and supports domestic and international supply chains through a network of terminals, transportation partners, and logistics facilities.
