Forward Air Corp Reports Q4 Loss with EPS of -$1.23 and Revenue of $632.8 Million, Missing Estimates

On February 26, 2025, Forward Air Corp (FWRD, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. The company, an asset-light freight and logistics provider, operates primarily through its Expedited Freight and Intermodal segments, with the Expedited Freight segment generating the majority of its revenue. Forward Air Corp conducts business across the United States, Canada, and Mexico.

Performance and Challenges

Forward Air Corp reported a consolidated revenue of $633 million for the fourth quarter of 2024, falling short of the analyst estimate of $667.40 million. The company also reported a net loss from continuing operations of $35.38 million, translating to a net loss per diluted share of $1.23, which is below the estimated earnings per share of -0.01. The company's performance was impacted by a goodwill impairment adjustment of $79 million, which unfavorably affected the quarter's income from operations.

Financial Achievements

Despite the challenges, Forward Air Corp achieved significant cost synergies following the acquisition of Omni Logistics, executing more than $100 million in annualized savings. This achievement is crucial for the company as it transitions from integration to transformation, aiming to enhance its suite of global, vertically-integrated services.

Income Statement and Key Metrics

The company's operating revenue for the full year 2024 was $2.47 billion, an 80.5% increase from the previous year. However, the income from operations showed a significant loss of $1.06 billion, compared to a profit of $88.21 million in 2023. The operating margin also declined to -43.0% from 6.4% in the previous year.

Consolidated EBITDA for the fourth quarter was $69 million, and for the full year, it was $308 million, providing a cushion per the terms of the recently amended Credit Agreement’s consolidated first lien net leverage ratio covenant.

Balance Sheet and Cash Flow

Liquidity at the end of the fourth quarter was $382 million, down from $460 million at the end of the third quarter. This decrease was influenced by a $40 million reduction in the credit facility and $60 million in interest payments. Cash provided by operating activities was negative $30.49 million for the fourth quarter, a significant decline from $57.09 million in the same period the previous year.

Segment Performance

The Expedited Freight segment reported a decline in operating revenue to $265.88 million, a 4.7% decrease from the previous year. The segment's income from operations also fell by 72.9% to $7.24 million. The Intermodal segment, however, showed a slight improvement in income from operations, increasing by 17.0% to $5.93 million.

Commentary and Outlook

As we turn the page on the first year operating as a combined company following the acquisition of Omni, I want to express my gratitude to our associates for their dedication to making our customers their top priority," said Shawn Stewart, Chief Executive Officer. "We delivered full year 2024 Consolidated EBITDA results near the top end of our guidance range, and we more than delivered on the previously committed $75 million of integration synergies."

Forward Air Corp's strategic focus on technology system simplification, global shared service efficiencies, and expanding synergistic service offerings is expected to drive future growth. However, the company acknowledges the need for continued efforts to stabilize and transform its operations.

Forward Air Corp's results highlight the challenges faced in integrating and transforming its operations post-acquisition. The company's focus on cost synergies and operational efficiencies will be critical in navigating the competitive transportation industry landscape.

Explore the complete 8-K earnings release (here) from Forward Air Corp for further details.