Forward Air Revenue Soars 92%; Net Loss Hits $34M
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Forward Air experienced a third-quarter jump in revenue but a bottom-line loss amid ongoing efforts to integrate Omni Logistics into its operations, the company reported Nov. 4.
The Greeneville, Tenn.-based ground transportation and logistics services provider posted a net loss of $34.2 million, or negative $2.62 a diluted share, for the three months ending Sept. 30. That compared with a gain of $6.49 million, or 25 cents, during the same time the previous year. But total operating revenue soared 92.4% to $655.9 million from $341 million.
“Forward Air’s acquisition of Omni closed roughly nine months ago,” said CEO Shawn Stewart, who took over leadership of the company April 28, during a call with investors. “The integration of the domestic network is substantially complete, and delivering on the savings as originally committed. With my first full quarter now complete, I’ve had the time to get my arms around the Forward and Omni-integration.”
Investment analysts forecast a loss of 5 cents per share and quarterly revenue of $656.07 million, according to Zacks Consensus Estimate.
Stewart said he now is focused on broader efforts to transform the company, including expansion of international freight forwarding and domestic expedited ground services. He noted Forward Air has even established a transformation management office to lead the process.
“The focus of this office will be to efficiently and effectively execute the transformation across all areas of the company,” Stewart said. “The transformation will include IT system rationalization and establishing the framework for us to go to market as a product-focused and operations-driven company. The result will be a vertically integrated company providing ground, air, ocean, contract logistics and customs brokerage services around the world.”
Stewart noted that Forward Air has committed to undergoing these changes amid a weak general freight market so that it is prepared when conditions improve. That work includes integrating the 12 companies that were under the Omni banner and moving from multiple planning systems.
“[This] includes harmonizing a multitude of policies that will enable our workforce to think and act as one,” Stewart said. “We expect that the magnitude and complexity of this integration will put us well into 2025 before it is substantially complete. And certain work streams may continue into 2026. But we will not lose our focus on the customer and their needs. I am confident that this work is achievable with the current structure.”
Omni Logistics reported Q3 revenue of $334.5 million while income from continuing operations reached $1.14 million. These operations won’t have year-over-year figures until early next year since the acquisition closed in January.
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Expedited freight segment revenue increased to 2.1% to $284.7 million from $278.9 million during the same time the previous year. Income from continuing operations decreased 40.8% to $19.3 million from $32.5 million last year. The report noted that the segment did not perform as expected due largely to a decrease in year-over-year revenue per hundredweight. This was primarily attributable to customer mix and associated pricing. The segment includes network, truckload and final-mile operations.
Intermodal segment revenue decreased 7.7% to $57.4 million from $62.2 million the prior year. Income from continuing operations decreased 13.8% to $4.09 million from $4.74 million. The report noted tight cost management strategies kept operating income essentially flat year over year despite segment revenue being otherwise down.
Forward Air also opened a new warehouse and freight station during the quarter in Miami. The facility is positioned for easy access to both Miami International Airport and the Port of Miami, the company noted.
“This state-of-the-art facility ensures that our customers receive the highest level of import and export security service,” Stewart said. “This location will serve as our gateway in Latin America, enabling us to offer direct air and ocean services into and out of South and Central America. This goes along with expanding our presence in South America.”
Forward Air ranks No. 41 on the Transport Topics 100 list of the largest for-hire carriers in North America and No. 1 on the air/expedited carriers sector list. It ranks No. 31 on the TT Top 100 logistics companies list.
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