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Forward Air
🇺🇸 NASDAQ:FWRD
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•
Mar 31, 2024

Forward Air Q1 2024 Earnings Report

Forward Air's first quarter results were impacted by a weak freight market and the closing of the Omni Logistics deal. However, cost synergy realization was in line with initial diligence estimates, and preliminary April results showed early signs of improvement.

Key Takeaways

Forward Air reported a challenging first quarter in 2024, with results impacted by weak freight demand and pricing pressure. The acquisition of Omni Logistics contributed $225 million in revenues but also negatively impacted adjusted EBITDA. The company is taking steps to improve profitability, with early positive indicators seen in sequential revenue growth in April.

First quarter results were below expectations due to challenging market conditions and Omni's exposure to the international freight market.

Less-than-truckload line of business saw positive volume trends and improved freight quality metrics.

Sequential revenue growth was observed in April, indicating a potential turnaround.

Cost synergies from the Omni transaction are on track with initial estimates.

Total Revenue
$542M
Previous year: $427M
+26.9%
EPS
-$0.64
Previous year: $1.37
-146.7%
Gross Profit
-$65.7M
Previous year: $116M
-156.8%
Cash and Equivalents
$172M
Previous year: $32M
+437.9%
Free Cash Flow
-$55.8M
Previous year: $61M
-191.5%
Total Assets
$3.96B
Previous year: $1.23B
+222.8%

Forward Air

Forward Air

Forward Air Revenue by Segment

Forward Guidance

Forward Air did not provide full year 2024 guidance but expects to share guidance on the second quarter earnings call. The company anticipates a steady increase in subsequent quarters until synergies are fully realized by the end of 2025.

Positive Outlook

  • Sequential revenue growth of 6% from March 2024 to April 2024.
  • Cost synergies associated with the Omni transaction are in line with initial diligence estimates.
  • Expect to see a steady increase in EBITDA in subsequent quarters.
  • Synergies are expected to be fully realized by the end of 2025.
  • The team is focused on execution with distractions of the deal closing behind them.

Challenges Ahead

  • First quarter results did not meet expectations.
  • Challenging market conditions persist, characterized by weak freight demand, excess carrier capacity, and pressure on pricing.
  • Omni's first quarter results were adversely impacted by its exposure to the international freight market.
  • Intermodal and truckload brokerage lines of business experienced decreased customer demand.
  • First quarter EBITDA was not reflective of run-rate synergies.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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