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Jun 30, 2023

Forward Air Q2 2023 Earnings Report

Forward Air's Q2 2023 performance was impacted by weaker-than-expected demand in the intermodal and truckload brokerage services, but saw positive momentum in less-than-truckload services.

Key Takeaways

Forward Air Corporation reported a decline in revenue and net income for Q2 2023 due to challenging market conditions in intermodal and truckload brokerage. However, the company saw positive momentum in less-than-truckload services and is focused on revenue growth strategies and network expansion.

Weaker demand in intermodal and truckload brokerage services impacted Q2 results.

Net income per diluted share was $0.76, and adjusted net income per diluted share was $0.91, below the guidance range.

Less-than-truckload service showed positive momentum with sequential improvement in pounds per day.

On-time performance was 99%, and the cargo claims ratio was 0.1%.

Total Revenue
$402M
Previous year: $515M
-21.9%
EPS
$0.91
Previous year: $2.04
-55.4%
Drayage Revenue per Shipment
$853
Previous year: $979
-12.9%
Gross Profit
$87.9M
Previous year: $146M
-39.8%
Cash and Equivalents
$18.3M
Previous year: $47.4M
-61.4%
Free Cash Flow
$54.1M
Previous year: $41.8M
+29.5%
Total Assets
$1.18B
Previous year: $1.2B
-1.0%

Forward Air

Forward Air

Forward Air Revenue by Segment

Forward Guidance

The Company expects year-over-year revenue to decline 11% to 21% and adjusted net income per diluted share in the range of $1.12 to $1.16 for Q3 2023.

Challenges Ahead

  • Year-over-year revenue is expected to decline 11% to 21%.
  • Adjusted net income per diluted share is expected to be in the range of $1.12 to $1.16, compared to $1.93 in Q3 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income