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Jun 30
Forward Air Q2 2025 Earnings Report
Forward Air Corporation reported its second quarter 2025 financial results, showing sequential improvements in consolidated revenue and operating income, with the Expedited Freight segment achieving its highest EBITDA margin in six quarters.
Key Takeaways
Forward Air Corporation delivered a solid second quarter in a challenging freight environment, with consolidated revenue reaching $619 million and operating income improving to $20 million. The Expedited Freight segment demonstrated strong performance, achieving its highest EBITDA margin since Q4 2023 due to rigorous cost controls and pricing adjustments. The company's liquidity stood at $368 million at quarter-end.
Consolidated revenue for Q2 2025 was $618.844 million, a sequential increase of $6 million from Q1 2025.
Income from operations improved significantly to $19.522 million in Q2 2025, compared to a loss of $3 million in the prior year and $5 million in Q1 2025.
The Expedited Freight segment reported an EBITDA margin that was its highest since the fourth quarter of 2023, driven by effective cost management and pricing actions.
Liquidity at the end of Q2 2025 was $368 million, reflecting a $25 million decrease from Q1 2025, primarily due to a $34 million semi-annual interest payment on Senior Secured Notes.
Forward Air
Forward Air
Forward Air Revenue by Segment
Revenue by Segment
Expedited Freight Revenue
CapyFin.comOmni Logistics Revenue
CapyFin.comIntermodal Revenue
CapyFin.com Forward Guidance
The company did not provide specific quantitative forward guidance for the next quarter or year in this report. However, management expressed confidence in improving EBITDA and cash flow from operations once the freight environment normalizes, emphasizing a long-term strategic focus.
Positive Outlook
- Management believes the company is well-positioned to improve both EBITDA and cash flow from operations once the freight environment normalizes.
- The company is focused on long-term sustainable growth and profitability, looking beyond the next few quarters.
- Rigorous cost controls and corrective pricing actions are expected to continue benefiting the Expedited Freight segment.
- Commitment to service excellence is seen as key to sustainable growth and long-term profitability.
- The company's expense management discipline and operational improvements are expected to drive future performance.
Challenges Ahead
- The company is currently navigating a very challenging freight recession.
- No specific quantitative financial guidance (e.g., revenue, EPS) was provided for future periods.
- The company did not provide a quantitative reconciliation of Consolidated EBITDA to Net Income for future guidance due to the inability to accurately forecast variables and adjustments.
- The freight environment remains challenging, impacting overall performance.
- Liquidity decreased by $25 million sequentially, partly due to interest payments.