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Dec 31, 2024
Forward Air Q4 2024 Earnings Report
Forward Air reported its fourth quarter and full year 2024 financial results, with full year results near the top end of guidance range and over $100 million in annualized cost synergies achieved in the first year post-Omni transaction.
Key Takeaways
Forward Air Corporation reported a consolidated revenue of $633 million for Q4 2024, with income from continuing operations at $76 million. The company achieved over $100 million in annualized cost synergies in the first year following the Omni acquisition, exceeding the previously committed $75 million.
Consolidated revenue for Q4 2024 was $632.8 million, an 87.0% increase compared to Q4 2023.
Income from continuing operations for Q4 2024 was $75.8 million, a significant increase from $3.0 million in Q4 2023, favorably impacted by a goodwill impairment adjustment.
The company achieved over $100 million in annualized cost synergies in the first year after the Omni acquisition, surpassing the initial target of $75 million.
Expedited Freight segment was negatively impacted by a prior pricing strategy, but corrective actions were implemented in Q4 2024 with expected full run rate results by end of February.
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 is transitioning from integration to transformation, focusing on technology simplification, global shared service efficiencies, and expanding synergistic service offerings in 2025.
Positive Outlook
- Full year 2024 Consolidated EBITDA results were near the top end of the guidance range.
- Over $100 million in annualized cost synergies were executed in the first year following the Omni transaction, exceeding the committed $75 million.
- Foundational changes and investments made in 2024 are expected to improve results and benefit the Company for many years.
- The company is equipped with an enhanced suite of global, vertically-integrated services to meet customer needs.
- Corrective pricing actions implemented in the Expedited Freight segment during Q4 2024 are beginning to show results, with full run rate expected by the end of February.
Challenges Ahead
- Net income for Q4 2024 was negative $35.378 million.
- Cash provided by operating activities for Q4 2024 was negative $30.492 million.
- Consolidated EBITDA for Q4 2024 decreased by 26.3% compared to Q4 2023.
- Free cash flow for Q4 2024 was negative $35.098 million.
- The Expedited Freight segment was negatively impacted by a pricing strategy put in place prior to the acquisition, which focused more on volume than profitability.