Forward Air Operating Income Nearly Triples as Revenue Hits a Second Record

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter operating income reached $43.9 million, up from $15.0 million a year earlier, as operating revenue rose to $673.9 million.

Forward Air Corporation (FWRD), an asset-light provider of expedited less-than-truckload, Omni Logistics and intermodal services, reported operating income of $43.9 million for the three months ended September 30, 2026, nearly tripling the $15.0 million recorded a year earlier and lifting operating margin to 6.5% from 2.4%.

Consolidated operating revenue was $673.9 million, up 6.7% from $631.8 million in the third quarter of 2025, and marked a second consecutive record quarterly total after $673.0 million in the second quarter. President and Chief Executive Officer Shawn Stewart said the company performed well across all three segments.

Consolidated EBITDA, a non-GAAP measure calculated under the company’s term loan credit agreement, increased to $101.5 million from $77.7 million a year earlier, a further step-up from $93.0 million in the second quarter. Last-twelve-months Consolidated EBITDA was $342 million as of the end of the third quarter.

Expedited Freight was the largest contributor. Segment operating revenue rose 30.5% to $337.4 million from $258.6 million a year earlier, with operating income up 87.5% to $36.5 million and margin at 10.8% versus 7.5%. Network revenue was $242.0 million and Truckload revenue $67.5 million. Stewart said the segment reported its best operating revenue, operating income and Reported EBITDA in nearly three years.

Tonnage rose 15.6% to 707,893 thousand pounds, or 11,061 thousand pounds per day, and shipments rose 8.0% to 787 thousand. Revenue per hundredweight rose 7.8% to $34.18. Revenue per hundredweight excluding fuel fell 2.6% to $24.34.

Omni Logistics operating revenue declined 8.0% to $312.3 million from $339.6 million a year earlier. Ground revenue fell 35.6% to $106.0 million. Contract Logistics rose 12.3% to $109.4 million and Air and Ocean rose 24.9% to $96.8 million. Operating income rose 25.2% to $12.2 million and margin to 3.9% from 2.9%. Stewart said the segment continues to see an increase in demand for contract logistics and air and ocean services and reported its best Reported EBITDA margin since the beginning of 2024.

Intermodal operating revenue rose 8.8% to $63.5 million from $58.3 million a year earlier. Drayage shipments rose 1.7% to 62,028 and drayage revenue per shipment rose 14.1% to $986 from $864. Operating income rose 26.4% to $5.2 million and margin to 8.2% from 7.0%. Stewart said the segment saw an increase in drayage per shipment contributing to its highest revenue in more than three years.

Net cash provided by operating activities fell 33.0% to $35.3 million from $52.7 million a year earlier, and free cash flow fell 31.8% to $33.3 million from $48.9 million.

Liquidity improved sequentially to $446 million at quarter-end, a $45 million increase from $401 million at the end of the second quarter. Chief Financial Officer Jamie Pierson said the company reported its lowest net leverage ratio since the first quarter of 2024.

The earnings presentation flagged a definitive agreement with the company’s largest customer and plans to sell the Intermodal business. The customer represented about $250 million of fiscal 2025 revenue and is not a customer of the Less Than Truckload or Intermodal businesses; a majority of the transition is anticipated to start in early 2027.