Forward’s share price jumped nearly 19% on July 21 after the MOU was revealed, rising to above $15 after falling from $18 to less than $10 on May 7–8. (Forward Air Corp.)
key takeaways:
- Forward Air said on July 21 that it would retain at least 50% and potentially 75% of the long-time customer’s business.
- Losing the entire account would cost Forward Air $250 million in annual revenue starting in 2027.
- Forward Air expects to complete the sale of the two non-core assets soon and plans to report second-quarter earnings on Aug. 5.
The company said on July 21 that Forward Air would retain at least 50% of a long-time customer’s business, which accounts for about 10% of the motor carrier and logistics business’s revenue.
Greenville, Tennessee-based Forward first disclosed that the 20-year-old unnamed customer was in the process of diversifying its supplier pool when it announced first-quarter 2026 results on May 7, causing a decline in its stock price.
If the customer were to move all of its business to one or more rival companies, Forward would have lost $250 million of its 2025 revenue starting in 2027.
However, Forward said that on July 21 it entered into a non-binding memorandum of understanding under which the company would retain at least half of the client’s business and potentially 75% of the account. The MOU of July 20 extended the contract between the parties for a minimum of two years.
The carrier emphasized in communications in May and July that it achieved a high level of service excellence and exceeded most, if not all, of its key performance indicators on a regular basis and that the customer wanted to diversify its list of suppliers.
Forward’s share price jumped nearly 19% on July 21 after the MOU was revealed, rising to above $15 after falling from $18 to less than $10 on May 7–8.
The company is ranked No. 37 on Transportation Topics’ Top 100 list of the largest for-hire carriers in North America and No. 1 on the air/expedited carrier sector list. Forward/Omni is ranked 33rd in the TT Top 100 list of the largest logistics companies.
asset sales spreads
More positive news is on the way for the share price, as the sale of two smaller businesses acquired by Forward in the Omni Logistics deal is set to close.
Forward, viewed as non-core assets, is in the process of selling the businesses and its intermodal division following a strategic review beginning in January 2025.
Forward Chief Financial Officer Jamie Pearson said during the company’s May 7 earnings call that the sale of the businesses is expected to close in 60 to 90 days. A Forward representative declined to comment July 21 on whether the deadline remained in place.
The legacy omni businesses have annual revenues of about $160 million, while the intermodal unit brings in about $230 million per year.
Susquehanna Investment Group analyst Harrison Bauer said in a May 8 research note that the omni businesses were expected to raise about $110 million, while the intermodal unit would generate about $220 million.
During the May call, Pearson said the sale of the intermodal division had just begun and was expected to close by the end of the year.
CEO Shawn Stewart said during the call that Forward is selling the Omni businesses and the intermodal division to improve its balance sheet and focus on its core operations.
A sale of the entire business or taking the company private – a possibility that was considered when the strategic review began – was disrupted by the weakness of the freight market and the potential loss of its contract with a $250 million customer.
Forward reported a loss of $40.2 million in the three months ended March 31, compared with a loss of $61.2 million in the year-ago period. It is scheduled to report second-quarter 2026 earnings on Aug. 5.
