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NEWS RELEASE

FORWARD AIR CORPORATION REPORTS FIRST QUARTER 2026 RESULTS
Expedited Freight Segment’s Results Improve Year Over Year and Sequentially

Liquidity Remains Strong Increasing to Over $400 Million

Provides Update on Customer and Strategic Alternatives Review

DALLAS – (BUSINESS WIRE) – May 7, 2026 – Forward Air Corporation (NASDAQ:FWRD) (the “Company”, “Forward”, “we”, “our”, or “us”) today reported financial results for the three months ended March 31, 2026, as presented in the tables below.

“During the first quarter, we stayed focused on the customer and providing award-winning service,” said Shawn Stewart, President & Chief Executive Officer. “And as a result, operating income improved to $20 million compared to $5 million in the first quarter a year ago.

“On a segment basis, the Expedited Freight’s first quarter Reported EBITDA results improved to $28 million compared to $26 million a year ago and sequentially when compared to the $25 million in the fourth quarter 2025. The 10.4 percent margin is consistent with a year ago and an improvement compared to the 10.1 percent in the fourth quarter 2025.

“At the Omni Logistics segment, Reported EBITDA in the first quarter was $25 million and consistent with the $26 million in the first quarter 2025. The margin improved to 8.3 percent compared to 7.9 percent due to an increase in contract logistics volume with a more favorable margin.

“Reduction in port activity and softness with key customers continued to negatively impact the Intermodal segment. In the first quarter Reported EBITDA was $5 million and the margin was 10.1 percent respectively, compared to $10 million and 16.4 percent a year ago.”

Jamie Pierson, Chief Financial Officer, added, “We reported consolidated revenue of $582 million in the first quarter compared to $613 million a year ago. Consolidated EBITDA, a non-GAAP measure calculated pursuant to our Term Loan Credit Agreement, was $70 million, and on a last twelve months basis was $304 million.

“Liquidity improved to $402 million at the end of the first quarter comprised of $141 million in cash and $261 million of availability under our credit facility, which is the highest ending cash balance Forward Air has achieved in the past two years. This compares to $367 million in total liquidity at the end of 2025.

“As a result of tight control on costs and reduction in advisors and consultants compared to a year ago, cash provided by operating activities improved to $46 million in the first quarter compared to $28 million the same time last year, reflecting a year over year improvement of $18 million,” concluded Pierson.






Customer Update

While no formal notices of termination have been delivered, the Company is currently in active discussions with one of its largest customers (the “Customer”) regarding the transition of a significant portion of their business with the Company to other providers for reasons believed to be related to the Customer’s operations and supplier diversification initiatives. Forward Air has provided the highest level of service excellence and exceeded most if not all of its KPIs on a regular basis throughout the duration of its long-term partnership.

The parties continue to discuss the scope of the business that will be transitioned and the timing thereof, and Forward Air is exploring all options to retain as much of this business as possible. The Company is currently anticipating that the majority of the business that will ultimately be transitioned will start in early 2027 and take place throughout the balance of the year.

The Customer represented approximately $250 million of the Company’s revenue for the fiscal year ended December 31, 2025 and is not a customer of Forward Air’s Less Than Truckload or Intermodal businesses.

The Company remains focused on delivering industry leading solutions and service to all of its global customer base and believes that continued execution of its strategy will allow it to build its market share over time.

Strategic Alternatives Update

In January 2025, the Forward Air Board of Directors initiated a comprehensive review of strategic alternatives to maximize shareholder value, exploring a range of options relative to the long-term value potential of the Company on a standalone basis. This process included extensive negotiations and discussions with multiple parties; however, due to a variety of factors, including the developments in Forward Air’s relationship with the Customer, no actionable proposals for a sale of the Company were ultimately received. However, the Board continues to be open to, and intends to consider, all opportunities to enhance shareholder value, and has determined to pursue a sale of non-core assets, including our Intermodal segment and two of our smaller legacy Omni businesses. These targeted sales are expected to advance the Company’s efforts to delever the balance sheet and further focus its services around continuing to provide service-sensitive logistics to its customers around the world in the air, ocean, ground and contract logistics.

Stewart concluded, “Despite a prolonged, multi-year freight recession, our team has made extensive progress executing our transformation plan, overhauling operations and improving the quality of our earnings results including today with the release of our first quarter 2026 results.”

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Three Months Ended
(in thousands, except per share data)March 31, 2026March 31, 2025ChangePercent Change
Operating revenues$582,046 $613,281 $(31,235)(5.1)%
Income from operations $20,441 $4,763 $15,678 329.2 %
Operating margin3.5 %0.8 %270 bps
Net loss$(40,198)$(61,191)$20,993 34.3 %
Net loss per diluted share$(1.09)$(1.68)$0.59 35.1 %
Cash provided by operating activities$45,738 $27,615 $18,123 65.6 %
Non-GAAP Financial Measures: 1
Consolidated EBITDA$70,378 $73,311 $(2,933)(4.0)%
Free cash flow$40,220 $16,400 $23,820 145.2 %
1 Reconciliation of these non-GAAP financial measures are provided below the financial tables.

Review of Financial Results

Forward Air will hold a conference call to discuss first quarter 2026 results on Thursday, May 7 at 4:30 p.m. ET. The Company’s conference call will be available online on the Investor Relations portion of the Company’s website at ir.forwardaircorp.com, or by dialing (800) 579-2543, Access Code: FWRDQ126.

A replay of the conference call will be available on the Investor Relations portion of the Company’s website at ir.forwardaircorp.com, which we use as a primary mechanism to communicate with our investors. Investors are urged to monitor the Investor Relations portion of the Company’s website to easily find or navigate to current and pertinent information about us.

About Forward Air Corporation

Forward is a leading asset-light provider of transportation services across the United States, Canada and Latin America. We provide expedited less-than-truckload services, including local pick-up and delivery, shipment consolidation/deconsolidation, warehousing, and customs brokerage by utilizing a comprehensive national network of terminals. In addition, we offer truckload brokerage services, including dedicated fleet services, and intermodal, first- and last-mile, high-value drayage services, both to and from seaports and railheads, dedicated contract and Container Freight Station warehouse and handling services. Forward also operates a full portfolio of multimodal solutions, both domestically and internationally, via Omni Logistics. Omni Logistics is a global provider of air, ocean and ground services for mission-critical freight. We are more than a transportation company. Forward is a single resource for your shipping needs. For more information, visit our website at www.forwardair.com.
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Forward Air Corporation
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
 Three Months Ended
March 31, 2026March 31, 2025
Operating revenues:
Expedited Freight$272,707 $249,381 
Omni Logistics302,418 323,470 
Intermodal53,092 62,492 
Corporate — 142 
Eliminations(46,171)(22,204)
Operating revenues582,046 613,281 
Operating expenses:
Purchased transportation283,777 304,262 
Salaries, wages and employee benefits115,576 141,915 
Operating leases49,713 48,792 
Depreciation and amortization38,521 37,360 
Insurance and claims13,498 15,007 
Fuel expense4,927 5,649 
Other operating expenses55,593 55,533 
Total operating expenses561,605 608,518 
Income from operations:
Expedited Freight20,046 15,634 
Omni Logistics730 3,375 
Intermodal1,224 5,542 
Other Operations(1,559)(19,788)
Income from operations20,441 4,763 
Other expense:  
Interest expense, net(43,587)(45,547)
Foreign exchange gain (loss)1,698 (922)
Other (expense) income, net(16,957)104 
Total other expense(58,846)(46,365)
Loss from operations before income taxes(38,405)(41,602)
Income tax expense1,793 19,589 
Net loss(40,198)(61,191)
Net loss attributable to noncontrolling interest(5,879)(10,554)
Net loss attributable to Forward Air$(34,319)$(50,637)
 
Basic and diluted net loss per share attributable to Forward Air$(1.09)$(1.68)
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Expedited Freight Segment Information
(In thousands)
(Unaudited)
Three Months Ended
 March 31, 2026Percent of Revenue March 31, 2025Percent of RevenueChangePercent Change
Operating revenues:
Network1
$188,177 69.0 %$190,162 76.3 %$(1,985)(1.0)%
Truckload62,544 22.9 39,255 15.7 23,289 59.3 
Other21,986 8.1 19,964 8.0 2,022 10.1 
Total operating revenues272,707 100.0 249,381 100.0 23,326 9.4 
Operating expenses:
Purchased transportation141,683 52.0 120,680 48.4 21,003 17.4 
Salaries, wages and employee benefits55,650 20.4 52,577 21.1 3,073 5.8 
Operating leases15,528 5.7 15,433 6.2 95 0.6 
Depreciation and amortization8,312 3.0 10,379 4.2 (2,067)(19.9)
Insurance and claims10,160 3.7 10,308 4.1 (148)(1.4)
Fuel expense2,053 0.8 2,471 1.0 (418)(16.9)
Other operating expenses19,275 7.4 21,899 8.7 (2,624)(12.0)
Total operating expenses252,661 92.6 233,747 93.7 18,914 8.1 
Income from operations$20,046 7.4 %$15,634 6.3 %$4,412 28.2 %
1 Network revenue is comprised of all revenue, including linehaul, pickup and/or delivery, and fuel surcharge revenue, excluding accessorial and Truckload revenue.

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Expedited Freight Operating Statistics
Three Months Ended
March 31, 2026March 31, 2025Percent Change
Business days63 63 — %
Tonnage1,2
    Total pounds598,454 610,635 (2.0)
    Pounds per day9,499 9,693 (2.0)
Shipments1,2
    Total shipments690 727 (5.1)
    Shipments per day11.0 11.5 (4.3)
Weight per shipment867 840 3.2 
Revenue per hundredweight3
$31.45 $31.19 0.8 
Revenue per hundredweight, ex fuel3
$24.50 $24.76 (1.1)
Revenue per shipment3
$272.57 $262.04 4.0 
Revenue per shipment, ex fuel3
$212.37 $208.03 2.1 
1 In thousands
2 Excludes accessorial and Truckload products
3 Includes intercompany revenue between the Network and Truckload revenue streams

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Omni Logistics Segment Information
(In thousands)
(Unaudited)
Three Months Ended
March 31, 2026Percent of Revenue March 31, 2025Percent of Revenue ChangePercent Change
Operating Revenues:
Ground$135,987 45.0 %$172,094 53.2 %$(36,107)(21.0)%
Contract Logistics104,166 34.4 80,128 24.8 24,038 30.0 
Air and Ocean62,265 20.6 71,248 22.0 (8,983)(12.6)
Total operating revenues302,418 100.0 323,470 100.0 (21,052)(6.5)
Operating expenses:
Purchased transportation168,923 55.9 185,734 57.4 (16,811)(9.1)
Salaries, wages and employee benefits53,396 17.7 56,783 17.6 (3,387)(6.0)
Operating leases27,702 9.2 27,090 8.4 612 2.3 
Depreciation and amortization24,491 8.1 22,230 6.9 2,261 10.2 
Insurance and claims468 0.2 2,615 0.8 (2,147)(82.1)
Fuel expense504 0.2 1,017 0.3 (513)(50.4)
Other operating expenses26,204 8.7 24,626 7.6 1,578 6.4 
Total operating expenses301,688 99.8 320,095 99.0 (18,407)(5.8)
Income from operations$730 0.2 %$3,375 1.0 %$(2,645)(78.4)%



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Intermodal Segment Information
(In thousands)
(Unaudited)
Three Months Ended
 March 31, 2026Percent of RevenueMarch 31, 2025Percent of RevenueChangePercent Change
Operating revenues$53,092 100.0 %$62,492 100.0 %$(9,400)(15.0)%
Operating expenses:
Purchased transportation19,342 36.4 20,176 32.3 (834)(4.1)
Salaries, wages and employee benefits13,663 25.7 15,931 25.5 (2,268)(14.2)
Operating leases5,781 10.9 5,778 9.2 3 0.1 
Depreciation and amortization4,153 7.8 4,720 7.6 (567)(12.0)
Insurance and claims2,771 5.2 2,791 4.5 (20)(0.7)
Fuel expense2,370 4.5 2,155 3.4 215 10.0 
Other operating expenses3,788 7.2 5,399 8.6 (1,611)(29.8)
Total operating expenses51,868 97.7 56,950 91.1 (5,082)(8.9)
Income from operations$1,224 2.3 %$5,542 8.9 %$(4,318)(77.9)%

Intermodal Operating Statistics
Three Months Ended
March 31, 2026March 31, 2025Percent Change
Drayage shipments51,476 64,449 (20.1)%
Drayage revenue per shipment$876 $883 (0.8)%

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Forward Air Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
 March 31, 2026December 31, 2025
Assets
Current assets:
Cash and cash equivalents$141,022 $105,996 
Accounts receivable, net330,699 343,559 
Other receivables3,077 6,147 
Prepaid expenses29,453 28,045 
Other current assets38,105 37,254 
Total current assets542,356 521,001 
Property and equipment, net of accumulated depreciation and amortization of $348,946 in 2026 and $340,021 in 2025
286,652 297,882 
Operating lease right-of-use assets402,712 412,535 
Goodwill522,712 522,712 
Other acquired intangibles, net of accumulated amortization of $324,223 in 2026 and $301,453 in 2025
884,021 906,791 
Other long-term assets57,426 58,023 
Total assets$2,695,879 $2,718,944 
Liabilities and Shareholders' Equity 
Current liabilities: 
Accounts payable$103,693 $121,752 
Accrued expenses133,142 114,422 
Other current liabilities76,937 69,130 
Current portion of finance lease obligations15,317 15,995 
Current portion of operating lease liabilities112,808 107,026 
Total current liabilities441,897 428,325 
Finance lease obligations, less current portion18,851 22,387 
Long-term debt1,690,253 1,687,248 
Liabilities under tax receivable agreement28,255 11,548 
Operating lease liabilities, less current portion313,153 327,011 
Other long-term liabilities56,221 53,540 
Deferred income taxes24,973 27,221 
Shareholders' equity:
Preferred stock— — 
Common stock316 313 
Additional paid-in capital564,626 559,551 
Accumulated deficit(482,911)(447,100)
Accumulated other comprehensive (loss) income(1,030)580 
Total Forward Air shareholders' equity81,001 113,344 
Noncontrolling interest41,275 48,320 
Total shareholders' equity122,276 161,664 
Total liabilities and shareholders' equity$2,695,879 $2,718,944 
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Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
March 31, 2026March 31, 2025
Operating activities:
Net loss $(40,198)$(61,191)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization38,521 37,360 
Share-based compensation expense3,541 2,958 
Provision for revenue adjustments731 647 
Deferred income tax benefit(2,170)(2,792)
Other3,870 3,799 
Changes in operating assets and liabilities:
Accounts receivable11,863 (21,145)
Other receivables2,052 (434)
Other current and noncurrent assets(3,097)767 
Accounts payable and accrued expenses30,625 67,646 
Net cash provided by operating activities45,738 27,615 
Investing activities:
Proceeds from sale of property and equipment1,428 691 
Purchases of property and equipment(6,946)(11,906)
Other— (24)
Net cash used in investing activities(5,518)(11,239)
Financing activities:
Repayments of finance lease obligations(4,225)(4,431)
Proceeds from credit facility— 25,000 
Payments on credit facility— (25,000)
Payment of minimum tax withholdings on share-based awards and other(685)(894)
Net cash used in financing activities(4,910)(5,325)
Effect of exchange rate changes on cash(284)357 
Net increase in cash and cash equivalents35,026 11,408 
Cash and cash equivalents at beginning of period105,996 105,266 
Cash and cash equivalents at end of period$141,022 $116,674 
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Forward Air Corporation Reconciliation of Non-GAAP Financial Measures

In this press release, the Company includes financial measures that are derived on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States (GAAP). The Company believes that meaningful analysis of its financial performance requires an understanding of the factors underlying that performance, including an understanding of items that are non-operational. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions as well as evaluating the Company’s performance.

For the three months ended March 31, 2026 and 2025, this press release contains the following non-GAAP financial measures: earnings before interest, taxes, depreciation and amortization for each segment (“Reported EBITDA”), Consolidated EBITDA and free cash flow.

All non-GAAP financial measures are presented on a continuing operations basis.

The Company believes that Reported EBITDA improves comparability from period to period by removing the impact of its capital structure (interest and financing expenses), asset base (depreciation and amortization) and tax impacts. The Company believes that free cash flow is an important measure of its ability to repay maturing debt or fund other uses of capital that it believes will enhance shareholder value.

The Company is also providing Consolidated EBITDA calculated in accordance with our credit agreement as we believe it provides investors with important information regarding our financial condition and compliance with our obligations under our credit agreement.

Non-GAAP financial measures should be viewed in addition to, and not as an alternative to or substitute for, the Company’s financial results prepared in accordance with GAAP. The Company has included, for the periods indicated, a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure. Investors and other readers are encouraged to review the related U.S. GAAP financial measures and the reconciliations of the non-GAAP measures to their most directly comparable U.S. GAAP measures set forth below.

The following is a reconciliation of net income to Consolidated EBITDA for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended
March 31, 2026March 31, 2025
Net loss$(40,198)$(61,191)
Interest expense43,587 45,547 
Income tax expense1,793 19,589 
Depreciation and amortization38,521 37,360 
Reported EBITDA43,703 41,305 
Transaction and integration costs2,814 13,926 
Severance costs540 1,574 
Change in TRA Liability16,707 — 
Optimization project costs— 1,031 
Proforma savings— 4,352 
Other6,614 11,123 
Consolidated EBITDA$70,378 $73,311 



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The following is a reconciliation of net cash provided by operating activities to free cash flow for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended
March 31, 2026March 31, 2025
Net cash provided by operating activities$45,738 $27,615 
Proceeds from sale of property and equipment1,428 691 
Purchases of property and equipment(6,946)(11,906)
Free cash flow$40,220 $16,400 


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Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements included in this press release relate to management’s expectations regarding: the Company’s strategic plans, including the potential sale of non-core assets; the Company’s ability to execute on strategy, maintain operational discipline and adapt to changing market conditions; the Company’s Expedited Freight, Omni Logistics and Intermodal segments; the Company’s future financial performance, including deleveraging and strengthening its balance sheet; geopolitical tensions in the Middle East; ongoing tariff uncertainty and evolving foreign trade policy; port activity; the freight demand environment; and the Company’s plans for growth.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. The following is a list of factors, among others, that could cause actual results to differ materially from those contemplated by the forward-looking statements: economic factors such as tariffs, recessions, inflation, higher interest rates and downturns in customer business cycles, the outcome of our review of strategic alternatives, our ability to execute on a strategic sale of non-core assets, our ability to achieve ongoing strategic, financial and other benefits as we continue to transform our business after the acquisition of Omni Logistics, including the realization of expected synergies and the achievement of deleveraging targets within the expected timeframes or at all, the risk of customer loss, the risk of management and employee loss, the creditworthiness of our customers and their ability to pay for services rendered, our inability to maintain our historical growth rate because of a decreased volume of freight or decreased average revenue per pound of freight moving through our network, the availability and compensation of qualified Leased Capacity Providers and freight handlers as well as contracted, third-party carriers needed to serve our customers’ transportation needs, our inability to manage our information systems and the occurrence of cybersecurity risks and events, market acceptance of our service offerings, claims for property damage, personal injuries or workers’ compensation, enforcement of and changes in governmental regulations, environmental, tax, insurance and accounting matters, the handling of hazardous materials, changes in fuel prices, loss of a major customer, increasing competition and pricing pressure, our dependence on our senior management team and the potential effects of changes in employee status, seasonal trends, the occurrence of certain weather events, restrictions in our charter and bylaws, and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2025, and as may be identified in our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

We caution readers that any forward-looking statement made by us in this press release is based only on information currently available to us and they should not place undue reliance on any forward-looking statement, which reflect management's opinion as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise unless required by law.
Contact:

Investors:
Tony Carreño
investorrelations@forwardair.com
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Media:
Hannah Weeg
HWeeg@forwardair.com
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