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Forward Air Corp. (FWRD)
NASDAQ:FWRD
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Forward Air (FWRD) AI Stock Analysis

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FWRD

Forward Air

(NASDAQ:FWRD)

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Neutral 46 (OpenAI - Gpt-5.6Sol)
Rating:46Neutral
Price Target:
$15.50
▼(-12.08% Downside)
Action:Reiterated
Date:09/07/26
The score is held down primarily by weak financial performance: sharp profitability deterioration, ongoing losses, and elevated balance-sheet risk from high leverage and negative equity. Offsetting factors are positive (but still limited) recent operating/free cash flow and mildly improving technical momentum. Valuation remains constrained by loss-making results (negative P/E) and lack of a dividend yield.
Positive Factors
Positive Free Cash Flow
The return to positive operating and free cash flow is a meaningful improvement from 2024, showing that the business is currently converting operations into cash. If sustained, this can support ongoing operations and investment, although the benefit remains constrained by the company’s heavy debt burden.
Negative Factors
Severe Profitability Deterioration
The collapse in margins and continued net losses show that increased revenue is not translating into sustainable earnings. Persistent losses can limit internal funding, weaken resilience, and indicate that execution or cost-structure problems must be resolved before scale becomes economically valuable.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive Free Cash Flow
The return to positive operating and free cash flow is a meaningful improvement from 2024, showing that the business is currently converting operations into cash. If sustained, this can support ongoing operations and investment, although the benefit remains constrained by the company’s heavy debt burden.
Read all positive factors

Forward Air (FWRD) vs. SPDR S&P 500 ETF (SPY)

Forward Air Business Overview & Revenue Model

Company Description
Forward Air Corporation, including its various subsidiaries, functions as a streamlined transportation and logistics enterprise throughout the United States and Canada, operating with an asset-light model. The company's business is structured into...
How the Company Makes Money
Forward Air makes money by charging customers for transportation and logistics services, with revenue primarily tied to shipment volumes, weight/cubic dimensions, lane distance, service level (expedited/time-definite), and accessorial services. Ke...

Forward Air Earnings Call Summary

Earnings Call Date:May 07, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Neutral
The call balanced meaningful operational and financial improvements (notably a large increase in operating income, stronger cash flow, healthy liquidity, segment margin gains, and strategic plans to sell non-core assets) against several material risks: a potential transition of a large customer (~$250M of 2025 revenue) expected in 2027, a sharp decline in the intermodal segment, and ongoing macro/geopolitical uncertainty that could pressure demand. Management emphasized confidence in service quality, active efforts to retain business, pricing discipline, and a plan to delever through targeted asset sales.
Positive Updates
Operating Income Substantial Improvement
Operating income rose to $20 million in Q1 2026 from $5 million a year ago, representing a +300% increase and reflecting improved profitability amid transformation efforts.
Negative Updates
Potential Large Customer Transition (Concentration Risk)
Management disclosed active discussions with one of the company's largest customers whose total 2025 spend with Forward Air was approximately $250 million; majority of any transition is anticipated to start in early 2027 and progress through 2027. Management believes no meaningful impact will occur in 2026, but the potential loss represents material revenue concentration risk.
Read all updates
Q1-2026 Updates
Negative
Operating Income Substantial Improvement
Operating income rose to $20 million in Q1 2026 from $5 million a year ago, representing a +300% increase and reflecting improved profitability amid transformation efforts.
Read all positive updates
Company Guidance
Management provided cautious, non‑numeric guidance focused on operational priorities rather than specific FY2026 targets: they expect no meaningful impact to 2026 from an ongoing customer transition (the customer represented roughly $250 million, ~10% of 2025 revenue) with any material shifts likely beginning in early 2027, and are pursuing sales of non‑core assets representing approximately $390–394 million of 2025 revenue (about $230M intermodal and ~ $160M in two smaller Omni businesses) to delever. Q1 results underpinning the outlook included operating income of $20M (vs. $5M LY), consolidated EBITDA $70M (vs. $73M LY) and adjusted EBITDA $70M (vs. $69M LY); segment results were Expedited EBITDA $28M (10.4% margin), OmniLogistics $25M (8.3% margin, up from 7.9%), and Intermodal $5M (10.1% margin, down from $10M and 16.4% LY). Cash flow and liquidity metrics highlighted resilience: net cash from operations $46M (vs. $28M, +$18M, >60%), non‑GAAP operating cash flow $58M (+$12M), ending liquidity $402M (cash $141M and $261M revolver) with a roughly $40M covenant cushion. Management also pointed to improving market signals—spot rates up ~40% since late last year, tender rejections up ~100%, PMIs >50 for four months, and inventory‑to‑sales at or slightly below the 10‑year average—while emphasizing disciplined pricing and cost management.

Forward Air Financial Statement Overview

Summary
Overall fundamentals are stressed. Income statement performance has deteriorated sharply with margins collapsing and sustained net losses despite a large TTM revenue increase. Balance sheet risk is a major negative due to very high debt and negative equity TTM, reducing financial flexibility. Cash flow is the bright spot with positive TTM operating cash flow and free cash flow, but coverage versus total debt remains thin.
Income Statement
24
Negative
Balance Sheet
12
Very Negative
Cash Flow
46
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.52B2.50B2.47B1.37B1.68B1.39B
Gross Profit267.85M510.94M339.65M330.15M491.67M313.95M
EBITDA-107.66M186.19M-916.64M145.62M290.14M181.99M
Net Income-286.19M-107.80M-816.97M167.35M193.19M105.86M
Balance Sheet
Total Assets2.41B2.74B2.80B2.98B1.21B1.12B
Cash, Cash Equivalents and Short-Term Investments139.45M106.00M104.90M121.97M45.82M37.32M
Total Debt2.11B2.16B2.15B1.95B266.78M320.07M
Total Liabilities2.53B2.58B2.52B2.22B500.83M524.17M
Stockholders Equity-115.43M113.34M201.73M764.26M707.24M593.65M
Cash Flow
Free Cash Flow48.22M15.27M-112.46M150.66M218.36M81.15M
Operating Cash Flow70.84M44.38M-75.40M181.39M259.09M120.26M
Investing Cash Flow-10.65M-26.91M-1.61B174.84M-104.46M-88.31M
Financing Cash Flow-16.04M-17.53M-163.83M1.55B-146.12M-34.89M

Forward Air Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.63
Price Trends
50DMA
16.42
Negative
100DMA
15.11
Positive
200DMA
18.02
Negative
Market Momentum
MACD
-0.12
Negative
RSI
51.27
Neutral
STOCH
34.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWRD, the sentiment is Positive. The current price of 17.63 is above the 20-day moving average (MA) of 15.41, above the 50-day MA of 16.42, and below the 200-day MA of 18.02, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 51.27 is Neutral, neither overbought nor oversold. The STOCH value of 34.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FWRD.

Forward Air Risk Analysis

Forward Air disclosed 49 risk factors in its most recent earnings report. Forward Air reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Forward Air Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$1.59B28.943.19%1.92%――
64
Neutral
$21.26B32.1118.71%0.78%10.59%―
64
Neutral
$5.77B44.3715.87%2.12%4.10%-19.02%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
$16.27B26.5436.01%1.79%-0.09%19.50%
46
Neutral
$517.19M-1.77-523.45%1.48%-0.11%-49.73%
43
Neutral
$16.38B27.9080.04%―――
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FWRD
Forward Air
15.62
-3.34
-17.62%
CHRW
CH Robinson
142.31
18.78
15.21%
HUBG
Hub Group
26.47
-8.23
-23.72%
JBHT
JB Hunt
230.59
65.20
39.43%
LSTR
Landstar System
169.39
42.57
33.56%
FDXF
FedEx Freight Holding Company
111.02
-39.98
-26.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 07, 2026