Forward Air pauses sale of intermodal unit

Forward Air has temporarily halted the sale of its intermodal unit, as disclosed in its latest third-quarter report. Management reaffirmed the business's "back on track" status during a quarterly call, stating that it is still open to fair value offers. The company began a strategic review in early 2025, initially considering the sale of its entire entity amid investor pressure following its contentious merger with Omni Logistics.

However, the impending loss of a key contract logistics customer, accounting for 10% of annual revenue ($250 million), prompted a shift in focus towards divesting specific units. Forward has secured a two-year agreement to retain a substantial portion of the at-risk account, with revenue expected to surpass 2025 levels after a temporary transition period.

Despite a 9% year-over-year increase in intermodal revenue to $63 million, Adjusted EBITDA for the unit grew 52% year-over-year to $35 million, with an improved margin of 11.3%. The company's overall revenue reached $674 million, a 7% increase from the prior year, while consolidated Adjusted EBITDA expanded by 31% to $101 million.