Key Highlights

  • Operating revenues rose 6.7% to USD 673.9 million.
  • Operating income was USD 43.9 million, compared with USD 15.0 million.
  • Net income was USD 9.1 million, compared with a net loss of USD 23.8 million.
  • Tonnage increased 15.6% in the network revenue line.

Forward Air Corporation (NASDAQ:FWRD) reported third quarter 2026 operating revenues of USD 673.9 million, an increase of USD 42.1 million, or 6.7%, from USD 631.8 million in the third quarter of 2025. Reported EPS was USD 0.34 and revenue was USD 673.86 million, compared with estimates of EPS of USD 0.13 and revenue of USD 673.40 million.

Operating expenses increased USD 13.2 million, or 2.1%, to USD 630.0 million. Operating Income was USD 43.9 million, compared with USD 15.0 million.

Earnings and Other Items

Total other expense decreased USD 3.6 million, or 9.4%, to USD 34.8 million. The prior year quarter included a USD 6.0 million adjustment decreasing liabilities under the Tax Receivable Agreement, with no comparable transaction in the current quarter. The effective tax rate was 0.2%, compared with negative 1.6%.

Income from continuing operations before income taxes was USD 9.1 million, compared with a loss of USD 23.4 million. Net Income was USD 9.1 million, compared with a net loss of USD 23.8 million. Net income attributable to Forward Air was USD 11.4 million, compared with a net loss of USD 16.3 million, after a net loss attributable to noncontrolling interest of USD 2.3 million. Approximately 24.8% of consolidated net income was attributed to noncontrolling interest, compared with 31.6%.

Network Revenue and Unit Metrics

One revenue line increased USD 78.9 million, or 30.5%, to USD 337.4 million, primarily on increased network revenues reflecting a 15.6% increase in tonnage and a 15.4% increase in revenue per shipment. The company attributed the tonnage increase to a 7.9% increase in shipments per day and a 6.9% increase in weight per shipment. Revenues also increased in part from USD 8.4 million of operating revenues from the conversion of certain customers previously serviced by Omni Logistics in the prior year period.

Revenue per hundredweight was USD 34.18, compared with USD 31.70, and revenue per hundredweight excluding fuel was USD 24.34, compared with USD 24.98. Revenue per shipment was USD 307.51, compared with USD 266.48, and USD 219.01 excluding fuel, compared with USD 209.99.

Another revenue line decreased USD 27.3 million, or 8.0%, to USD 312.3 million from USD 339.6 million. The company said ground services decreased primarily because of the sale of a Business unit during the third quarter of 2026, which reduced revenue by USD 18.0 million.

Cost Lines

Purchased transportation increased USD 54.2 million, or 43.3%, to USD 179.5 million, or 53.2% of operating revenues, compared with 48.4%. Salaries, wages and employee benefits increased USD 2.0 million, or 3.6%, to USD 56.4 million, or 16.7% of operating revenues, compared with 21.0%, with the increase tied to the 15.6% increase in tonnage moved. Other operating expenses increased USD 4.3 million, or 20.7%, to USD 25.2 million, or 7.5% of operating revenues, compared with 8.3%.

The filing notes that one customer represented approximately 13% of consolidated operating revenues for both the three and nine months ended September 30, 2026, compared with slightly less than 10% for the year ended December 31, 2025.

Network Metrics and Cost Lines

Forward Air's quarter included operating revenues of USD 673.9 million, operating income of USD 43.9 million and net income of USD 9.1 million. Reference points in the filing include tonnage growth of 15.6% in network revenue, shipment metrics, the purchased transportation ratio, a business unit sale and the noncontrolling interest attribution.