en.Wedoany.com Reported - Forward Air Corporation (Forward Air) announced on July 21 that it has signed a non-binding memorandum of understanding with a long-term customer accounting for approximately 10% of its revenue, retaining at least 50% of that customer's business, with the potential to reach up to 75%.
The Greenville, Tennessee-based trucking and logistics company first disclosed on May 7, when reporting its first-quarter 2026 results, that this unnamed customer—with a 20-year relationship—was diversifying its supplier base, causing its stock to drop from over $18 to below $10 that day. If the customer were to transfer all business to competitors starting in 2027, Forward would lose approximately $250 million in annual revenue (based on 2025 data). The memorandum signed on July 20 extends the contract for at least two years, ensuring retention of at least half of the business under non-binding terms.
In its communications in May and July, Forward emphasized that its service quality has reached a high level, consistently exceeding most key performance indicators, while the customer seeks to diversify its supplier list. Following the announcement, Forward's stock rose approximately 19% on July 21, climbing back above $15.
The company ranks 37th on Transport Topics' Top 100 list of the largest freight carriers in North America and first in the air/express carrier segment; Forward/Omni ranks 33rd on TT's Top 100 list of the largest logistics companies.
Additionally, Forward is nearing completion of the sale of two smaller businesses acquired in the Omni Logistics transaction, which could further boost its stock. These two businesses, along with its intermodal division, were deemed non-core assets following a strategic review initiated in January 2025 and are currently being sold. The legacy Omni business generates approximately $160 million in annual revenue, while the intermodal division generates about $230 million annually.
Forward Chief Financial Officer Jamie Pierson stated during the May 7 earnings call that the sale of the Omni business is expected to close within 60 to 90 days. The sale of the intermodal division has just begun and is expected to be completed by year-end. Susquehanna Investment Group analyst Harrison Bauer estimated in a May 8 research report that the Omni business would raise approximately $110 million, while the intermodal division would generate about $220 million in proceeds.
Chief Executive Officer Shawn Stewart said during the May conference call that selling these businesses is aimed at reducing balance sheet leverage and focusing on core operations. Previous strategic review options, including a full sale or privatization, were hindered by a weak freight market and the potential loss of the $250 million customer contract.
Forward reported a loss of $40.2 million for the three months ended March 31, narrowing from a loss of $61.2 million in the same period last year. The company plans to release its second-quarter 2026 earnings on August 5.
