Forward Air secures deal to keep at least 50% of $250M account

2 months ago 27

Todd Maiden

Tue, July 21, 2026 astatine 8:51 AM CDT 2 min read

Forward Air said Tuesday that it volition proceed moving with 1 of its largest customers, which had provided announcement successful May that it mightiness propulsion each of its business. A non-binding statement with the lawsuit volition let Forward to support half, and perchance up to 75%, of the $250 cardinal account. A memorandum of knowing keeps the existent declaration successful spot for astatine slightest the adjacent 2 years.

The work modulation of the unretained information of the concern is expected to hap successful December and passim adjacent year.

Forward (NASDAQ: FWRD) previously said the lawsuit was seeking to diversify its database of vendors, emphasizing that the customer's imaginable departure had thing to bash with the "exceptional service" being provided. However, Forward's shares plummeted implicit 40% pursuing the informing that it mightiness suffer a lawsuit liable for 10% of its yearly revenue.

It said the imaginable nonaccomplishment of concern besides foiled its program to merchantability the company. (Forward commenced a strategic review at the opening of 2025 arsenic unit from investors mounted pursuing its contested merger with Omni Logistics.)

Instead, Forward is present looking to merchantability its intermodal portion and 2 smaller bequest Omni businesses, which generated $394 cardinal successful combined gross past year. Proceeds from the income volition beryllium utilized to delever the equilibrium sheet. Net indebtedness of $1.65 cardinal stood astatine 5.4 times past 12 months' adjusted EBITDA astatine the extremity of the archetypal quarter.

"We are highly pleased with the productive conversations we person had with 1 of our largest customers, including the imaginable of retaining up to 75% of the Customer's concern with america and meaningfully extending the declaration term," said Shawn Stewart, Forward president and CEO, successful a Tuesday quality release. "This statement builds connected our 20-year narration and underscores the impeccable work the Forward Air squad continues to provide."

Shares of FWRD were up 19% successful aboriginal trading connected Tuesday compared to the S&P 500, which was up 0.5%.

Why it matters? This communicative highlights the imaginable interaction 1 ample lawsuit tin person connected an full enterprise. It besides looks astatine respective captious dynamics successful the logistics industry, peculiarly astir vendor reliability, hazard mitigation and work strategy.

More FreightWaves articles by Todd Maiden:

Cass: TL linehaul rates beforehand successful June, measurement inflection delayed
ArcBest announces layoffs, closing 10 LTL terminals
'Massive opportunities' for J.B. Hunt successful intermodal displacement

The station Forward Air secures woody to support astatine slightest 50% of $250M relationship appeared archetypal connected FreightWaves.

Read Entire Article