Omni Segment Delivers Best Results Since Acquisition as Forward Air Sees Solid Cash Flow and Operational Gains
Omni Segment Achieves Record Revenue and EBITDA Growth
Forward Air Corporation’s latest quarter delivered some notable bright spots, most significantly from the Omni Logistics segment, which posted its highest revenue and EBITDA (excluding goodwill impacts) since being acquired. Revenue climbed to $339.58 million, a $5.05 million increase year-over-year, while segment EBITDA surged by $6 million to reach $33 million—driven largely by heightened demand for diversified service offerings. Segment operating margins leapt to 2.9%, compared to just 0.3% a year ago, underscoring major efficiency gains.
| Omni Segment Key Metrics | Q3 2025 | Q3 2024 | Change | % Change |
|---|---|---|---|---|
| Operating Revenue ($M) | 339.58 | 334.54 | 5.05 | 1.5% |
| EBITDA ($M) | 33 | 27 | 6 | 22.2% |
| Operating Margin | 2.9% | 0.3% | +2.6 pts | - |
Expedited Freight Margins Hold Up Despite Lower Volumes
While Expedited Freight segment revenue dropped 9.2% to $258.55 million due to a weaker freight environment, margins remained resilient. The reported EBITDA margin of 11.5% marked the second-highest reading since Q4 2023, highlighting ongoing efficiency gains from cost reductions and integration efforts. Operational income in the segment held steady at $19.45 million versus $19.27 million a year prior, even as volumes and shipments dipped more than 12% year-over-year.
| Expedited Freight Key Metrics | Q3 2025 | Q3 2024 | % Change |
|---|---|---|---|
| Operating Revenue ($M) | 258.55 | 284.71 | -9.2% |
| Operating Margin | 7.5% | 6.8% | +0.7 pts |
| Reported EBITDA Margin | 11.5% | n/a | - |
| Volume (Pounds) | 612,449 | 713,213 | -14.1% |
Free Cash Flow and Liquidity Surge Past $400 Million
Despite a dip in total revenue to $631.76 million (down 3.7%), Forward Air’s ability to generate cash showed marked improvement. Free cash flow in Q3 rose to $48.89 million, a 16.9% increase from the prior year, fueled by a combination of disciplined cost controls and stronger operational efficiencies. As of quarter-end, total liquidity climbed to $413 million, well above the $368 million seen at the close of the previous quarter. For the first nine months of the year, operating cash flow swung sharply into positive territory at $67.11 million, a major turnaround from a $45.77 million use in the prior-year period.
| Liquidity and Cash Flow | Q3 2025 | Q3 2024 | Change | % Change |
|---|---|---|---|---|
| Liquidity ($M) | 413 | 368 | 45 | 12.2% |
| Free Cash Flow ($M) | 48.89 | 41.83 | 7.07 | 16.9% |
| Operating Cash Flow YTD ($M) | 67.11 | -45.77 | 112.88 | - |
Integration Progress Sets Stage for Efficiency and Service Expansion
The company made significant headway on integrating its U.S. and Canadian businesses under a unified regional reporting structure. This streamlining, part of the ongoing One Ground Network strategy, aims to bring linehaul, brokerage, pickup and delivery, and expedited services into a more cohesive structure for customers—targeting both cost efficiencies and improved client experience.
Takeaway: Strong Segment Performance and Operational Improvements Counteract Market Headwinds
In summary, while top-line revenue softened under extended industry headwinds, Forward Air showcased meaningful advances in operational cash flow and margin improvements. The Omni segment was the clear growth engine, and strategic integration continues to bear fruit in expense management and service delivery. With over $400 million in liquidity and robust free cash flow, the company appears positioned to navigate volatility while executing on its long-term transformation plans.
Contact Information:
If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.
About the Publisher - Marketchameleon.com:
Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.
NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.
Disclosure: This article was generated with the assistance of AI