Structural margin compression is evident as gross margins plummeted to 3.5% in 2026Q1, reflecting an inability to maintain pricing discipline during the ongoing operational transition.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 2.46B | 2.5B | 2.47B | 1.37B | 1.68B | 1.39B | 1.27B | 1.22B | 1.32B | 1.1B | 982.53M | 959.13M | 780.96M | 652.48M | 584.45M | 536.4M | 483.94M | 417.41M | 474.44M | 392.74M | 352.76M | 320.93M | 282.2M | 241.52M | 226.07M | 227.5M | 214.91M | 170.84M | 130.44M | 190.4M | 157.1M |
| Revenue Growth % | -3.22% | 0.84% | 80.51% | -18.39% | 21.08% | 9.27% | 4.48% | -8% | 19.99% | 12.04% | 2.44% | 22.81% | 19.69% | 11.64% | 8.96% | 10.84% | 15.94% | -12.02% | 20.8% | 11.33% | 9.92% | 13.73% | 16.84% | 6.83% | -0.63% | 5.86% | 25.79% | 30.98% | -31.49% | 21.2% | 6.08% |
| Cost of Goods Sold | 2.22B | 1.98B | 2.13B | 1.04B | 1.19B | 1.07B | 1.04B | 961.39M | 1.05B | 864.3M | 767.29M | 768.71M | 601.96M | 504.82M | 446.77M | 268.96M | 175.16M | 144.73M | 180.99M | 222.06M | 193.98M | 176.46M | 159.05M | 139.81M | 135.51M | 136.49M | 124.57M | 101.08M | 78.89M | 108.44M | 93.88M |
| COGS % of Revenue | - | 79.52% | 86.27% | 75.91% | 70.73% | 77.37% | 81.95% | 79.11% | 79.86% | 78.51% | 78.09% | 80.15% | 77.08% | 77.37% | 76.44% | 50.14% | 36.19% | 34.67% | 38.15% | 56.54% | 54.99% | 54.98% | 56.36% | 57.89% | 59.94% | 60% | 57.96% | 59.16% | 60.48% | 56.95% | 59.76% |
| Gross Profit | 246.59M | 510.94M | 339.65M | 330.15M | 491.67M | 313.95M | 229.11M | 253.8M | 266.04M | 236.51M | 215.24M | 190.42M | 179M | 147.66M | 137.67M | 267.44M | 308.78M | 272.68M | 293.45M | 170.68M | 158.78M | 144.47M | 123.14M | 101.71M | 90.57M | 91.01M | 90.34M | 69.77M | 51.55M | 81.96M | 63.22M |
| Gross Margin % | 10.01% | 20.48% | 13.73% | 24.09% | 29.27% | 22.63% | 18.05% | 20.89% | 20.14% | 21.49% | 21.91% | 19.85% | 22.92% | 22.63% | 23.56% | 49.86% | 63.81% | 65.33% | 61.85% | 43.46% | 45.01% | 45.02% | 43.64% | 42.11% | 40.06% | 40% | 42.04% | 40.84% | 39.52% | 43.05% | 40.24% |
| Gross Profit Growth % | - | 50.43% | 2.88% | -32.85% | 56.6% | 37.03% | -9.73% | -4.6% | 12.48% | 9.88% | 13.03% | 6.38% | 21.23% | 7.25% | -48.52% | -13.39% | 13.24% | -7.08% | 71.94% | 7.49% | 9.9% | 17.32% | 21.07% | 12.31% | -0.48% | 0.74% | 29.49% | 35.34% | -37.11% | 29.65% | -26.23% |
| Operating Expenses | 194.49M | 474.51M | 1.4B | 241.94M | 244.07M | 166.93M | 155.19M | 141.38M | 144.01M | 127.84M | 112.82M | 108.65M | 82.6M | 63.3M | 54.14M | 190.33M | 185.69M | 172.71M | 206.97M | 329.37M | 283.33M | 258.7M | 233.98M | 206.49M | 197.2M | 203.3M | 181.25M | 146.41M | 116.83M | 183.08M | 156.14M |
| OpEx % of Revenue | - | 19.02% | 56.69% | 17.65% | 14.53% | 12.03% | 12.22% | 11.63% | 10.9% | 11.61% | 11.48% | 11.33% | 10.58% | 9.7% | 9.26% | 35.48% | 38.37% | 41.38% | 43.62% | 83.87% | 80.32% | 80.61% | 82.91% | 85.5% | 87.23% | 89.36% | 84.34% | 85.7% | 89.57% | 96.16% | 99.39% |
| Selling, General & Admin | 31.25M | 0 | 64.68M | 50.13M | 47.48M | 39.41M | 34.91M | 38.73M | 35.18M | 29.58M | 25.39M | 21.48M | 15.74M | 12.62M | 11.31M | 130.65M | 129.11M | 118.57M | 124.6M | 96.49M | 86.38M | 78.49M | 73.49M | 64.57M | 58.1M | 65.85M | 54.53M | 42.34M | 35.99M | 72.92M | 60.12M |
| SG&A % of Revenue | - | - | 2.61% | 3.66% | 2.83% | 2.84% | 2.75% | 3.19% | 2.66% | 2.69% | 2.58% | 2.24% | 2.02% | 1.93% | 1.93% | 24.36% | 26.68% | 28.41% | 26.26% | 24.57% | 24.49% | 24.46% | 26.04% | 26.74% | 25.7% | 28.94% | 25.37% | 24.78% | 27.6% | 38.3% | 38.27% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 2.05M | 0 | 1.78M | 1.82M | 1.66M | 1.53M | 1.46M | 1.23M | 1.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | 0.16% | - | 0.13% | 0.17% | 0.17% | 0.16% | 0.19% | 0.19% | 0.19% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 474.51M | 1.34B | 191.81M | 196.6M | 127.52M | 118.22M | 102.65M | -2K | -11K | 4K | -58K | 289K | 99K | 14K | 59.68M | 56.58M | 54.15M | 0 | 321.69M | 196.95M | 180.21M | 160.49M | 141.91M | 139.1M | 137.45M | 126.71M | 104.07M | 80.83M | 110.17M | 96.02M |
| Operating Income | 52.1M | 36.42M | -1.06B | 88.21M | 247.59M | 147.03M | 73.92M | 112.42M | 122.03M | 108.67M | 59.98M | 81.77M | 96.41M | 84.36M | 83.53M | 77.11M | 53.74M | 18.79M | 70.28M | 71.05M | 75.4M | 67.44M | 53.6M | 40.18M | 32.74M | 31.66M | 37.3M | 26.44M | 16.01M | 16.8M | 9.34M |
| Operating Margin % | 2.11% | 1.46% | -42.96% | 6.44% | 14.74% | 10.6% | 5.82% | 9.25% | 9.24% | 9.87% | 6.1% | 8.53% | 12.34% | 12.93% | 14.29% | 14.38% | 11.1% | 4.5% | 14.81% | 18.09% | 21.37% | 21.01% | 18.99% | 16.64% | 14.48% | 13.92% | 17.36% | 15.48% | 12.27% | 8.82% | 5.95% |
| Operating Income Growth % | - | 103.43% | -1305.01% | -64.37% | 68.4% | 98.89% | -34.24% | -7.88% | 12.29% | 81.18% | -26.65% | -15.18% | 14.29% | 0.99% | 8.33% | 43.49% | 186.06% | -73.27% | -1.07% | -5.77% | 11.8% | 25.82% | 33.39% | 22.74% | 3.41% | -15.13% | 41.06% | 65.16% | -4.71% | 79.88% | -71.95% |
| EBITDA | 205.9M | 189.06M | -918.96M | 145.62M | 290.14M | 181.99M | 111.05M | 148.81M | 164.21M | 149.73M | 98.19M | 118.93M | 127.54M | 107.93M | 104.55M | 98.1M | 74.19M | 38.51M | 86.9M | 81.87M | 84.33M | 76.38M | 60.41M | 47.45M | 40.2M | 40.07M | 43.08M | 31.44M | 20.36M | 28.01M | 19.86M |
| EBITDA Margin % | 8.36% | 7.58% | -37.14% | 10.62% | 17.27% | 13.12% | 8.75% | 12.25% | 12.43% | 13.6% | 9.99% | 12.4% | 16.33% | 16.54% | 17.89% | 18.29% | 15.33% | 9.23% | 18.32% | 20.85% | 23.91% | 23.8% | 21.41% | 19.64% | 17.78% | 17.61% | 20.05% | 18.4% | 15.61% | 14.71% | 12.64% |
| EBITDA Growth % | 122.7% | 120.57% | -731.09% | -49.81% | 59.43% | 63.88% | -25.38% | -9.38% | 9.68% | 52.49% | -17.44% | -6.75% | 18.16% | 3.23% | 6.57% | 32.23% | 92.66% | -55.69% | 6.14% | -2.91% | 10.4% | 26.43% | 27.34% | 18.03% | 0.32% | -7% | 37.04% | 54.44% | -27.33% | 41.02% | -19.25% |
| D&A (Non-Cash Add-back) | 153.8M | 152.64M | 143.98M | 57.41M | 42.55M | 34.97M | 37.13M | 36.39M | 42.18M | 41.05M | 38.21M | 37.16M | 31.13M | 23.58M | 21.02M | 20.99M | 20.45M | 19.72M | 16.61M | 10.82M | 8.93M | 8.95M | 6.82M | 7.26M | 7.46M | 8.41M | 5.78M | 5M | 4.35M | 11.21M | 10.52M |
| EBIT | 50.05M | 33.55M | -1.06B | 88.21M | 247.59M | 147.03M | 73.92M | 112.42M | 122.03M | 108.75M | 59.71M | 81.71M | 96.69M | 84.45M | 83.55M | 77.18M | 53.83M | 18.62M | 70.65M | 72.8M | 75.4M | 71.34M | 54.73M | 40.18M | -7.32M | 31.66M | -90.91M | -76.64M | -60.48M | -7.61M | -9.2M |
| Net Interest Income | -91.61M | -180.75M | -189.22M | -31.57M | -5.14M | -4.34M | -4.56M | -2.71M | -1.78M | -1.21M | -1.6M | -2.05M | -610K | -532K | -391K | -619K | -730K | -670K | -1.24M | -491K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 91.61M | 180.75M | 189.22M | 31.57M | 5.14M | 4.34M | 4.56M | 2.71M | 1.78M | 1.21M | 1.6M | 2.05M | 610K | 532K | 391K | 619K | 730K | 670K | 1.24M | 491K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -196.1M | -183.62M | -186.9M | -31.57M | -5.14M | -4.34M | -4.56M | -2.71M | -1.78M | -1.22M | -1.32M | -2.1M | -321K | -433K | -377K | -545K | -640K | -601K | -874K | 1.26M | 3.15M | 3.8M | 1.07M | 529K | 1.42M | 546K | 666K | -454K | -1.17M | -4.62M | -1.57M |
| Pretax Income | -144M | -147.2M | -1.25B | 56.64M | 242.45M | 142.69M | 69.36M | 109.7M | 120.25M | 107.45M | 58.39M | 79.67M | 96.08M | 83.92M | 83.16M | 76.56M | 53.1M | 18.18M | 69.41M | 72.31M | 78.54M | 71.24M | 54.67M | 40.71M | 34.16M | 32.2M | 37.97M | 25.99M | 14.84M | 14.09M | 6.44M |
| Pretax Margin % | -5.84% | -5.9% | -50.51% | 4.13% | 14.43% | 10.29% | 5.46% | 9.03% | 9.1% | 9.76% | 5.94% | 8.31% | 12.3% | 12.86% | 14.23% | 14.27% | 10.97% | 4.36% | 14.63% | 18.41% | 22.27% | 22.2% | 19.37% | 16.86% | 15.11% | 14.16% | 17.67% | 15.21% | 11.38% | 7.4% | 4.1% |
| Income Tax | -23.27M | -5.47M | -124.99M | 13.84M | 63.04M | 35.81M | 16.59M | 27.38M | 28.2M | 20.13M | 30.72M | 24.09M | 34.92M | 29.45M | 30.49M | 29.37M | 21.06M | 8.24M | 26.87M | 27.39M | 29.62M | 26.33M | 20.25M | 14.9M | 12.54M | 12.32M | 14.52M | 9.95M | 5.65M | 5.49M | 2.46M |
| Effective Tax Rate % | 16.16% | 3.72% | 10% | 24.43% | 26% | 25.1% | 23.92% | 24.96% | 23.45% | 18.73% | 52.61% | 30.24% | 36.34% | 35.1% | 36.66% | 38.35% | 39.67% | 45.31% | 38.71% | 37.87% | 37.71% | 36.96% | 37.04% | 36.59% | 36.72% | 38.26% | 38.25% | 38.28% | 38.09% | 38.98% | 38.2% |
| Net Income | -91.48M | -107.8M | -816.97M | 167.35M | 193.19M | 105.86M | 23.73M | 87.1M | 92.05M | 87.32M | 27.67M | 55.58M | 61.17M | 54.47M | 52.67M | 47.2M | 32.04M | 9.95M | 42.54M | 44.92M | 48.92M | 44.91M | 34.42M | 25.82M | 21.62M | 19.88M | 23.45M | 16.04M | 10.15M | 8.59M | 3.98M |
| Net Margin % | -3.71% | -4.32% | -33.02% | 12.21% | 11.5% | 7.63% | 1.87% | 7.17% | 6.97% | 7.93% | 2.82% | 5.79% | 7.83% | 8.35% | 9.01% | 8.8% | 6.62% | 2.38% | 8.97% | 11.44% | 13.87% | 13.99% | 12.2% | 10.69% | 9.56% | 8.74% | 10.91% | 9.39% | 7.78% | 4.51% | 2.53% |
| Net Income Growth % | 88.65% | 86.81% | -588.18% | -13.38% | 82.5% | 346.04% | -72.75% | -5.38% | 5.42% | 215.58% | -50.21% | -9.15% | 12.3% | 3.42% | 11.59% | 47.33% | 222.1% | -76.62% | -5.3% | -8.17% | 8.94% | 30.47% | 33.34% | 19.43% | 8.72% | -15.2% | 46.17% | 57.97% | 18.15% | 115.98% | -11.58% |
| Net Income (Continuing) | -120.73M | -141.72M | -1.12B | 42.8M | 179.41M | 106.88M | 52.77M | 82.32M | 92.05M | 87.25M | 27.67M | 55.58M | 61.17M | 54.47M | 52.67M | 47.2M | 32.04M | 9.8M | 42.54M | 44.92M | 48.92M | 44.91M | 34.42M | 25.82M | 21.62M | 19.88M | 23.45M | 16.04M | 9.19M | 7.44M | 4.88M |
| Discontinued Operations | 0 | 0 | -6.39M | 124.55M | 13.78M | -1.02M | -29.03M | 4.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 41.27M | 48.32M | 84.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.95 | -3.48 | -29.66 | 0.43 | 7.14 | 3.85 | 0.84 | 3.04 | 3.15 | 2.89 | 0.90 | 1.78 | 1.96 | 1.77 | 1.78 | 1.60 | 1.10 | 0.34 | 1.47 | 1.50 | 1.55 | 1.39 | 1.05 | 0.79 | 0.65 | 0.59 | 0.70 | 0.51 | 0.35 | 0.31 | 0.15 |
| EPS Growth % | 90.04% | 88.27% | -6997.67% | -93.98% | 85.45% | 358.33% | -72.37% | -3.49% | 9% | 221.11% | -49.44% | -9.18% | 10.73% | -0.56% | 11.25% | 45.45% | 223.53% | -76.87% | -2% | -3.23% | 11.51% | 32.38% | 32.91% | 21.54% | 10.17% | -15.71% | 37.25% | 45.71% | 12.9% | 106.67% | -11.76% |
| EPS (Basic) | - | -3.48 | -29.43 | 0.44 | 7.18 | 3.87 | 0.85 | 3.06 | 3.17 | 2.90 | 0.91 | 1.80 | 1.99 | 1.81 | 1.82 | 1.62 | 1.11 | 0.34 | 1.48 | 1.52 | 1.57 | 1.41 | 1.07 | 0.81 | 0.67 | 0.61 | 0.74 | 0.53 | 0.37 | 0.32 | 0.15 |
| Diluted Shares Outstanding | 30.97M | 30.97M | 27.54M | 26M | 26.93M | 27.29M | 27.7M | 28.31M | 29.19M | 30.21M | 30.74M | 31.22M | 31.13M | 30.76M | 29.54M | 29.43M | 29.11M | 28.99M | 29.02M | 29.96M | 31.52M | 32.31M | 32.78M | 32.68M | 33.26M | 33.51M | 33.49M | 31.66M | 28.74M | 27.73M | 26.76M |
| Basic Shares Outstanding | 30.97M | 30.97M | 27.54M | 25.91M | 26.78M | 27.16M | 27.63M | 28.2M | 29.08M | 30.11M | 30.41M | 30.88M | 30.6M | 30.14M | 28.97M | 29.05M | 28.98M | 28.93M | 28.81M | 29.61M | 31.09M | 31.85M | 32.17M | 31.87M | 32.26M | 32.42M | 31.68M | 30.07M | 27.69M | 27.04M | 26.76M |
| Dividend Payout Ratio | - | - | - | 14.94% | 13.39% | 21.7% | 87.93% | 23.53% | 20.02% | 20.67% | 56.12% | 26.67% | 24.19% | 22.29% | 18.89% | 17.36% | 25.35% | 81.53% | 19.01% | 18.49% | 17.77% | 17.07% | - | - | - | - | - | - | - | - | - |
Integration and leverage headwinds
According to recent financial filings, Forward Air's revenue growth has decelerated significantly, with the most recent quarter showing a 5.1% year-over-year decline, reflecting the challenges of transitioning from a niche wholesale provider to a broader integrated logistics model in a soft freight environment.
The company's top-line performance appears to be struggling as it attempts to pivot its business model, with recent quarterly revenue figures failing to sustain the momentum seen in previous periods. This trend suggests that the core airport-to-airport network may be losing its historical pricing power or volume density as the company integrates new, more complex service offerings.
As reported in quarterly statements, Forward Air's gross margin has compressed to 3.5% in 2026Q1, a stark departure from historical norms, indicating that the company is currently unable to effectively pass through costs or maintain pricing discipline within its newly expanded service portfolio.
The significant volatility in gross margins suggests that the company's variable cost structure is failing to provide the expected protection during this cyclical downturn. Investors should monitor whether this margin erosion is a temporary byproduct of integration costs or a permanent shift in the company's ability to extract value from its freight network.
Based on the provided income statement data, Forward Air's operating income has been highly erratic, with the company reporting a negative operating margin in multiple recent periods, which highlights a failure to achieve the necessary scale to cover its fixed and integration-related overhead costs.
The inability to scale operating income alongside revenue suggests that the company's cost structure has become bloated following recent strategic acquisitions. This lack of operating leverage implies that the firm is currently in a defensive posture, struggling to convert its top-line activity into meaningful bottom-line profitability.
Financial disclosures reveal that Forward Air has consistently reported negative net income over the last several quarters, with a net margin of -5.9% in 2026Q1, suggesting that non-operating items and integration-related expenses are significantly outweighing the company's core operational output.
The recurring nature of these net losses warrants further investigation into the sustainability of the company's current capital structure and its ability to return to profitability. The disconnect between operational activity and bottom-line results indicates that the company's earnings quality is currently strained by significant non-operating headwinds.
Data from recent income statements suggests that Forward Air's transition into a direct-to-shipper model may be alienating its legacy freight forwarder base, potentially creating a permanent impairment to the density of its core airport-to-airport network as customers seek more neutral logistics partners.
Short-sellers may focus on the risk that the company's new integrated strategy fundamentally undermines the competitive moat that once defined its wholesale-only niche. If the company cannot successfully navigate this identity shift, it may face a long-term erosion of its market position that is not currently reflected in the valuation.
Quick answers to the most common questions about buying FWRD stock.
For fiscal year 2025, Forward Air Corporation (FWRD) reported total revenue of $2.50B. This represents a 1488.3% increase compared to $157.1M in 1996.
Forward Air Corporation (FWRD) reported a net loss of $107.8M for the fiscal year ending 2025.
Forward Air Corporation (FWRD) reported an operating income of $36.4M, resulting in an operating profit margin of 1.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Forward Air Corporation (FWRD) generated $510.9M in gross profit for the year, representing a gross profit margin of 20.5%. This demonstrates the company's core pricing power and production efficiency.