Forward Air Stock Price, News & Analysis

Irenic Capital Management has announced its intention to vote against certain legacy members of Forward Air Corporation's (NASDAQ: FWRD) Board of Directors at the 2025 Annual Meeting. The investment firm supports Ancora Holdings Group's position to withhold support for specific legacy directors. The primary concern stems from the Board's 2023 decision regarding the Omni Logistics LLC acquisition, where legacy directors allegedly bypassed shareholder voting requirements. Irenic argues that this action undermined shareholder rights and proper corporate governance principles.

Ancora Holdings Group, a top 10 shareholder with 4.1% stake in Forward Air Corporation (NASDAQ: FWRD), has issued a letter urging shareholders to vote AGAINST three legacy directors at the 2025 Annual Meeting: Chairman George S. Mayes, Jr., Director Javier Polit, and Director Laurie A. Tucker. The activist investor criticizes these directors for their role in the disastrous $1.85 billion debt-funded Omni Logistics acquisition in 2023 and their apparent resistance to conducting a timely strategic review.

Under these directors' tenure, Forward Air's stock has plummeted to $16.75, representing negative returns of over 70%. Ancora argues that the Board's slow progress in the strategic review process, announced in January 2025, and their controversial flip-flopping on the Tennessee Business Combination Act demonstrates entrenchment behavior. The investor believes a private market sale would be the best path forward for addressing the company's balance sheet issues and delivering shareholder value.

Forward Air (NASDAQ:FWRD) has released preliminary financial updates for Q1 2025. The company expects Consolidated EBITDA to range between $54 million and $59 million for the quarter ended March 31, 2025.

The company's liquidity position is projected to strengthen, with an anticipated increase of $10 million to $392 million, compared to $382 million at the end of Q4 2024. This includes cash, cash equivalents, and credit facility availability.

Following the April 2, 2025 announcement of tariffs under the International Emergency Economic Powers Act (IEEPA), Forward Air estimates that 10% to 15% of its 2024 revenue would have been affected by these tariffs, specifically from shipments directly transported under its control from impacted countries. The company notes uncertainty regarding potential tariff impacts on shipments handled before their direct control, particularly in their Intermodal segment.

Forward Air (NASDAQ:FWRD) reported its fourth quarter and full year 2024 financial results, achieving full-year Consolidated EBITDA of $308 million, near the top end of guidance. The company exceeded its integration synergy targets following the Omni acquisition, delivering over $100 million in annualized savings versus the initially planned $75 million.

Q4 2024 highlights include consolidated revenue of $633 million and income from continuing operations of $76 million, which includes a favorable $79 million goodwill impairment adjustment. The Omni Logistics segment reported its best quarterly EBITDA since acquisition, while Intermodal segment improved year-over-year. The Expedited Freight segment faced challenges due to volume-focused pricing strategies, with corrective actions implemented in Q4.

Quarter-end liquidity stood at $382 million, down from $460 million in Q3, impacted by a $40 million reduction in credit facility size and $60 million in interest payments.

Forward Air (NASDAQ: FWRD) has announced it will release its fourth quarter and full year 2024 earnings after market close on Wednesday, February 26, 2025. The company will host a conference call to discuss the results at 4:30 p.m. ET on the same day.

Investors can access the conference call online through the Investor Relations section of Forward Air's website at ir.forwardaircorp.com or by phone at (800) 445-7795 using Access Code: FWRDQ424. A replay of the conference call will be available on the company's Investor Relations website shortly after the call concludes.