Forward Air renews with key customer, retaining business worth at least half of $250 million annual revenue
On July 20, Forward Air reached a non-binding memorandum of understanding with an unnamed major customer, expected to retain at least half of its business, with the potential to retain an additional 25%. The customer contributed approximately $250 million in revenue in 2025, and the partnership has lasted 20 years.
News Summary
- Forward Air announced Tuesday that it will continue working with one of its largest customers for two more years, a customer that contributed approximately $250 million in revenue in 2025.
- The carrier said it signed a non-binding memorandum of understanding with the unnamed customer on July 20, expecting to retain at least 50% of the customer's business, with the possibility of retaining an additional 25%.
- President and CEO Shawn Stewart said these "productive conversations" continue the company's 20-year relationship with the customer.
In-Depth Analysis
Forward Air's new arrangement with its major customer comes just days before its planned release of second-quarter earnings on August 5.
When the company released its first-quarter earnings in May, it first disclosed the potential loss of one of its largest customers, but also stated it was in ongoing negotiations with that customer to retain as much business as possible.
Facing potential revenue loss, the company announced in May the sale of non-core assets, including its intermodal division and two legacy businesses operated as part of Omni Logistics. Although the company did not disclose which specific Omni business units were sold, these three divisions contributed approximately $394 million in revenue to Forward Air in 2025.
Forward Air's decision to sell parts of its business stems from a strategic review process initiated in January 2025, which at one point considered selling the entire company but ultimately failed to attract a buyer.
Chief Financial Officer Jamie Pierson said on an analyst call in May that the sale of the two Omni businesses was expected to be completed within 60 to 90 days, while the sale of the intermodal business could extend through the end of the year. A Forward Air spokesperson said in an email to Trucking Dive that the company would not provide updates on the divestitures at this time.
Despite securing a contract extension with its major customer, Forward Air acknowledged in the announcement that the customer still plans to shift some business to other suppliers, with most of the transition occurring in December and throughout 2027, in line with its own operational and supplier diversification plans.