Forward Air secures $250M customer deal, keeps at least 50% of business

Forward Air has struck a nonbinding memorandum of understanding (MOU) to retain at least 50% of a 20-year customer’s business, potentially up to 75%, following the customer’s decision to diversify its supplier base. The move comes after Forward Air disclosed in May 2026 that the unnamed customer accounted for around 10% of its motor carrier and logistics revenue—roughly $250 million annually starting in 2027. Had the customer shifted all its business elsewhere, Forward Air would have faced a significant revenue hit. The MOU extends the contract between the two parties for at least two years. Forward Air emphasized its consistent performance, noting it had exceeded most key performance indicators for the customer. The news triggered a 19% surge in Forward Air’s stock price on July 21, pushing it above $15 after a prior collapse from over $18 to under $10 between May 7–8, 2026. Forward Air, ranked No. 37 on the Transport Topics Top 100 list of North America’s largest for-hire carriers and No. 1 in the air/expedited sector, also plans to close two noncore asset sales soon as part of its strategic review. The company is selling smaller businesses acquired in the Omni Logistics deal and its intermodal division, which together generate about $390 million in annual revenue ($160 million from Omni businesses and $230 million from intermodal). Analysts estimate the sales could raise around $330 million in total proceeds. Forward Air’s CFO Jamie Pierson previously stated the sales were expected to close within 60–90 days, though no update was provided on July 21. The strategic review, launched in January 2025, aims to deleverage the balance sheet and refocus on core operations. CEO Shawn Stewart confirmed that a full sale or privatization of the company was ruled out due to weak freight market conditions and the risk of losing the $250 million customer. Forward Air reported a $40.2 million loss for Q1 2026, an improvement from a $61.2 million loss in the same period the prior year. Second-quarter 2026 earnings are scheduled for release on August 5.