Forward Air CEO bullish on freight market tightening amid regulatory crackdown

Forward Air Corp. CEO Shawn Stewart struck an optimistic tone on August 5, 2026, telling investors that tightening freight capacity is driving a gradual recovery in the logistics market. Stewart pointed to regulatory enforcement, carrier exits and stronger manufacturing data as key drivers of the improving fundamentals. The Department of Transportation has intensified scrutiny of non-domiciled commercial driver licenses and English-language proficiency standards, accelerating an ongoing decline in industry capacity. The crackdown comes after a prolonged downcycle caused by oversupply. “Market fundamentals are improving as capacity continues to tighten, driven by regulatory enforcement and carrier exits,” Stewart said during the investor call. “At this time, macro leading demand indicators are becoming more constructive.” The ISM Manufacturing PMI Report rose 2.3 percentage points sequentially to 55.6% in July, marking the fastest expansion in more than four years and the seventh straight month of growth. Stewart cited the manufacturing rebound, lean inventory levels, rising truckload spot rates and higher tender rejection rates as signs of economic improvement. “We believe these trends point toward a continual, gradual freight recovery,” he said. “Although some macroeconomic uncertainties remain, particularly from geopolitical tensions and diesel price volatility, which could weigh on industrial activity and delay demand recovery.” While freight recoveries are rarely linear, Stewart emphasized the company’s commitment to its transformation and growth strategy. As part of that plan, Forward Air sold two smaller businesses within its legacy Omni Logistics segment to streamline operations. “We are pleased to have successfully completed both of these transactions as part of our portfolio optimization,” Stewart said. “This does simplify our portfolio of services, allowing us to focus on the core of our future and have the added benefit of monetizing underperforming assets. The remaining targeted divestiture that we announced is the intermodal business.” The divestitures are expected to reduce debt, streamline the organization and enhance shareholder value. Stewart also highlighted efforts to preserve a portion of the business tied to the company’s largest customer as that customer diversifies its provider base. The companies signed a memorandum of understanding under which Forward Air expects to retain at least half of the approximately $250 million in revenue attributable to the customer for the fiscal year ending December 31, 2025, with the potential to retain an additional approximate 25%. Transitions to other providers are anticipated to begin later in 2026. The comments came as Forward Air reported second-quarter financial results. The Greeneville, Tenn.-based company posted a net loss of $245.9 million, or negative $6.33 per diluted share, compared with a loss of $20.3 million, or negative 41 cents per share, a year earlier. Revenue increased 8.8% to $673 million from $618.8 million. “We are beginning to see the fruits of our labor and results at the level I know we are capable of producing,” Stewart said. “The strong performance was led by the expedited freight segment, which reported its best operating revenue, best operating income, best reported earnings before interest, taxes, depreciation, and amortization, and best margin since the beginning of 2024.” Segment results showed expedited freight revenue up 23.8% to $319.1 million from $257.7 million, with operating income up 79% to $34.9 million from $19.5 million. Omni Logistics revenue rose 3.1% to $338.5 million from $328.3 million, but operating loss widened to $230 million from a $7.19 million gain. Intermodal revenue increased 1% to $59.7 million from $59.1 million, with operating income up 38.2% to $6.1 million from $4.42 million. Forward Air ranks No. 37 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 1 in the air/expedited carriers sector. Forward/Omni ranks No. 33 on the TT Top 100 list of the largest logistics companies.