Forward Air Corporation Q4 FY2025 earnings call

1. Strategic alternatives review: Continued progress with review nearing conclusion in difficult logistics and economic backdrop. 2. 2025 achievements: Unified U.S. domestic operations into One Ground Network, unveiled new Latin America regional structure, completed corrective pricing actions at Expedited Freight segment improving its margin, provided detail on revenue by product and region. 3. 2026 priorities: Focus on profitable long-term growth through expanding synergistic service offerings, added key leadership members in Latin America, Asia Pacific, and as CIO, plan to upgrade tech stack including one ERP initiative and consolidate global HRIS system

Expedited Freight: Fourth quarter reported EBITDA improved to $25 million vs $18 million y-o-y, margin increased 350 basis points to 10.1% in Q4 '25; full year margin improved over 100 basis points to 10.9% from 9.8% in 2024. Omni Logistics: Fourth quarter achieved highest revenue, EBITDA, and EBITDA margin since Jan '24; reported EBITDA $36 million vs $32 million y-o-y, margin 10% vs 9.8% y-o-y; full year reported EBITDA almost doubled to $124 million from $67 million in 2024, margin increased 360 basis points to 9.2% from 5.6% in 2024. Intermodal: Fourth quarter market challenging with declining shipments and revenue per shipment; reported EBITDA $7 million and margin 14.2% vs $10 million and 17.5% y-o-y; full year reported EBITDA $35 million in line with 2024's $37 million, margin stable at 15.1% vs 16% in 2024

1. Expect volume declines to begin moderating in 2026 as lapping corrective pricing actions. 2. Confident in talent added to drive growth in 2026. 3. Optimistic about recovery once freight environment improves

1. Uncertainties in logistics environment and broader economic backdrop affecting strategic alternatives review and business performance. 2. Risks associated with forward-looking statements where actual results may differ materially

Q: Congrats on progress, how Expedited Freight performs in recovery scenario?

A: Outperformed space due to flexible operating model, can add capacity faster, expect to make up margin ground.

Q: Omni midterm margin and seasonality?

A: Diverse portfolio, growth through focused selling and synergy selling, no significant over earning.

Q: Customer commentary and market inflection?

A: Customers comfortable with consistent service, need consistent ISM new orders print for sustainable recovery.

Q: Update on strategic review process?

A: Confident in nearing conclusion.

Q: Cash flow and CapEx?

A: No guidance on tonnage, reached inflection point in 2025, focus on sales and operating leverage.

Q: Pricing and Intermodal revenue per shipment?

A: Focus on network density, Intermodal affected by supply and demand with port volumes down, margin supported by storage revenue.

Q: Data center exposure in contract logistics?

A: Data center exposure in contract logistics, percentage of revenue and growth scaling with market