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Investing.com - Benchmark has reiterated its Hold rating on Forward Air (NASDAQ:FWRD), a $870 million market cap transportation company, as it completes its integration with Omni and shifts focus to streamlining operations. According to InvestingPro data, the company’s overall financial health score is currently rated as WEAK, with particular concerns regarding its debt management.
The transportation company reported second-quarter results with a slight EBITDA beat compared to consensus estimates. With trailing twelve-month EBITDA of $216 million and revenue of $2.5 billion, Forward Air managed to improve EBITDA margins quarter-over-quarter through pricing optimization and discretionary expense management, despite challenging freight market conditions.
Forward Air has completed several key initiatives including cost synergies, pricing actions in its Expedited Freight segment, and the Omni integration. The company now requires an improved freight market to achieve further operating leverage, according to Benchmark’s analysis.
While adjusted EBITDA decreased year-over-year, the second quarter had no pro forma adjustments, resulting in similar consolidated EBITDA compared to the previous year.
Benchmark maintains its Hold rating, citing the need to see additional quarters of improvement in Forward Air’s LTL (Less-Than-Truckload) segment and greater clarity regarding Omni’s business components before considering a rating change.
In other recent news, Forward Air Corporation reported its second-quarter 2025 earnings, showing a decline in revenue. The company posted a consolidated revenue of $619 million, marking a 3.9% decrease compared to the previous year. Despite this, Forward Air’s adjusted earnings per share outperformed expectations, coming in at ($0.01) against Stifel’s forecast of ($0.20) and the broader market consensus of ($0.26). Adjusted EBITDA for the quarter was $74 million, surpassing analyst predictions.
In terms of analyst actions, Susquehanna raised its price target for Forward Air to $43, maintaining a Positive rating, citing a "transactional and transformational opportunity" with the potential sale of the business being a likely outcome. Meanwhile, Stifel lowered its price target to $32, despite maintaining a Buy rating, due to macroeconomic concerns. These developments highlight varying perspectives among analysts regarding Forward Air’s future prospects.
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