Forward Air nominates new director amid board refreshment

Published 26/03/2025, 13:24
Forward Air nominates new director amid board refreshment

In a recent development at Forward Air Corporation (NASDAQ:FWRD), a transportation company currently valued at $636 million and facing significant operational challenges according to InvestingPro data, two long-serving board members, Ana Amicarella and Valerie Bonebrake, have chosen not to seek re-election at the upcoming 2025 Annual Meeting of Shareholders. The transportation and logistics services company announced the departures on Monday, stating that both directors are stepping down without any disagreements with the company’s operations, policies, or practices. This comes at a challenging time for Forward Air, with the stock down 41% over the past six months and the company showing signs of rapid cash burn, according to InvestingPro analysis.

As part of its ongoing board refreshment initiative, Forward Air has nominated Paul Svindland, currently the Chief Executive Officer of STG Logistics, for election to the board at the same meeting. The company’s Corporate Governance and Nominating Committee recommended Svindland, whose expertise in supply chain solutions and domestic port-to-door services is expected to add valuable insight to the board’s operations.

The company expressed gratitude to Ms. Amicarella and Ms. Bonebrake for their years of service and significant contributions to the board. The nomination of Mr. Svindland is in line with Forward Air’s strategy to enhance its board’s capabilities and maintain a strong focus on critical operational areas.

This move comes as part of Forward Air’s commitment to board evolution and governance excellence, ensuring that the company is well-positioned to address the dynamic needs of the freight and cargo transportation industry.

The information contained in this article is based on the company’s recent SEC filing.

In other recent news, Forward Air Corporation reported its fourth-quarter 2024 earnings, which revealed a significant shortfall in earnings per share (EPS) compared to projections. The company’s EPS was recorded at -$1.23, missing the forecast of -$0.12, while revenue was $632.85 million, slightly below the expected $667.72 million. Despite these results, Forward Air’s year-over-year revenue showed a robust increase of 87%, reaching $633 million for the quarter. The company achieved $75 million in integration synergies, contributing to over $100 million in annualized savings.

Forward Air’s acquisition of Omni Logistics has surpassed cost savings targets, with $80 million in annualized run-rate savings expected to continue from the first quarter of 2025. However, the core Expedited Less-Than-Truckload (LTL) segment underperformed, impacting the adjusted EBITDA, while the Omni segment showed sequential improvement. Analysts from Benchmark have maintained a Hold rating on Forward Air, reflecting both the company’s progress and ongoing challenges.

The company’s liquidity at the end of the fourth quarter stood at $382 million, combining $105 million in total cash and $277 million of available credit under the amended revolving credit facility. Forward Air’s cash flow from operations was a net positive of $20 million in the second half of the year, an improvement over the $97 million used in the first half. Analysts anticipate an improvement in Forward Air’s cash flow profile in 2025 as transaction and other costs decrease.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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