Forward Air flags 10% to 15% revenue impact from new tariffs

“After reviewing the preliminary IEEPA [International Emergency Economic Powers Act] details, the Company presently estimates that betwixt 10 percent and 15 percent of its gross successful 2024 would person been from shipments straight transported nether its power from the countries perchance impacted by the evolving scenery astir the tariff increases announced connected April 2, 2025,” a quality merchandise said.

It said it’s “unable to estimation the imaginable tariff interaction to shipments handled anterior to being transported nether our control, including successful our Intermodal segment.”

Forward’s (NASDAQ: FWRD) intermodal portion reported $233 cardinal successful gross past year.

The quality merchandise besides said first-quarter adjusted net earlier interest, taxes, depreciation and amortization is expected to beryllium successful a scope of $54 cardinal to $59 cardinal erstwhile the institution reports results connected May 7. Forward generated $308 cardinal successful adjusted EBITDA successful 2024.

Liquidity is expected to amended by $10 cardinal to $392 cardinal sequentially successful the archetypal quarter. The institution ended the twelvemonth astatine a 5.5 times nett leverage ratio. It isn’t required to conscionable the 5.5 times threshold until the 4th fourth of 2026 per its caller indebtedness covenant.

Forward’s gross premix has changed aft the January 2024 acquisition of freight forwarder Omni Logistics. Some investors tried to artifact the transaction fixed the precocious indebtedness load that would request to beryllium assumed. Even Forward attempted to interruption the woody aft unit from shareholders mounted.

The institution is presently conducting a strategical reappraisal assessing each options, which see a imaginable sale.

Shares of FWRD closed Tuesday astatine $10.50, down 67% connected the twelvemonth and 91% little than erstwhile the Omni woody was announced successful August 2023. The banal was disconnected 3.2% successful aboriginal trading connected Wednesday compared to the S&P 500, which was up 0.8%.

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The station Forward Air flags 10% to 15% gross interaction from caller tariffs appeared archetypal connected FreightWaves.