Forward Air Pauses Intermodal Sale Amid 15% to 18% Capacity Glut
Key Facts
Forward Air announced on its November 9, 2026 earnings call that it had paused plans to sell its Intermodal segment, with management saying it could return to the deal if market conditions reflected what it sees as fair value for the assets. The decision came as Chief Financial Officer Jamie Pierson estimated excess capacity across the network at 15% to 18%, signaling that the company is still operating below its targeted utilization level. Management said, "We will pause the process while we continue to add a few more strong quarters to our track record." That means the sale process has not been permanently closed, but will not move forward under current conditions, according to Chief Executive Sean Stewart. The company is weighing improved operating performance and market timing in deciding whether to return to the process.
The pause follows the board's authorization to explore deals involving non-core assets, including the Intermodal segment and some components of Omni Logistics, as part of a plan to optimize the business portfolio and strengthen the balance sheet. Stewart tied the possibility of revisiting the deal to whether the market reflects what management considers fair value, saying, "We may revisit the sale if and when the market reflects what we believe is fair value." He gave no specific timetable for resuming the process on the call. At the same time, the excess-capacity estimate shows that the operating challenge remains alongside the valuation question. The company therefore left its decision contingent on market conditions and the delivery of more strong quarters.
The company posted diluted income from continuing operations of $0.34 per share in the third quarter of 2026, compared with a loss of $0.52 per share in the same period of 2025. The turnaround reflects a year-over-year improvement in continuing-operations results, alongside management's disclosure of excess network capacity. In the Intermodal segment, ground transportation revenue per shipment rose 14.1% to $986, from $864 in the third quarter of the prior year. Ground transportation shipments also increased 1.7% to 62,028, compared with 60,976 shipments. The figures show growth in revenue per shipment and higher shipment volume during the quarter, but did not prevent management from pausing the sale until valuation conditions improve.
The company's stock closed at $17.65 in regular trading on November 9, up 6.07%, then rose 9.91% after hours to $19.40. The gains followed the third-quarter results and management's discussion of plans to sell the segment and excess capacity. The stock ended regular trading at the closing price recorded in EL7 data for that day. The after-hours increase was reported in the earnings-call account, with the price reaching $19.40. The information available here does not include a documented intraday price range.
In a development related to customer relationships, Forward Air reached a definitive agreement in October 2026 with one customer to ensure the continued use of a substantial portion of its current services for two years. The agreement also provided for an orderly transition of some services between November 2026 and March 2027. The company said it did not expect the transition to have a material adverse effect on results. That period is the timeline specified in the disclosure for moving some services, alongside the continued provision of a substantial share under the agreement. This comes as management said it wants to add strong quarters to the company's track record before reconsidering a sale of the Intermodal segment.