Next-generation logistics specialist, Forward Air (FWRD), experienced a significant increase in its share price on Wednesday, rising nearly 32% after releasing a positive set of preliminary financial results and a business update. This increase outperformed the S&P 500 index’s 9.5% rise.
Forward Air’s preliminary financial results for the first quarter indicated that its non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to fall between $54 million and $59 million. Additionally, the company reported an anticipated increase in its liquidity—defined as cash, cash equivalents, and availability of funds from a senior secured term loan—to $392 million by the end of the quarter. This marks a $10 million improvement over the end of the fourth quarter.
The management also addressed concerns about tariffs, estimating that 10% to 15% of its 2024 revenue would have originated from countries initially targeted by the Trump administration’s tariffs. This impact appears mild relative to the challenges faced by other businesses and industries.
The company is set to release its audited first-quarter results on Wednesday, May 7, after the market closes. It is anticipated that more tariff “pauses” may be announced, or mutually beneficial agreements may be reached with trading partners. If such developments occur, Forward Air’s stock is likely to continue its upward trajectory.
