Forward Air said Tuesday that it will continue working with one of its largest customers, which had provided notice in May that it might pull all of its business.
A non-binding arrangement with the customer will allow Forward to keep half, and potentially up to 75%, of the $250 million account
A memorandum of understanding keeps the current contract in place for at least the next two years. The service transition of the unretained portion of the business is expected to occur in December and throughout next year. Forward (NASDAQ: FWRD) previously said the customer was seeking to diversify its list of vendors, emphasizing that the customer’s potential departure had nothing to do with the “exceptional service” being provided.
However, Forward’s shares plummeted over 40% following the warning that it might lose a customer responsible for 10% of its annual revenue. It said the potential loss of business also partly foiled its plan to sell the company. (Forward commenced a strategic review at the beginning of 2025 as pressure from investors mounted following its contested merger with Omni Logistics.) Instead, Forward is now looking to sell its intermodal unit and two smaller legacy Omni businesses, which generated $394 million in combined revenue last year. Proceeds from the sales will be used to delever the balance sheet.