Forward Air signs two-year deal to keep major customer's business

what happened

Forward Air said it has signed a two-year definitive agreement with one of its largest customers. Under the deal, the customer will keep using the company for a significant share of the services it currently receives.

Some services will be transitioned in an orderly way, with the process expected between November 2026 and March 2027. The company does not expect the transition to materially affect its 2026 revenue. It also expects annual revenue from this customer in each contract year of 2026, 2027 and 2028 to exceed the customer's total contribution in 2025. The details were first reported by Reuters, citing the company's release distributed via BusinessWire.

why it matters

For investors, the agreement reduces uncertainty about Forward Air's revenue and cash flow over the next two years. Management links this to greater visibility and predictability, but these remain the company's own expectations.

market impact

Forward Air shares: more predictable revenue from a major customer supports the stock

• ▲Forward Air shares pressure up — greater revenue and cash flow visibility from the retained customer

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