Forward Air saves ‘significant portion’ of major customer account

Forward Air has entered a two-year agreement to retain “a significant portion of the services currently provided” to a customer that it had previously indicated it might lose. Prior reports from Forward said the contract logistics customer accounted for 10% of its annual revenue, or roughly $250 million.

Under the agreement, the customer will continue using Forward (NASDAQ: FWRD) for certain services through 2028, according to a Wednesday news release. The deal allows the customer to transition some business away from Forward from November to March.

Revenue generated from the retained portion of the account has continued to grow this year and is expected to increase next year. Revenue in each remaining contract year (2026 to 2028) is expected to exceed the revenue generated by the account in 2025. No margin profile for the retained business was provided.

Forward initially said the customer was seeking to diversify its list of vendors, emphasizing that the customer’s potential departure had nothing to do with the service being provided. Forward said on its second-quarter call in August that it entered a non-binding agreement to save 50%, and potentially up to 75%, of the business.

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