[Management View]
Forward Air's management emphasized ongoing strategic alternatives review, including potential sale, merger, or other financial transactions. Key metrics included $78 million in consolidated EBITDA, maintaining consistent performance through disciplined cost management and productivity initiatives.

[Outlook]
Management provided performance guidance, highlighting future plans for technology platform integration and One Ground Network realignment to enhance operational leverage. They anticipate future disclosure of more granular segment-level financials for OmniLogistics and other units beginning in 2026.

[Financial Performance]
YoY trends showed improvement in EBITDA margin for Expedited Freight from 6.6% to 11.5%. Sequentially, OmniLogistics segment revenue increased by $12 million to $340 million, with EBITDA rising from $30 million to $33 million, a 22% YoY increase. Operating cash flow improved by $2 million YoY to $53 million for the third quarter.

[Q&A Highlights]
Question 1: Did Apple Intelligence drive sales of the iPhone 16 series? Which features are most popular with users?
Answer: In markets where Apple Intelligence was introduced, the iPhone 16 series outperformed markets where the feature was not introduced. Users used features such as ‘Writing Tools,’ ‘Image Playground,’ and ‘Genmoji’ extensively, especially the ‘Clean Up’ feature. The ‘Clean Up’ feature received a lot of attention in Apple Store demos. Apple Intelligence is also continuing to expand language support, which is expected to further enhance user experience and demand.

Question 2: What are the longer-term margin targets for OmniLogistics, and how do you see seasonality affecting this segment?
Answer: Management highlighted the synergy selling and growth in diversified offerings within OmniLogistics. They noted that the optimal margin is currently suppressed due to the overall market but emphasized that OmniLogistics is performing well, especially on the contract logistics side. Seasonality is expected to be more muted due to the stable warehouse side of the business.

Question 3: Can you provide an update on the progress of realigning costs in the LTL segment and what is sustainable?
Answer: Management emphasized that Forward Air operates a variable cost network, adjusting purchase transportation costs based on volume. They have improved productivity measures and introduced optimizers to reduce miles operated without jeopardizing service. Year-over-year, they reduced labor hours per shipment and maintained flat claims rates, resulting in consistent EBITDA performance.

Question 4: How do you see the truckload and LTL segments performing, given the current market conditions?
Answer: Management noted that their truckload segment is booming, driven by high-tech shipments requiring security and asset-based solutions. LTL volume is down, but they are compensating with increased pricing and efficient operations. Stability in earnings is maintained through these measures.

Question 5: What are the biggest upside potential drivers for EBITDA in the next year and the biggest risks?
Answer: The biggest upside potential is increased density in the expedited segment, either through additional volume or price. The biggest risk is further macroeconomic deterioration, which could impact overall market conditions.

[Sentiment Analysis]
Analysts and management maintained a cautiously optimistic tone, focusing on operational efficiency and strategic alternatives. Management's disciplined approach and confidence in their strategy were evident throughout the call.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | Q3 2024 |
|---------------------------|---------|---------|---------|
| Consolidated EBITDA | $78M | $77M | $76M |
| Adjusted EBITDA | $75M | $74M | $76M |
| Expedited Freight EBITDA | $30M | $30M | $30M |
| OmniLogistics Revenue | $340M | $328M | $328M |
| OmniLogistics EBITDA | $33M | $30M | $27M |
| Intermodal Segment EBITDA | $8M | $9M | $9M |
| Operating Cash Flow | $53M | N/A | $51M |
| Total Liquidity | $413M | $368M | N/A |

[Risks and Concerns]
Management highlighted the prolonged freight recession and potential macroeconomic deterioration as key risks. They emphasized the importance of maintaining operational efficiency and cost control to navigate these challenges.

[Final Takeaway]
Forward Air's Q3 2025 earnings call showcased consistent financial performance amidst a challenging market environment. The ongoing strategic alternatives review and operational efficiency initiatives are expected to drive future growth. Management's disciplined approach and focus on customer service position the company well for sustainable long-term growth.