FORWARD AIR CORP — Call Transcript 2025

Welcome to the Forward Air Second Quarter 2025 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. To ensure others can hear your questions clearly, we ask that you pick up your handset for best sound quality. Lastly, if you should require operator assistance, please press star zero. I would now like to turn the call over to Tony Carreno, Senior Vice President of Treasury and Investor Relations. Thank you, Operator, and good afternoon, everyone. Welcome to Forward Air's Second Quarter 2025 Earnings Conference Call. With us this afternoon are Shawn Stewart, Chief Executive Officer, and Jamie Pierson, Chief Financial Officer. By now, you should have received the press release announcing Forward Air's second quarter 2025 results, which was also furnished to the SEC on Form 8-K. We have also furnished a slide presentation outlining second quarter 2025 earnings, highlights, and a business update. Both the press release and slide presentation for this call are accessible on the Investor Relations section of Forward Air's website at forwardair.com. Please be aware that certain statements in the company's earnings release announcement and on the conference call are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This includes statements which are based on expectations, intentions, and projections regarding the company's future performance, anticipated events, or trends in other matters that are not historical facts, including statements regarding our fiscal year 2025. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For additional information concerning these risks and factors, please refer to our filing with the Securities and Exchange Commission and the press release and slide presentation relating to this earnings call. Listeners are cautioned not to place undue reliance on these forward-looking statements as of the date of this call. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. During the call, there may also be a discussion of financial metrics that do not conform to U.S. generally accepted accounting principles or GAAP. Management uses non-GAAP measures internally to understand, manage, and evaluate our business and make operating decisions. Definitions and reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in today's press release and slide presentation. I will now turn the call over to Shawn. Good afternoon, everyone, and thank you for joining us. I would like to begin today's call by recognizing recent awards that highlight our team's outstanding customer service, operational excellence, and unwavering commitment to our partners. Omni Logistics was honored as the 2024 International and Domestic Forwarder of the Year by doTERRA International. This marks the first time a single logistics partner has received both distinctions from doTERRA, underscoring Omni's leadership and performance across the board. GLT Logistics selected Forward Air as the Commitment to Excellence Carrier of the Year for 2024. This award underscores Forward Air's performance, service, and commitment to customer success and highlights the trust built within the strong business relationship. Our Omni Logistics team in Asia was recognized with an award from Advanced Micro Devices for their agility and responsiveness during a significant demand surge in late 2024. The team successfully managed an overflow while maintaining the high service standards that we are known for. These honors are a reminder of the belief and trust that our customers have in our company. They reflect the dedication of our people, whose efforts continue to drive our reputation for excellence. As our global presence grows, it's clear that our focus on service, speed, and reliability is making a lasting impact. While managing through the challenges of the current freight recession, we plan to continue demonstrating our unwavering commitment to our customers by strengthening relationships and consistently delivering value-added services that matter. We believe this approach will benefit our customers, employees, and investors over the long term. Turning to the quarterly results, we had another solid operational quarter with consolidated EBITDA, which is calculated pursuant to our credit agreement, of $74 million compared to $69 million in the First Quarter of this year. Consolidated EBITDA in the second quarter of last year was $89 million. Going forward, the quarterly results will be more comparable as the historical quarterly proforma and synergy savings roll off. The quality of our earnings should also continue to improve. To that point, adjusted EBITDA in the second quarter was also $74 million compared to $69 million in the First Quarter of this year. On a year-over-year basis, adjusted EBITDA improved by $1 million compared to $73 million in the second quarter of last year. At the expedited freight segment, we continue to make progress. As previously communicated, one of the first steps our management team took to improve financial performance was to take corrective actions on the pricing. After concluding the necessary diligence, we implemented those actions in the fourth quarter of 2024 and completed them in the First Quarter of this year. Following these actions, although tonnage is down, we have significantly improved reported EBITDA and margin at the expedited freight segment. Reported EBITDA has grown from $18 million in the fourth quarter of 2024 to $30 million in the second quarter of 2025, and the margin has improved by 500 basis points from 6.6%-11.6%. The 11.6% is the highest this segment has reported since the fourth quarter of 2023. We were able to achieve these operating efficiencies and margins in a down market by optimizing pricing and tightly managing all discretionary expenses, rationalizing every dollar, and focusing on having the right type of freight in our network at the right price. We believe the variable nature and flexibility of our network positions us incredibly well for when the market normalizes. Based on actual past results, we know there is an additional opportunity to improve the expedited freight segment's margin. We also know that we need to grow volume in the network. As with most LTL networks, our network thrives in a tighter market. There is always more we can do to reduce cost. However, we are not willing to compromise the high quality of service that we are known for and our customers have come to expect from us. The expedited freight network includes one of the largest expedited LTL networks in North America and is an industry leader in serving time-critical and high-value freight. In conditions such as this, it takes discipline not to sacrifice service, and we believe the quality of service we provide will be the driver of growth and ultimately pricing and profitability in the future. At the Omni Logistics segment, we continue to build momentum, and I am excited about the progress that we are seeing. On a year-over-year basis, we grew revenue $16 million to $328 million in the second quarter. Sequentially, from the First Quarter to the second quarter of this year, reported EBITDA increased from $26 million-$30 million, and the margin improved by 110 basis points from 7.9%-9%. On a year-over-year basis, reported EBITDA improved from $20 million in the second quarter of last year to $30 million this year, which is a 47% increase. The margin also improved from 6.4%-9% compared to the same period a year ago. The intermodal segment remains a consistent performer in a turbulent and unpredictable market. Reported EBITDA in the second quarter of 2025 was $9 million and generally in line with the $9 million-$10 million of reported EBITDA in each of the last four quarters. In closing, as we begin the second half of the year, the logistics industry remains in a state of flux, shaped by macro risk, chiefly surrounding tariffs, and their potential impact on consumer confidence, as well as ensuing demand on resulting global freight flows. Overall, transportation volumes remain muted as the uncertainty clouds visibility for the rest of 2025 and as long as the global uncertainty lingers. Regardless of the macro environment, we remain focused on continuing the progress we have made over the last year. We remain committed to our strategy and are on the path to transform the company into a world-class logistics organization. This includes streamlining and simplifying our global structure, as it positions us for future growth. We are incredibly excited about what the long-term future holds for our company, and we believe we are well positioned to outgrow the market once the freight environment normalizes. With that, I will turn this call over to Jamie to go through the results for the second quarter. Thanks, Shawn, and good afternoon, everyone. Before jumping into the scripts, I just want to note that this quarter marks our first clean quarterly year-over-year comparison since closing the transaction of last year. It has been an absolutely crazy year, but we have accomplished a ton, and going forward, we at least will have the ability to more cleanly compare year-over-year results. Beginning with the consolidated revenue, in the second quarter, we reported $619 million compared to $644 million in the prior year. The 3.9% decrease is primarily attributable to a decrease in revenue at the expedited freight segment, partially offset by an increase in revenue at the Omni Logistics segment. On a sequential basis, the second quarter consolidated revenue increased 1% compared to the $613 million in the First Quarter of the year. As for the revenue at our three reporting segments: expedited freight, Omni Logistics, and intermodal, revenue at the expedited freight segment decreased $34 million, or 11.5%, to $258 million from the previous year's comparable quarter of $291 million. The decrease was driven by a 12.7% decrease in year-over-year tonnage per day that was partially offset by a 1.8% increase in the revenue per hundred weight, excluding fuel. At the Omni Logistics segment, revenue in the second quarter increased by $16 million-$328 million compared to the $312 million a year ago. The increase was driven by an increase in demand for our services, specifically in the contract logistics area. Revenue in the intermodal segment of $59 million was flat compared to a year ago. An increase in revenue per shipment of 4.4% was largely offset by a 4% decrease in the number of drayage shipments. As you heard from Shawn, adjusted EBITDA was $74 million, or an 11.9% margin in the second quarter of this year, compared to the $73 million, or 11.3% margin a year ago. Consolidated EBITDA, as defined in our credit agreements, was $74 million, or again, an 11.9% margin compared to $89 million, or a 13.8% margin a year ago. On an LTM basis, consolidated EBITDA was $298 million. As usual, we have detailed the information used to build up adjusted and consolidated EBITDA results on page 29 of the presentation. Turning to cash flow, cash, and liquidity, we reported $13 million in cash used by operations in the second quarter, which was a $32 million improvement compared to the $45 million in cash used by operations a year ago. For the first half of 2025, we reported $14 million of cash provided by operations, which is a $111 million improvement compared to the $97 million used by operations in the same period a year ago. As for liquidity, we ended the second quarter with $368 million in total liquidity, comprised of $95 million in cash and $273 million in availability under the revolver. The $25 million sequential decrease in total liquidity from $393 million in the First Quarter includes a $34 million semiannual interest payment on our senior secured notes that we pay in April and October of each year. As usual, I'd like to leave you with a few additional thoughts for the quarter. The first one you can follow under the header of "Beating a Dead Horse," but as Shawn stated in his intro, the quality of earnings is continuing to improve the further we get away from the noise of the transaction. We haven't had any pro forma synergy or pro forma savings add-backs in either of the last two quarters. As the historical add-backs in the transaction continue to roll off, we expect a difference of what you would normally define as adjusted EBITDA and consolidated EBITDA that we had been reporting to continue to narrow. The add-backs that we anticipate going forward will be more of a normal, non-recurring, and non-cash cap that you would expect under a non-GAAP definition of adjusted EBITDA. Moving to the second point, which will logically lead us to the third, is our sequential quarter-over-quarter improvement in margins and consolidated EBITDA. Our recently enacted pricing strategy, combined with our stringent cost and expense control efforts, especially at the expedited freight segment, have led to a sequential increase in consolidated EBITDA. The logical extension of increased consolidated EBITDA leads us to point three, which is our continued focus on cash generation and conversion thereof. Cash provided by operations has significantly improved in the first half of the year compared to a year ago. If you'll refer to page 20 of the earnings presentation, you will see that on a non-GAAP basis, we are consistently generating approximately $40 million-$50 million a quarter in unlevered operating cash flow. Next is our unwavering commitment to service, even in a soft market. When you invest in Forward Air, you are investing in a very unique portfolio of logistics and transportation assets, all unified by a shared dedication to customer service. We believe if you provide the world-class service that we do, financial results will follow. Providing excellent service is a significant investment, often costly and time-consuming. However, the good news is we have already made that investment. It is in our DNA, and it is in the core of everything that we do. We have continued to optimize our LTL network, which is known as North America's leading expedited network. With a more optimized network, and with all things being equal, each incremental shipment that we drop into the network has a higher margin than the previous one. Penultimately, as we've shared with you in prior calls, the integration of the networks is complete, and we overdelivered on the previously committed synergies. As we have also shared with you, we are transitioning from integration to the more longer-term transformation of the combined companies, which we anticipate to be complete by the end of next year. To that end, we will continue to tightly manage all expenses, inclusive of the rationalization of the systems and support that we will need once the transformation is complete. More to come in the future, but just wanted everyone to be aware of our continued effort to right-size the expense space commensurate with the support needed to continue to serve our customers. Finally, the strategic alternatives review launched earlier this year is progressing. As such, before you ask, and I hope you're listening, we do not plan to update the market on the details of the process as it advances. If and when there's anything of substance to report, we will let you know. More importantly, we do not expect the process to take away from our commitment and focus on running the business. Our goal is to continue delivering the same award-winning services and solutions to our customers as we have in the past. I will now turn the mic back over to Shawn for closing comments before Q&A. Thank you, Jamie. In closing, I am proud of our team for their continued commitment and focus on the customer, executing operationally and tightly managing cost. Amidst an uncertain macroeconomic landscape, I am confident that we possess a robust platform poised to drive sustainable growth. Together, we remain steadfast in our commitment to deliver tangible value for our customers, fostering opportunities for our team and creating lasting value for our shareholders. As Jamie said earlier, and I want to reiterate, when investing in Forward Air, you are investing in a unique portfolio of logistics assets. I will now turn the call over to the operator to take questions. Operator? The floor is now open for questions. At this time, if you have a question or comment, please press star one on your telephone keypad. If at any point your question is answered, you may remove yourself from the queue by pressing star two. Again, we ask that you pick up your handset when posing your questions to provide optimal sound quality. Thank you. Our first question is coming from Bruce Chan with Stifel. Your line is open. Good afternoon, gentlemen. This is Matt Milask on for Bruce. Thanks for taking our questions this evening. To start here with respect to Omni, would you be able to provide an update on specific commercial synergy efforts taking place there, perhaps what's going right so far, where the key areas of focus now are, and perhaps any updated expectations that you might have on the timing of how these efforts might start to ramp more meaningfully through the P&L? Thanks. Sure, Matt. Thank you. We hired a new Chief Commercial Officer early part of this year, and Eric's really got the team humming on both legacy organizations. Not only is everybody laser-focused on their product value streams, but consistently on the Omni side, really working on the synergy selling of all of our great products around the world. That focus is really starting to take hold. The majority of that is coming from working with the team, enabling the sales team, supporting them with laser-focused on how and where to grow in the best interests of the combined organization. Great. Thanks, Shawn. That's helpful. I know Jamie prefaced this in his remarks, but with respect to the strategic review, is there anything on increased activity and inbound interest in any of the lines of business or perhaps how the current M&A environment might be affecting your ability to transact? Yeah, I'd say, Matt, that there's always an interest in this collection of assets. Just, you know, proud and honored to be a part of this combined company. In terms of increased interest, in terms of us putting a press release out there saying that we're entertaining a strategic alternatives review, I don't know how much more interest we could garner. If you mean about the individual assets, we believe that the value of the collective whole is greater than the sum of the individual parts. Fair enough. Thanks a lot. We'll move next to Stephanie Moore with Jefferies. Your line is open. Hi, good afternoon. Thank you. I wanted to ask a maybe a bigger-picture question. Clearly, a lot of work has been done over the last year or so on both the expedited side, but also Omni side. You can certainly see it across the board, whether it's the margin profile, the pricing actions, and the like. Asking kind of a multi-year question here, what is your North Star and how you think about the underlying earnings contribution of the combined entity? If it's not from a dollar standpoint, are there certain margin aspirations that you have your eyes set on? That can be for, again, the whole company or as you look at the LTL business or the forwarding business. Maybe just as you run the business, what are you targeting? Yeah, Stephanie, there's a great page in the back of the earnings prerevo on page 28. What we've tried to do here is we've broken it down by our competitive set relative to us. If you look at where the LTL carriers are, the freight forwarders, and the truckloading intermodal, we've broken up the opportunity there. Omni and intermodal are crushing it. Omni is, as you can see, has been growing. The margin has been steady, if not increasing. Intermodal has been at the high end of the comp set since we walked through the door. The biggest opportunity is in cost, the 8% point on a billion-dollar business that we have in the truckload business. Now, I'm not saying that we're going to go straight to 18%, but if we're at 10% now, the market's saying that kind of 18%-20% premium service, given what we do, given the, I guess, high value and expedited nature of the service that we deliver, there's no reason in my mind that over the next couple of years that we can't reach that same market margin. Great. No, that's really helpful. Maybe just taking that a step further, clearly a lot of action on the pricing front. What is next? I think as we look at that peer set, one key differentiation might just be kind of a scale advantage and the like. To your point, your service is high. You've made corrective pricing actions. What are the next steps to close that gap over the next couple of years? Hey, Steph, It's Shawn. Outside of, you know, just growth in general, what you see us doing, I would say, under the hood is fine-tuning the organization, really getting lean. When I say lean, lean in not just meaning cost-cutting, but really looking at improving quality of operations, not only just in service, but also in cost around revenues. That's from optimizing the LTL network to really focus on standards around the world and focused on no rework. Get it right the first time. Let's not do it twice, do it once. That's what you're seeing even in Q2. The team is really focused here and done a fantastic job to the revenues. That's probably my most proudest moment, you know, over the last year is the team's just real confidence in what they're doing, how they're doing it, and enjoying it in this very weird market we're in. It's a lot of fun to watch. Hey Steph, It's Jamie, I'll jump on there. You called out the pricing. Shawn talked about our ability to contain costs as we grow this business. You say what is next is right now our net margins are solid. They're good. We're doing incredibly well on the linehaul side of the business and on the terminal side of the business. Pricing is just starting to kick in. You saw it. We actually showed a graph how it's two points higher on a revenue per hundredweight ex-fuel and a little bit more than four points higher on a revenue per shipment basis. The what-ifs in terms of getting it to that next level and closing the gap, I think you're leading us to water a little bit in terms of how do you close that gap is on operating leverage. If we can hold the net margin, marginally increase it with our pricing actions, but grow the top line and not grow the SG&A portion of the business, which we have a very, very stringent line to hold, then that's what's going to help us close that gap. Great. Thank you for the time. We'll take our next question from Scott Group with Wolfe Research. Your line is open. Hey, thanks. Afternoon, guys. I know you probably can't say too much, but what do you think is the timing to hear on this process? Is this weeks away, months away? Any thoughts at all you can share with us? Yeah, Scott, I knew you would ask it. We really can't share anything. We are in the process, and it's moving, as I say, on track and well. As soon as we have something more, but I don't have necessarily a crystal ball to say timing at this point. Okay. Can you give us an update as Q2 played out, as Q3 started, just some of the volume trends that you're seeing so far into Q3? I know some of the LTLs have announced GRIs. How are you thinking about GRIs back half this year? Yeah, I'll take the sequential question and then let Shawn give the much more eloquent GRI versus the customer-specific increase. You know, Scott, we don't give intra-quarter guidance, but all I would say is like where we ended the second quarter, we don't see anything that's meaningfully different as we enter the third. On the GRI, Scott, you know, I'm a big fan and also talking to the customers when I arrived. I don't believe anything's in general. I'm not a big fan of GRIs because I've seen multiple organizations impose the GRI and then the volume slides. We're not in a market that, in my world, that's not very smart. What we do, Scott, is what we call SRIs, which is more strategic. We're working with each customer strategically on lane pairs that will need adjustment up, and sometimes I can even adjust some down in exchange. If volume fluctuates on OD pairs, we work directly with the customer to exchange those on an SRI basis. We do that consistently. I don't just find a period of time in an annualized situation to take a GRI, more SRI, if that makes sense. No, it does. Okay. Maybe just lastly, Jamie, small cash burn first half of the year. Any thoughts on how you're thinking about back half cash flow? Yeah, the way I look at it, there's this great—you've coached me well, Scott. There's page 21. We do a cash bridge, and what we're showing here is about $45 million-$50 million in cash flow from off every single quarter with consistent regularity. We generate cash every other quarter. We burn a little bit of cash every other quarter, and that burn is only in the quarter when we have the $34 million senior secured note payment, which is in April and October. You look at it over a year, I think we're only down like $10 million in cash over the last 365 days. That's in the midst of integrating these two behemoth companies in an incredibly soft freight environment. As we sit here right now, a little bit less than $400 million in liquidity, I'm feeling pretty damn good. Do you think that cash operating cash flow changes much in the back half of the year? Yeah, that'd be giving guidance, Scott. I appreciate the effort. All right. Thank you, guys. Thank you, Scott. We'll move next to Bascome Majors with Susquehanna. Your line is open. Thanks for taking our questions here. I want to go back to some of the questions about the transition from integration to transformation. You've called out some new services, some wins, and press releases. Any way you can dimensionalize the kind of new revenue you're bringing on, even directionally in aggregate? We realize that's not one-for-one add to what you did last quarter. I just want to see what you're seeing and the opportunity to grow some of the business and where that's happening. Thank you. Hey, Bascome. Yeah. The couple of press releases, they're just really large ones that were worthy of press releases. I mean, we're winning a lot more than what we pressed. We're seeing wins in the truckload space, we're seeing wins in the international air freight space, and then just in general ground. It just depends on whether it's a new logo or organic growth with an existing logo, but it's pretty much across the board, I would say, in general, Bascome. If we aggregate this, are we talking tens of millions, hundreds of millions in incremental revenue? I just want to understand what this looks like and how it could potentially help with some of the general malaise in the freight market. Thank you. Yeah, I'd say it's a little bit of both because we talk about customers that are lost throughout this transition and then down trading and up trading. We've got as much customers that are up trading with us that are existing customers than we have new logos. I'm, and I hate to put it in such a crass way, but I'm almost indifferent of where the increase in revenue comes from as long as it comes. Everybody on this call, including yourself, know that the cheapest dollar to win is the customer that you already have. We continue to grow revenue with certain key accounts, and with the new platform, we do have a couple of big wins that we wouldn't have been able to win absent the combination. Given the state of the freight market, Bascome, I mean, everyone right now is slugging it out. What we have to do is be very, very disciplined to the price that we are charging our customer that is commensurate with the expedited service delivery that we have. We just got to look into that discipline and sometimes make some tough decisions to not take on some business that is not profitable for our network. From the broader perspective, a couple of big wins that we would not have been able to achieve on a standalone basis. Thank you for that. Just one more from me. I appreciate the commentary on the earnings quality improving and the add-backs getting a little more traditional in your EBITDA adjustment as we go forward and certainly year-to-date as well. Can you give us a little color on if any of the ones this quarter were at the segment level or were they all at the corporate level? Maybe a little more on what's running through other, where I think you added back $14 million this quarter and $11 million last. Thank you. Yeah. The vast majority of other is a non-cash stock comp. What was the other one? There are two big pieces of it. Here it is right here. It's a non-cash stock comp and facility closing costs that make up over half of that. That's the vast majority of it. Then you've got some non-cash FX gain and loss. Non-cash by and large, and that's why I said in my opening comments that it is more akin to what you and I would define as traditional adjusted EBITDA because the vast majority of it is either non-cash or on restructuring and facility closing costs. Of those larger ones this quarter, are any made at the segment level, or are those all at corporate? FS is at a segment. Stock-based comps can be allocated to the segments. We don't track it that way, Bascome. Right now, I roll all of those costs up at a corporate level so that I've got visibility into it. I don't want it hidden down into the segments or around the smaller opcos. Thank you very much. You don't want the opcos doing indirect taxes, as an example. Thank you. Once again, if you do have a question, you may press star one on your telephone keypad at this time. We'll move next to Christopher Kuhn with Benchmark Company. Your line is open. Yeah, hey, good afternoon. Thanks for taking the questions. Shawn, I know that you got some poorly priced freight out of the network business. Is that largely done? I don't know if you talked about that this quarter. I know last quarter you pretty much had it done. I was just curious if some of that tonnage is really just market or some of the things you've done too. Yeah, Chris, that is primarily done. I mean, it's always an ongoing assessment, but I would say we fixed the pricing, number one, new basis line. With the new modeling tools on cost and pricing, I would say we make much more accurate assumptions with new logos and have fixed the existing logos. You would see less to fix, if that makes sense. Yeah, understood. The pricing actions, sorry, go ahead. If you pointed to, you know, there's a segment level profitability chart. If you look at page 14 of the expedited material, you'll see a 500 basis point improvement in just two quarters. It's not just pricing their freight like we, that's commensurate with the service that we provide that we show in the back, but it's also getting that negative contribution margin break out of the network. I think that this page right now is as strong as a testament of what Shawn was able to get accomplished over the last two quarters. How should we think about pricing from this level here in terms of revenue per hundred weight ex-fuel? How do we think of it, in what way? Should it improve sequentially? Do you really need the market to make better improvements, or where is pricing going from here in terms of sequentially? I would say, Chris, if nothing else changes, that's pretty much a run here for the current market condition that we're in. I don't like to overcommit and under-deliver. I think as the market, if and when it starts to tighten, we can make sequential improvements on that as well. It really sounds like that expedited margin, you need just the leverage to be back in the model in terms of volume growth from here. Chris, you know, we don't give guidance on what's going to happen with the pricing or the margin. I think Shawn's response is spot on. Okay. Just lastly, it sounds like the strategic view, I'm not going to really ask about that, but it sounds like there's not going to be a lot of portfolio reshaping anymore. I thought, you know, there are not any businesses that you're kind of looking to shed now as you think the whole is bigger than some of the parts. Is that a question or a statement? I'm just asking, I mean, have you, you know, is there any portfolio reshaping or not? Yeah. I tell you what, we have integrated these two companies. You know, there's only probably one that would be non-strategic or non-core. If you collapse the other individual entities of Omni with Forward on a network basis, you know, we've already made that decision and we delivered $120 million in synergy savings. To unwant it, I think would be value destructive, but there might be one that we would consider. Okay. Helpful. Thanks, guys. Appreciate it. There are no further questions at this time. I would now like to turn the call back to Mr. Stewart for any final remarks. All right. We really appreciate your interest and support, and we remain confident in our strategy and look forward to updating you on our progress, upcoming. If you have any follow-up questions, please contact Tony directly, and he'll be happy to follow up and/or schedule follow-up calls with you guys. Appreciate it. Take care. This concludes today's Forward Air second quarter 2025 earnings conference call. Please disconnect your line at this time and have a wonderful day.

Speaker 7: Welcome to the Forward Air Second Quarter 2025 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. To ensure others can hear your questions clearly, we ask that you pick up your handset for best sound quality. Lastly, if you should require operator assistance, please press star zero. I would now like to turn the call over to Tony Carreno, Senior Vice President of Treasury and Investor Relations. Welcome to the Forward Air Second Q uarter 2025 Earnings Conference Call. welcome to the forward air second q uarter 2025 earnings conference call At this time, all participants have been placed on a listen-only mode, and the floor will be open for your questions following the presentation. at this time all participants have been placed on a listen-only mode and the floor will be open for your questions following the presentation If you would like to ask a question at that time, please press star one on your telephone keypad. if you would like to ask a question at that time please press star one on your telephone keypad If at any point your question has been answered, you may remove yourself from the queue by pressing star two. To ensure others can hear your questions clearly, we ask that you pick up your handset for best sound quality. if at any point your question has been answered you may remove yourself from the queue by pressing star two. to ensure others can hear your questions clearly we ask that you pick up your handset for best sound quality Lastly, if you should require operator assistance, please press star zero. lastly if you should require operator assistance please press star zero I would now like to turn the call over to Tony Carreno, Senior Vice President of Treasury and Investor Relations. i would now like to turn the call over to tony carreno senior vice president of treasury and investor relations

Speaker 3: Thank you, Operator, and good afternoon, everyone. Welcome to Forward Air's Second Quarter 2025 Earnings Conference Call. With us this afternoon are Shawn Stewart, Chief Executive Officer, and Jamie Pierson, Chief Financial Officer. By now, you should have received the press release announcing Forward Air's second quarter 2025 results, which was also furnished to the SEC on Form 8-K. We have also furnished a slide presentation outlining second quarter 2025 earnings, highlights, and a business update. Both the press release and slide presentation for this call are accessible on the Investor Relations section of Forward Air's website at forwardair.com. Please be aware that certain statements in the company's earnings release announcement and on the conference call are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Thank you, Operator, and good afternoon, everyone. thank you operator and good afternoon everyone Welcome to Forward Air's Second Quarter 2025 Earnings Conference Call. welcome to forward air's second quarter 2025 earnings conference call With us this afternoon are Shawn Stewart, Chief Executive Officer, and Jamie Pierson, Chief Financial Officer. with us this afternoon are shawn stewart chief executive officer and jamie pierson chief financial officer By now, you should have received the press release announcing Forward Air's second quarter 2025 results, which was also furnished to the SEC on Form 8-K. by now you should have received the press release announcing forward air's second quarter 2025 results which was also furnished to the sec on form 8-k We have also furnished a slide presentation outlining second quarter 2025 earnings, highlights, and a business update. we have also furnished a slide presentation outlining second quarter 2025 earnings highlights and a business update Both the press release and slide presentation for this call are accessible on the Investor Relations section of Forward Air's website at forwardair.com. both the press release and slide presentation for this call are accessible on the investor relations section of forward air's website at forwardair.com Please be aware that certain statements in the company's earnings release announcement and on the conference call are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. please be aware that certain statements in the company's earnings release announcement and on the conference call are forward-looking statements within the meaning of the private securities litigation reform act of 1995 This includes statements which are based on expectations, intentions, and projections regarding the company's future performance, anticipated events, or trends in other matters that are not historical facts, including statements regarding our fiscal year 2025. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For additional information concerning these risks and factors, please refer to our filing with the Securities and Exchange Commission and the press release and slide presentation relating to this earnings call. Listeners are cautioned not to place undue reliance on these forward-looking statements as of the date of this call. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. This includes statements which are based on expectations, intentions, and projections regarding the company's future performance, anticipated events, or trends in other matters that are not historical facts, including statements regarding our fiscal year 2025. this includes statements which are based on expectations intentions and projections regarding the company's future performance anticipated events or trends in other matters that are not historical facts including statements regarding our fiscal year 2025 These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. these statements are not a guarantee of future performance and are subject to known and unknown risks uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements For additional information concerning these risks and factors, please refer to our filing with the Securities and Exchange Commission and the press release and slide presentation relating to this earnings call. for additional information concerning these risks and factors please refer to our filing with the securities and exchange commission and the press release and slide presentation relating to this earnings call Listeners are cautioned not to place undue reliance on these forward-looking statements as of the date of this call. listeners are cautioned not to place undue reliance on these forward-looking statements as of the date of this call The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. the company undertakes no obligation to update any forward-looking statements whether as a result of new information future events or otherwise unless required by law During the call, there may also be a discussion of financial metrics that do not conform to U.S. generally accepted accounting principles or GAAP. Management uses non-GAAP measures internally to understand, manage, and evaluate our business and make operating decisions. Definitions and reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in today's press release and slide presentation. I will now turn the call over to Shawn. During the call, there may also be a discussion of financial metrics that do not conform to U.S. generally accepted accounting principles or GAAP. during the call there may also be a discussion of financial metrics that do not conform to u.s generally accepted accounting principles or gaap Management uses non-GAAP measures internally to understand, manage, and evaluate our business and make operating decisions. management uses non-gaap measures internally to understand manage and evaluate our business and make operating decisions Definitions and reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in today's press release and slide presentation. definitions and reconciliations of these non-gaap measures to their most directly comparable gaap measures are included in today's press release and slide presentation I will now turn the call over to Shawn. i will now turn the call over to shawn

Speaker 8: Good afternoon, everyone, and thank you for joining us. I would like to begin today's call by recognizing recent awards that highlight our team's outstanding customer service, operational excellence, and unwavering commitment to our partners. Omni Logistics was honored as the 2024 International and Domestic Forwarder of the Year by doTERRA International. This marks the first time a single logistics partner has received both distinctions from doTERRA, underscoring Omni's leadership and performance across the board. GLT Logistics selected Forward Air as the Commitment to Excellence Carrier of the Year for 2024. This award underscores Forward Air's performance, service, and commitment to customer success and highlights the trust built within the strong business relationship. Our Omni Logistics team in Asia was recognized with an award from Advanced Micro Devices for their agility and responsiveness during a significant demand surge in late 2024. Good afternoon, everyone, and thank you for joining us. good afternoon everyone and thank you for joining us I would like to begin today's call by recognizing recent awards that highlight our team's outstanding customer service, operational excellence, and unwavering commitment to our partners. i would like to begin today's call by recognizing recent awards that highlight our team's outstanding customer service operational excellence and unwavering commitment to our partners Omni Logistics was honored as the 2024 International and Domestic Forwarder of the Year by doTERRA International. omni logistics was honored as the 2024 international and domestic forwarder of the year by doterra international This marks the first time a single logistics partner has received both distinctions from doTERRA, underscoring Omni's leadership and performance across the board. this marks the first time a single logistics partner has received both distinctions from doterra underscoring omni's leadership and performance across the board GLT Logistics selected Forward Air as the Commitment to Excellence Carrier of the Year for 2024. glt logistics selected forward air as the commitment to excellence carrier of the year for 2024 This award underscores Forward Air's performance, service, and commitment to customer success and highlights the trust built within the strong business relationship. this award underscores forward air's performance service and commitment to customer success and highlights the trust built within the strong business relationship Our Omni Logistics team in Asia was recognized with an award from Advanced Micro Devices for their agility and responsiveness during a significant demand surge in late 2024. our omni logistics team in asia was recognized with an award from advanced micro devices for their agility and responsiveness during a significant demand surge in late 2024 The team successfully managed an overflow while maintaining the high service standards that we are known for. These honors are a reminder of the belief and trust that our customers have in our company. They reflect the dedication of our people, whose efforts continue to drive our reputation for excellence. As our global presence grows, it's clear that our focus on service, speed, and reliability is making a lasting impact. While managing through the challenges of the current freight recession, we plan to continue demonstrating our unwavering commitment to our customers by strengthening relationships and consistently delivering value-added services that matter. We believe this approach will benefit our customers, employees, and investors over the long term. The team successfully managed an overflow while maintaining the high service standards that we are known for. the team successfully managed an overflow while maintaining the high service standards that we are known for These honors are a reminder of the belief and trust that our customers have in our company. these honors are a reminder of the belief and trust that our customers have in our company They reflect the dedication of our people, whose efforts continue to drive our reputation for excellence. they reflect the dedication of our people whose efforts continue to drive our reputation for excellence As our global presence grows, it's clear that our focus on service, speed, and reliability is making a lasting impact. as our global presence grows it's clear that our focus on service speed and reliability is making a lasting impact While managing through the challenges of the current freight recession, we plan to continue demonstrating our unwavering commitment to our customers by strengthening relationships and consistently delivering value-added services that matter. while managing through the challenges of the current freight recession we plan to continue demonstrating our unwavering commitment to our customers by strengthening relationships and consistently delivering value-added services that matter We believe this approach will benefit our customers, employees, and investors over the long term. we believe this approach will benefit our customers employees and investors over the long term Turning to the quarterly results, we had another solid operational quarter with consolidated EBITDA, which is calculated pursuant to our credit agreement, of $74 million compared to $69 million in the First Quarter of this year. Consolidated EBITDA in the second quarter of last year was $89 million. Going forward, the quarterly results will be more comparable as the historical quarterly proforma and synergy savings roll off. The quality of our earnings should also continue to improve. To that point, adjusted EBITDA in the second quarter was also $74 million compared to $69 million in the First Quarter of this year. On a year-over-year basis, adjusted EBITDA improved by $1 million compared to $73 million in the second quarter of last year. At the expedited freight segment, we continue to make progress. Turning to the quarterly results, we had another solid operational quarter with consolidated EBITDA, which is calculated pursuant to our credit agreement, of $74 million compared to $69 million in the First Quarter of this year. turning to the quarterly results we had another solid operational quarter with consolidated ebitda which is calculated pursuant to our credit agreement of $74 million compared to $69 million in the first quarter of this year Consolidated EBITDA in the second quarter of last year was $89 million. consolidated ebitda in the second quarter of last year was $89 million Going forward, the quarterly results will be more comparable as the historical quarterly proforma and synergy savings roll off. going forward the quarterly results will be more comparable as the historical quarterly proforma and synergy savings roll off The quality of our earnings should also continue to improve. the quality of our earnings should also continue to improve To that point, adjusted EBITDA in the second quarter was also $74 million compared to $69 million in the First Quarter of this year. to that point adjusted ebitda in the second quarter was also $74 million compared to $69 million in the first quarter of this year On a year-over-year basis, adjusted EBITDA improved by $1 million compared to $73 million in the second quarter of last year. on a year-over-year basis adjusted ebitda improved by $1 million compared to $73 million in the second quarter of last year At the expedited freight segment, we continue to make progress. at the expedited freight segment we continue to make progress As previously communicated, one of the first steps our management team took to improve financial performance was to take corrective actions on the pricing. After concluding the necessary diligence, we implemented those actions in the fourth quarter of 2024 and completed them in the First Quarter of this year. Following these actions, although tonnage is down, we have significantly improved reported EBITDA and margin at the expedited freight segment. Reported EBITDA has grown from $18 million in the fourth quarter of 2024 to $30 million in the second quarter of 2025, and the margin has improved by 500 basis points from 6.6%-11.6%. The 11.6% is the highest this segment has reported since the fourth quarter of 2023. As previously communicated, one of the first steps our management team took to improve financial performance was to take corrective actions on the pricing. as previously communicated one of the first steps our management team took to improve financial performance was to take corrective actions on the pricing After concluding the necessary diligence, we implemented those actions in the fourth quarter of 2024 and completed them in the First Quarter of this year. after concluding the necessary diligence we implemented those actions in the fourth quarter of 2024 and completed them in the first quarter of this year Following these actions, although tonnage is down, we have significantly improved reported EBITDA and margin at the expedited freight segment. following these actions although tonnage is down we have significantly improved reported ebitda and margin at the expedited freight segment Reported EBITDA has grown from $18 million in the fourth quarter of 2024 to $30 million in the second quarter of 2025, and the margin has improved by 500 basis points from 6.6%- 11.6%. reported ebitda has grown from $18 million in the fourth quarter of 2024 to $30 million in the second quarter of 2025 and the margin has improved by 500 basis points from 6.6%- 11.6% The 11.6% is the highest this segment has reported since the fourth quarter of 2023. the 11.6% is the highest this segment has reported since the fourth quarter of 2023 We were able to achieve these operating efficiencies and margins in a down market by optimizing pricing and tightly managing all discretionary expenses, rationalizing every dollar, and focusing on having the right type of freight in our network at the right price. We believe the variable nature and flexibility of our network positions us incredibly well for when the market normalizes. Based on actual past results, we know there is an additional opportunity to improve the expedited freight segment's margin. We also know that we need to grow volume in the network. As with most LTL networks, our network thrives in a tighter market. There is always more we can do to reduce cost. However, we are not willing to compromise the high quality of service that we are known for and our customers have come to expect from us. We were able to achieve these operating efficiencies and margins in a down market by optimizing pricing and tightly managing all discretionary expenses, rationalizing every dollar, and focusing on having the right type of freight in our network at the right price. we were able to achieve these operating efficiencies and margins in a down market by optimizing pricing and tightly managing all discretionary expenses rationalizing every dollar and focusing on having the right type of freight in our network at the right price We believe the variable nature and flexibility of our network positions us incredibly well for when the market normalizes. we believe the variable nature and flexibility of our network positions us incredibly well for when the market normalizes Based on actual past results, we know there is an additional opportunity to improve the expedited freight segment's margin. based on actual past results we know there is an additional opportunity to improve the expedited freight segment's margin We also know that we need to grow volume in the network. we also know that we need to grow volume in the network As with most LTL networks, our network thrives in a tighter market. as with most ltl networks our network thrives in a tighter market There is always more we can do to reduce cost. there is always more we can do to reduce cost However, we are not willing to compromise the high quality of service that we are known for and our customers have come to expect from us. however we are not willing to compromise the high quality of service that we are known for and our customers have come to expect from us The expedited freight network includes one of the largest expedited LTL networks in North America and is an industry leader in serving time-critical and high-value freight. In conditions such as this, it takes discipline not to sacrifice service, and we believe the quality of service we provide will be the driver of growth and ultimately pricing and profitability in the future. At the Omni Logistics segment, we continue to build momentum, and I am excited about the progress that we are seeing. On a year-over-year basis, we grew revenue $16 million to $328 million in the second quarter. Sequentially, from the First Quarter to the second quarter of this year, reported EBITDA increased from $26 million-$30 million, and the margin improved by 110 basis points from 7.9%-9%. The expedited freight network includes one of the largest expedited LTL networks in North America and is an industry leader in serving time-critical and high-value freight. the expedited freight network includes one of the largest expedited ltl networks in north america and is an industry leader in serving time-critical and high-value freight In conditions such as this, it takes discipline not to sacrifice service, and we believe the quality of service we provide will be the driver of growth and ultimately pricing and profitability in the future. in conditions such as this it takes discipline not to sacrifice service and we believe the quality of service we provide will be the driver of growth and ultimately pricing and profitability in the future At the Omni Logistics segment, we continue to build momentum, and I am excited about the progress that we are seeing. at the omni logistics segment we continue to build momentum and i am excited about the progress that we are seeing On a year-over-year basis, we grew revenue $16 million to $328 million in the second quarter. on a year-over-year basis we grew revenue $16 million to $328 million in the second quarter Sequentially, from the First Quarter to the second quarter of this year, reported EBITDA increased from $26 million- $30 million, and the margin improved by 110 basis points from 7.9%- 9%. sequentially from the first quarter to the second quarter of this year reported ebitda increased from $26 million- $30 million and the margin improved by 110 basis points from 7.9%- 9% On a year-over-year basis, reported EBITDA improved from $20 million in the second quarter of last year to $30 million this year, which is a 47% increase. The margin also improved from 6.4%-9% compared to the same period a year ago. The intermodal segment remains a consistent performer in a turbulent and unpredictable market. Reported EBITDA in the second quarter of 2025 was $9 million and generally in line with the $9 million-$10 million of reported EBITDA in each of the last four quarters. In closing, as we begin the second half of the year, the logistics industry remains in a state of flux, shaped by macro risk, chiefly surrounding tariffs, and their potential impact on consumer confidence, as well as ensuing demand on resulting global freight flows. On a year-over-year basis, reported EBITDA improved from $20 million in the second quarter of last year to $30 million this year, which is a 47% increase. on a year-over-year basis reported ebitda improved from $20 million in the second quarter of last year to $30 million this year which is a 47% increase The margin also improved from 6.4%- 9% compared to the same period a year ago. the margin also improved from 6.4%- 9% compared to the same period a year ago The intermodal segment remains a consistent performer in a turbulent and unpredictable market. the intermodal segment remains a consistent performer in a turbulent and unpredictable market Reported EBITDA in the second quarter of 2025 was $9 million and generally in line with the $9 million- $10 million of reported EBITDA in each of the last four quarters. reported ebitda in the second quarter of 2025 was $9 million and generally in line with the $9 million- $10 million of reported ebitda in each of the last four quarters In closing, as we begin the second half of the year, the logistics industry remains in a state of flux, shaped by macro risk, chiefly surrounding tariffs, and their potential impact on consumer confidence, as well as ensuing demand on resulting global freight flows. in closing as we begin the second half of the year the logistics industry remains in a state of flux shaped by macro risk chiefly surrounding tariffs and their potential impact on consumer confidence as well as ensuing demand on resulting global freight flows Overall, transportation volumes remain muted as the uncertainty clouds visibility for the rest of 2025 and as long as the global uncertainty lingers. Regardless of the macro environment, we remain focused on continuing the progress we have made over the last year. We remain committed to our strategy and are on the path to transform the company into a world-class logistics organization. This includes streamlining and simplifying our global structure, as it positions us for future growth. We are incredibly excited about what the long-term future holds for our company, and we believe we are well positioned to outgrow the market once the freight environment normalizes. With that, I will turn this call over to Jamie to go through the results for the second quarter. Overall, transportation volumes remain muted as the uncertainty clouds visibility for the rest of 2025 and as long as the global uncertainty lingers. overall transportation volumes remain muted as the uncertainty clouds visibility for the rest of 2025 and as long as the global uncertainty lingers Regardless of the macro environment, we remain focused on continuing the progress we have made over the last year. regardless of the macro environment we remain focused on continuing the progress we have made over the last year We remain committed to our strategy and are on the path to transform the company into a world-class logistics organization. we remain committed to our strategy and are on the path to transform the company into a world-class logistics organization This includes streamlining and simplifying our global structure, as it positions us for future growth. this includes streamlining and simplifying our global structure as it positions us for future growth We are incredibly excited about what the long-term future holds for our company, and we believe we are well positioned to outgrow the market once the freight environment normalizes. we are incredibly excited about what the long-term future holds for our company and we believe we are well positioned to outgrow the market once the freight environment normalizes With that, I will turn this call over to Jamie to go through the results for the second quarter. with that i will turn this call over to jamie to go through the results for the second quarter

Speaker 1: Thanks, Shawn, and good afternoon, everyone. Before jumping into the scripts, I just want to note that this quarter marks our first clean quarterly year-over-year comparison since closing the transaction of last year. It has been an absolutely crazy year, but we have accomplished a ton, and going forward, we at least will have the ability to more cleanly compare year-over-year results. Beginning with the consolidated revenue, in the second quarter, we reported $619 million compared to $644 million in the prior year. The 3.9% decrease is primarily attributable to a decrease in revenue at the expedited freight segment, partially offset by an increase in revenue at the Omni Logistics segment. On a sequential basis, the second quarter consolidated revenue increased 1% compared to the $613 million in the First Quarter of the year. Thanks, Shawn, and good afternoon, everyone. thanks shawn and good afternoon everyone Before jumping into the scripts, I just want to note that this quarter marks our first clean quarterly year-over-year comparison since closing the transaction of last year. before jumping into the scripts i just want to note that this quarter marks our first clean quarterly year-over-year comparison since closing the transaction of last year It has been an absolutely crazy year, but we have accomplished a ton, and going forward, we at least will have the ability to more cleanly compare year-over-year results. it has been an absolutely crazy year but we have accomplished a ton and going forward we at least will have the ability to more cleanly compare year-over-year results Beginning with the consolidated revenue, in the second quarter, we reported $619 million compared to $644 million in the prior year. beginning with the consolidated revenue in the second quarter we reported $619 million compared to $644 million in the prior year The 3.9% decrease is primarily attributable to a decrease in revenue at the expedited freight segment, partially offset by an increase in revenue at the Omni Logistics segment. the 3.9% decrease is primarily attributable to a decrease in revenue at the expedited freight segment partially offset by an increase in revenue at the omni logistics segment On a sequential basis, the second quarter consolidated revenue increased 1% compared to the $613 million in the First Quarter of the year. on a sequential basis the second quarter consolidated revenue increased 1% compared to the $613 million in the first quarter of the year As for the revenue at our three reporting segments: expedited freight, Omni Logistics, and intermodal, revenue at the expedited freight segment decreased $34 million, or 11.5%, to $258 million from the previous year's comparable quarter of $291 million. The decrease was driven by a 12.7% decrease in year-over-year tonnage per day that was partially offset by a 1.8% increase in the revenue per hundred weight, excluding fuel. At the Omni Logistics segment, revenue in the second quarter increased by $16 million-$328 million compared to the $312 million a year ago. The increase was driven by an increase in demand for our services, specifically in the contract logistics area. Revenue in the intermodal segment of $59 million was flat compared to a year ago. An increase in revenue per shipment of 4.4% was largely offset by a 4% decrease in the number of drayage shipments. As for the revenue at our three reporting segments: expedited freight, Omni Logistics, and intermodal, revenue at the expedited freight segment decreased $34 million, or 11.5%, to $258 million from the previous year's comparable quarter of $291 million. as for the revenue at our three reporting segments expedited freight omni logistics and intermodal revenue at the expedited freight segment decreased $34 million or 11.5% to $258 million from the previous year's comparable quarter of $291 million The decrease was driven by a 12.7% decrease in year-over-year tonnage per day that was partially offset by a 1.8% increase in the revenue per hundred weight, excluding fuel. the decrease was driven by a 12.7% decrease in year-over-year tonnage per day that was partially offset by a 1.8% increase in the revenue per hundred weight excluding fuel At the Omni Logistics segment, revenue in the second quarter increased by $16 million- $328 million compared to the $312 million a year ago. at the omni logistics segment revenue in the second quarter increased by $16 million- $328 million compared to the $312 million a year ago The increase was driven by an increase in demand for our services, specifically in the contract logistics area. the increase was driven by an increase in demand for our services specifically in the contract logistics area Revenue in the intermodal segment of $59 million was flat compared to a year ago. revenue in the intermodal segment of $59 million was flat compared to a year ago An increase in revenue per shipment of 4.4% was largely offset by a 4% decrease in the number of drayage shipments. an increase in revenue per shipment of 4.4% was largely offset by a 4% decrease in the number of drayage shipments As you heard from Shawn, adjusted EBITDA was $74 million, or an 11.9% margin in the second quarter of this year, compared to the $73 million, or 11.3% margin a year ago. Consolidated EBITDA, as defined in our credit agreements, was $74 million, or again, an 11.9% margin compared to $89 million, or a 13.8% margin a year ago. On an LTM basis, consolidated EBITDA was $298 million. As usual, we have detailed the information used to build up adjusted and consolidated EBITDA results on page 29 of the presentation. Turning to cash flow, cash, and liquidity, we reported $13 million in cash used by operations in the second quarter, which was a $32 million improvement compared to the $45 million in cash used by operations a year ago. As you heard from Shawn, adjusted EBITDA was $74 million, or an 11.9% margin in the second quarter of this year, compared to the $73 million, or 11.3% margin a year ago. as you heard from shawn adjusted ebitda was $74 million or an 11.9% margin in the second quarter of this year compared to the $73 million or 11.3% margin a year ago Consolidated EBITDA, as defined in our credit agreements, was $74 million, or again, an 11.9% margin compared to $89 million, or a 13.8% margin a year ago. consolidated ebitda as defined in our credit agreements was $74 million or again an 11.9% margin compared to $89 million or a 13.8% margin a year ago On an LTM basis, consolidated EBITDA was $298 million. on an ltm basis consolidated ebitda was $298 million As usual, we have detailed the information used to build up adjusted and consolidated EBITDA results on page 29 of the presentation. as usual we have detailed the information used to build up adjusted and consolidated ebitda results on page 29 of the presentation Turning to cash flow, cash, and liquidity, we reported $13 million in cash used by operations in the second quarter, which was a $32 million improvement compared to the $45 million in cash used by operations a year ago. turning to cash flow cash and liquidity we reported $13 million in cash used by operations in the second quarter which was a $32 million improvement compared to the $45 million in cash used by operations a year ago For the first half of 2025, we reported $14 million of cash provided by operations, which is a $111 million improvement compared to the $97 million used by operations in the same period a year ago. As for liquidity, we ended the second quarter with $368 million in total liquidity, comprised of $95 million in cash and $273 million in availability under the revolver. The $25 million sequential decrease in total liquidity from $393 million in the First Quarter includes a $34 million semiannual interest payment on our senior secured notes that we pay in April and October of each year. As usual, I'd like to leave you with a few additional thoughts for the quarter. For the first half of 2025, we reported $14 million of cash provided by operations, which is a $111 million improvement compared to the $97 million used by operations in the same period a year ago. for the first half of 2025 we reported $14 million of cash provided by operations which is a $111 million improvement compared to the $97 million used by operations in the same period a year ago As for liquidity, we ended the second quarter with $368 million in total liquidity, comprised of $95 million in cash and $273 million in availability under the revolver. as for liquidity we ended the second quarter with $368 million in total liquidity comprised of $95 million in cash and $273 million in availability under the revolver The $25 million sequential decrease in total liquidity from $393 million in the First Quarter includes a $34 million semiannual interest payment on our senior secured notes that we pay in April and October of each year. the $25 million sequential decrease in total liquidity from $393 million in the first quarter includes a $34 million semiannual interest payment on our senior secured notes that we pay in april and october of each year As usual, I'd like to leave you with a few additional thoughts for the quarter. as usual i'd like to leave you with a few additional thoughts for the quarter The first one you can follow under the header of "Beating a Dead Horse," but as Shawn stated in his intro, the quality of earnings is continuing to improve the further we get away from the noise of the transaction. We haven't had any pro forma synergy or pro forma savings add-backs in either of the last two quarters. As the historical add-backs in the transaction continue to roll off, we expect a difference of what you would normally define as adjusted EBITDA and consolidated EBITDA that we had been reporting to continue to narrow. The add-backs that we anticipate going forward will be more of a normal, non-recurring, and non-cash cap that you would expect under a non-GAAP definition of adjusted EBITDA. Moving to the second point, which will logically lead us to the third, is our sequential quarter-over-quarter improvement in margins and consolidated EBITDA. The first one you can follow under the header of "Beating a Dead Horse," but as Shawn stated in his intro, the quality of earnings is continuing to improve the further we get away from the noise of the transaction. the first one you can follow under the header of "beating a dead horse," but as shawn stated in his intro the quality of earnings is continuing to improve the further we get away from the noise of the transaction We haven't had any pro forma synergy or pro forma savings add-backs in either of the last two quarters. we haven't had any pro forma synergy or pro forma savings add-backs in either of the last two quarters As the historical add-backs in the transaction continue to roll off, we expect a difference of what you would normally define as adjusted EBITDA and consolidated EBITDA that we had been reporting to continue to narrow. as the historical add-backs in the transaction continue to roll off we expect a difference of what you would normally define as adjusted ebitda and consolidated ebitda that we had been reporting to continue to narrow The add-backs that we anticipate going forward will be more of a normal, non-recurring, and non-cash cap that you would expect under a non-GAAP definition of adjusted EBITDA. the add-backs that we anticipate going forward will be more of a normal non-recurring and non-cash cap that you would expect under a non-gaap definition of adjusted ebitda Moving to the second point, which will logically lead us to the third, is our sequential quarter-over-quarter improvement in margins and consolidated EBITDA. moving to the second point which will logically lead us to the third is our sequential quarter-over-quarter improvement in margins and consolidated ebitda Our recently enacted pricing strategy, combined with our stringent cost and expense control efforts, especially at the expedited freight segment, have led to a sequential increase in consolidated EBITDA. The logical extension of increased consolidated EBITDA leads us to point three, which is our continued focus on cash generation and conversion thereof. Cash provided by operations has significantly improved in the first half of the year compared to a year ago. If you'll refer to page 20 of the earnings presentation, you will see that on a non-GAAP basis, we are consistently generating approximately $40 million-$50 million a quarter in unlevered operating cash flow. Next is our unwavering commitment to service, even in a soft market. When you invest in Forward Air, you are investing in a very unique portfolio of logistics and transportation assets, all unified by a shared dedication to customer service. Our recently enacted pricing strategy, combined with our stringent cost and expense control efforts, especially at the expedited freight segment, have led to a sequential increase in consolidated EBITDA. our recently enacted pricing strategy combined with our stringent cost and expense control efforts especially at the expedited freight segment have led to a sequential increase in consolidated ebitda The logical extension of increased consolidated EBITDA leads us to point three, which is our continued focus on cash generation and conversion thereof. the logical extension of increased consolidated ebitda leads us to point three which is our continued focus on cash generation and conversion thereof Cash provided by operations has significantly improved in the first half of the year compared to a year ago. cash provided by operations has significantly improved in the first half of the year compared to a year ago If you'll refer to page 20 of the earnings presentation, you will see that on a non-GAAP basis, we are consistently generating approximately $40 million- $50 million a quarter in unlevered operating cash flow. if you'll refer to page 20 of the earnings presentation you will see that on a non-gaap basis we are consistently generating approximately $40 million- $50 million a quarter in unlevered operating cash flow Next is our unwavering commitment to service, even in a soft market. next is our unwavering commitment to service even in a soft market When you invest in Forward Air, you are investing in a very unique portfolio of logistics and transportation assets, all unified by a shared dedication to customer service. when you invest in forward air you are investing in a very unique portfolio of logistics and transportation assets all unified by a shared dedication to customer service We believe if you provide the world-class service that we do, financial results will follow. Providing excellent service is a significant investment, often costly and time-consuming. However, the good news is we have already made that investment. It is in our DNA, and it is in the core of everything that we do. We have continued to optimize our LTL network, which is known as North America's leading expedited network. With a more optimized network, and with all things being equal, each incremental shipment that we drop into the network has a higher margin than the previous one. Penultimately, as we've shared with you in prior calls, the integration of the networks is complete, and we overdelivered on the previously committed synergies. We believe if you provide the world-class service that we do, financial results will follow. we believe if you provide the world-class service that we do financial results will follow Providing excellent service is a significant investment, often costly and time-consuming. providing excellent service is a significant investment often costly and time-consuming However, the good news is we have already made that investment. however the good news is we have already made that investment It is in our DNA, and it is in the core of everything that we do. it is in our dna and it is in the core of everything that we do We have continued to optimize our LTL network, which is known as North America's leading expedited network. we have continued to optimize our ltl network which is known as north america's leading expedited network With a more optimized network, and with all things being equal, each incremental shipment that we drop into the network has a higher margin than the previous one. with a more optimized network and with all things being equal each incremental shipment that we drop into the network has a higher margin than the previous one Penultimately, as we've shared with you in prior calls, the integration of the networks is complete, and we overdelivered on the previously committed synergies. penultimately as we've shared with you in prior calls the integration of the networks is complete and we overdelivered on the previously committed synergies As we have also shared with you, we are transitioning from integration to the more longer-term transformation of the combined companies, which we anticipate to be complete by the end of next year. To that end, we will continue to tightly manage all expenses, inclusive of the rationalization of the systems and support that we will need once the transformation is complete. More to come in the future, but just wanted everyone to be aware of our continued effort to right-size the expense space commensurate with the support needed to continue to serve our customers. Finally, the strategic alternatives review launched earlier this year is progressing. As such, before you ask, and I hope you're listening, we do not plan to update the market on the details of the process as it advances. If and when there's anything of substance to report, we will let you know. As we have also shared with you, we are transitioning from integration to the more longer-term transformation of the combined companies, which we anticipate to be complete by the end of next year. as we have also shared with you we are transitioning from integration to the more longer-term transformation of the combined companies which we anticipate to be complete by the end of next year To that end, we will continue to tightly manage all expenses, inclusive of the rationalization of the systems and support that we will need once the transformation is complete. to that end we will continue to tightly manage all expenses inclusive of the rationalization of the systems and support that we will need once the transformation is complete More to come in the future, but just wanted everyone to be aware of our continued effort to right-size the expense space commensurate with the support needed to continue to serve our customers. more to come in the future but just wanted everyone to be aware of our continued effort to right-size the expense space commensurate with the support needed to continue to serve our customers Finally, the strategic alternatives review launched earlier this year is progressing. finally the strategic alternatives review launched earlier this year is progressing As such, before you ask, and I hope you're listening, we do not plan to update the market on the details of the process as it advances. as such before you ask and i hope you're listening we do not plan to update the market on the details of the process as it advances If and when there's anything of substance to report, we will let you know. if and when there's anything of substance to report we will let you know More importantly, we do not expect the process to take away from our commitment and focus on running the business. Our goal is to continue delivering the same award-winning services and solutions to our customers as we have in the past. I will now turn the mic back over to Shawn for closing comments before Q&A. More importantly, we do not expect the process to take away from our commitment and focus on running the business. more importantly we do not expect the process to take away from our commitment and focus on running the business Our goal is to continue delivering the same award-winning services and solutions to our customers as we have in the past. our goal is to continue delivering the same award-winning services and solutions to our customers as we have in the past I will now turn the mic back over to Shawn for closing comments before Q&A. i will now turn the mic back over to shawn for closing comments before q&a

Speaker 8: Thank you, Jamie. In closing, I am proud of our team for their continued commitment and focus on the customer, executing operationally and tightly managing cost. Amidst an uncertain macroeconomic landscape, I am confident that we possess a robust platform poised to drive sustainable growth. Together, we remain steadfast in our commitment to deliver tangible value for our customers, fostering opportunities for our team and creating lasting value for our shareholders. As Jamie said earlier, and I want to reiterate, when investing in Forward Air, you are investing in a unique portfolio of logistics assets. I will now turn the call over to the operator to take questions. Operator? Thank you, Jamie. thank you jamie In closing, I am proud of our team for their continued commitment and focus on the customer, executing operationally and tightly managing cost. in closing i am proud of our team for their continued commitment and focus on the customer executing operationally and tightly managing cost Amidst an uncertain macroeconomic landscape, I am confident that we possess a robust platform poised to drive sustainable growth. amidst an uncertain macroeconomic landscape i am confident that we possess a robust platform poised to drive sustainable growth Together, we remain steadfast in our commitment to deliver tangible value for our customers, fostering opportunities for our team and creating lasting value for our shareholders. together we remain steadfast in our commitment to deliver tangible value for our customers fostering opportunities for our team and creating lasting value for our shareholders As Jamie said earlier, and I want to reiterate, when investing in Forward Air, you are investing in a unique portfolio of logistics assets. as jamie said earlier and i want to reiterate when investing in forward air you are investing in a unique portfolio of logistics assets I will now turn the call over to the operator to take questions. i will now turn the call over to the operator to take questions Operator? operator

Speaker 7: The floor is now open for questions. At this time, if you have a question or comment, please press star one on your telephone keypad. If at any point your question is answered, you may remove yourself from the queue by pressing star two. Again, we ask that you pick up your handset when posing your questions to provide optimal sound quality. Thank you. Our first question is coming from Bruce Chan with Stifel. Your line is open. The floor is now open for questions. the floor is now open for questions At this time, if you have a question or comment, please press star one on your telephone keypad. at this time if you have a question or comment please press star one on your telephone keypad If at any point your question is answered, you may remove yourself from the queue by pressing star two. if at any point your question is answered you may remove yourself from the queue by pressing star two Again, we ask that you pick up your handset when posing your questions to provide optimal sound quality. again we ask that you pick up your handset when posing your questions to provide optimal sound quality Thank you. thank you Our first question is coming from Bruce Chan with Stifel. our first question is coming from bruce chan with stifel Your line is open. your line is open

Speaker 6: Good afternoon, gentlemen. This is Matt Milask on for Bruce. Thanks for taking our questions this evening. To start here with respect to Omni, would you be able to provide an update on specific commercial synergy efforts taking place there, perhaps what's going right so far, where the key areas of focus now are, and perhaps any updated expectations that you might have on the timing of how these efforts might start to ramp more meaningfully through the P&L? Thanks. Good afternoon, gentlemen. good afternoon gentlemen This is Matt Milask on for Bruce. this is matt milask on for bruce Thanks for taking our questions this evening. thanks for taking our questions this evening To start here with respect to Omni , would you be able to provide an update on specific commercial synergy efforts taking place there, perhaps what's going right so far, where the key areas of focus now are, and perhaps any updated expectations that you might have on the timing of how these efforts might start to ramp more meaningfully through the P&L? to start here with respect to omni would you be able to provide an update on specific commercial synergy efforts taking place there perhaps what's going right so far where the key areas of focus now are and perhaps any updated expectations that you might have on the timing of how these efforts might start to ramp more meaningfully through the p&l Thanks. thanks

Speaker 8: Sure, Matt. Thank you. We hired a new Chief Commercial Officer early part of this year, and Eric's really got the team humming on both legacy organizations. Not only is everybody laser-focused on their product value streams, but consistently on the Omni side, really working on the synergy selling of all of our great products around the world. That focus is really starting to take hold. The majority of that is coming from working with the team, enabling the sales team, supporting them with laser-focused on how and where to grow in the best interests of the combined organization. Sure, Matt. sure matt Thank you. thank you We hired a new Chief Commercial Officer early part of this year, and Eric's really got the team humming on both legacy organizations. we hired a new chief commercial officer early part of this year and eric's really got the team humming on both legacy organizations Not only is everybody laser-focused on their product value streams, but consistently on the Omni side, really working on the synergy selling of all of our great products around the world. not only is everybody laser-focused on their product value streams but consistently on the omni side really working on the synergy selling of all of our great products around the world That focus is really starting to take hold. that focus is really starting to take hold The majority of that is coming from working with the team, enabling the sales team, supporting them with laser-focused on how and where to grow in the best interests of the combined organization. the majority of that is coming from working with the team enabling the sales team supporting them with laser-focused on how and where to grow in the best interests of the combined organization

Speaker 6: Great. Thanks, Shawn. That's helpful. I know Jamie prefaced this in his remarks, but with respect to the strategic review, is there anything on increased activity and inbound interest in any of the lines of business or perhaps how the current M&A environment might be affecting your ability to transact? Great. great Thanks, Shawn. thanks shawn That's helpful. that's helpful I know Jamie prefaced this in his remarks, but with respect to the strategic review, is there anything on increased activity and inbound interest in any of the lines of business or perhaps how the current M&A environment might be affecting your ability to transact? i know jamie prefaced this in his remarks but with respect to the strategic review is there anything on increased activity and inbound interest in any of the lines of business or perhaps how the current m&a environment might be affecting your ability to transact

Speaker 1: Yeah, I'd say, Matt, that there's always an interest in this collection of assets. Just, you know, proud and honored to be a part of this combined company. In terms of increased interest, in terms of us putting a press release out there saying that we're entertaining a strategic alternatives review, I don't know how much more interest we could garner. If you mean about the individual assets, we believe that the value of the collective whole is greater than the sum of the individual parts. Yeah, I'd say, Matt, that there's always an interest in this collection of assets. yeah i'd say matt that there's always an interest in this collection of assets Just, you know, proud and honored to be a part of this combined company. just you know proud and honored to be a part of this combined company In terms of increased interest, in terms of us putting a press release out there saying that we're entertaining a strategic alternatives review, I don't know how much more interest we could garner. in terms of increased interest in terms of us putting a press release out there saying that we're entertaining a strategic alternatives review i don't know how much more interest we could garner If you mean about the individual assets, we believe that the value of the collective whole is greater than the sum of the individual parts. if you mean about the individual assets we believe that the value of the collective whole is greater than the sum of the individual parts

Speaker 6: Fair enough. Thanks a lot. Fair enough. fair enough Thanks a lot. thanks a lot

Speaker 7: We'll move next to Stephanie Moore with Jefferies. Your line is open. We'll move next to Stephanie Moore with Jefferies. we'll move next to stephanie moore with jefferies Your line is open. your line is open

Speaker 4: Hi, good afternoon. Thank you. I wanted to ask a maybe a bigger-picture question. Clearly, a lot of work has been done over the last year or so on both the expedited side, but also Omni side. You can certainly see it across the board, whether it's the margin profile, the pricing actions, and the like. Asking kind of a multi-year question here, what is your North Star and how you think about the underlying earnings contribution of the combined entity? If it's not from a dollar standpoint, are there certain margin aspirations that you have your eyes set on? That can be for, again, the whole company or as you look at the LTL business or the forwarding business. Maybe just as you run the business, what are you targeting? Hi, good afternoon. hi good afternoon Thank you. thank you I wanted to ask a maybe a bigger-picture question. i wanted to ask a maybe a bigger-picture question Clearly, a lot of work has been done over the last year or so on both the expedited side, but also Omni side. clearly a lot of work has been done over the last year or so on both the expedited side but also omni side You can certainly see it across the board, whether it's the margin profile, the pricing actions, and the like. you can certainly see it across the board whether it's the margin profile the pricing actions and the like Asking kind of a multi-year question here, what is your North Star and how you think about the underlying earnings contribution of the combined entity? asking kind of a multi-year question here what is your north star and how you think about the underlying earnings contribution of the combined entity If it's not from a dollar standpoint, are there certain margin aspirations that you have your eyes set on? if it's not from a dollar standpoint are there certain margin aspirations that you have your eyes set on That can be for, again, the whole company or as you look at the LTL business or the forwarding business. that can be for again the whole company or as you look at the ltl business or the forwarding business Maybe just as you run the business, what are you targeting? maybe just as you run the business what are you targeting

Speaker 1: Yeah, Stephanie, there's a great page in the back of the earnings prerevo on page 28. What we've tried to do here is we've broken it down by our competitive set relative to us. If you look at where the LTL carriers are, the freight forwarders, and the truckloading intermodal, we've broken up the opportunity there. Omni and intermodal are crushing it. Omni is, as you can see, has been growing. The margin has been steady, if not increasing. Intermodal has been at the high end of the comp set since we walked through the door. The biggest opportunity is in cost, the 8% point on a billion-dollar business that we have in the truckload business. Yeah, Stephanie, there's a great page in the back of the earnings prerevo on page 28. yeah stephanie there's a great page in the back of the earnings prerevo on page 28 What we've tried to do here is we've broken it down by our competitive set relative to us. what we've tried to do here is we've broken it down by our competitive set relative to us If you look at where the LTL carriers are, the freight forwarders, and the truckloading intermodal, we've broken up the opportunity there. if you look at where the ltl carriers are the freight forwarders and the truckloading intermodal we've broken up the opportunity there Omni and intermodal are crushing it. omni and intermodal are crushing it Omni is, as you can see, has been growing. omni is as you can see has been growing The margin has been steady, if not increasing. the margin has been steady if not increasing Intermodal has been at the high end of the comp set since we walked through the door. intermodal has been at the high end of the comp set since we walked through the door The biggest opportunity is in cost, the 8% point on a billion-dollar business that we have in the truckload business. the biggest opportunity is in cost the 8% point on a billion-dollar business that we have in the truckload business Now, I'm not saying that we're going to go straight to 18%, but if we're at 10% now, the market's saying that kind of 18%-20% premium service, given what we do, given the, I guess, high value and expedited nature of the service that we deliver, there's no reason in my mind that over the next couple of years that we can't reach that same market margin. Now, I'm not saying that we're going to go straight to 18%, but if we're at 10% now, the market's saying that kind of 18%- 20% premium service, given what we do, given the, I guess, high value and expedited nature of the service that we deliver, there's no reason in my mind that over the next couple of years that we can't reach that same market margin. now i'm not saying that we're going to go straight to 18% but if we're at 10% now the market's saying that kind of 18%- 20% premium service given what we do given the i guess high value and expedited nature of the service that we deliver there's no reason in my mind that over the next couple of years that we can't reach that same market margin

Speaker 4: Great. No, that's really helpful. Maybe just taking that a step further, clearly a lot of action on the pricing front. What is next? I think as we look at that peer set, one key differentiation might just be kind of a scale advantage and the like. To your point, your service is high. You've made corrective pricing actions. What are the next steps to close that gap over the next couple of years? Great. great No, that's really helpful. no that's really helpful Maybe just taking that a step further, clearly a lot of action on the pricing front. maybe just taking that a step further clearly a lot of action on the pricing front What is next? what is next I think as we look at that peer set, one key differentiation might just be kind of a scale advantage and the like. i think as we look at that peer set one key differentiation might just be kind of a scale advantage and the like To your point, your service is high. to your point your service is high You've made corrective pricing actions. you've made corrective pricing actions What are the next steps to close that gap over the next couple of years? what are the next steps to close that gap over the next couple of years

Speaker 8: Hey, Steph, It's Shawn. Outside of, you know, just growth in general, what you see us doing, I would say, under the hood is fine-tuning the organization, really getting lean. When I say lean, lean in not just meaning cost-cutting, but really looking at improving quality of operations, not only just in service, but also in cost around revenues. That's from optimizing the LTL network to really focus on standards around the world and focused on no rework. Get it right the first time. Let's not do it twice, do it once. That's what you're seeing even in Q2. The team is really focused here and done a fantastic job to the revenues. That's probably my most proudest moment, you know, over the last year is the team's just real confidence in what they're doing, how they're doing it, and enjoying it in this very weird market we're in. Hey, Steph, It's Shawn. hey steph it's shawn Outside of, you know, just growth in general, what you see us doing, I would say, under the hood is fine-tuning the organization, really getting lean. outside of you know just growth in general what you see us doing i would say under the hood is fine-tuning the organization really getting lean When I say lean, lean in not just meaning cost-cutting, but really looking at improving quality of operations, not only just in service, but also in cost around revenues. when i say lean lean in not just meaning cost-cutting but really looking at improving quality of operations not only just in service but also in cost around revenues That's from optimizing the LTL network to really focus on standards around the world and focused on no rework. that's from optimizing the ltl network to really focus on standards around the world and focused on no rework Get it right the first time. get it right the first time Let's not do it twice, do it once. let's not do it twice do it once That's what you're seeing even in Q2. that's what you're seeing even in q2 The team is really focused here and done a fantastic job to the revenues. the team is really focused here and done a fantastic job to the revenues That's probably my most proudest moment, you know, over the last year is the team's just real confidence in what they're doing, how they're doing it, and enjoying it in this very weird market we're in. that's probably my most proudest moment you know over the last year is the team's just real confidence in what they're doing how they're doing it and enjoying it in this very weird market we're in It's a lot of fun to watch. It's a lot of fun to watch. it's a lot of fun to watch

Speaker 1: Hey Steph, It's Jamie, I'll jump on there. You called out the pricing. Shawn talked about our ability to contain costs as we grow this business. You say what is next is right now our net margins are solid. They're good. We're doing incredibly well on the linehaul side of the business and on the terminal side of the business. Pricing is just starting to kick in. You saw it. We actually showed a graph how it's two points higher on a revenue per hundredweight ex-fuel and a little bit more than four points higher on a revenue per shipment basis. The what-ifs in terms of getting it to that next level and closing the gap, I think you're leading us to water a little bit in terms of how do you close that gap is on operating leverage. Hey Steph, It's Jamie, I'll jump on there. hey steph it's jamie i'll jump on there You called out the pricing. you called out the pricing Shawn talked about our ability to contain costs as we grow this business. shawn talked about our ability to contain costs as we grow this business You say what is next is right now our net margins are solid. you say what is next is right now our net margins are solid They're good. they're good We're doing incredibly well on the linehaul side of the business and on the terminal side of the business. we're doing incredibly well on the linehaul side of the business and on the terminal side of the business Pricing is just starting to kick in. pricing is just starting to kick in You saw it. you saw it We actually showed a graph how it's two points higher on a revenue per hundredweight ex-fuel and a little bit more than four points higher on a revenue per shipment basis. we actually showed a graph how it's two points higher on a revenue per hundredweight ex-fuel and a little bit more than four points higher on a revenue per shipment basis The what-ifs in terms of getting it to that next level and closing the gap, I think you're leading us to water a little bit in terms of how do you close that gap is on operating leverage. the what-ifs in terms of getting it to that next level and closing the gap i think you're leading us to water a little bit in terms of how do you close that gap is on operating leverage If we can hold the net margin, marginally increase it with our pricing actions, but grow the top line and not grow the SG&A portion of the business, which we have a very, very stringent line to hold, then that's what's going to help us close that gap. If we can hold the net margin, marginally increase it with our pricing actions, but grow the top line and not grow the SG&A portion of the business, which we have a very, very stringent line to hold, then that's what's going to help us close that gap. if we can hold the net margin marginally increase it with our pricing actions but grow the top line and not grow the sg&a portion of the business which we have a very very stringent line to hold then that's what's going to help us close that gap

Speaker 4: Great. Thank you for the time. Great. great Thank you for the time. thank you for the time

Speaker 7: We'll take our next question from Scott Group with Wolfe Research. Your line is open. We'll take our next question from Scott Group with Wolfe Research. we'll take our next question from scott group with wolfe research Your line is open. your line is open

Speaker 2: Hey, thanks. Afternoon, guys. I know you probably can't say too much, but what do you think is the timing to hear on this process? Is this weeks away, months away? Any thoughts at all you can share with us? Hey, thanks. hey thanks Afternoon, guys. afternoon guys I know you probably can't say too much, but what do you think is the timing to hear on this process? i know you probably can't say too much but what do you think is the timing to hear on this process Is this weeks away, months away? is this weeks away months away Any thoughts at all you can share with us? any thoughts at all you can share with us

Speaker 8: Yeah, Scott, I knew you would ask it. We really can't share anything. We are in the process, and it's moving, as I say, on track and well. As soon as we have something more, but I don't have necessarily a crystal ball to say timing at this point. Yeah, Scott, I knew you would ask it. yeah scott i knew you would ask it We really can't share anything. we really can't share anything We are in the process, and it's moving, as I say, on track and well. we are in the process and it's moving as i say on track and well As soon as we have something more, but I don't have necessarily a crystal ball to say timing at this point. as soon as we have something more but i don't have necessarily a crystal ball to say timing at this point

Speaker 2: Okay. Can you give us an update as Q2 played out, as Q3 started, just some of the volume trends that you're seeing so far into Q3? I know some of the LTLs have announced GRIs. How are you thinking about GRIs back half this year? Okay. okay Can you give us an update as Q2 played out, as Q3 started, just some of the volume trends that you're seeing so far into Q3? can you give us an update as q2 played out as q3 started just some of the volume trends that you're seeing so far into q3 I know some of the LTLs have announced GRIs. i know some of the ltls have announced gris How are you thinking about GRIs back half this year? how are you thinking about gris back half this year

Speaker 1: Yeah, I'll take the sequential question and then let Shawn give the much more eloquent GRI versus the customer-specific increase. You know, Scott, we don't give intra-quarter guidance, but all I would say is like where we ended the second quarter, we don't see anything that's meaningfully different as we enter the third. Yeah, I'll take the sequential question and then let Shawn give the much more eloquent GRI versus the customer-specific increase. yeah i'll take the sequential question and then let shawn give the much more eloquent gri versus the customer-specific increase You know, Scott, we don't give intra-quarter guidance, but all I would say is like where we ended the second quarter, we don't see anything that's meaningfully different as we enter the third. you know scott we don't give intra-quarter guidance but all i would say is like where we ended the second quarter we don't see anything that's meaningfully different as we enter the third

Speaker 8: On the GRI, Scott, you know, I'm a big fan and also talking to the customers when I arrived. I don't believe anything's in general. I'm not a big fan of GRIs because I've seen multiple organizations impose the GRI and then the volume slides. We're not in a market that, in my world, that's not very smart. What we do, Scott, is what we call SRIs, which is more strategic. We're working with each customer strategically on lane pairs that will need adjustment up, and sometimes I can even adjust some down in exchange. If volume fluctuates on OD pairs, we work directly with the customer to exchange those on an SRI basis. We do that consistently. I don't just find a period of time in an annualized situation to take a GRI, more SRI, if that makes sense. On the GRI, Scott, you know, I'm a big fan and also talking to the customers when I arrived. on the gri scott you know i'm a big fan and also talking to the customers when i arrived I don't believe anything's in general. i don't believe anything's in general I'm not a big fan of GRIs because I've seen multiple organizations impose the GRI and then the volume slides. i'm not a big fan of gris because i've seen multiple organizations impose the gri and then the volume slides We're not in a market that, in my world, that's not very smart. we're not in a market that in my world that's not very smart What we do, Scott, is what we call SRIs, which is more strategic. what we do scott is what we call sris which is more strategic We're working with each customer strategically on lane pairs that will need adjustment up, and sometimes I can even adjust some down in exchange. we're working with each customer strategically on lane pairs that will need adjustment up and sometimes i can even adjust some down in exchange If volume fluctuates on OD pairs, we work directly with the customer to exchange those on an SRI basis. if volume fluctuates on od pairs we work directly with the customer to exchange those on an sri basis We do that consistently. we do that consistently I don't just find a period of time in an annualized situation to take a GRI, more SRI, if that makes sense. i don't just find a period of time in an annualized situation to take a gri more sri if that makes sense

Speaker 2: No, it does. Okay. Maybe just lastly, Jamie, small cash burn first half of the year. Any thoughts on how you're thinking about back half cash flow? No, it does. no it does Okay. okay Maybe just lastly, Jamie, small cash burn first half of the year. maybe just lastly jamie small cash burn first half of the year Any thoughts on how you're thinking about back half cash flow? any thoughts on how you're thinking about back half cash flow

Speaker 1: Yeah, the way I look at it, there's this great—you've coached me well, Scott. There's page 21. We do a cash bridge, and what we're showing here is about $45 million-$50 million in cash flow from off every single quarter with consistent regularity. We generate cash every other quarter. We burn a little bit of cash every other quarter, and that burn is only in the quarter when we have the $34 million senior secured note payment, which is in April and October. You look at it over a year, I think we're only down like $10 million in cash over the last 365 days. That's in the midst of integrating these two behemoth companies in an incredibly soft freight environment. As we sit here right now, a little bit less than $400 million in liquidity, I'm feeling pretty damn good. Yeah, the way I look at it, there's this great—you've coached me well, Scott. yeah the way i look at it there's this great—you've coached me well scott There's page 21. there's page 21 We do a cash bridge, and what we're showing here is about $45 million- $50 million in cash flow from off every single quarter with consistent regularity. we do a cash bridge and what we're showing here is about $45 million- $50 million in cash flow from off every single quarter with consistent regularity We generate cash every other quarter. we generate cash every other quarter We burn a little bit of cash every other quarter, and that burn is only in the quarter when we have the $34 million senior secured note payment, which is in April and October. we burn a little bit of cash every other quarter and that burn is only in the quarter when we have the $34 million senior secured note payment which is in april and october You look at it over a year, I think we're only down like $10 million in cash over the last 365 days. you look at it over a year i think we're only down like $10 million in cash over the last 365 days That's in the midst of integrating these two behemoth companies in an incredibly soft freight environment. that's in the midst of integrating these two behemoth companies in an incredibly soft freight environment As we sit here right now, a little bit less than $400 million in liquidity, I'm feeling pretty damn good. as we sit here right now a little bit less than $400 million in liquidity i'm feeling pretty damn good

Speaker 2: Do you think that cash operating cash flow changes much in the back half of the year? Do you think that cash operating cash flow changes much in the back half of the year? do you think that cash operating cash flow changes much in the back half of the year

Speaker 1: Yeah, that'd be giving guidance, Scott. I appreciate the effort. Yeah, that'd be giving guidance, Scott. yeah that'd be giving guidance scott I appreciate the effort. i appreciate the effort

Speaker 2: All right. Thank you, guys. All right. all right Thank you, guys. thank you guys

Speaker 1: Thank you, Scott. Thank you, Scott. thank you scott

Speaker 7: We'll move next to Bascome Majors with Susquehanna. Your line is open. We'll move next to Bascome Majors with Susquehanna. we'll move next to bascome majors with susquehanna Your line is open. your line is open

Speaker 9: Thanks for taking our questions here. I want to go back to some of the questions about the transition from integration to transformation. You've called out some new services, some wins, and press releases. Any way you can dimensionalize the kind of new revenue you're bringing on, even directionally in aggregate? We realize that's not one-for-one add to what you did last quarter. I just want to see what you're seeing and the opportunity to grow some of the business and where that's happening. Thank you. Thanks for taking our questions here. thanks for taking our questions here I want to go back to some of the questions about the transition from integration to transformation. i want to go back to some of the questions about the transition from integration to transformation You've called out some new services, some wins, and press releases. you've called out some new services some wins and press releases Any way you can dimensionalize the kind of new revenue you're bringing on, even directionally in aggregate? any way you can dimensionalize the kind of new revenue you're bringing on even directionally in aggregate We realize that's not one-for-one add to what you did last quarter. we realize that's not one-for-one add to what you did last quarter I just want to see what you're seeing and the opportunity to grow some of the business and where that's happening. i just want to see what you're seeing and the opportunity to grow some of the business and where that's happening Thank you. thank you

Speaker 8: Hey, Bascome. Yeah. The couple of press releases, they're just really large ones that were worthy of press releases. I mean, we're winning a lot more than what we pressed. We're seeing wins in the truckload space, we're seeing wins in the international air freight space, and then just in general ground. It just depends on whether it's a new logo or organic growth with an existing logo, but it's pretty much across the board, I would say, in general, Bascome. Hey, Bascome. hey bascome Yeah. yeah The couple of press releases, they're just really large ones that were worthy of press releases. the couple of press releases they're just really large ones that were worthy of press releases I mean, we're winning a lot more than what we pressed. i mean we're winning a lot more than what we pressed We're seeing wins in the truckload space, we're seeing wins in the international air freight space, and then just in general ground. we're seeing wins in the truckload space we're seeing wins in the international air freight space and then just in general ground It just depends on whether it's a new logo or organic growth with an existing logo, but it's pretty much across the board, I would say, in general, Bascome. it just depends on whether it's a new logo or organic growth with an existing logo but it's pretty much across the board i would say in general bascome

Speaker 9: If we aggregate this, are we talking tens of millions, hundreds of millions in incremental revenue? I just want to understand what this looks like and how it could potentially help with some of the general malaise in the freight market. Thank you. If we aggregate this, are we talking tens of millions, hundreds of millions in incremental revenue? if we aggregate this are we talking tens of millions hundreds of millions in incremental revenue I just want to understand what this looks like and how it could potentially help with some of the general malaise in the freight market. i just want to understand what this looks like and how it could potentially help with some of the general malaise in the freight market Thank you. thank you

Speaker 1: Yeah, I'd say it's a little bit of both because we talk about customers that are lost throughout this transition and then down trading and up trading. We've got as much customers that are up trading with us that are existing customers than we have new logos. I'm, and I hate to put it in such a crass way, but I'm almost indifferent of where the increase in revenue comes from as long as it comes. Everybody on this call, including yourself, know that the cheapest dollar to win is the customer that you already have. We continue to grow revenue with certain key accounts, and with the new platform, we do have a couple of big wins that we wouldn't have been able to win absent the combination. Given the state of the freight market, Bascome, I mean, everyone right now is slugging it out. Yeah, I'd say it's a little bit of both because we talk about customers that are lost throughout this transition and then down trading and up trading. yeah i'd say it's a little bit of both because we talk about customers that are lost throughout this transition and then down trading and up trading We've got as much customers that are up trading with us that are existing customers than we have new logos. we've got as much customers that are up trading with us that are existing customers than we have new logos I'm, and I hate to put it in such a crass way, but I'm almost indifferent of where the increase in revenue comes from as long as it comes. i'm and i hate to put it in such a crass way but i'm almost indifferent of where the increase in revenue comes from as long as it comes Everybody on this call, including yourself, know that the cheapest dollar to win is the customer that you already have. everybody on this call including yourself know that the cheapest dollar to win is the customer that you already have We continue to grow revenue with certain key accounts, and with the new platform, we do have a couple of big wins that we wouldn't have been able to win absent the combination. we continue to grow revenue with certain key accounts and with the new platform we do have a couple of big wins that we wouldn't have been able to win absent the combination Given the state of the freight market, Bascome, I mean, everyone right now is slugging it out. given the state of the freight market bascome i mean everyone right now is slugging it out What we have to do is be very, very disciplined to the price that we are charging our customer that is commensurate with the expedited service delivery that we have. We just got to look into that discipline and sometimes make some tough decisions to not take on some business that is not profitable for our network. From the broader perspective, a couple of big wins that we would not have been able to achieve on a standalone basis. What we have to do is be very, very disciplined to the price that we are charging our customer that is commensurate with the expedited service delivery that we have. what we have to do is be very very disciplined to the price that we are charging our customer that is commensurate with the expedited service delivery that we have We just got to look into that discipline and sometimes make some tough decisions to not take on some business that is not profitable for our network. we just got to look into that discipline and sometimes make some tough decisions to not take on some business that is not profitable for our network From the broader perspective, a couple of big wins that we would not have been able to achieve on a standalone basis. from the broader perspective a couple of big wins that we would not have been able to achieve on a standalone basis

Speaker 9: Thank you for that. Just one more from me. I appreciate the commentary on the earnings quality improving and the add-backs getting a little more traditional in your EBITDA adjustment as we go forward and certainly year-to-date as well. Can you give us a little color on if any of the ones this quarter were at the segment level or were they all at the corporate level? Maybe a little more on what's running through other, where I think you added back $14 million this quarter and $11 million last. Thank you. Thank you for that. thank you for that Just one more from me. just one more from me I appreciate the commentary on the earnings quality improving and the add-backs getting a little more traditional in your EBITDA adjustment as we go forward and certainly year-to-date as well. i appreciate the commentary on the earnings quality improving and the add-backs getting a little more traditional in your ebitda adjustment as we go forward and certainly year-to-date as well Can you give us a little color on if any of the ones this quarter were at the segment level or were they all at the corporate level? can you give us a little color on if any of the ones this quarter were at the segment level or were they all at the corporate level Maybe a little more on what's running through other, where I think you added back $14 million this quarter and $11 million last. maybe a little more on what's running through other where i think you added back $14 million this quarter and $11 million last Thank you. thank you

Speaker 1: Yeah. The vast majority of other is a non-cash stock comp. What was the other one? There are two big pieces of it. Here it is right here. It's a non-cash stock comp and facility closing costs that make up over half of that. That's the vast majority of it. Then you've got some non-cash FX gain and loss. Non-cash by and large, and that's why I said in my opening comments that it is more akin to what you and I would define as traditional adjusted EBITDA because the vast majority of it is either non-cash or on restructuring and facility closing costs. Yeah. yeah The vast majority of other is a non-cash stock comp. the vast majority of other is a non-cash stock comp What was the other one? There are two big pieces of it. what was the other one? there are two big pieces of it Here it is right here. here it is right here It's a non-cash stock comp and facility closing costs that make up over half of that. it's a non-cash stock comp and facility closing costs that make up over half of that That's the vast majority of it. that's the vast majority of it Then you've got some non-cash FX gain and loss. then you've got some non-cash fx gain and loss Non-cash by and large, and that's why I said in my opening comments that it is more akin to what you and I would define as traditional adjusted EBITDA because the vast majority of it is either non-cash or on restructuring and facility closing costs. non-cash by and large and that's why i said in my opening comments that it is more akin to what you and i would define as traditional adjusted ebitda because the vast majority of it is either non-cash or on restructuring and facility closing costs

Speaker 9: Of those larger ones this quarter, are any made at the segment level, or are those all at corporate? Of those larger ones this quarter, are any made at the segment level, or are those all at corporate? of those larger ones this quarter are any made at the segment level or are those all at corporate

Speaker 1: FS is at a segment. Stock-based comps can be allocated to the segments. We don't track it that way, Bascome. Right now, I roll all of those costs up at a corporate level so that I've got visibility into it. I don't want it hidden down into the segments or around the smaller opcos. FS is at a segment. fs is at a segment Stock-based comps can be allocated to the segments. stock-based comps can be allocated to the segments We don't track it that way, Bascome. we don't track it that way bascome Right now, I roll all of those costs up at a corporate level so that I've got visibility into it. right now i roll all of those costs up at a corporate level so that i've got visibility into it I don't want it hidden down into the segments or around the smaller opcos. i don't want it hidden down into the segments or around the smaller opcos

Speaker 9: Thank you very much. Thank you very much. thank you very much

Speaker 1: You don't want the opcos doing indirect taxes, as an example. You don't want the opcos doing indirect taxes, as an example. you don't want the opcos doing indirect taxes as an example

Speaker 9: Thank you. Thank you. thank you

Speaker 7: Once again, if you do have a question, you may press star one on your telephone keypad at this time. We'll move next to Christopher Kuhn with Benchmark Company. Your line is open. Once again, if you do have a question, you may press star one on your telephone keypad at this time. once again if you do have a question you may press star one on your telephone keypad at this time We'll move next to Christopher Kuhn with Benchmark Company. we'll move next to christopher kuhn with benchmark company Your line is open. your line is open

Speaker 5: Yeah, hey, good afternoon. Thanks for taking the questions. Shawn, I know that you got some poorly priced freight out of the network business. Is that largely done? I don't know if you talked about that this quarter. I know last quarter you pretty much had it done. I was just curious if some of that tonnage is really just market or some of the things you've done too. Yeah, hey, good afternoon. yeah hey good afternoon Thanks for taking the questions. thanks for taking the questions Shawn, I know that you got some poorly priced freight out of the network business. shawn i know that you got some poorly priced freight out of the network business Is that largely done? is that largely done I don't know if you talked about that this quarter. i don't know if you talked about that this quarter I know last quarter you pretty much had it done. i know last quarter you pretty much had it done I was just curious if some of that tonnage is really just market or some of the things you've done too. i was just curious if some of that tonnage is really just market or some of the things you've done too

Speaker 8: Yeah, Chris, that is primarily done. I mean, it's always an ongoing assessment, but I would say we fixed the pricing, number one, new basis line. With the new modeling tools on cost and pricing, I would say we make much more accurate assumptions with new logos and have fixed the existing logos. You would see less to fix, if that makes sense. Yeah, Chris, that is primarily done. yeah chris that is primarily done I mean, it's always an ongoing assessment, but I would say we fixed the pricing, number one, new basis line. i mean it's always an ongoing assessment but i would say we fixed the pricing number one new basis line With the new modeling tools on cost and pricing, I would say we make much more accurate assumptions with new logos and have fixed the existing logos. with the new modeling tools on cost and pricing i would say we make much more accurate assumptions with new logos and have fixed the existing logos You would see less to fix, if that makes sense. you would see less to fix if that makes sense

Speaker 5: Yeah, understood. The pricing actions, sorry, go ahead. Yeah, understood. yeah understood The pricing actions, sorry, go ahead. the pricing actions sorry go ahead

Speaker 1: If you pointed to, you know, there's a segment level profitability chart. If you look at page 14 of the expedited material, you'll see a 500 basis point improvement in just two quarters. It's not just pricing their freight like we, that's commensurate with the service that we provide that we show in the back, but it's also getting that negative contribution margin break out of the network. I think that this page right now is as strong as a testament of what Shawn was able to get accomplished over the last two quarters. If you pointed to, you know, there's a segment level profitability chart. if you pointed to you know there's a segment level profitability chart If you look at page 14 of the expedited material, you'll see a 500 basis point improvement in just two quarters. if you look at page 14 of the expedited material you'll see a 500 basis point improvement in just two quarters It's not just pricing their freight like we, that's commensurate with the service that we provide that we show in the back, but it's also getting that negative contribution margin break out of the network. it's not just pricing their freight like we that's commensurate with the service that we provide that we show in the back but it's also getting that negative contribution margin break out of the network I think that this page right now is as strong as a testament of what Shawn was able to get accomplished over the last two quarters. i think that this page right now is as strong as a testament of what shawn was able to get accomplished over the last two quarters

Speaker 5: How should we think about pricing from this level here in terms of revenue per hundred weight ex-fuel? How should we think about pricing from this level here in terms of revenue per hundred weight ex-fuel? how should we think about pricing from this level here in terms of revenue per hundred weight ex-fuel

Speaker 1: How do we think of it, in what way? How do we think of it, in what way? how do we think of it in what way

Speaker 5: Should it improve sequentially? Do you really need the market to make better improvements, or where is pricing going from here in terms of sequentially? Should it improve sequentially? should it improve sequentially Do you really need the market to make better improvements, or where is pricing going from here in terms of sequentially? do you really need the market to make better improvements or where is pricing going from here in terms of sequentially

Speaker 8: I would say, Chris, if nothing else changes, that's pretty much a run here for the current market condition that we're in. I don't like to overcommit and under-deliver. I think as the market, if and when it starts to tighten, we can make sequential improvements on that as well. I would say, Chris, if nothing else changes, that's pretty much a run here for the current market condition that we're in. i would say chris if nothing else changes that's pretty much a run here for the current market condition that we're in I don't like to overcommit and under-deliver. i don't like to overcommit and under-deliver I think as the market, if and when it starts to tighten, we can make sequential improvements on that as well. i think as the market if and when it starts to tighten we can make sequential improvements on that as well

Speaker 5: It really sounds like that expedited margin, you need just the leverage to be back in the model in terms of volume growth from here. It really sounds like that expedited margin, you need just the leverage to be back in the model in terms of volume growth from here. it really sounds like that expedited margin you need just the leverage to be back in the model in terms of volume growth from here

Speaker 1: Chris, you know, we don't give guidance on what's going to happen with the pricing or the margin. I think Shawn's response is spot on. Chris, you know, we don't give guidance on what's going to happen with the pricing or the margin. chris you know we don't give guidance on what's going to happen with the pricing or the margin I think Shawn's response is spot on. i think shawn's response is spot on

Speaker 5: Okay. Just lastly, it sounds like the strategic view, I'm not going to really ask about that, but it sounds like there's not going to be a lot of portfolio reshaping anymore. I thought, you know, there are not any businesses that you're kind of looking to shed now as you think the whole is bigger than some of the parts. Okay. okay Just lastly, it sounds like the strategic view, I'm not going to really ask about that, but it sounds like there's not going to be a lot of portfolio reshaping anymore. just lastly it sounds like the strategic view i'm not going to really ask about that but it sounds like there's not going to be a lot of portfolio reshaping anymore I thought, you know, there are not any businesses that you're kind of looking to shed now as you think the whole is bigger than some of the parts. i thought you know, there are not any businesses that you're kind of looking to shed now as you think the whole is bigger than some of the parts

Speaker 1: Is that a question or a statement? Is that a question or a statement? is that a question or a statement

Speaker 5: I'm just asking, I mean, have you, you know, is there any portfolio reshaping or not? I'm just asking, I mean, have you, you know, is there any portfolio reshaping or not? i'm just asking i mean have you you know is there any portfolio reshaping or not

Speaker 1: Yeah. I tell you what, we have integrated these two companies. You know, there's only probably one that would be non-strategic or non-core. If you collapse the other individual entities of Omni with Forward on a network basis, you know, we've already made that decision and we delivered $120 million in synergy savings. To unwant it, I think would be value destructive, but there might be one that we would consider. Yeah. yeah I tell you what, we have integrated these two companies. i tell you what we have integrated these two companies You know, there's only probably one that would be non-strategic or non-core. you know there's only probably one that would be non-strategic or non-core If you collapse the other individual entities of Omni with Forward on a network basis, you know, we've already made that decision and we delivered $120 million in synergy savings. if you collapse the other individual entities of omni with forward on a network basis you know we've already made that decision and we delivered $120 million in synergy savings To unwant it, I think would be value destructive, but there might be one that we would consider. to unwant it i think would be value destructive but there might be one that we would consider

Speaker 5: Okay. Helpful. Thanks, guys. Appreciate it. Okay. okay Helpful. helpful Thanks, guys. thanks guys Appreciate it. appreciate it

Speaker 7: There are no further questions at this time. I would now like to turn the call back to Mr. Stewart for any final remarks. There are no further questions at this time. there are no further questions at this time I would now like to turn the call back to Mr. Stewart for any final remarks. i would now like to turn the call back to mr stewart for any final remarks

Speaker 8: All right. We really appreciate your interest and support, and we remain confident in our strategy and look forward to updating you on our progress, upcoming. If you have any follow-up questions, please contact Tony directly, and he'll be happy to follow up and/or schedule follow-up calls with you guys. Appreciate it. Take care. All right. all right We really appreciate your interest and support, and we remain confident in our strategy and look forward to updating you on our progress, upcoming. we really appreciate your interest and support and we remain confident in our strategy and look forward to updating you on our progress upcoming If you have any follow-up questions, please contact Tony directly, and he'll be happy to follow up and/or schedule follow-up calls with you guys. if you have any follow-up questions please contact tony directly and he'll be happy to follow up and/or schedule follow-up calls with you guys Appreciate it. appreciate it Take care. take care

Speaker 7: This concludes today's Forward Air second quarter 2025 earnings conference call. Please disconnect your line at this time and have a wonderful day. This concludes today's Forward Air second quarter 2025 earnings conference call. this concludes today's forward air second quarter 2025 earnings conference call Please disconnect your line at this time and have a wonderful day. please disconnect your line at this time and have a wonderful day