Forward Air Corporation announced it has entered into a non-binding memorandum of understanding (MOU) with one of its largest customers regarding the future provision of services. This addresses the customer's previously disclosed plan to diversify its service providers.
Key Details
- Revenue Impact: From approximately $250 million in revenue from this customer in fiscal 2025, Forward Air expects to retain at least 50% (approx. $125 million), with the potential to retain up to 75%.
- Contract Extension: The MOU extends the contract term for the retained services for a period of no less than two years.
- Transition Timeline: Services that will be transitioned to other providers are expected to begin moving in late 2026, with the majority of the transition occurring in December 2026 and throughout 2027.