When he took over as Forward Air CEO in April, Shawn Stewart was aware of the turbulence the company had endured during its acquisition of Omni Logistics.
But, as Stewart said during a Q1 earnings call, “thankfully, that distraction is behind us.”
Stewart and Forward Air’s executive team are now exploring the sale of other parts of the business, part of a plan focused on fast-tracking the company’s return to profitability.
Michael Hance, chief legal officer and secretary at Forward Air, said the company is “actioning a plan to divest noncore assets in 2024.” Hance, who served as interim CEO before Stewart joined the company, did not elaborate further during the call but said, “we are working that plan aggressively.”
Forward Air executives said boosting profitability is a priority after Q1 year-over-year profits tumbled 239% due primarily to one-time costs of integrating Omni Logistics. The company is also seeking savings opportunities.
“I can tell you that in my first days with the team, we are focused on accelerating synergy capture and identifying opportunities to eliminate significant costs from our structure,” Stewart said.
Forward Air CFO and Treasurer Rebecca Garbrick said on the call that the company is actively reviewing its portfolio “and plan to take swift action to monetize on those assets.” Forward Air in December sold its final mile business to logistics specialist Hub Group for $262 million.
Stewart said he was drawn to Forward Air because its executives worked through the tumultuous acquisition and integration of Omni Logistics. He also appreciated the rapid strategy development to boost profits following the combination of the two companies.
“When I looked at the opportunity of two great companies that I respected from my past coming together, I saw the true potential of that,” he said.
Merging businesses is not easy, but Stewart says he’s up for directing the task.
“It’s going to be a great challenge, but one that I’m extremely excited about, ready for, and I know we can bring this together and draw the true potential of this acquisition together,” he said. “That’s why I took the opportunity.”
