Forward Air Corporation (NASDAQ: FWRD) announced it has entered into a non-binding memorandum of understanding with one of its largest customers, according to a company statement.

The MOU, signed July 20, 2026, outlines terms under which Forward Air expects to retain at least half of approximately $250 million in annual revenue attributable to the customer, based on fiscal year 2025 figures. The agreement also provides for the potential retention of an additional approximately 25% of that revenue. The MOU extends the contract term for retained services for at least two years.

The customer had previously announced plans to transition a portion of its services to other providers as part of its operational and supplier diversification initiatives, which Forward Air disclosed on May 7, 2026.

Services expected to move to other providers are anticipated to begin transferring later in 2026, with the majority of the transition occurring in December 2026 and continuing through 2027.

Shawn Stewart, President and Chief Executive Officer, said, "We are extremely pleased with the productive conversations we have had with one of our largest customers, including the prospect of retaining up to 75% of the Customer's business with us and meaningfully extending the contract term."

The MOU is non-binding, and no definitive agreement has been reached.