What Every Small Carrier Should Know Before Their First DOT Audit

Let’s not sugarcoat it—your first DOT audit is a test, and most small carriers walk in unprepared. Not because they don’t care, but because they don’t know what to expect. They assume having insurance, a truck, and a few loads under their belt means they’re good. But when FMCSA comes knocking, it’s not about how many miles you’ve run—it’s about how well you’ve built the foundation of your business.

And if you’re reading this thinking “we’ll figure it out when the time comes,” that mindset is the fastest way to fail.

This article breaks down what every small carrier needs to know before that first DOT audit—so you don’t lose everything you’ve worked for over missing paperwork, sloppy logs, or systems you never set up in the first place.

What the DOT Is Really Looking For

A DOT audit isn’t just about whether you have a DOT number and a truck that moves. It’s a full-blown review of your operation. They’re not just checking boxes—they’re trying to determine if you’re actually running a safe and compliant business.

The DOT wants to see:

How you manage risk
How you document safety
How you train, coach, and oversee your drivers
And most importantly, whether you can prove it all on paper

That last part is where most carriers get caught. It’s not enough to do the right thing—you have to show that you did it, when you did it, and how you did it. If it’s not documented, it didn’t happen.

The 6 Core Areas You’ll Be Audited On

FMCSA outlines six core areas during your new entrant safety audit. Here’s what they are—and what small carriers need to have in place for each one:

1. Driver Qualification Files (DQFs)

This is where most new carriers stumble. Every driver needs a full file that includes:

Driver’s license copy
Medical card
Pre-employment drug test results
MVR (Motor Vehicle Record)
Safety Performance History requests
Employment verification

If your file is missing even one of these items, it’s a violation. Multiply that across multiple drivers, and now you’re in trouble.

2. Hours of Service (HOS) Compliance

FMCSA wants to see how you’re tracking hours—and that you’re following the rules. Whether you’re running an ELD or using paper logs, they need to match up with dispatch records, fuel receipts, and trip documents.

Small carriers often forget that false logs are considered intentional violations. That’s not a fine. That’s a pattern of non-compliance. And it only takes a few to get flagged.

3. Vehicle Maintenance Files

You must maintain a file for every unit in your fleet, including:

Periodic inspections (annual)
Repair and maintenance records
Driver Vehicle Inspection Reports (DVIRs)
Proof of defects corrected

DOT doesn’t care how new your truck is. If you don’t have a written record of maintenance, your file’s incomplete. And that’s a red flag.

4. Controlled Substances and Alcohol Testing

If you’re running CDL drivers, this part will be under a microscope. FMCSA wants to know:

Are you enrolled in a DOT-compliant random testing program?
Did you complete a pre-employment drug test before dispatching the driver?
Are you keeping test results and refusal records?

Carriers that skip this—thinking “we’re just a small operation”—are the first to get hit hard in audits.

5. Insurance and Accident Register

You must have valid liability and cargo insurance with BMC filings in place, but that’s the bare minimum. You also need to maintain an accident register documenting:

Date and location of each crash
Number of injuries or fatalities
Hazardous materials spills (if any)

Even if you’ve never had a crash, you need to show a system is in place.

6. Safety Management Controls

This is the big one. FMCSA wants to know how you’re managing safety across your operation. That means:

Written policies
Safety training records
Hiring standards
Disciplinary actions

Too many small carriers have “verbal” policies and think that’s good enough. It’s not. If it’s not written and consistent, it doesn’t hold up in an audit.

What Happens If You Fail the Audit?

If you fail your DOT audit, you’re given a corrective action plan (CAP). You have a limited time to fix the issues and resubmit documentation. If you don’t comply, your DOT authority gets revoked. That means no operating legally, no running loads, and no revenue.

Here’s the part no one talks about: even if you “fix” your file later, that initial audit failure stays on record. Brokers see it. Shippers see it. Insurance carriers see it. It affects your ability to grow and negotiate rates going forward.

How to Prepare Like a Pro (Even If You’re Just Starting Out)

Whether you’re a one-truck operation or a five-truck fleet, here’s how to get audit-ready:

1. Build a Binder System

Every section of your compliance program should be organized and easy to access—DQFs, maintenance, HOS, drug testing, accident register. Don’t rely on email folders and thumb drives. Paper backup still matters.

2. Perform Internal Audits

Don’t wait for the DOT to find your gaps. Review your files quarterly. Cross-check logs, compare dispatch times, and verify driver documentation. Find your own flaws before the feds do.

3. Train Your Drivers

Don’t assume drivers understand HOS rules or what to do during inspections. Build a driver orientation. Train them on proper recordkeeping and safety protocol. Hold them accountable with written acknowledgment.

4. Use the Right Partners

Make sure your drug testing consortium is FMCSA-compliant. Use an ELD provider that gives clean, accessible reports. Partner with an insurance agent who knows DOT audits—not just policy numbers.

5. Document Everything

Did your driver take safety training? Write it down and get a signature. Did you repair a tire after a pre-trip? Log it. DOT doesn’t care if you did the work—they care if you can prove it happened.

Final Word

Your first DOT audit isn’t about passing—it’s about proving you take this business seriously. FMCSA is testing whether your company is built to last or just another authority number with a truck and a logo.

If you’re sloppy now, the audit will expose it. If you’re buttoned up, it shows. The difference is preparation.

So don’t treat compliance like a task you get around to later. Treat it like the foundation your business sits on. Because in trucking, it’s not just about moving freight—it’s about staying legal, staying safe, and staying in business.

And your first audit? That’s the moment you prove you belong.

CSX profits fall on lower revenue, higher costs

CSX’s second-quarter profits slumped as unfavorable changes in traffic mix drove a revenue decline and costs rose amid congestion and detours related to a pair of main line outages.

But executives said they were encouraged by the pace of the railroad’s (NASDAQ: CSX) operational recovery during the quarter, which produced improvements in on-time performance.

“We are proud of how our network performance has bounced back from the challenges of the first quarter,” Chief Executive Joe Hinrichs told investors and analysts on the railroad’s earnings call Wednesday.

The railroad’s operating income declined 11%, to $1.28 billion, as revenue decreased 3%, to $3.57 billion. Earnings per share declined 10%, to 44 cents. CSX’s operating ratio, including its trucking operations, was 64.1, a 3.2-point increase from a year ago as expenses rose 2%.

Overall quarterly volume was flat. Intermodal was up 2%, merchandise declined 2%, and coal volume increased 1%.

International intermodal volume grew during the quarter, while domestic volume was stable. In the merchandise segment, growth in metals, minerals, and agricultural shipments were not enough to offset declines in automotive, forest products, chemicals, and fertilizer traffic.

“Many of the industrial markets we serve continue to face challenges with uncertainty around tariffs, trade, interest rates, and the overall direction of the economy,” Chief Commercial Officer Kevin Boone said.

CSX still expects overall volume growth this year thanks to dozens of industrial development projects coming on line and conversion of freight from highway to intermodal, Boone said.

CSX also is encouraged by the progress of its new Southeast Mexico Express interline intermodal service launched with Canadian Pacific Kansas City in December via their new interchange at Myrtlewood, Ala., on the former Meridian & Bigbee short line.

The Howard Street Tunnel clearance project remains on schedule toward completion early in the fourth quarter, while related bridge clearance work in Baltimore is on pace for completion in the second quarter of 2026. The tunnel will reopen when work is complete, allowing CSX to end daily detours around Baltimore.

The tunnel and bridge clearance work will open up the carrier’s I-95 corridor for double-stack intermodal service for the first time and allow Baltimore-Midwest stack traffic to take the direct route via the former Baltimore & Ohio main line, rather than the current roundabout routing via Selkirk, N.Y., on the former New York Central Water Level Route.

Work to reopen the hurricane-damaged Blue Ridge Subdivision – the former Clinchfield Railroad in rugged western North Carolina and eastern Tennessee – is expected to be completed on schedule in the fourth quarter, as well.

“We are very pleased with the progress that has been made at our Howard Street Tunnel and Blue Ridge rebuild projects. We expect completion in the fourth quarter, which will remove two key constraints from our network,” Hinrichs said. “Finishing these two projects will open back up two of our four north-south routes, and … we’re excited about removing the last impediment to double stack intermodal on the I-95 corridor.”

A string of harsh weather, combined with the main line outages, led to congestion after the Feb. 1 shutdown of the Howard Street Tunnel.

CSX’s operations accelerated as the quarter went on, with average train speed increasing 8% from April through June and dwell declining by 18%. The number of cars online — a key congestion metric — declined 10% as the quarter progressed.

“Our recovery is a true testament to the hard work and dedication of every railroader at CSX,” Chief Operating Officer Mike Cory said.

Intermodal trip-plan compliance held steady at 90% compared to the first quarter but was down 4 points compared to a year ago. Merchandise trip-plan compliance of 75% was 6 points higher than the first quarter but 5 points lower than a year ago. Customer switch data of 94% was flat compared to last year’s second quarter and a 1-point improvement over the first quarter.

The on-time performance figures are not yet where CSX wants them, Cory says, but he expects ongoing improvement, particularly after the Howard Street and Blue Ridge projects wrap up and allow the railroad to end the related detours of up to 22 trains per day.

“While these projects unlock significant capacity for the entire network, we are also upgrading our capacity and throughput at our yard in Indianapolis, with the extension of the hump pullback,” Cory said of Avon Yard in Indiana, one of five hump yards on the system. “While this project is small in nature relative to the other two, it’ll give us the ability to hump more cars … at a very critical yard in our network.”

Despite the service issues, CSX’s customers gave the railroad the highest marks ever in a second-quarter internal survey, Boone said. And Hinrichs added regulators received zero complaints from shippers despite the impact of congestion.

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ATA’s push for teen truckers will make capacity glut worse

The trucking industry finds itself mired in one of the most protracted freight recessions on record, a predicament exacerbated by a flood of capacity that has outstripped demand. This surplus stems from an industry with negligible barriers to entry, where supply can readily overshoot, challenging the American Trucking Associations’ (ATA) persistent claim of a perpetual driver shortage. That narrative, however, merits scrutiny—not least because it may serve interests beyond those of the industry it purports to represent.

The ATA’s assertion of a driver shortage sends a misleading signal. It lures vulnerable workers and aspiring entrepreneurs into a market already saturated, with banks naively extending credit on the premise of guaranteed demand and pricing power—hallmarks of a classic shortage that, in trucking, are conspicuously absent. Seasoned operators know this well: neither element holds sway in today’s environment.

Halting the influx of new drivers, rather than fueling it through congressional programs and CDL mills, could stem the capacity glut. Yet the ATA persists, a stance that appears at odds with its members’ welfare.

Indeed, the ATA testified before the Senate Commerce Committee this week, urging lawmakers to lower the interstate driving age from 21 to 18. Such a move would further open the taps on new entrants, potentially swelling capacity even as the industry buckles under the weight of excess capacity.

Lowering the truck driver age to 18 would risk unleashing a torrent of new participants into an already oversupplied market, exacerbating the glut rather than alleviating it. Safety advocates warn of heightened accident rates among younger drivers, who are statistically more prone to distractions and crashes due to inexperience.

Economically, this influx could depress freight rates further, prolonging the recession for carriers already operating on razor-thin margins and making a bad situation worse. Active trucks have surged from 1.5 million in January 2017 to 2.1 million today, a 40% increase, largely driven by a steady stream of new drivers.

The ATA may thus reflect organizational incentives rather than its members’ needs. A trade association whose dues scale with the size of the market favor unchecked growth over its constituents’ profitability. Prioritizing policies that address oversupply, rather than encouraging more capacity through new entrants, could curb the excess and offer a path out of the current crisis. Until then, the ATA’s stance risks perpetuating a crisis it claims to address.

Knight-Swift’s belt tightening offsets soft demand

A red Knight sleeper cab pulling a white Knight trailer on a highway

Knight-Swift Transportation said it’s focused on cost control as it awaits a material inflection in demand. While management is “still cautious” it noted that customer conversations are a little more stable now that tariff concerns are easing.

The Phoenix-based transportation and logistics provider reported second-quarter adjusted earnings per share of 35 cents, which was in line with management’s prior guidance (30 to 38 cents), 2 cents ahead of the consensus estimate and 11 cents higher year over year.

Consolidated revenue was 1% higher y/y at $1.86 billion (2% higher excluding fuel surcharges). An adjusted operating ratio (inverse of operating margin) of 93.8% was 80 basis points better y/y.

The adjusted EPS result excluded expenses tied to past acquisitions, asset impairments and severance costs. The number included gains on equipment sales of $11.7 million, a $5.7 million y/y increase, or a 3-cent tailwind. A lower tax rate in the period provided a 2-cent tailwind.

Table: Knight-Swift’s key performance indicators – Consolidated

Tractor utilization improves again, still waiting on demand

Knight-Swift’s (NYSE: KNX) truckload revenue fell 3% y/y to $1.07 billion as average tractors in service fell 7% but revenue per tractor was up 4%. Loaded miles per tractor improved 4%, largely due to the company’s tractor utilization initiatives, with revenue per loaded mile (excluding fuel) coming in flat y/y at $2.74.

This was the eighth consecutive quarter of y/y improvement in miles per tractor. Revenue per mile dipped 4 cents from the first quarter but management said the metric has improved modestly in recent weeks. Contractual rate increases again averaged low- to mid-single-digits.

The TL segment reported a 94.6% adjusted OR, 260 bps better y/y but only 100 bps improved from the seasonally weak first quarter. Turnaround efforts at U.S. Xpress drove 300 bps of margin improvement at that fleet.

Management expects modest sequential improvements in TL revenue and margin in the third quarter.

Table: Knight-Swift’s key performance indicators – TL

SONAR: National Truckload Index (linehaul only – NTIL) *for 2025 (blue shaded area), 2024 (green line) and 2023 (pink line)*. The NTIL is based on an average of booked spot dry van loads from 250,000 lanes. The NTIL is a seven-day moving average of linehaul spot rates excluding fuel. Spot rates remain slightly higher on a y/y comparison. *To learn more about SONAR, click here.*

LTL results suffer from front-loaded growth costs, but margins to improve in back half

The less-than-truckload unit reported a 28% y/y revenue increase to $338 million, largely due to the acquisition of Dependable Highway Express (DHE) nearly one year ago.

Shipments per day were up 22% with revenue per hundredweight, or yield, up 10% y/y (excluding fuel surcharges). The yield metric benefitted from a 3% decline in weight per shipment and a 14% increase in average length of haul. However, contractual rate negotiations produced mid- to high-single-digit increases in the period.

The LTL unit reported a 93.1% adjusted OR, which was 720 bps worse y/y. Knight-Swift cited DHE integration costs and startup expenses at new terminals as the headwinds. It opened three new terminals in the quarter and moved another facility. Door count is up 8% year to date (28% higher y/y in the quarter).

Management forecast 100 to 200 bps of sequential OR improvement and said a variety of cost initiatives and technology enhancements should allow it to buck the typical sequential trend of margin degradation in the second half of the year.

Table: Knight-Swift’s key performance indicators – LTL

Intermodal losses to narrow

Knight-Swift’s intermodal segment was unprofitable for a ninth consecutive quarter, reporting a 104.1% OR. Loads were off 12% y/y and revenue per load was down 2%. The company said it walked away from some business that had inferior pricing during the period.

The company expects a high-single-digit sequential increase to intermodal load counts in the third quarter given recent award activity. Cost reductions and a move to private chassis are expected to narrow the operating losses at the unit.

Knight-Swift guided adjusted EPS of 36 to 42 cents for the third quarter, which bracketed Yahoo Finance’s consensus estimate of 38 cents at the time of the print.

It didn’t provide a fourth-quarter outlook because of uncertainty around U.S. tariff policy.

Table: Knight-Swift’s key performance indicators – Logistics & Intermodal

More FreightWaves articles by Todd Maiden:

First look: Knight-Swift Q2 earnings

A silver Knight sleeper cab pulling two pup trailers on a highway

Knight-Swift Transportation reported only modest sequential improvements to trends during the second quarter. The company relied on cost cutting and operational efficiencies to squeak past analysts’ expectations.

“In a quarter of unusual crosscurrents, we leveraged our cost initiatives and the agility of our over-the-road model to overcome a truckload market that lacked the normal seasonal build and which brought mix changes that put more pressure on revenue per mile than anticipated,” CEO Adam Miller said in a news release after the market closed on Wednesday.

Knight-Swift (NYSE: KNX) reported adjusted earnings per share of 35 cents for the second quarter, which was in line with management’s prior outlook of 30 to 38 cents. The result was 2 cents ahead of analysts’ expectations and 11 cents higher year over year.

Click for full report – “Knight-Swift’s belt tightening offsets soft demand”

Truckload revenue fell 3% y/y as average tractors in service declined 7%, which was partially offset by a 4% increase in revenue per tractor. The “unseasonably soft” quarter produced a 94.6% adjusted operating ratio (inverse of operating margin), 260 basis points better y/y but just 100 bps improved from the first quarter.

The company’s less-than-truckload business saw a 28% y/y increase in revenue, which was largely driven by a recent acquisition. Revenue per hundredweight, or yield, was up 10% y/y excluding fuel surcharges. A 14% increase in length of haul and a 3% decline in weight per shipment were tailwinds to the yield metric.

The LTL unit reported a 93.1% adjusted OR, which was 720 bps worse y/y. Acquisition integration costs and startup expenses at new terminals were the headwinds.

Knight-Swift’s intermodal segment was unprofitable for a ninth consecutive quarter, reporting a 104.1% OR.

The adjusted EPS result excluded expenses tied to past acquisitions as well as asset impairments and severance costs. The number included gains on equipment sales of $11.7 million, a $5.7 million y/y increase, or a 3-cent tailwind. A lower tax rate in the quarter was nearly a 2-cent y/y tailwind.

The company guided adjusted EPS of 36 to 42 cents for the third quarter, which bracketed Yahoo Finance’s consensus estimate of 38 cents at the time of the print. Knight-Swift didn’t provide a fourth-quarter guide due to “significant uncertainty created by the current fluid trade policy situation and its implications for inflation, consumer demand, and demand from our customers,” a press release said.

Knight-Swift will host a conference call at 5:30 p.m. EDT on Wednesday to discuss second-quarter results.

Click for full report – “Knight-Swift’s belt tightening offsets soft demand”

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First look: Covenant Logistics Group Q2 earnings

Covenant Logistics Group Inc. reported $302.85 million in total revenue during the second quarter, a 5% year-over-year increase from the same period in 2024.

Freight revenue rose 7.8% year-over-year in the second-quarter to $276.5 million, while truckload operations decreased 1% to $199.6 million.

Chattanooga, Tennessee-based Covenant (NASDAQ: CVLG) reported adjusted earnings per share of 45 cents in the quarter, compared to 52 cents in the same year-ago quarter.

“The highlight of our second quarter’s results was year-over-year freight revenue growth of 7.8% to $276.5 million, an all-time high for any quarter in the history of our enterprise,” Covenant Chairman and CEO David R. Parker said in a news release. “This milestone was achieved despite an operating environment that remained competitive throughout the quarter across many Expedited, Managed Freight, and non-specialized equipment Dedicated accounts.”

Freight revenue per tractor per week decreased 3.2% year-over-year to $5,543. Revenue in the expedited truckload segment fell 10% to $97.3 million, while dedicated segment revenue rose 9% to $102.3 million.

Covenant’s managed freight segment saw revenue of $77.5 million in the second quarter, an increase of 28% from the same time last year. The warehousing segment had revenue of $25.5 million during the quarter, a 1% year-over-year gain.

During the quarter, Covenant repurchased 1.6 million shares of outstanding common stock at an average price of $22.69 per share, amounting to $35.2 million of the company’s $50 million stock repurchase program.

“Our 49% equity method investment with Transport Enterprise Leasing contributed pre-tax net income of $4.3 million, or $0.12 per share, roughly in line with the prior year quarter’s results of $4.1 million,” Parker said.

Covenant will hold a conference call to discuss results with analysts at 10 a.m. Thursday.

Covenant Logistics Group	Q2/25	Q2/24	Y/Y% Change
Total revenue	$302.9M	$287.5M	5%

Truckload combined:
Revenue	$199.6M	$201.5M	(1%)
Freight revenue (ex fuel)	$173.4M	$170.8M	2%
Revenue per total mile	$2.52	$2.38	6%
Revenue per tractor per week	$5,543	$5,726	(3%)

Managed freight:
Revenue	$77.6M	$60.4	28%
Adjusted operating income	$4.2M	$3.6M	17%

Expedited freight:
Revenue (ex fuel)	$97.3M	$108M	(6%)
Adjusted operating income	$5.1M	$5.3M	(4%)

Adjusted earnings per share	$0.45	$0.52	(16%)

Covenant Logistics Group key second quarter performance indicators.

First look: Weaker coal, carloads hit CSX earnings

CSX Corp. (NASDAQ: CSX) announced second quarter operating income of $1.28 billion compared to $1.45 billion in the prior year period.

In an earnings release after the close of markets, the Jacksonville-based company said net income was $829 million, or $0.44 per diluted share, compared to $963 million, or $0.49 per diluted share y/y.

Revenue totaled $3.57 billion for the quarter, off 3%, year-over-year, as the effects of lower export coal prices, reduced fuel surcharge, and weaker merchandise volume were only partially offset by higher merchandise pricing, an increase in other revenue, and improved intermodal volume.

Operating income of $1.28 billion was off 11%, while operating margin was 35.9% for the quarter, decreasing by 320 basis points year-over-year but increasing by 550 basis points sequentially.

Earnings per share of $0.44 was down 10% compared to the prior year while increasing 29% from the previous quarter.

Total volume of 1.58 million units for the quarter was flat compared to second quarter 2024 and up 4% sequentially.

“The skill and commitment of CSX’s railroaders enabled us to deliver significant sequential improvements in network fluidity and cost efficiency that are apparent in our financial results,” said Joe Hinrichs, president and chief executive officer, in a release. “While uncertainty continues to impact select industrial markets, we remain focused on completing two major infrastructure projects that will strengthen our position to execute on many profitable growth opportunities ahead.”

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Find more articles by Stuart Chirls here.

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Supply chain software provider Manhattan Associates soars after strong revenue growth

Manhattan Associates, the supply chain software provider whose stock was a wild ride several months ago, reported earnings Tuesday that were cheered by investors and possibly signaled a broader demand turnaround in that sector.

At the market close, Manhattan Associates stock (NYSE: MANH) was up $14.92/share, or 7.36%, to $217.71. It traded early in the day as high as $247.22.

According to a report on Benzinga, three analysts that checked in with reports Wednesday maintained their buy ratings on Manhattan Associates, but also with target stock prices that ranged from $210 to $250.

What is striking about Manhattan’s stock is just how much it has swung since December.

On December 12, Manhattan Associates hit a 52-week high of $312.60. In less than four months, it had declined to a 52-week low of $140.81, a period that saw its longtime CEO Eddie Capel step aside but remain as executive chairman. (Capel announced on the call that he is transitioning to board chairman, dropping the executive role).

That swing from 52-week high to 52-week low in just fourt months marked a roughly 55% decline. It also was a period coming after the company saw sluggish sales figures. The earnings report for the second quarter appears to be changing that narrative.

With the move Wednesday to more than $216, the stock is up more than 53% since that low. According to a report on Benzinga, three analysts that checked in with reports on Manhattan Associates Wednesday maintained their buy ratings, but also with target stock prices that ranged from $210 to $250.

What drove the surge in Manhattan Associates’ stock price Tuesday was an earnings report that showed strong revenue growth, so that the improvement in the bottom line–which was modest–was not just driven by cost cuts and belt tightening. The earnings report showed a sales landscape for Manhattan Associates that had greatly improved.

Total revenue of $272.4 million for the company was reported as a record for a second quarter. It was up from $265.3 million a year earlier.

But within those numbers was $100.4 million for subscriptions to Manhattan Associates’ various offerings through cloud subscriptions, up from $82.4 million. That’s a gain of 22%.

The positive signals from the cloud subscription figure were boosted further by the numbers on Remaining Performance Obligation (RPO), which is essentially a measure of future revenue that can be expected from subscriptions already under contract. That number rose to just over $2 billion from $1.6 billion a year ago, up 26%.

Bottom line numbers were improved also, though not to the level of revenue numbers. Net income for the second quarter rose to $109.4 million, up from $106.6 million.

Adjusted operating income, which is a non-GAAP measure of profitability, was $101.1 million for the second quarter. A year ago in the second quarter, it was $92.9 million.

Positive developments running through the system

Clark spelled out a quarter that produced what might be considered a “virtuous circle,” though he did not use that term.

As a contract with a Manhattan Associates customer runs its course, Clark said, “the dollars move from RPO to subscription revenue. And by the end of the contract, there’s no RPO left.”

A renewal “refreshes” the RPO, Clark added, “but it does so at a higher level for a number of reasons.” He noted that users within a contract would have been added during the life of that pact, so a renewal now has more seats.

But that isn’t new. What is new is the Manhattan Active Supply Chain Execution, rolled out in 2024 and which company executives describe as providing “unification” of its products on one platform.

And with a more unified platform, Clark said, there is a greater opportunity to cross-sell. “When they bought Warehouse Management, we didn’t have Transportation Management or Supply Chain Management or AI agents,” Clark said, the latter a reference to the agentic AI features at Manhattan Associates that received a significant amount of focus at Momentum this year.

Lots of cross-selling

Clark said in the past five quarters, 80% of Manhattan Associates customers that purchased its TMS also bought its warehouse management product, or had already done so.

“So our customers are truly experiencing the value of unification,” Clark said. “The cross-sell results that we’ve seen since launching Manhattan Active Supply Chain Execution have far exceeded what we were able to achieve with our prior platform.”

Manhattan Associates has said it expects to have a sustainable revenue growth rate of 20% in its cloud subscription revenue. Answering a question from an analyst on the earnings call, Clark said the RPO figure is a reason the company is sticking to that forecast.

Clark said the stated goal of 20% would not be regularly updated each quarter on its progress. “But I can tell you we remain confident,” Clark said, citing the future revenues that are in the RPO. “That gives us good visibility in the second half and next year.”

He also said the renewal cycle “really starts to pick up pace next year,” citing in particular demand for the Manhattan Active Warehouse Management product.

Clark also spoke of changes the company had made in its sales effort, including promoting long-time executive Bob Howell to be its chief sales officer.

New middle-level sales managers also have been added, Clark said. But in terms of human resources, it isn’t just the executive level; Clark said Manhattan Associates has “added and will continue to add more feet on the street.”

In the three months since the company’s prior conference call with analysts, Clark said Manhattan Associates had added “more sales talent than in any quarter in the past ten years.”

Beyond just the last quarter, Clark said the latest three quarters at Manhattan Associates “have been our best three bookings quarters ever, and you can argue that all three of those quarters were during at least a changing if not a challenging macro.”

A boost from Google

The company also has put its product offerings up on Google Cloud Marketplace, the cloud platform that hosts third-party software applications. That was disclosed at Momentum.

Clark said the largest deal it signed in the quarter “was influenced by Google Cloud Marketplace, and we have a growing pipeline of Google Marketplace deals.”

Revenue in the Services group, which among other offerings provides advisory services to companies growing their use of Manhattan Associates products, fell to $129 million from $136.8 million a year ago. But despite that, CEO Eric Clark, in his prepared remarks on the company’s earnings call with analysts, said the group had “slightly outperformed expectations.”

“This execution is encouraging,” Clark said. “However, given the inherent flexibility of time and material contracts, coupled with the ongoing tariff and general market uncertainty, we remain cautious on our services revenue growth.”

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Private equity bids for Forward Air rolling in, report says

A Forward Air tractor-trailer backed up to an airport terminal

Shares of Forward Air were up 10% in late-day trading on Wednesday following a Reuters report that “a handful of private equity firms” have submitted bids to acquire the trucking and logistics company.

Potential buyers were reported to include Clearlake Capital, which holds a 13% stake in the company. Also, buyout firms, including Apollo Global Management (NASDAQ: APO) were reported to have submitted bids.

Activist investors have pushed Forward Air (NASDAQ: FWRD) to entertain a sale or other strategic alternatives following its heavily contested merger with Omni Logistics. That deal, which was announced in August 2023, was quickly panned by shareholders as well as some of Forward’s legacy customers.

Forward’s shareholders took issue with the way the transaction was structured as it circumvented their vote. They also had concerns that the deal placed a large debt burden on Forward (a 5.3 times net debt leverage ratio at the end of the 2025 first quarter) and gave Omni’s private equity backers voting control. The merger eventually closed in January 2024 after months of litigation, including efforts from Forward to get out of the deal.

Forward announced a strategic review earlier this year, but activists said that was too late and claimed the company was “slow-walking” the process after months of pressure.

Activists were successful in forcing three directors – who they blamed for “massive value destruction” as a result of the ill-conceived merger – to resign from the board last month. The departing board members included Chairman George Mayes, who was voted out by shareholders at the company’s annual election.

At the same election, shareholders approved the company’s reincorporation to Delaware, which may make it easier to sell given the state’s favorable corporate governance policies.

Forward’s stock traded at $110 per share before the deal was announced in 2023. Shares slumped more than 40% in the months following the announcement, later cratering further once the deal closed in early 2024. The stock gapped below $10 shortly after Liberation Day tariffs were announced in April, but has steadily stepped higher in recent weeks as takeout speculation has ramped.

Shares stood at $30.60 late in the session on Wednesday.

Analysts and investors have told FreightWaves that shares of Forward could be valued at $40, or higher, in a takeout scenario.

The back-of-the-envelope math assumes a low-double-digit multiple on the company’s roughly $300 million in annual earnings before interest, taxes, depreciation and amortization. Backing out roughly $1.6 billion of net debt from a more than $3 billion enterprise value leaves equity value somewhere between $1.5 billion and $2 billion. (The company has roughly 42 million shares on a fully diluted basis.)

Forward is scheduled to release second-quarter results on Aug. 11.

FreightWaves has reached out to Forward Air for comment.

More FreightWaves articles by Todd Maiden:

Trucking Matters Seminar Series covers key issues in 2025

The 4th Annual Trucking Matters Seminar Series, hosted by Reliance Partners, brought together nearly 300 industry professionals in Nashville, TN. This year’s event was the largest yet and provided numerous opportunities for networking and collaboration,

Speakers covered some of the most pressing topics in the trucking and logistics sector today, including handling difficult shipper RFPs, the likely upcoming tractor pre-buy in 2026 and 2029, the fluff and substance around digital brokers, and much more.

The event’s agenda was packed with sessions featuring major industry players:

Freight and Economic Overview

Thom Albrecht, Chief Revenue Officer at Reliance Partners, opened with a discussion on the state of the industry and economy at large.

Reshoring and Nearshoring Trends

Rosemary Coates, Executive Director of the Reshoring Institute and President of Blue Silk Consulting, discussed global supply chain shifts and the strategic importance of reshoring and enhancing domestic freight strategies.

Trucking Litigation Panel

Experts from law firms and the American Trucking Association navigated through the latest legal challenges plaguing the industry.

Shipper Panel

The shipper panel gathered representatives from key industry players like MARS Inc, Ardagh Group, Seaboard Foods, Kroger, and Kimberly-Clark, all with valuable perspectives on logistical trends and challenges, as well as innovative practices adopted by major shippers to improve efficiency and sustainability.

Breakout Sessions

Tailored breakout sessions provided targeted insights and actionable strategies for tackling specific challenges in freight operations, including FMCSA audits, cargo theft, and freight fraud.

Insurance Panel

Representatives from Amwins and Nirvana discussed freight insurance issues and risk mitigation in 2025, as well as the pros and cons of captive insurance products.

The annual Trucking Matters seminar series is a major networking opportunity designed to encourage connections and to share cutting-edge trends and strategies. As noted by several attendees, the flow and organization of the event seamlessly facilitated the exchange of ideas and experiences.

Here are a few testimonials from this year’s attendees:

“This year’s event was truly spectacular! Each panel brought fresh insights, and the overall event setup and flow keeps getting better every year. Reliance Partners really knows how to bring value to the industry.”

“We look forward to Trucking Matters every year. Reliance Partners is doing amazing work and we can’t wait for next year’s event!”

“It was my first time attending, and I was impressed by how well-organized and professionally run everything was. The topics were incredibly relevant and provided valuable takeaways for our business.”

The Trucking Matters Seminar Series is a premier event on the trucking and logistics calendar, so be sure you don’t miss out on next year’s gathering, where there will be another combination of insightful panels, engaging keynotes, and extensive networking opportunities. Save the date for July 22-23, 2026, at the Grand Hyatt Hotel in Nashville, TN.

Reliance Partners is committed to advancing the trucking and logistics sectors together with sponsors and industry leaders.

Click here to learn more about Reliance Partners.