ArcBest net income, revenue miss estimates, tonnage down 4.3%

ArcBest first-quarter net income and revenue fell below expectations thanks in part to ongoing manufacturing sector “weakness” and higher labor and other input costs. The report also included insight into the health of the consumer economy.

The Fort Smith-based shipping and logistics company reported Tuesday (April 29) first quarter net income of $3.131 million, better than the loss of $2.312 million in the same quarter of 2024. Non-GAAP earnings per share of 51 cents was below the consensus estimate of 52 cents. The report was posted before the markets opened.

Revenue in the quarter was $967.077 million, below the $1.036 billion in the first quarter of 2024, and below the consensus estimate of $989.28 million.

First quarter results followed income and revenue declines in 2024, which were primarily the result of the ongoing nationwide freight recession. In 2024, ArcBest had net income of $173.961 million, down 11% compared with $195.433 million in 2023. Revenue for the year was $4.179 billion, down from $4.427 billion in 2023. Revenue per shipment fell 1% in 2024, and tonnage shipped was down 14.3%.

SEGMENT RESULTS
ABF Freight, the company’s less-than-truckload subsidiary, posted first quarter revenue of $646.294 million, down from $671.467 million in the same quarter of 2024. Operating income in the segment was $26.417 million, well below the $53.456 million in the same quarter of 2024.

ArcBest noted in the earnings report that tonnage per day was down 4.3% in the quarter, and shipments per day was down 0.4%.

“Prolonged manufacturing sector weakness continues to negatively impact weight per shipment metrics and profitability,” according to the company. “Productivity improvements of 1.1 percent and other cost initiatives helped mitigate the impact of the soft market environment, higher insurance and healthcare costs, and annual labor cost increases associated with ABF’s union contract.”

Revenue in the company’s logistics segment was $356.012 million, below the $396.363 million in the same quarter of 2024. The segment posted an operating income loss of $4.38 million in the quarter, which was better than the loss of $15.258 million in the same quarter of 2024.

“The segment benefitted from improved margins, lower operating costs and productivity improvements, as shipments per employee per day improved 23.6 percent, on a year-over-year basis. However, the soft freight environment and excess truckload capacity continued to impact results,” the company noted in the earnings report.

In other key metrics, ArcBest reported that billed revenue per hundredweight was $49.40 in the quarter, up 1.7% compared with $48.56 in the same quarter of 2024. Total revenue per shipments in the quarter was $530.49, down 2.3% compared with $524.84 in the 2024 quarter.

SECOND QUARTER PREVIEW
ArcBest also provided an early look at the second quarter, noting that ABF Freight had a 4% gain in daily shipments in April compared with April 2024. Tonnage per day rose 1% between March and April, shipments per day were up 1%, and revenue per hundredweight, including and excluding fuel surcharges, fell by 1%.

The ArcBest report also suggested a decline in shipments related to a key category of consumer spending.

“Additionally, there was a decline in shipments within the manufacturing vertical, where we typically see a higher revenue per hundredweight profile. The ongoing trend of fewer household goods moves, influenced by current economic and interest rate conditions, also continued to impact our results in April,” according to ArcBest.

ArcBest shares (NASDAQ: ARCB) closed Monday at $59.10 and was trading lower in Tuesday morning trading. During the past 52 weeks the share price has ranged between $57.30 and $129.83.