ArcBest beats estimates on Q3 earnings, revenue down 1.4%

An ongoing U.S. freight recession and lower manufacturing sector output were key factors in a more than 60% decline in third quarter net income at Fort Smith-based ArcBest. Revenue in the quarter dipped 1.4%, the company announced Wednesday (Nov. 5).

The shipping and logistics company posted third-quarter net income of $39.274 million, down 60.8% compared with $100.314 million in the same quarter of 2024. However, the 2024 quarter included a one-time benefit of $91.9 million “earnout” reduction related to the 2021 acquisition of Chicago-based MoLo Solutions.

Adjusted per share earnings in the quarter reached $1.46, above the consensus estimate of $1.33.

Revenue in the quarter was $1.048 billion, down 1.4% compared with $1.063 billion the same quarter of 2024, but better than the consensus estimate of $1.33 billion. The company said the quarter included a gain of $15.7 million related in large part to the sale of two service centers.

“ArcBest continues to deliver, even in this challenging freight environment,” Judy McReynolds, ArcBest chairman and CEO, said in the earnings report. “We achieved growth in LTL shipments and tonnage, and our Asset-Light segment delivered record shipment volumes and productivity. These results underscore the strength of our customer relationships and the value of our integrated solutions.”

For the nine months of the year, ArcBest posted net income of $68.214 million, below $144.926 billion in the same period of 2024. Revenue in the nine months was $3.037 billion, below $3.177 billion in the same period of 2024.

SEGMENT NUMBERS
Quarterly revenue at ABF Freight, the largest ArcBest subsidiary and a less-than-truckload carrier, was $726.475 million, better than $709.722 million in the same period of 2024. Operating income in the segment was $70.162 million, also better than $64.02 million in the same quarter of 2024.

“Tonnage growth was driven by a 4.3% increase in daily shipments, primarily from newly onboarded core LTL customers,” the company noted in the earnings report. “This was partially offset by a 1.9% decline in total weight per shipment. While new shipments were generally heavier, ongoing weakness in the manufacturing sector continues to pressure weight per shipment metrics, reducing revenue per shipment without corresponding cost decreases.”

Tonnage per day was 11,238, up 2.3% compared with 10,983 in the same quarter of 2024. Revenue per hundredweight, a closely-watched metric in the industry, was $50.19, down 1.1% compared with $50.76 in the 2024 quarter. Weight per shipment was 1,065, down almost 2% from the 1,086 in the same quarter of 2024.

Quarterly revenue in the company’s logistics segment was $355.969 million, lower than $385.324 million in the same period of 2024. The segment posted an operating income loss of $1.595 million, a wide swing from operating income of $84.779 million in the same quarter of 2024. Again, the 2024 quarter benefited from the MoLo reduction.

“Revenue decline was primarily due to lower revenue per shipment in a soft-rate environment and a higher mix of managed transportation business, which typically involves smaller, lower-revenue shipments,” the company noted. “A 2.5% increase in shipments per day reflects continued growth in managed solutions, partially offset by a strategic reduction in less profitable truckload volumes.”

TECHNOLOGY COSTS
In a recent article, FreightWaves CEO Craig Fuller outlined the economic conditions facing ArcBest.

“This sharp volume decline in 2025 isn’t isolated to trucking; it’s a symptom of broader economic malaise in the goods sector,” Fuller noted. “Manufacturing output has stalled, with PMI readings flirting with contraction. Industrial production is flatlining, and retail inventories are piling up as consumers tighten belts amid high interest rates and lingering inflation.”

ArcBest also in the quarterly report provided cost insight to its “innovative technology” efforts, primarily its Vaux systems. The company said technology costs lowered results by $22.3 million (pre-tax) in the first nine months of 2025, compared with a $26.5 million reduction (pre-tax) in the same period of 2024.

According to ArcBest, the Vaux systems combine “autonomous mobile robot (AMR) forklifts and reach trucks, intelligent software and remote teleoperation capabilities to autonomously handle materials movement within warehouses, distribution centers and manufacturing facilities — all while keeping humans in the loop.”

The company in May announced progress with the Vaux system and a new manager of the technology effort.

ArcBest shares (NASDAQ: ARCB) opened Wednesday at $71.26. In the past 52 weeks the share price has ranged between $123.26 and $55.19.