ArcBest raises its guidance for the second quarter

Improving revenue and tonnage at ArcBest is welcome news considering the past few years of operating in a tough national freight environment. The Fort Smith-based shipping and logistics company on Thursday (June 4) raised its second-quarter outlook, saying it expects a better operating margin.

The market liked what it heard. Company shares (NASDAQ: ARCB) closed Friday at $155.09, up $9.01, more than 6%, and set a new 52-week intraday high of $155.68. The 52-week low share price is $59.43. The broader Dow Jones Transportation Index rose 0.65% on Friday. The NASDAQ Transportation Index rose 1.37%.

In Thursday’s 8K filing with the U.S. Securities and Exchange Commission, ArcBest reported that revenue was up 10% in April and May, tonnage was up 5%, and billed revenue per hundredweight, a closely-watched metric in the less-than-truckload (LTL) industry, was up 5% in April and May.

ArcBest’s largest subsidiary is ABF Freight, one of the nation’s largest LTL carriers. ArcBest also has a logistics subsidiary.

“We are seeing modest improvement in truckload-rated shipments, which, along with other changes in freight profile, is contributing to the higher weight per shipment,” the company noted in the report.

The company said it typically sees a 3.5% operating margin improvement between the first and second quarters, but based on April and May numbers is estimating a 6%-7% operating margin gain. The company projected non-GAAP operating income between $3 million and $5 million.

“This outlook reflects disciplined execution on pricing initiatives, the impact of recent fuel price movements, and continued progress on cost optimization, network efficiency, and technology driven productivity initiatives,” ArcBest reported.

In the logistics (asset-light) segment, ArcBest reported that combined April and May revenue was up 28%, shipments per day was 15%, with revenue per shipment up 11%.

ArcBest posted a first-quarter 2026 net income loss of $1.037 million, off the $3.131 million gain in the same quarter of 2025. Excluding one-time charges, net income in the quarter totaled $7.151 million, down 40% from the comparable $11.937 million in the same quarter of 2025. Revenue in the quarter totaled $998.786 million, up 3.3% compared with $967.077 million in the same quarter of 2025, and better than the consensus estimate of $998.38 million.

Adjusted net income for 2025 was $84.8 million, down 51.2% compared with $173.961 million in 2024. Revenue in 2025 was $4.01 billion, down 4% compared with $4.179 billion in 2024. The company’s 2024 net income was down 11% compared with 2023, and 2024 revenue was $4.179 billion, down from $4.427 billion in 2023.

Founded in 1923, ArcBest has about 14,000 employees at 250 locations.