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FORT SMITH, Arkansas - On Wednesday, ArcBest Corporation (NASDAQ:ARCB) reported second-quarter earnings that fell short of analyst expectations, as the logistics provider navigated through a challenging freight environment.
The company posted adjusted earnings of $1.36 per share, below the analyst consensus of $1.46, while revenue declined to $1.02 billion, missing estimates of $1.04 billion.
Despite macroeconomic headwinds, ArcBest’s Asset-Based segment showed resilience with shipment and tonnage growth. Revenue in this segment reached $713.3 million, essentially flat compared to $712.7 million in the same quarter last year, representing a modest 0.9% per-day increase. Total (EPA:TTEF) tonnage per day increased 4.3%, while shipments per day grew 5.6%, primarily driven by newly onboarded core LTL customers.
The Asset-Light segment saw revenue decline 12.9% to $341.9 million from $395.8 million a year earlier, though it delivered its first quarter of non-GAAP operating income since Q2 2023.
"Despite ongoing macroeconomic challenges, I commend our team for their continued commitment to meeting customer needs and achieving solid results," said Judy R. McReynolds, ArcBest Chairman and CEO.
The company’s operating ratio in the Asset-Based segment deteriorated to 92.8% from 89.8% in the prior-year period, reflecting higher labor and purchased transportation costs as the company expanded its workforce to support shipment growth.
ArcBest continued its shareholder return program, repurchasing shares and paying dividends totaling over $47 million in the first half of 2025. Customer contract renewals and deferred pricing agreements averaged a 4% increase during the quarter, while the company announced a 5.9% general rate increase effective August 4.
Seth Runser, ArcBest CEO-elect and President added, "We’re executing with discipline and agility across our network, leveraging our integrated capabilities to deliver value in every market."
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