ArcBest Corporation (ARCB) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
0mins
Should l Buy ARCB?
Source: SeekingAlpha
Consolidated Revenue $1 billion, down slightly year-over-year. Reasons for the decline were not explicitly mentioned.
Non-GAAP Operating Income from Continuing Operations $50 million compared to $55 million last year, reflecting a decrease of $5 million year-over-year. Reasons include softness in the freight environment and increased operating expenses.
Adjusted Earnings Per Share (EPS) $1.46, down from $1.64 in the third quarter of 2024, reflecting a decrease of $0.18 year-over-year. Reasons include softness in the freight market and higher operating costs.
Asset-Based Segment Revenue $726 million, representing a 2% increase on a per day basis year-over-year. Growth was driven by onboarding new core LTL business, though offset by softness in industrial production and housing.
Asset-Based Non-GAAP Operating Ratio 92.5%, an increase of 150 basis points over the third quarter of 2024. Reasons include higher operating expenses due to increased labor costs, purchase transportation, and equipment depreciation.
Daily Shipments (Asset-Based) 4% increase year-over-year. Growth was driven by onboarding new business, though challenges included service disruptions and reliance on Cartage.
Weight Per Shipment (Asset-Based) Decreased by 2% year-over-year. Reasons include softness in industrial production and housing.
Revenue Per Hundredweight (Asset-Based) Declined 1% year-over-year, both including and excluding fuel surcharges. Reasons include fewer shipments in the manufacturing vertical.
Asset-Light Segment Revenue $356 million, a daily decrease of 8% year-over-year. Reasons include a soft freight market and growth in Managed business with smaller shipment sizes.
Non-GAAP Operating Income (Asset-Light) $1.6 million, an improvement of nearly $6 million over last year. Reasons include volume growth, margin improvement, and cost reductions.
SG&A Cost Per Shipment (Asset-Light) Decreased over 13%, reaching the best level in Asset-Light history. Reasons include productivity initiatives and a higher mix of Managed business with a lower cost to serve.
Shipments Per Person Per Day (Asset-Light) Hit an all-time high. Reasons include productivity initiatives and efficiency improvements.
Net Capital Expenditure Guidance for 2025 Updated to approximately $200 million, a decrease from the previous range of $225 million to $275 million. Reasons include $25 million in net proceeds from real estate sales.
Shareholder Returns (First 9 Months of 2025) Over $66 million returned through share repurchases and dividends. Reasons include confidence in strategy and long-term outlook.
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Analyst Views on ARCB
Wall Street analysts forecast ARCB stock price to fall
11 Analyst Rating
5 Buy
6 Hold
0 Sell
Moderate Buy
Current: 101.590
Low
81.00
Averages
95.82
High
120.00
Current: 101.590
Low
81.00
Averages
95.82
High
120.00
About ARCB
ArcBest Corporation is a logistics company. It leverages technology and a full suite of solutions to meet its customers’ supply chain needs. Its segments include Asset-Based, which consists of ABF Freight System, Inc. and certain other subsidiaries, and Asset-Light, which includes MoLo Solutions, LLC (MoLo), Panther, and certain other subsidiaries. The Asset-Based segment provides less-than-truckload (LTL) services through ABF Freight’s motor carrier operations. Its Asset-Based segment offers transportation of general commodities through standard, time-critical, and LTL services. The Asset-Light segment includes the ground expedite services of Panther; its truckload operations, including the truckload brokerage services of MoLo; household goods moving services under the U-Pack brand and its managed transportation solutions. Its truckload and dedicated services provide third-party transportation brokerage services by sourcing various capacity solutions including dry van over-the-road.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ArcBest Reports Mixed Q4 2025 Results Amidst Challenging Freight Environment
- Revenue Performance: ArcBest reported fourth-quarter revenue of $972.7 million, down from $1 billion a year earlier, yet exceeding analyst expectations of $966.361 million, indicating some market resilience despite a challenging freight environment.
- Profitability Analysis: Adjusted earnings per share of 36 cents fell short of the 41 cents analyst estimate, reflecting ongoing challenges in cost control and profitability recovery, particularly in the Asset-Light segment.
- Market Reaction: Following the earnings announcement, ArcBest's stock rose 6.4% to $96.01, suggesting investor optimism regarding the company's advancements in technology-driven solutions, despite the overall financial performance being less than ideal.
- Analyst Rating Adjustments: Several analysts adjusted their price targets post-earnings, with Jefferies raising its target from $95 to $110, while JP Morgan and Wells Fargo also increased their targets, indicating market recognition of the company's future growth potential.
See More
ArcBest Reports Q4 2025 Earnings Highlights
- Financial Performance: ArcBest reported consolidated revenue of $973 million for Q4, down 3% year-over-year, yet managed to achieve a non-GAAP operating income of $14 million, indicating resilience in a challenging market environment.
- Strategic Investments: Management anticipates net capital expenditures for 2026 to range between $150 million and $170 million, reflecting a shift towards reduced real estate purchases and remodels after several years of targeted investments, thereby optimizing capital allocation.
- Leadership Changes: The appointment of Mac Pinkerton as Chief Operating Officer aims to leverage his extensive industry expertise to drive growth in the asset-light business, further strengthening the company's competitive position in a challenging market.
- Market Outlook: Despite ongoing softness in the freight market, management remains confident in achieving its long-term EPS targets for 2028, emphasizing a focus on enhancing productivity and maintaining cost discipline to navigate external market uncertainties.
See More
ArcBest Reports Q4 2025 Results Amid Freight Challenges
- Revenue Decline: ArcBest's Q4 revenue totaled $972.7 million, down from $1.0 billion a year earlier, although it exceeded analyst expectations of $966.361 million, indicating some market resilience amid a challenging freight environment.
- Profitability Pressure: Adjusted earnings per share were 36 cents, missing the analyst estimate of 41 cents, reflecting challenges in cost control and pricing strategies, with operating income dropping to $24.4 million and the operating ratio rising to 96.2%.
- Asset-Light Segment Loss: Asset-Light revenue was $353.5 million, down from the previous year, despite a 0.8% increase in daily shipments, as revenue per shipment fell by 5.8%, leading to a reported operating loss of $9.9 million, highlighting intensified market competition pressures.
- Annual Performance Review: For the full year 2025, revenue was $4.0 billion, down from $4.2 billion in 2024, with net income at $60.1 million, showcasing the company's execution and adaptability in the face of market challenges, despite an overall decline in profitability.
See More
ArcBest Reports Net Loss in Q4
- Net Loss Reported: ArcBest reported a net loss of $8.12 million in Q4, contrasting sharply with a profit of $29.04 million in the same quarter last year, indicating a significant decline in profitability that could undermine investor confidence.
- Earnings Per Share Decline: The company recorded a loss per share of $0.36 compared to earnings of $1.24 per share last year, reflecting financial pressure in ongoing operations that may lead to further stock price declines.
- Adjusted Net Income Drop: Adjusted net income fell to $8.24 million from $31.20 million year-over-year, highlighting challenges in cost management and revenue generation that could impact future financial stability.
- Revenue and EBITDA Decline: Revenue decreased from $1 billion to $972.69 million, while adjusted EBITDA dropped from $74 million to $51.52 million, suggesting a decline in overall operational efficiency that may necessitate a reassessment of business strategies to restore growth.
See More
ArcBest Q4 Earnings Report Analysis
- Non-GAAP EPS: ArcBest reported a Q4 non-GAAP EPS of $0.36, missing expectations by $0.06, indicating pressure on profitability that may affect investor confidence.
- Total Revenue Trends: The company's total revenue for Q4 was $972.7 million, a 2.7% year-over-year decline, although it exceeded expectations by $5.3 million, the ongoing revenue drop poses challenges for future growth.
- Asset-Based Business Performance: Revenue from the asset-based segment was $648.8 million, down 0.3% from $656.2 million last year, despite a 2.6% increase in tonnage per day, reflecting intensified market competition that hampers revenue growth.
- Asset-Light Business Revenue: The asset-light segment generated $353.5 million in revenue, a 5.1% year-over-year decline, with a 0.8% increase in shipments per day, but a 5.8% drop in revenue per shipment indicates rising cost pressures that could impact future profitability.
See More
ArcBest Q4 Earnings Announcement Scheduled
- Earnings Release Date: ArcBest is set to announce its Q4 earnings on January 30 before market open, with a consensus EPS estimate of $0.42, reflecting a significant 68.4% year-over-year decline, which may dampen investor sentiment.
- Revenue Decline: The anticipated revenue of $967.4 million for Q4 represents a 3.3% year-over-year decrease, indicating challenges the company faces in the current economic climate that could impact future investment decisions.
- Performance Forecast Adjustments: Over the past three months, EPS estimates have seen no upward revisions and 13 downward adjustments, while revenue estimates experienced 2 upward revisions and 8 downward adjustments, highlighting increasing market concerns regarding the company's profitability.
- Long-term Goals: Despite short-term pressures, ArcBest has set an ambitious EPS target of $12 to $15 by 2028, demonstrating the company's strategic commitment to strengthening its core LTL business and maintaining cost discipline.
See More
ArcBest Reports Mixed Q4 2025 Results Amidst Challenging Freight Environment
- Revenue Performance: ArcBest reported fourth-quarter revenue of $972.7 million, down from $1 billion a year earlier, yet exceeding analyst expectations of $966.361 million, indicating some market resilience despite a challenging freight environment.
- Profitability Analysis: Adjusted earnings per share of 36 cents fell short of the 41 cents analyst estimate, reflecting ongoing challenges in cost control and profitability recovery, particularly in the Asset-Light segment.
- Market Reaction: Following the earnings announcement, ArcBest's stock rose 6.4% to $96.01, suggesting investor optimism regarding the company's advancements in technology-driven solutions, despite the overall financial performance being less than ideal.
- Analyst Rating Adjustments: Several analysts adjusted their price targets post-earnings, with Jefferies raising its target from $95 to $110, while JP Morgan and Wells Fargo also increased their targets, indicating market recognition of the company's future growth potential.
See More
ArcBest Reports Q4 2025 Earnings Highlights
- Financial Performance: ArcBest reported consolidated revenue of $973 million for Q4, down 3% year-over-year, yet managed to achieve a non-GAAP operating income of $14 million, indicating resilience in a challenging market environment.
- Strategic Investments: Management anticipates net capital expenditures for 2026 to range between $150 million and $170 million, reflecting a shift towards reduced real estate purchases and remodels after several years of targeted investments, thereby optimizing capital allocation.
- Leadership Changes: The appointment of Mac Pinkerton as Chief Operating Officer aims to leverage his extensive industry expertise to drive growth in the asset-light business, further strengthening the company's competitive position in a challenging market.
- Market Outlook: Despite ongoing softness in the freight market, management remains confident in achieving its long-term EPS targets for 2028, emphasizing a focus on enhancing productivity and maintaining cost discipline to navigate external market uncertainties.
See More
ArcBest Reports Q4 2025 Results Amid Freight Challenges
- Revenue Decline: ArcBest's Q4 revenue totaled $972.7 million, down from $1.0 billion a year earlier, although it exceeded analyst expectations of $966.361 million, indicating some market resilience amid a challenging freight environment.
- Profitability Pressure: Adjusted earnings per share were 36 cents, missing the analyst estimate of 41 cents, reflecting challenges in cost control and pricing strategies, with operating income dropping to $24.4 million and the operating ratio rising to 96.2%.
- Asset-Light Segment Loss: Asset-Light revenue was $353.5 million, down from the previous year, despite a 0.8% increase in daily shipments, as revenue per shipment fell by 5.8%, leading to a reported operating loss of $9.9 million, highlighting intensified market competition pressures.
- Annual Performance Review: For the full year 2025, revenue was $4.0 billion, down from $4.2 billion in 2024, with net income at $60.1 million, showcasing the company's execution and adaptability in the face of market challenges, despite an overall decline in profitability.
See More
ArcBest Reports Net Loss in Q4
- Net Loss Reported: ArcBest reported a net loss of $8.12 million in Q4, contrasting sharply with a profit of $29.04 million in the same quarter last year, indicating a significant decline in profitability that could undermine investor confidence.
- Earnings Per Share Decline: The company recorded a loss per share of $0.36 compared to earnings of $1.24 per share last year, reflecting financial pressure in ongoing operations that may lead to further stock price declines.
- Adjusted Net Income Drop: Adjusted net income fell to $8.24 million from $31.20 million year-over-year, highlighting challenges in cost management and revenue generation that could impact future financial stability.
- Revenue and EBITDA Decline: Revenue decreased from $1 billion to $972.69 million, while adjusted EBITDA dropped from $74 million to $51.52 million, suggesting a decline in overall operational efficiency that may necessitate a reassessment of business strategies to restore growth.
See More
ArcBest Q4 Earnings Report Analysis
- Non-GAAP EPS: ArcBest reported a Q4 non-GAAP EPS of $0.36, missing expectations by $0.06, indicating pressure on profitability that may affect investor confidence.
- Total Revenue Trends: The company's total revenue for Q4 was $972.7 million, a 2.7% year-over-year decline, although it exceeded expectations by $5.3 million, the ongoing revenue drop poses challenges for future growth.
- Asset-Based Business Performance: Revenue from the asset-based segment was $648.8 million, down 0.3% from $656.2 million last year, despite a 2.6% increase in tonnage per day, reflecting intensified market competition that hampers revenue growth.
- Asset-Light Business Revenue: The asset-light segment generated $353.5 million in revenue, a 5.1% year-over-year decline, with a 0.8% increase in shipments per day, but a 5.8% drop in revenue per shipment indicates rising cost pressures that could impact future profitability.
See More
ArcBest Q4 Earnings Announcement Scheduled
- Earnings Release Date: ArcBest is set to announce its Q4 earnings on January 30 before market open, with a consensus EPS estimate of $0.42, reflecting a significant 68.4% year-over-year decline, which may dampen investor sentiment.
- Revenue Decline: The anticipated revenue of $967.4 million for Q4 represents a 3.3% year-over-year decrease, indicating challenges the company faces in the current economic climate that could impact future investment decisions.
- Performance Forecast Adjustments: Over the past three months, EPS estimates have seen no upward revisions and 13 downward adjustments, while revenue estimates experienced 2 upward revisions and 8 downward adjustments, highlighting increasing market concerns regarding the company's profitability.
- Long-term Goals: Despite short-term pressures, ArcBest has set an ambitious EPS target of $12 to $15 by 2028, demonstrating the company's strategic commitment to strengthening its core LTL business and maintaining cost discipline.
See More
