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ArcBest on Wednesday reported a third-quarter net income of $39.27 million, down from $100.31 million a year ago. Judy R. McReynolds, ArcBest chairman and chief executive officer, said the company continues to deliver despite a challenging freight environment. "We achieved growth in (less-than-truckload) shipments and tonnage, and our Asset-Light segment delivered record shipment volumes and productivity," McReynolds said. "These results underscore the strength of our customer relationships and the value of our integrated solutions." The shipping and logistics company reported earnings per share of $1.73, down from $4.25 per share a year ago. Third-quarter revenue came in at $1.05 billion compared to $1.06 billion in the same quarter of 2024. On a non-GAAP basis the company reported an earnings per share of $1.46, compared to an earnings per share of $1.64 in 2024. GAAP stands for generally accepted accounting principles. ArcBest's profit beat analyst estimates. Zacks Equity Research had predicted earnings per share of $1.37, on a non-GAAP basis. In a Wednesday morning call to discuss the report, McReynolds noted it was her final earnings call before retirement as chief executive officer at the end of the year. "It has been an incredible honor to lead this organization," she said. "I am deeply proud of what we have accomplished and what lies ahead." ArcBest's third-quarter operating income was $54.63 million, compared to $134.99 million in the third quarter of 2024. Operating expenses were reported at $993.51 million, compared to $928.13 billion in the same period of 2024. Seth Runser, ArcBest CEO-elect and president, said the company's pricing discipline during bid season drove a nearly 9% increase in revenue per shipment. "We've reorganized sales teams, streamlined processes and leveraged technology to enhance efficiency," he said. "As a result, employee productivity in truckload is at its highest level ever." The company's asset-based segment, ABF Freight, saw a revenue of $726.47 million, compared to $709.72 million in the third quarter of 2024, a per-day increase of 1.6%. The segment reported an operating income of $70.16 million, which was an increase of the reported operating income of $64.02 million in 2024. ArcBest added that the increase included a net gain from $15.9 million on asset sales. Tonnage per day increased by 2.3% for the segment, with the total shipments per day remaining increasing by 4.3% compared to 2024. The company said tonnage growth was from newly onboarded less-than-truckload customers and was offset by a 1.9% decline in total weight per shipment. ArcBest said ongoing weakness in the manufacturing sector continues to pressure weight-per-shipment metrics and reduce revenue per shipment. Runser said the company has only noticed secondary impacts from the ongoing government shutdown. He said the company saw some softness in October, which is similar to what peers have been reporting, but the step down is typical between third and fourth quarters. "The only area where we do a good amount of government business is on the asset-light (segment)," he said. "We can't point directly to asset-based impact, but the government is the largest employer in the U.S., so I'd imagine there's some secondary impacts." The asset-light segment posted revenue of $355.97 million, compared to $385.32 million in the same period of 2024, a per day decrease of 8.3%. The operating loss for the segment was $1.60 million, compared to an operating income of $84.78 million in 2024. ArcBest stated the income in 2024 included a $91.9 million pre-tax reduction. The lower revenue was because of a lower revenue-per-shipment and higher mix of managed transportation business, which includes smaller and lower revenue shipments. ArcBest also announced the appointment of Chris Sultemeier to its board of directors, effective on Oct. 29. McReynolds said Sultemeier brings a deep industry knowledge to the position, as he previously spent 28 years with Walmart Inc. as an executive vice president and chief executive officer of Walmart Transportation. Sultemeier will replace Craig Philip, who has been a director for the company since 2011, after his decision to retire.
