ArcBest Revenue Accelerates as Adjusted Profit Rebounds
Adjusted earnings climbed to $2.38 a share from $1.36 a year earlier.
ArcBest Corp. (ARCB) reported faster revenue growth and a sharp rebound in underlying profit as stronger pricing and volumes lifted both of its main businesses. The freight and logistics company’s second-quarter revenue rose 15.9% from a year earlier and 18.6% sequentially.
The quarter extended a recovery that began early in the year. Asset-Based daily revenue growth accelerated to 9.9% from 2.2% in the first quarter and a 0.3% decline in the fourth quarter of 2024, while Asset-Light daily revenue growth reached 28.3% after rising 7.0% in the prior period.
Revenue increased to $1.185 billion from $1.022 billion a year earlier. GAAP results swung to a net loss of $13.8 million, or $0.62 a share, from net income of $25.8 million, or $1.12 a share, as impairment and restructuring charges weighed on reported earnings. Adjusted net income rose 71.7% to $53.6 million and rebounded from $7.2 million in the first quarter.
Asset-Based non-GAAP operating income rose to $72.3 million from $51.0 million, and its operating ratio improved 200 basis points to 90.8%. Daily revenue increased 17.8% sequentially as tonnage per day rose 9.8% and billed revenue per shipment climbed 13.5%. Year-over-year shipment volume fell 2.8%, but an 8.0% increase in weight per shipment supported a 12.5% gain in billed revenue per shipment.
Asset-Light growth broadened to include pricing as shipments per day rose 14.6% and revenue per shipment increased 12.0%. Non-GAAP operating income reached $6.3 million, more than double the first quarter’s result and up from $1.1 million a year earlier, though purchased transportation expense increased to 86.5% of revenue.
For the third quarter, ArcBest expects the Asset-Based non-GAAP operating ratio to remain generally consistent with the second quarter’s 90.8%, as restructuring savings offset lower fuel-surcharge revenue. The company forecasts Asset-Light GAAP operating income of $4 million to $6 million and non-GAAP operating income of $6 million to $8 million.
ArcBest recorded $85.3 million of asset-impairment charges and $2.2 million of restructuring charges, including write-downs tied to Vaux and the Panther trade name. Those charges pushed consolidated GAAP operations to a $20.6 million loss even as non-GAAP operating income rose to $73.9 million. ArcBest also launched its ArcBest View platform during the quarter, continuing its integrated-logistics and technology strategy as July Asset-Light revenue growth held near 28% despite slower shipment growth.