(ArcBest via X)
ArcBest Corp. posted a drop in revenue but saw bottom-line results swing from a year-ago loss to a profit during the first quarter of 2025, the company reported April 29.
The Phoenix-based truckload carrier reported net income from continuing operations of $3.13 million, or 13 cents a diluted share, for the three months ending March 31. That compared with a loss of $2.91 million, 12 cents, during the same time the previous year. Total revenue decreased by 6.7% to $967.1 million from $1.04 billion, but the company narrowed its expenses and realized a benefit from an income tax provision during the quarter.
“I want to thank our employees for their commitment to excellence as they serve customers,” ArcBest CEO Judy McReynolds said. “Customers need trusted partners to help them navigate the ever-changing environment, and I’m proud of our employees for working hand in hand with customers to develop solutions, solve challenges and build trust.”
The Q1 results missed expectations from investment analysts on Wall Street, who had been looking for EPS of 52 cents and quarterly revenue of $981.56 million, according to Zacks Consensus Estimate.
The carrier’s asset-based segment saw Q1 revenue decrease 3.8% to $646.3 million from $671.5 million the previous year, while operating income increased 50.7% to $26.4 million from $53.5 million.
Total tonnage per day decreased by 4.3% while total shipments per day were flat. The company noted that prolonged weakness in the manufacturing sector continued to negatively impact weight per shipment metrics and profitability. However, it said productivity improvements and other cost initiatives helped mitigate the impact of the soft environment, higher insurance costs and annual labor cost increases associated with an ABF Freight union contract.
Revenue in the asset-light segment decreased 10.2% to $356 million from $396.4 million last year, but the segment narrowed its operating loss to $4.4 million compared with $15.3 million the prior year. The segment was impacted by lower revenue per shipment due to the soft rate environment and a higher mix of managed transportation business, but benefited from improved margins, lower operating costs and productivity improvements. For example, shipments per employee per day improved 23.6%.
ArcBest ranks No. 12 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 44 on the TT Top 100 logistics companies list.
