ArcBest Corp

Latest Results (10.10.2025):

ArcBest Corp reported its third quarter of 2023 with revenues of $1.1 billion, reflecting a decrease from $1.3 billion in the same period last year. The company experienced a decline in operating and net income, influenced by noncash lease impairment charges. Despite these challenges, ArcBest continued to return capital to shareholders through share repurchases and dividends.

Revenue Performance

In the third quarter of 2023, ArcBest Corp generated $1.1 billion in revenue from continuing operations, down from $1.3 billion in the third quarter of 2022. The decrease was primarily driven by a weaker logistics industry backdrop and a contraction in the manufacturing sector.

Operating and Net Income

Operating income decreased to $45.1 million in Q3 2023 compared to $115.3 million in Q3 2022. Net income from continuing operations also declined to $34.9 million, or $1.42 per diluted share, versus $88.6 million, or $3.49 per diluted share, in the prior-year period. The results were negatively impacted by $30.2 million in noncash lease impairment charges.

Non-GAAP Financial Metrics

Excluding certain items, ArcBest’s non-GAAP operating income for Q3 2023 was $74.7 million, down from $130.6 million in Q3 2022. On a non-GAAP basis, net income was $56.7 million, or $2.31 per diluted share, compared to $96.1 million, or $3.79 per diluted share, in the same quarter last year.

Operating Ratios

The Asset-Based operating ratio stood at 89.9 percent in Q3 2023, compared to 86.2 percent in Q3 2022. On a non-GAAP basis, the operating ratio improved to 88.8 percent, a 400 basis point improvement from the second quarter of 2023.

Segment Performance

The Asset-Based segment saw a revenue decrease due to industry challenges but benefited from increased revenue from new shipments following a competitor’s bankruptcy. Conversely, the Asset-Light segment reported a decline in revenue to $419.3 million and an operating loss of $3.7 million in Q3 2023, compared to an operating income of $15.4 million in Q3 2022.

Shareholder Returns

Year-to-date, ArcBest Corp returned $85.5 million to shareholders through common stock share repurchases and dividends. As of October 26, 2023, $48.2 million remains available under the current share repurchase authorization.

Operational Highlights

ArcBest efficiently managed its logistics operations despite market disruptions, including reallocating network capacity to accommodate new profitable business. Improved pricing strength and a shift in shipment mix contributed to better yields, while increased employee costs were offset by cost-saving initiatives in other areas.

Outlook and Management Commentary

CEO Judy R. McReynolds emphasized ArcBest’s commitment to solving logistics challenges and adapting to market disruptions. The company remains focused on efficiency and strategic growth to navigate the evolving economic landscape.