ArcBest Corporation (NASDAQ:ARCB) delivered third-quarter results that beat expectations on Wednesday, as growth in its less-than-truckload (LTL) operations helped counter ongoing softness in the broader freight market.
The logistics and supply chain provider reported adjusted earnings of $1.46 per share, surpassing analyst forecasts of $1.38 per share. Revenue reached $1.05 billion, slightly above the $1.04 billion consensus, though it marked a decline from $1.1 billion in the same quarter last year. Adjusted earnings also fell from $1.64 per share a year ago.
ArcBest’s Asset-Based segment, which includes its core LTL business, posted 1.6% year-over-year revenue growth to $726.5 million, supported by a 4.3% increase in daily shipments and a 2.3% rise in tonnage per day. The operating ratio improved to 90.3%, versus 91.0% in the prior year, aided by $15.9 million in net gains from asset sales.
“We achieved growth in LTL shipments and tonnage, and our Asset-Light segment delivered record shipment volumes and productivity,” said Judy R. McReynolds, ArcBest Chairman and CEO. “These results underscore the strength of our customer relationships and the value of our integrated solutions.”
The Asset-Light segment saw revenue decline 8.3% to $356 million, but its operating income improved to $1.6 million, compared with a $3.9 million non-GAAP loss in the same period last year — reflecting stronger productivity and cost control.
Customer contract renewals averaged a 4.5% rate increase during the quarter, and management emphasized that LTL pricing remains rational despite persistent weakness across the freight industry.
Overall, ArcBest’s results highlight resilient shipment growth and margin improvement in a difficult market, positioning the company well to capture upside as freight demand stabilizes.