ArcBest Reports Third Quarter 2025 Results, Highlights Shipment Growth and Record Asset-Light Productivity
ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, announced financial results for the third quarter ended September 30, 2025. Despite continued softness in the freight market, the company demonstrated solid operational performance, achieving growth in Asset-Based shipments and tonnage and record productivity within its Asset-Light segment. Year-to-date, ArcBest has also returned more than $66 million to shareholders through share repurchases and dividends.
Third-quarter 2025 revenue totaled $1.0 billion, compared to $1.1 billion in the same period last year. Net income from continuing operations was $39.3 million, or $1.72 per diluted share, versus $100.3 million, or $4.23 per diluted share, in the third quarter of 2024. Prior-year results included a $69.1 million after-tax benefit tied to the reduction in the fair value of contingent consideration from the MoLo acquisition.
On a non-GAAP basis, third-quarter 2025 net income came to $33.4 million, or $1.46 per diluted share, compared with $38.8 million, or $1.64 per diluted share, in the prior-year period.
ArcBest continues to deliver, even in this challenging freight environment,” said Judy R. McReynolds, ArcBest Chairman and CEO. “We achieved growth in LTL shipments and tonnage, and our Asset-Light segment delivered record shipment volumes and productivity. These results underscore the strength of our customer relationships and the value of our integrated solutions.”
Results of Operations
Asset-Based Performance
Third Quarter 2025 vs. Third Quarter 2024
- Revenue: $726.5 million vs. $709.7 million; daily revenue up 1.6%
- Tonnage per day: up 2.3%
- Shipments per day: up 4.3%
- Billed revenue per hundredweight: down 1.1%
- Operating income: $70.2 million; operating ratio 90.3%
- Results include $15.9 million in net gains on asset sales
- Excluding asset gains:
- Non-GAAP operating income: $54.4 million
- Operating ratio: 92.5%
Tonnage gains were driven primarily by a 4.3% increase in daily shipments, supported by recently onboarded core LTL customers. Shipment growth was partially offset by a 1.9% decline in weight per shipment. While new shipments tended to be heavier, continued weakness in the manufacturing sector pressured average shipment weight, reducing revenue per shipment without minimizing costs proportionally.
To support shipment growth, ArcBest increased direct labor and expanded network capacity through purchased transportation and local cartage—particularly during peak vacation months. Higher union labor rates, increased purchased transportation costs, and equipment depreciation contributed to elevated operating expenses. Still, cost per shipment improved by 1% year-over-year due to sustained productivity initiatives. Transportation and cartage costs normalized in September following elevated activity in July and August.
Customer contract renewals and deferred pricing agreements averaged a 4.5% increase for the quarter. Billed revenue per hundredweight—both including and excluding fuel—declined by 1.1% compared to the prior year, as improved pricing was offset by changes in freight mix. Overall LTL pricing remains rational.
Sequential Comparison (Q3 2025 vs. Q2 2025)
- Revenue and shipments per day: flat
- Weight per shipment: down 3.9%
- Tonnage per day: down 3.7%
- Billed revenue per shipment: down 0.6%
- Billed revenue per hundredweight: up 3.4%
The rise in revenue per hundredweight largely reflects lower-weight shipments combined with higher pricing and fuel surcharges. Excluding fuel, revenue per hundredweight increased in the low-single-digit range. The non-GAAP operating ratio improved by 30 basis points sequentially.
Asset-Light Performance
Third Quarter 2025 vs. Third Quarter 2024
- Revenue: $356.0 million vs. $385.3 million; daily revenue down 8.3%
- Operating loss: $1.6 million
- Compared to prior-year operating income of $84.8 million, which included a $91.9 million pre-tax adjustment from MoLo earnout fair-value reduction
- Non-GAAP operating income: $1.6 million vs. ($3.9 million) in Q3 2024
- Adjusted EBITDA: $3.1 million vs. ($2.1 million) in Q3 2024
The revenue decline was primarily driven by lower revenue per shipment in a softer rate market and a higher mix of managed transportation business, which typically generates smaller, lower-revenue shipments. The segment recorded a 2.5% increase in shipments per day, reflecting strong demand for managed solutions, partially offset by a deliberate reduction in lower-margin truckload activity.
Despite top-line pressure, the Asset-Light segment delivered $1.6 million in non-GAAP operating income, supported by strong volumes, margin improvement, and disciplined cost controls. Notably, shipments per person per day achieved an all-time high, underscoring meaningful productivity gains.
Sequential Comparison (Q3 2025 vs. Q2 2025)
- Daily revenue: up 3.3%
- Shipments per day: up 10.1%
- Revenue per shipment: down 6.2%
The decline in revenue per shipment reflected a greater share of smaller managed-solutions freight. However, higher shipment volumes and record productivity contributed to improved financial performance.
Shareholder Returns
Year-to-date, ArcBest returned over $66 million to shareholders through dividends and share repurchases, reflecting its continued commitment to delivering value.
Outlook
ArcBest continues to navigate macro softness in freight markets while leveraging operational efficiencies, pricing discipline, and stronger customer engagement across its diversified logistics offerings. The company remains focused on enhancing productivity and managing costs while capitalizing on growth opportunities within both Asset-Based and Asset-Light operations.
About ArcBest
ArcBest® (Nasdaq: ARCB) is a multibillion-dollar integrated logistics company that helps keep the global supply chain moving. Founded in 1923 and now with 14,000 employees across 250 campuses and service centers, the company is a logistics powerhouse, using its technology, expertise and scale to connect shippers with the solutions they need — from ground, air and ocean transportation to fully managed supply chains. ArcBest has a long history of innovation that is enriched by deep customer relationships. With a commitment to helping customers navigate supply chain challenges now and in the future, the company is developing ground-breaking technology like Vaux™, one of the TIME Best Inventions of 2023