Core Viewpoint - ArcBest exceeded third-quarter earnings expectations but anticipates significant margin deterioration in both business segments for the fourth quarter [1] Financial Performance - Adjusted earnings per share for ArcBest were reported at $1.46, surpassing consensus estimates by $0.09 but down $0.18 year-over-year [1] - Consolidated revenue reached $1.05 billion, slightly above expectations [1] Asset-Based Segment - The asset-based unit, including ABF Freight, experienced a 2% year-over-year increase in revenue per day, driven by a 2% increase in tonnage, although this was partially offset by a 1% decline in yield [2] - Daily shipments increased by 4%, while the weight per shipment declined by 2%, contributing to the tonnage growth [3] - Tonnage comparisons showed increases of 1.3% in July, 2.4% in August, and 3.3% in September, but a 1% decline year-over-year was noted in October [4] Operating Ratios and Margins - The adjusted operating ratio was reported at 92.5%, which is 150 basis points worse year-over-year but 30 basis points better sequentially [6] - Year-over-year cost increases in labor and benefits, purchased transportation, and depreciation and amortization negatively impacted margins [7] - The company forecasts a 400 basis point margin deterioration from Q3 to Q4, expecting an adjusted operating ratio of 96.5%, which would be 450 basis points worse year-over-year [8] Asset-Light Segment - The asset-light segment reported adjusted operating income of $1.6 million, marking a second consecutive operating profit after seven losses [9] - For the fourth quarter, the company anticipates an adjusted operating loss of $1 million to $3 million in this segment [9]

Core Insights - ArcBest reported quarterly earnings of $1.46 per share, exceeding the Zacks Consensus Estimate of $1.37 per share, but down from $1.64 per share a year ago, indicating an earnings surprise of +6.57% [1] - The company generated revenues of $1.05 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.84%, although this is a slight decrease from $1.06 billion year-over-year [2] - ArcBest shares have declined approximately 23.5% year-to-date, contrasting with the S&P 500's gain of 15.1% [3] Earnings Outlook - The future performance of ArcBest's stock will largely depend on management's commentary during the earnings call and the subsequent revisions of earnings estimates [4][5] - The current consensus EPS estimate for the upcoming quarter is $1.13 on revenues of $987.81 million, and for the current fiscal year, it is $4.40 on revenues of $4.01 billion [7] Industry Context - The Transportation - Truck industry, to which ArcBest belongs, is currently ranked in the bottom 5% of over 250 Zacks industries, suggesting a challenging environment for the company [8]

Financial Performance - Third quarter 2025 revenue totaled $1.0 billion, a decrease of 9.1% compared to $1.1 billion in the prior-year period[2] - Net income from continuing operations was $39.3 million, or $1.72 per diluted share, down from $100.3 million, or $4.23 per diluted share in Q3 2024[2] - Operating income was $70.2 million with an operating ratio of 90.3%, compared to $64.0 million and an operating ratio of 91.0% in the prior year[7] - Revenues for Q3 2025 were $1,048,137, a decrease of 1.4% from $1,063,124 in Q3 2024[20] - Operating income for Q3 2025 was $54,627, down 59.5% from $134,993 in Q3 2024[20] - Net income from continuing operations for the nine months ended September 30, 2025, was $68,214, compared to $144,326 for the same period in 2024, representing a decline of 52.8%[20] - Total consolidated revenues from continuing operations for Q3 2025 were $1,048,137, a decrease of 1.1% compared to $1,063,124 in Q3 2024[24] - Asset-Based revenues for the nine months ended September 30, 2025, were $2,086,081, slightly down from $2,093,914 in the same period of 2024[24] - The company reported a basic earnings per share of $2.97 for the nine months ended September 30, 2025, down from $6.12 in 2024[20] - Diluted earnings per share from continuing operations for Q3 2025 were $1.72, down from $4.23 in Q3 2024[29] Operating Metrics - Tonnage growth was driven by a 4.3% increase in daily shipments, primarily from newly onboarded core LTL customers[4] - Daily revenue in the Asset-Light segment decreased by 8.3% to $356.0 million compared to $385.3 million in the prior year[15] - Sequentially, third quarter revenue and shipments per day were flat, while weight per shipment declined by 3.9%[9] - Total operating expenses from continuing operations for Q3 2025 were $993,510, representing 94.8% of total revenues, up from 87.3% in Q3 2024[24] - Asset-Based shipments per day increased by 4.3% to 21,095 for the three months ended September 30, 2025, compared to 20,221 in 2024[40] - Tonnage per day increased by 2.3% to 11,238 for the three months ended September 30, 2025, compared to 10,983 in 2024[40] - Shipments per employee per day increased by 32.6% for the three months ended September 30, 2025, compared to the same period in 2024[41] Asset and Liabilities - Total assets increased to $2,501,181 as of September 30, 2025, up from $2,429,731 at the end of 2024[22] - Cash and cash equivalents decreased to $120,604 at the end of Q3 2025, down from $127,444 at the end of 2024[23] - Total current liabilities increased slightly to $670,455 as of September 30, 2025, compared to $665,985 at the end of 2024[22] - The company’s long-term debt, less current portion, increased to $135,469 as of September 30, 2025, from $125,156 at the end of 2024[22] - The company’s retained earnings increased to $1,495,194 as of September 30, 2025, compared to $1,435,250 at the end of 2024[22] Segment Performance - Asset-Light segment achieved $1.6 million of non-GAAP operating income despite revenue declines, supported by record volumes and improved margins[11] - The Asset-Light segment reported an operating loss of $1,595 in Q3 2025, compared to an operating income of $84,779 in Q3 2024[24] - For the three months ended September 30, 2025, ArcBest Corporation reported an operating income of $70,162 thousand with an operating ratio of 90.3% for the Asset-Based Segment, compared to $64,020 thousand and 91.0% in the same period of 2024[31] - The Asset-Light Adjusted EBITDA for the three months ended September 30, 2025, was $3,052 thousand, compared to a loss of $2,094 thousand in the same period of 2024[36] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $184,291, a decrease from $229,048 in 2024[23] - Over $66 million returned to shareholders through share repurchases and dividends year-to-date[6] - The company continues to invest in innovative technology, with costs amounting to $7,713 in Q3 2025, down from $8,512 in Q3 2024[29] - The total depreciation and amortization for the nine months ended September 30, 2025, was $125,290 thousand, an increase from $109,720 thousand in the same period of 2024[35] Tax and Impairment - The effective tax rate for continuing operations for the three months ended September 30, 2025, was 26.6%, compared to 26.6% in the same period of 2024[33] - The company recognized a noncash impairment charge related to an equity investment in Phantom Auto, which ceased operations in Q1 2024[39] - The total effective tax rate for GAAP amounts was impacted by non-GAAP adjustments based on statutory rates applicable to each item[39] Other Notable Changes - The change in fair value of contingent consideration for the MoLo acquisition was reduced to zero in Q2 2025, reflecting no expected earnout payment[26] - The company recorded a net gain of $15.7 million related to two service center sales during Q3 2025[24] - The gain on the sale of certain properties for the three months ended September 30, 2025, was $(15,726) thousand, compared to $(15,726) thousand in the same period of 2024[33] - Average length of haul in miles decreased by 1.2% to 1,129 for the three months ended September 30, 2025, compared to 1,143 in 2024[40] - Asset-Based billed revenue per hundredweight decreased by 1.1% to $50.19 compared to $50.76 in 2024[40] - The Asset-Based segment reported a 3.0% decrease in billed revenue per shipment for the three months ended September 30, 2025, compared to 2024[40] - Billed revenue per hundredweight decreased by 1.1% in Q3 2025 compared to the same period in 2024[8] - The company reported a 0.8% increase in tonnage per day for the nine months ended September 30, 2025, compared to the same period in 2024[40]

Core Points - ArcBest has appointed Chris Sultemeier to its Board of Directors, effective October 29, 2025, following the retirement of Dr. Craig E. Philip in January 2026 [1][2][3] Group 1: Board Changes - Chris Sultemeier brings over 30 years of experience in logistics and transportation, having served as EVP of Logistics and President and CEO of Walmart Transportation [2][3] - Dr. Craig E. Philip has been a director since 2011 and has contributed valuable insights through his engineering background and extensive experience in transportation and logistics [3][5] - Eduardo Conrado has been appointed as the lead independent director, succeeding Steve Spinner [4][5] Group 2: Strategic Importance - The appointment of Sultemeier aligns with ArcBest's commitment to enhancing long-term sustainable value for shareholders by incorporating diverse perspectives [2][5] - The board changes are part of an ongoing assessment of board size, composition, and the balance of skills, with further updates expected [5] Group 3: Company Overview - ArcBest is a multibillion-dollar integrated logistics company founded in 1923, employing over 14,000 people across 250 campuses and service centers [6][7] - The company focuses on connecting shippers with various transportation solutions and is committed to innovation in supply chain management [7]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for ArcBest due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - ArcBest is expected to report quarterly earnings of $1.37 per share, reflecting a year-over-year decrease of 16.5% [3]. - Revenue is projected to be $1.03 billion, down 3.3% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 10.5% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for ArcBest is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.12% [12]. Earnings Surprise Prediction - A positive Earnings ESP reading suggests a potential earnings beat, particularly when combined with a strong Zacks Rank [10]. - ArcBest currently holds a Zacks Rank of 5, making it challenging to predict an earnings beat despite the positive Earnings ESP [12]. Historical Performance - In the last reported quarter, ArcBest was expected to earn $1.48 per share but only achieved $1.36, resulting in a surprise of -8.11% [13]. - Over the past four quarters, ArcBest has only surpassed consensus EPS estimates once [14]. Industry Context - Heartland Express, another player in the Zacks Transportation - Truck industry, is expected to report a loss of $0.11 per share, indicating a year-over-year change of +8.3% [18]. - Heartland Express's revenue is expected to be $213.94 million, down 17.7% from the previous year, with a significant revision of 71.4% lower in the consensus EPS estimate over the last 30 days [19].

Core Viewpoint - ArcBest is currently experiencing a bearish trend as it navigates through Phase 9 of its Adhishthana cycle, indicating a cautious outlook for investors [1][10]. Group 1: Cakra Formation and Breakdown - ArcBest initially formed a Cakra structure between Phases 4-8, which typically suggests bullish implications; however, it broke this structure in Phase 6, leading to a bearish breakdown known as the Move of Pralaya [2][3]. - Following the breakdown, ArcBest's stock price fell nearly 55%, and this weakness is expected to persist until it enters the Guna Triads (Phases 14, 15, and 16), which will not begin until 2029 [5][10]. Group 2: Monthly Chart Outlook - On the monthly chart, ArcBest's stock had a significant bullish run in early 2024, surging nearly 380% after entering Phase 9, but this was followed by a sharp reversal [8][9]. - The stock's current descent phase aligns with the Adhishthana framework, reinforcing the bearish setup, suggesting that while short-term rallies may occur, they are unlikely to be sustained [10]. Group 3: Investor Outlook - The overall trend for ArcBest remains bearish, with the Move of Pralaya active and the stock deep in its descent leg, indicating that investors should remain cautious as sluggishness is expected before the next major cycle reset [10].

Core Viewpoint - The article emphasizes the importance of fundamental analysis in identifying undervalued companies with long-term growth potential, advocating for a value investing approach that focuses on purchasing quality companies at a discount to their intrinsic value and holding them for extended periods to maximize earnings and shareholder returns. Group 1 - The investment strategy combines value investing principles with a focus on long-term growth [1] - The approach involves buying quality companies at a discount to their intrinsic value [1] - The goal is to allow companies to compound their earnings and shareholder returns over time [1]

Core Viewpoint - The article emphasizes the importance of fundamental analysis in identifying undervalued companies with long-term growth potential, advocating for a value investing approach that focuses on purchasing quality companies at a discount to their intrinsic value and holding them for extended periods to maximize earnings and shareholder returns. Group 1 - The investment strategy combines value investing principles with a focus on long-term growth [1] - The approach involves buying quality companies at a discount to their intrinsic value [1] - The goal is to allow companies to compound their earnings and shareholder returns over time [1]

Core Points - ArcBest® (Nasdaq: ARCB) will announce its third quarter 2025 financial results before the market opens on November 5, 2025 [1] - A conference call with company executives is scheduled for the same day at 9:30 a.m. ET to discuss the financial results [1] - Interested parties can listen to the call by dialing (800) 715-9871, with a conference ID of 6423434 [1] - A recorded playback of the call will be available until the end of the day on November 5, 2025 [1]