ArcBest(US:ARCB)2025-11-05 11:01Financial 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]