ArcBest(US:ARCB) Yahoo Financeยท2025-09-09 14:01Core Insights - ArcBest reported a modest year-over-year revenue increase in its asset-based segment in August, following no change in July, but lowered its third-quarter margin outlook due to ongoing macro headwinds and higher costs [1] Revenue Performance - Asset-based revenue per day increased by 2% year-over-year in August, driven by a 2% increase in tonnage, with no change in average yield [2] - The August tonnage result included a 5% increase in daily shipments, partially offset by a 3% decline in weight per shipment [2] Demand and Market Conditions - The company is receiving more freight from core accounts; however, overall demand weakness in the manufacturing and housing sectors is leading to lower shipment weights [3] - Manufacturing activity remained in contraction territory in August, with a Purchasing Managers' Index (PMI) reading of 48.7, indicating negative territory for 32 of the past 34 months [4] - The PMI new orders subindex moved into expansion territory at 51.4 after six months of decline, but remained below the threshold of 52.1 needed for sustained increases in manufacturing orders [4] Year-over-Year Comparisons - On a two-year-stacked comparison, ArcBest's asset-based tonnage was down 7.9% in August, an improvement from an 11.2% decline in July and high-teens declines earlier in the year [5] Operating Ratio Guidance - The company revised its operating ratio guidance for the asset-based segment to be flat to 50 basis points worse in the third quarter compared to the second quarter, implying a 93.1% adjusted operating ratio at the midpoint, which is 210 basis points worse year-over-year [6] - The previous outlook anticipated a 70 basis points improvement, implying a 92.1% operating ratio, consistent with historical seasonal patterns [7] - The revised outlook excludes an expected $16 million pretax gain from real estate sales and cites higher cartage expenses and increased use of outside capacity as detractors for the third quarter [7]