Core Insights - ArcBest reported fiscal Q2 2025 results with GAAP revenue of $1.02 billion and non-GAAP EPS of $1.36, both missing Wall Street estimates [1][2] - The company experienced modest shipment growth and productivity gains from technology, but profitability in its core Asset-Based segment declined due to weak demand and elevated expenses [1][5] Financial Performance - Non-GAAP EPS decreased by 31.3% year-over-year from $1.98 to $1.36 [2] - GAAP revenue fell by 5.2% from $1.08 billion in Q2 2024 to $1.02 billion in Q2 2025 [2][5] - Operating income (non-GAAP) dropped by 29.9% to $44.97 million compared to Q2 2024 [2] - Net income (non-GAAP) decreased by 34.2% from $47.4 million in Q2 2024 to $31.2 million in Q2 2025 [2][8] Segment Performance - The Asset-Based segment generated $713 million in revenue, showing no growth year-over-year [2][5] - Daily shipments increased by 5.6%, while tonnage per day rose by 4.3% due to new LTL customer accounts [5] - The Asset-Light segment faced a 12.9% decrease in revenue per day, with shipments per day dropping by 6.5% [7] - Despite revenue declines, the Asset-Light segment achieved positive operating income on a non-GAAP basis for the first time since Q2 2023 [7] Strategic Initiatives - The company is focused on controlling labor costs, deploying advanced technology, and expanding its customer base [4] - Investments in digital tools like ArcBest View and AVA aim to improve service and reduce costs [4][12] - A 5.9% general rate increase was announced, effective August 4, to enhance long-term yield [13] Outlook - Management did not provide explicit financial guidance for Q3 or the full year but emphasized a focus on operational optimization and leveraging technology for efficiency gains [14] - Capital expenditure targets for fiscal 2025 are maintained at the low end of the $225 million to $275 million range [14]