ArcBest (NASDAQ:ARCB) Announces Quarterly Earnings Results

Key Points

• ArcBest beat quarterly expectations: EPS came in at $2.38 versus the $2.26 consensus, while revenue rose 15.9% year over year to approximately $1.18 billion.
• Operations improved across the business: ABF Freight’s adjusted operating ratio improved to 90.8%, daily tonnage increased 5%, and asset-light revenue grew 28% per day. Restructuring and network changes are expected to generate about $40 million in annualized savings by the first quarter of 2027.
• Near-term risks remain: Industrial demand is still weak in several markets, while lower fuel-surcharge revenue and restructuring costs could weigh on third-quarter results. ArcBest also declared a quarterly dividend of $0.12 per share, yielding approximately 0.3%.

ArcBest (NASDAQ:ARCB - Get Free Report) posted its quarterly earnings results on Wednesday. The transportation company reported $2.38 EPS for the quarter, topping the consensus estimate of $2.26 by $0.12, FiscalAI reports. The firm had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.17 billion. ArcBest had a net margin of 1.38% and a return on equity of 6.15%. The business's revenue was up 15.9% compared to the same quarter last year. During the same period last year, the firm posted $1.36 earnings per share.

Here are the key takeaways from ArcBest's conference call:

• Second-quarter results improved significantly: Revenue rose 16% year over year to $1.2 billion, while adjusted EPS increased to $2.38 from $1.36 and non-GAAP operating income reached $74 million. ABF Freight’s adjusted operating ratio improved 200 basis points to 90.8%.
• Truckload capacity is tightening, supporting modest LTL volume gains and stronger pricing. ABF daily tonnage rose 5%, driven by an 8% increase in weight per shipment, while July trends remained better than typical seasonality.
• Asset-Light performance strengthened: Revenue increased 28% per day, Managed Solutions shipments reached a record, and productivity improved 35% year over year. The segment generated $6.3 million in adjusted operating income versus $1.5 million for all of 2025.
• ArcBest expects restructuring and network changes—including brand consolidation, select service-center closures, and the discontinuation of the Vaux system—to produce approximately $40 million in annualized savings, reaching the full run rate by the first quarter of 2027.
• Management said broad-based industrial demand has not yet inflected, with weakness in areas such as apparel, consumer brands, and housing-related activity. Third-quarter ABF margins are expected to be broadly in line with the second quarter, while lower fuel surcharge revenue and approximately $6 million–$7 million of restructuring cash costs will be near-term headwinds.

ArcBest Stock Performance

ArcBest stock traded down $10.44 during midday trading on Wednesday, hitting $139.04. The stock had a trading volume of 162,505 shares, compared to its average volume of 366,422. ArcBest has a 52-week low of $59.43 and a 52-week high of $176.69. The company has a market capitalization of $3.10 billion, a PE ratio of 57.37, a P/E/G ratio of 0.53 and a beta of 1.57. The firm's fifty day moving average is $147.83 and its two-hundred day moving average is $118.65. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 0.10.

ArcBest Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 21st. Investors of record on Friday, August 7th will be issued a $0.12 dividend. This represents a $0.48 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Friday, August 7th. ArcBest's dividend payout ratio is currently 19.75%.

Hedge Funds Weigh In On ArcBest

A number of hedge funds have recently made changes to their positions in ARCB. Federation des caisses Desjardins du Quebec lifted its position in ArcBest by 0.4% during the fourth quarter. Federation des caisses Desjardins du Quebec now owns 22,995 shares of the transportation company's stock valued at $1,706,000 after purchasing an additional 100 shares during the last quarter. LPL Financial LLC increased its stake in ArcBest by 3.4% during the fourth quarter. LPL Financial LLC now owns 6,345 shares of the transportation company's stock worth $471,000 after acquiring an additional 210 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in ArcBest by 0.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 60,911 shares of the transportation company's stock valued at $4,519,000 after purchasing an additional 281 shares during the period. California State Teachers Retirement System lifted its stake in shares of ArcBest by 1.4% in the 2nd quarter. California State Teachers Retirement System now owns 21,821 shares of the transportation company's stock valued at $1,680,000 after purchasing an additional 299 shares during the last quarter. Finally, State of Tennessee Department of Treasury grew its holdings in ArcBest by 3.5% during the 2nd quarter. State of Tennessee Department of Treasury now owns 10,454 shares of the transportation company's stock valued at $805,000 after purchasing an additional 354 shares during the last quarter. Institutional investors own 99.27% of the company's stock.

Analyst Upgrades and Downgrades

ARCB has been the topic of several recent analyst reports. Bank of America raised their target price on shares of ArcBest from $138.00 to $160.00 and gave the stock a "neutral" rating in a report on Friday, June 5th. Weiss Ratings cut ArcBest from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, May 28th. Zacks Research upgraded ArcBest from a "hold" rating to a "strong-buy" rating in a report on Thursday, April 30th. Citigroup started coverage on ArcBest in a research note on Wednesday, July 15th. They issued a "market outperform" rating for the company. Finally, Stephens upgraded shares of ArcBest to a "strong-buy" rating in a report on Wednesday, July 8th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, ArcBest currently has an average rating of "Moderate Buy" and an average target price of $155.08.

About ArcBest

ArcBest Corporation NASDAQ: ARCB is a transportation and logistics company that offers comprehensive freight and supply chain solutions across North America. Founded in 1923 as Arkansas Best Freight System, the company has evolved into a diversified service provider with both asset-based and asset-light operations. Its core businesses include less-than-truckload (LTL) shipping through ABF Freight, expedited full-truckload services via Panther Premium Logistics, and a range of logistics and supply chain management services under its ArcBest Integrated Logistics division.

The company's asset-based operations also encompass FleetNet America, a provider of emergency roadside assistance and maintenance services for heavy-duty vehicles.

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