• Consolidated Revenue: Decreased by 7% to $967 million.
• Non-GAAP Operating Income: $17 million, down from $43 million in the prior year.
• Adjusted Earnings Per Share: $0.51, down from $1.34 in Q1 2024.
• Asset Based Revenue: $646 million, a per day decrease of 3%.
• Asset Based Operating Ratio: 95.9%, increased by 390 basis points year-over-year.
• Daily Shipments: Flat year-over-year, with a 4% decrease in weight per shipment.
• Revenue Per Hundredweight: Increased by 2% year-over-year.
• Asset Light Revenue: $356 million, a daily decrease of 9% year-over-year.
• Asset Light Non-GAAP Operating Loss: $1.2 million, improved from a $4.7 million loss last year.
• Capital Expenditure Guidance: $225 million to $275 million for 2025.
• Available Liquidity: Approximately $350 million.

• Warning! GuruFocus has detected 10 Warning Signs with BOM:542602.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ArcBest Corp (NASDAQ:ARCB) has made significant progress in boosting operational efficiency and eliminating unnecessary costs, positioning the company to adapt effectively to dynamic market conditions.
• The company has seen a 31% improvement in the speed of deal execution due to addressing workflow bottlenecks and streamlining processes.
• ArcBest Corp (NASDAQ:ARCB) has achieved double-digit growth in its managed transportation solution, reaching all-time quarterly highs for both shipments and revenue.
• The company has successfully increased its sales pipeline with a higher mix of core LTL opportunities, investing in sales teams to grow its share of small and medium-sized businesses.
• ArcBest Corp (NASDAQ:ARCB) has introduced innovative solutions like Box Vision, enhancing transparency and compliance in freight handling workflows, and expects it to be a cost-effective solution.

Negative Points

• Consolidated revenue decreased by 7% from the previous year's first quarter, with non-GAAP operating income from continuing operations dropping significantly.
• The Asset Based segment saw a $27 million decrease in operating income, and the Asset Light segment reported a non-GAAP operating loss.
• Adjusted earnings per share fell to $0.51 from $1.34 in the first quarter of 2024, indicating a decline in profitability.
• The company experienced a 4% decrease in weight per shipment, resulting in a 4% decrease in tons per day compared to the previous year.
• Revenue per hundredweight decreased by 2% in April 2025, partly driven by an increase in shipments from core customers with easier-to-handle freight, which generally have a lower revenue per hundredweight profile.

Q & A Highlights

Q: Can you provide more details on the sequential change in revenue and any specific cost reductions due to the macroeconomic environment? A: Matt Beasley, CFO, explained that while no specific revenue outlook was provided, normal seasonality is expected to drive revenue per day increases, improving the operating ratio. On the cost side, ArcBest continues to implement cost initiatives, including compliance campaigns and aligning workforce levels with business demands.

Q: How is ArcBest managing pricing and volume in the current market environment? A: Judy McReynolds, CEO, emphasized a disciplined approach to pricing, with a strong focus on capturing core LTL business. Eddie Sorg, Chief Commercial Officer, noted that dynamic pricing has improved, allowing ArcBest to optimize shipments and maintain profitability.

Q: Can you break down the expected 300 to 400 basis point improvement in operating ratio for Q2? A: Judy McReynolds highlighted that the improvement considers macro initiatives and investments in technology, equipment, and real estate. Matt Beasley added that strategic real estate and equipment investments have enhanced efficiency and service, supporting strong pricing.

Q: How is the pricing environment in LTL, given the sequential growth in contract renewals? A: Eddie Sorg stated that the market remains rational, with no peers aggressively pursuing growth at the expense of pricing. ArcBest's ability to demonstrate value to customers has resulted in successful contract renewals and pricing increases.

Q: What are the impacts of the current macroeconomic environment on ArcBest's operations and strategy? A: Judy McReynolds and Seth Runser discussed the focus on operational efficiencies and strategic investments to navigate challenges. ArcBest is leveraging AI and machine learning to enhance efficiency and is well-positioned for growth despite macroeconomic pressures.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.