Key Highlights

  • Third quarter Revenue rose 15% to USD 1.21 billion, edging past the USD 1.20 billion estimate.
  • Non-GAAP EPS reached USD 2.62 versus a USD 2.50 estimate, while GAAP EPS rose to USD 2.30.
  • Asset-Based non-GAAP operating ratio improved to 90.4% from 92.5%, and Asset-Light non-GAAP Operating Income reached USD 14.4 million.
  • Contract renewals averaged a 5.1% increase, and the company repurchased USD 26 million of shares.

ArcBest (NASDAQ:ARCB) reported third quarter revenue of USD 1.21 billion, up from USD 1.05 billion a year earlier and just above the USD 1.20 billion estimate. Non-GAAP EPS of USD 2.62 topped the USD 2.50 estimate and compares with USD 1.46 in the year-earlier quarter. GAAP Net Income was USD 51.7 million, or USD 2.30 per diluted share, versus USD 39.3 million, or USD 1.72. Non-GAAP results exclude charges tied to the restructuring plan announced on July 16.

Asset-Based and Asset-Light Segments

Asset-Based revenue was USD 798.6 million against USD 726.5 million, a per-day increase of 9.9%. Tonnage per day rose 9.6% and shipments per day fell 3.0%, as weight per shipment climbed 13.0% on a shift in freight profile. Billed revenue per shipment increased 14.2%, and billed revenue per hundredweight rose 1.1%, largely on fuel Surcharge revenue. Contract renewals averaged a 5.1% increase, and management described LTL industry pricing as rational. GAAP operating income was USD 75.6 million at a 90.5% operating ratio, while the non-GAAP operating ratio improved to 90.4% from 92.5%.

Asset-Light revenue rose to USD 446.3 million from USD 356.0 million, a per-day increase of 25.4%, with revenue per shipment up 23.8% as truckload capacity tightened. Non-GAAP operating income was USD 14.4 million against USD 1.6 million, and adjusted EBITDA was USD 15.6 million versus USD 3.1 million.

Chief executive Seth Runser credited disciplined execution, momentum in Asset-Light and savings from organizational changes. The company also began rolling out an in-house operations management system for Asset-Light, starting with its expedite service.

Earnings Quality and Balance Sheet

Operating income was USD 73.3 million, up from USD 54.6 million. Nine month results were weaker, with revenue of USD 3.394 billion, up from USD 3.037 billion, but net income of USD 36.8 million versus USD 68.2 million, reflecting asset Impairment charges recorded earlier in the year. The income tax provision was USD 19.2 million.

Cash and equivalents stood at USD 184.9 million, up from USD 102.0 million at December 31, 2025. Interest and financing costs were USD 3.2 million. ArcBest repurchased USD 26 million of shares during the quarter and an additional USD 14 million in October. Diluted shares averaged 22.4 million, down from 22.8 million a year ago.

October Trends and Fourth Quarter Targets

In October, Asset-Based daily tonnage rose about 15% year over year on a 14% rise in weight per shipment and a 1% rise in shipments per day. Billed revenue per shipment increased 18%. Management projects year-over-year growth in weight per shipment to moderate as the company laps its freight selection initiatives. It targets a fourth quarter Asset-Based non-GAAP operating ratio that rises sequentially by about 50 to 150 basis points, compared with a historical average increase of about 180 basis points from the third to the fourth quarter.

Asset-Light daily revenue rose about 27% in October, with revenue per shipment up 18% and shipments per day up 8%. The company guided fourth quarter Asset-Light non-GAAP operating income to about USD 7 million to USD 10 million.

Quarter in Numbers

Asset-Based non-GAAP operating ratio of 90.4% compares with 92.5% a year ago and a fourth quarter target of roughly 90.9% to 91.9%, by simple addition to the third quarter level. Asset-Light non-GAAP operating income of USD 14.4 million compares with the fourth quarter guide of USD 7 million to USD 10 million. Non-GAAP EPS of USD 2.62 compares with GAAP EPS of USD 2.30, and cash of USD 184.9 million compares with USD 102.0 million at the start of the year.