ArcBest Corporation, a logistics provider traded on NASDAQ under the ticker ARCB, disclosed its financial performance for the fourth quarter of 2025, highlighting the impacts of a challenging freight market on its operational results. The company generated total revenue of $972.7 million during the quarter, registering a decline from $1.0 billion realized in the same period the previous year. Despite revenues surpassing analyst estimates of $966.361 million, adjusted earnings per share (EPS) fell short at 36 cents compared to the anticipated 41 cents.
The reported results incorporated a noncash impairment charge of $9.1 million after tax. Within the revenue components, the asset-based segment contributed $648.8 million, slightly reduced from $656.2 million in the prior year quarter. This segment saw a 2.6% increase in tonnage per day alongside a 2.4% rise in shipments per day, indicating volume expansion amid pricing challenges. However, billed revenue metrics declined, with revenue per hundredweight decreasing by 2.7% and revenue per shipment contracting by 2.5%. These pricing pressures contributed to the asset-based segment's operating income of $24.4 million, a significant decrease from the $52.3 million noted one year earlier. Correspondingly, the operating ratio worsened to 96.2% from 92.0%, reflecting higher operating costs relative to revenue.
ArcBest attributed shipment growth in the asset-based division to the onboarding of new core less-than-truckload (LTL) customers. The company noted that pricing gains observed were partially offset by shifts in the freight mix, emphasizing that the industry-wide LTL pricing environment remains rational, despite the downward adjustments in effective billed rates.
The asset-light segment reported revenues of $353.5 million for the quarter, trending downwards from $375.4 million in the comparable period of the previous year. Shipments per day within this segment grew modestly by 0.8%, yet average revenue per shipment declined sharply by 5.8%, underscoring persistent rate softness. Operating results for the asset-light segment reflected an operating loss of $9.9 million against a prior loss of $1.6 million a year before. On a non-GAAP basis, the segment reportedly broke even. Adjusted EBITDA improved to $1.4 million from a negative $4.2 million, indicating some recovery. The company cited challenges due to lower revenue per shipment in a subdued rate environment, as well as an increased proportion of managed transportation services, which impacted segment profitability.
Looking at full-year 2025 results, ArcBest's total revenue stood at $4.0 billion, down from $4.2 billion achieved in 2024. Net income attributable to continuing operations dropped to $60.1 million, equivalent to $2.62 diluted earnings per share, a marked decline from $173.4 million, or $7.28 per diluted share, in the prior year. The prior year's figure included a $67.9 million after-tax benefit associated with the MoLo acquisition, contributing substantially to that year's earnings.
On a non-GAAP basis, the firm reported full-year net income of $84.8 million or $3.70 per diluted share, compared with $149.7 million or $6.28 per diluted share in 2024. These adjusted figures reflect the exclusion of certain items and provide insight into the underlying operational performance.
ArcBest President and CEO Seth Runser characterized 2025 as a period marked by "strong execution and meaningful progress," despite the headwinds imposed by a difficult freight environment. He emphasized that the company succeeded in increasing LTL shipment volumes and tonnage, restoring profitability in the asset-light segment, and achieving record productivity levels within the asset-light operations. According to Runser, customer adoption of integrated, technology-driven solutions was a key factor in these advancements.
Cash flow from operating activities generated $228.953 million during 2025, supporting liquidity which ended the year with cash and cash equivalents totaling $102.030 million. Capital expenditures, including financed equipment acquisitions, totaled $198 million throughout the year.
In terms of shareholder returns, ArcBest distributed over $86 million via share repurchases and dividends. The company maintained a share repurchase authorization balance of $100.8 million as of January 28, 2026.
Reflective of the earnings report, ArcBest's stock price declined modestly, trading down 0.84% to $84.59 at the time of the report's publication.