Financial Data and Key Metrics Changes - Consolidated revenue decreased by 7% year-over-year to $967 million, with non-GAAP operating income from continuing operations at $17 million compared to $43 million in the prior year [22] - Adjusted earnings per share were $0.51, down from $1.34 in Q1 2024 [22] - The Asset Based segment saw a $27 million decrease in operating income, while the Asset Light segment's non-GAAP operating loss improved by $4 million year-over-year [22] Business Line Data and Key Metrics Changes - Asset Based business revenue was $646 million, a daily decrease of 3%, with an operating ratio of 95.9%, an increase of 390 basis points year-over-year [23] - Daily shipments in the Asset Based segment were flat year-over-year, while weight per shipment decreased by 4%, leading to a 4% decrease in tons per day [23] - Asset Light segment revenue was $356 million, a daily decrease of 9%, with shipments per day down 4% [28] Market Data and Key Metrics Changes - In April 2025, the Asset Based business achieved a 4% year-over-year increase in daily shipments, despite a 3% decrease in weight per shipment [26] - The pricing environment remains rational, with a 4.9% average increase on contract renewals during the quarter [25][51] - The company anticipates a non-GAAP operating loss for the Asset Light segment of between $1 million and $2 million for Q2 2025 [30] Company Strategy and Development Direction - The company is focused on driving profitable growth, advancing premium service for customers, and optimizing efficiency [11] - Investments in technology and operational efficiency are expected to enhance service levels and reduce costs [89] - The company is adapting to changes in trade policies and tariffs, aiming to support customers in navigating these challenges [5][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value despite challenges in the freight environment [10] - The leadership team highlighted a disciplined approach to pricing and operational efficiency to outpace rising costs [25][66] - Management noted that customer relationships remain strong, with 80% of revenue coming from long-term customers [67] Other Important Information - The company has a capital expenditure guidance of $225 million to $275 million for 2025, focusing on maintenance and strategic investments [30] - Approximately $350 million in available liquidity is reported, indicating a strong balance sheet [31] Q&A Session Summary Question: Near term setup and profitability outlook - Management expects normal seasonality to drive revenue increases and continues to target cost reductions aligned with business levels [34][36] Question: Tonnage and revenue per hundredweight trends - Management noted a 1% sequential increase in tonnage but a 1% decrease in revenue per hundredweight, attributing this to a mix of easier-to-handle shipments [38][66] Question: Pricing environment and competitive landscape - Management indicated that the pricing environment remains rational, with no significant pressure from competitors to lower prices [51][52] Question: Retail exposure and inbound traffic from China - The company has around 10% exposure to the retail sector, with varying impacts from inbound traffic from China [78] Question: Strategies in a stagflation environment - Management emphasized operational efficiencies and strategic investments to navigate inflationary pressures while maintaining service levels [88][91]

Core Insights - ArcBest reported revenue of $967.08 million for the quarter ended March 2025, a decrease of 6.7% year-over-year, and EPS of $0.51, down from $1.34 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $981.56 million by 1.48%, and the EPS was also below the consensus estimate of $0.52 by 1.92% [1] Financial Performance Metrics - ArcBest's shares have declined by 16.3% over the past month, contrasting with the Zacks S&P 500 composite's decline of 0.8%, indicating potential underperformance in the near term with a Zacks Rank 4 (Sell) [3] - The Asset-Light Operating Ratio was reported at 101.2%, slightly better than the average estimate of 101.6% from three analysts [4] - The Asset-Based Operating Ratio was 95.9%, aligning closely with the average estimate of 95.7% from three analysts [4] - Asset-Based revenues were reported at $646.29 million, a decrease of 3.8% year-over-year, compared to the average estimate of $647.61 million from four analysts [4] - Asset-Light revenues were reported at $356.01 million, down 10.2% year-over-year, against the average estimate of $366.20 million from four analysts [4] - The reported revenue from Other and eliminations was -$35.23 million, worse than the average estimate of -$31.14 million from three analysts, but showed a year-over-year improvement of 12.2% [4]

Financial Data and Key Metrics Changes - Consolidated revenue decreased by 7% year-over-year to $967 million, with non-GAAP operating income from continuing operations at $17 million compared to $43 million in the prior year [24] - Adjusted earnings per share were $0.51, down from $1.34 in Q1 2024 [24] - The Asset Based segment saw a $27 million decrease in operating income, while the Asset Light segment's non-GAAP operating loss improved to $1 million from $4 million the previous year [24] Business Line Data and Key Metrics Changes - Asset Based business revenue was $646 million, a daily decrease of 3%, with an operating ratio of 95.9%, an increase of 390 basis points year-over-year [25] - Daily shipments in the Asset Based segment were flat year-over-year, while weight per shipment decreased by 4%, resulting in a 4% decrease in tons per day [25] - Asset Light segment revenue was $356 million, a daily decrease of 9%, with shipments per day down 4% due to a strategic reduction in less profitable truckload volumes [29] Market Data and Key Metrics Changes - In April 2025, the Asset Based business achieved a 4% year-over-year increase in daily shipments, despite a 3% decrease in weight per shipment [28] - The pricing environment remains rational, with a 4.9% average increase on contract renewals during the quarter [27][53] - The company noted a decline in shipments within the manufacturing vertical, impacting revenue per hundredweight [28] Company Strategy and Development Direction - The company is focused on driving profitable growth, advancing premium service for customers, and optimizing efficiency [13] - Investments in technology and operational efficiency are expected to enhance service levels and reduce costs [89] - The company is adapting to changes in trade policies and tariffs, aiming to support customers in navigating these challenges [6][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value despite challenges in the freight environment [12] - The leadership team highlighted a disciplined approach to pricing and operational efficiency to outpace rising costs [27][41] - Management noted that while external factors are unpredictable, the company is focused on controlling its operations and maintaining financial discipline [32] Other Important Information - The company expects capital expenditures for 2025 to be between $225 million and $275 million, focusing on maintenance and strategic investments [31] - The company has approximately $350 million in available liquidity, indicating a strong balance sheet [32] Q&A Session Summary Question: Near term setup and profitability targets - Management expects normal seasonality to drive revenue increases and continues to implement cost initiatives to align workforce with business levels [36][38] Question: Tonnage and revenue per hundredweight trends - Management noted a 1% sequential increase in tonnage but a 1% decrease in revenue per hundredweight, attributing this to a mix of easier-to-handle shipments [40][44] Question: Competitive environment and pricing dynamics - Management emphasized that the pricing environment remains rational, with no significant pressure from competitors to lower prices [53][66] Question: Retail exposure and inbound traffic from China - The company has around 10% exposure to the retail sector, with variations between asset-based and asset-light businesses [80] Question: Strategies in a stagflation environment - Management highlighted operational efficiencies and strategic investments as key levers to navigate inflationary pressures [88][91]

Company Strategy and Performance - ArcBest leverages technology and a full suite of solutions to meet customer supply chain needs, addressing a $398 billion addressable market[8] - The company focuses on a three-point strategy: increasing efficiency, driving innovation, and accelerating growth to enhance shareholder value[11, 12, 13] - Cross-selling accounts yields over 3x higher revenue and profit compared to single-solution accounts, with customer retention rates 5 percentage points higher[29, 30, 32, 33] - ArcBest's strategy has improved the asset-based operating ratio by 240 bps compared to 2019[79] Technology and Innovation - The company is improving efficiency through technology, training, and network design, achieving a +1% increase in asset-based shipments/DSY hour and a +24% increase in asset-light shipments/employee/day[24] - Dynamic pricing improves as quotes grow, leading to approximately 50% more revenue per shipment since 2020[40] - Vaux Vision transforms forklifts into intelligent mobile dimensioners, capturing certified dimensions and shipment attributes[43] Q1 2025 Financial Results - ArcBest's consolidated revenue for Q1 2025 was $967 million, a decrease of 7% year-over-year[89, 90] - Non-GAAP earnings per diluted share for Q1 2025 were $0.51, a decrease of 62% year-over-year[91] - Asset-Based revenue in Q1 2025 was $646 million, with a 3% decrease per day[95] - Asset-Light revenue in Q1 2025 was $356 million, a decrease of 9% per day[109]

Company Performance - ArcBest reported quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.52 per share, and down from $1.34 per share a year ago, representing an earnings surprise of -1.92% [1] - The company posted revenues of $967.08 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.48%, and down from $1.04 billion year-over-year [2] - Over the last four quarters, ArcBest has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Performance - ArcBest shares have lost approximately 36.7% since the beginning of the year, compared to a decline of -6% for the S&P 500 [3] - The current Zacks Rank for ArcBest is 4 (Sell), indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.57 on revenues of $1.08 billion, and for the current fiscal year, it is $5.87 on revenues of $4.3 billion [7] - The estimate revisions trend for ArcBest is currently unfavorable, which may change following the recent earnings report [6] Industry Context - The Transportation - Truck industry, to which ArcBest belongs, is currently in the bottom 5% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly impact stock performance [5][8]

Financial Performance - First quarter 2025 revenue was $967.1 million, a decrease from $1.0 billion in the same quarter of 2024[2] - Net income from continuing operations was $3.1 million, or $0.13 per diluted share, compared to a net loss of $2.9 million, or $0.12 per diluted share in the prior year[2] - Total consolidated revenues from continuing operations decreased to $967.1 million in Q1 2025, down 6.7% from $1,036.4 million in Q1 2024[21] - Net income for Q1 2025 was $3.1 million, a significant improvement compared to a net loss of $2.3 million in Q1 2024[20] - Operating income for the first quarter was $6.6 million, down from $22.4 million in the prior year[17] - Operating income from continuing operations was $6.6 million in Q1 2025, down from $22.4 million in Q1 2024[21] - ArcBest Corporation reported a GAAP operating income of $6,630 thousand for Q1 2025, down from $22,435 thousand in Q1 2024, reflecting a decrease of 70.5%[25] - Non-GAAP operating income for Q1 2025 was $17,335 thousand, compared to $42,645 thousand in Q1 2024, representing a decline of 59.4%[25] - The net income on a GAAP basis for Q1 2025 was $3,131 thousand, a significant improvement from a net loss of $2,912 thousand in Q1 2024[25] - Diluted earnings per share (EPS) on a GAAP basis increased to $0.13 in Q1 2025 from a loss of $0.12 in Q1 2024[25] Revenue and Tonnage - Asset-Based first quarter tonnage declined by 3.9% due to a decrease in weight per shipment and flat daily shipments[3] - Revenue per day decreased by 3.9% compared to the fourth quarter of 2024, with a 2.7% decrease in tonnage per day[5] - Asset-Light revenues were impacted by lower revenue per shipment, with shipments per day down by 3.7%[8] - Total billed revenue per hundredweight increased by 1.7% year-over-year[7] - Average billed revenue per hundredweight (CWT) increased by 1.7% to $49.40 in Q1 2025, while billed revenue per shipment decreased by 2.3% to $530.49[38] - The company reported a decrease in tonnage per day by 4.3% to 10,466 in Q1 2025, alongside a slight decrease in shipments per day by 0.4% to 19,491[38] Assets and Liabilities - Cash and cash equivalents at the end of Q1 2025 were $74.1 million, a decrease of 42% from $172.9 million at the end of Q1 2024[20] - Total current assets decreased to $625.2 million in Q1 2025, down from $675.6 million in Q4 2024[19] - Total liabilities decreased to $1,112.4 million in Q1 2025, compared to $1,115.4 million in Q4 2024[19] Operating Expenses - Operating expenses from continuing operations totaled $960.4 million in Q1 2025, a decrease from $1,014.0 million in Q1 2024[21] Shareholder Returns - Over $24 million was returned to shareholders through share repurchases and dividends[6] Technology Development - The company is developing new technology, including Vaux™, recognized as one of TIME's Best Inventions of 2023[11] Segment Performance - The asset-based segment reported revenues of $646.3 million in Q1 2025, down from $671.5 million in Q1 2024[21] - The asset-light segment's revenues decreased to $356.0 million in Q1 2025, compared to $396.4 million in Q1 2024[21] - The Asset-Based segment reported an operating income of $26,417 thousand with an operating ratio of 95.9% in Q1 2025, compared to $53,456 thousand and 92.0% in Q1 2024[27] - The Asset-Light segment experienced an operating loss of $4,380 thousand in Q1 2025, an improvement from a loss of $15,258 thousand in Q1 2024[27] EBITDA - Consolidated Adjusted EBITDA from continuing operations for Q1 2025 was $73,332 thousand, up from $49,276 thousand in Q1 2024, marking a 48.9% increase[32] Tax Rate - The effective tax rate for continuing operations on a GAAP basis was 25.0% in Q1 2025, compared to a negative rate of (37.7)% in Q1 2024[29]

Core Viewpoint - The market anticipates a year-over-year decline in ArcBest's earnings due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - ArcBest is expected to report quarterly earnings of $0.52 per share, reflecting a year-over-year decrease of 61.2% [3]. - Revenues are projected to be $981.56 million, down 5.3% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 11.88% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for ArcBest is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -6.03% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictor for positive readings [7][8]. - ArcBest's current Zacks Rank is 4, making it challenging to predict an earnings beat [11]. Historical Performance - In the last reported quarter, ArcBest exceeded earnings expectations with a surprise of +26.67%, having reported earnings of $1.33 per share against an expectation of $1.05 [12]. - Over the past four quarters, ArcBest has only beaten consensus EPS estimates once [13]. Industry Comparison - Another player in the transportation industry, Saia, is expected to report earnings of $2.77 per share, indicating a year-over-year change of -18.1%, with revenues expected to rise by 7.3% [17]. - Saia's consensus EPS estimate has been revised down by 7.6% in the last 30 days, and it has an Earnings ESP of -0.01% [18].

Industry Overview - Freight and logistics sectors are facing challenges due to persistent inflation and declining demand [1] - ArcBest Corporation, a long-standing player in the industry, is experiencing weaker topline performance in 2024 [1] Company Insights - ArcBest Corporation has been in operation for nearly 60 years, indicating its long-standing presence in the logistics market [1] - The company's performance reflects broader industry trends, highlighting the impact of economic conditions on established firms [1]

Group 1 - The broader markets are experiencing a downturn due to concerns over tariffs, trade issues, inflation, and recession prospects [1] - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and companies that generate it [1] - The service aims to identify value and growth prospects with real potential in the oil and gas sector [1] Group 2 - Subscribers have access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2] - A two-week free trial is available for new subscribers to explore the oil and gas investment opportunities [3]

Financial Performance - Revenues for 2024 were $4,179,019, a decrease of 5.6% from $4,427,443 in 2023[455] - Operating income increased to $244,434 in 2024, up 41.6% from $172,619 in 2023[455] - Net income from continuing operations was $173,361, representing a 22% increase compared to $142,164 in 2023[455] - Net income for 2024 was $173.961 million, a decrease of 10.9% from $195.433 million in 2023 and a significant drop from $298.209 million in 2022[460] - The company reported a total comprehensive income of $169,909 in 2024, down from $192,654 in 2023[457] - Total consolidated revenues decreased to $4.179 billion in 2024 from $4.427 billion in 2023, a decline of approximately 5.6%[622] - The Asset-Based segment generated revenues of $2.750 billion in 2024, down from $2.871 billion in 2023, a decrease of 4.2%[622] - The Asset-Light segment's revenues fell to $1.553 billion in 2024 from $1.681 billion in 2023, a decline of 7.6%[622] Assets and Liabilities - Total current assets decreased to $675,642 in 2024, down 23.6% from $884,783 in 2023[454] - Total assets decreased to $2,429,731 in 2024, down 2.2% from $2,485,094 in 2023[454] - Total stockholders' equity increased to $1,314,362 in 2024, up 5.8% from $1,242,363 in 2023[454] - Cash and cash equivalents decreased to $127,444 in 2024, down 51.4% from $262,226 in 2023[454] - Total accrued expenses increased to $394.9 million in 2024 from $378.0 million in 2023, driven by higher workers' compensation and casualty claims reserves[569] - Long-term debt as of December 31, 2024, totaled $189.1 million, an increase from $178.9 million in 2023, with a weighted-average interest rate of 4.6%[557] Cash Flow and Investments - The Company reported net cash provided by operating activities of $285.846 million in 2024, down from $322.167 million in 2023[460] - The Company purchased property, plant, and equipment totaling $223.103 million in 2024, compared to $219.021 million in 2023[460] - Cash and cash equivalents at the end of 2024 were $127.444 million, a decrease from $262.226 million at the end of 2023[460] - The fair value of the company's equity investment in Phantom Auto increased by $3.7 million in 2023[627] Market Risks - Future borrowings under the Credit Facility and A/R Securitization are at a SOFR based variable interest rate, exposing the company to interest rate risks[435] - The company is exposed to market risk from changes in interest rates, diesel fuel prices, and foreign currency exchange rates[433] - The company has not engaged in a program for fuel price hedging and had no fuel hedging agreements outstanding as of December 31, 2024[438] - The company has not entered into any foreign currency forward exchange contracts to hedge against adverse fluctuations in foreign currency exchange rates[440] Employee and Pension Obligations - The Company recognized discretionary contribution expenses of $11.5 million in 2024, compared to $13.1 million in 2023 and $19.1 million in 2022[580] - The Company reported a matching expense for nonunion 401(k) plans totaling $9.2 million in 2024, up from $7.1 million in 2023[580] - Approximately 4% of ABF Freight's multiemployer pension plan contributions in 2024 were made to plans in "critical and declining status" and 54% to plans in "critical status"[592] - The funded percentage of the Central States Pension Plan was reported at 98.5% as of January 1, 2023, despite being in critical status through 2051 due to SFA Program funding[599] Shareholder Returns - The Company declared dividends on common stock amounting to $11.295 million in 2024, slightly down from $11.542 million in 2023[460] - Dividends declared for 2024 were consistent at $0.12 per share across all four quarters, totaling approximately $11.3 million for the year[608] - In 2024, the company repurchased 654,707 shares for a total cost of $75.2 million, leaving $56.6 million remaining under the share repurchase program[611] Impairments and Write-offs - The company recorded a pre-tax, noncash impairment charge of $28.7 million for its equity investment in Phantom Auto in Q1 2024 due to the company's cessation of operations[530] - The accumulated impairment of goodwill remained at $20 million as of December 31, 2024, with no impairment identified during the annual evaluation[537] - The company recorded impairment charges for revenue equipment and software totaling $1.7 million in Q4 2024 as part of a strategic decision to adjust capacity[531] Revenue Recognition and Accounting Policies - The company recognizes revenue based on the expense incurred relative to each shipment's transit time, utilizing a bill-by-bill analysis for revenue recognition[501] - The company estimates variable consideration for discounts based on historical expectations, ensuring revenue recognition aligns with actual amounts earned[502] - The company has adopted an amendment to ASC Topic 280, enhancing disclosures of significant segment expenses, effective from the fourth quarter of 2024[515]