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Did ArcBest beat or miss consensus estimates last quarter?

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What does ArcBest do and what are its main business segments?

- **Q3 Growth**: 4% LTL shipment growth, 9% Truckload revenue per shipment increase, and 33% Asset-Light productivity improvement.
- **Service Recovery**: Cartage costs normalized, service levels restored post-summer peak.
- **Pricing Momentum**: 4.5% deferred contract renewals (up from 2.5% Q2), with AI tools driving 52% digital shipment augmentation.
- **Q4 Challenges**: 400bps OR increase expected, driven by macro weakness and government shutdown.
- **Long-Term Targets**: 2028 goals include 87-90% LTL OR, $40-70M Asset-Light operating income, and $12-15 EPS.

**【CEO Summary Section】**
- Judy McReynolds highlighted ArcBest's 3-pillar strategy: growth, efficiency, and innovation, emphasizing customer-centric solutions. She announced her transition to Chairman, expressing confidence in Seth Runser's leadership.
- Seth Runser reported Q3 2025 results: 4% year-over-year daily shipment growth in Asset-Based LTL, 2.5% growth in Asset-Light shipments, and 9% revenue per shipment increase in Truckload. Challenges included service disruptions due to higher volumes and Cartage reliance, resolved through hiring and operational adjustments.
- Pricing discipline yielded 4.5% deferred contract renewals, and AI tools like the Truckload Carrier Portal improved efficiency (52% digitally augmented shipments).

**【CFO Financial Commentary】**
- Q3 2025 revenue: $1 billion (down 2% YoY). Non-GAAP operating income: $50 million (down 9% YoY). Asset-Based operating ratio: 92.5% (up 150bps YoY). Asset-Light operating income: $1.1 million (vs. $4 million loss YoY).
- Cost controls reduced SG&A by 13% in Asset-Light. Capital expenditures reduced to $200 million, with $16 million gain from real estate sales. Share buybacks and dividends returned $66 million YTD.
- Q4 2025 guidance: 400bps sequential OR increase due to macro weakness, with Asset-Light expecting $1-3 million loss.

**【Q&A Key Highlights】**
- **Volume & Pricing**: Q4 2025 shipments expected to decline 5% YoY, driven by PMI weakness and government shutdown. Pricing renewals improved to 4.5% Q3 vs. 2.5% Q2, but revenue per hundredweight declined 1% YoY due to lower weight per shipment.
- **Capacity Dynamics**: LTL capacity reduced due to Yellow bankruptcy, positioning ArcBest for future pricing recovery. Truckload overlap in LTL is <5%, but macro improvement could add 280bps to OR by 2028.
- **Housing Impact**: U-Pack business reflects housing market weakness, but lower interest rates may spur demand in 2026.
- **Productivity**: Asset-Light productivity up 33% YoY, with 33% shipments per employee/day. Continuous improvement initiatives delivered $20M savings YTD.


ArcBest Corporation (ARCB) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ARCB

ARCB fundamentals

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