ArcBest Corp

Second-quarter revenue was $1.2 billion, up 16% year over year. Non-GAAP operating income was $74 million versus $45 million a year ago, and adjusted EPS was $2.38 versus $1.36 in Q2 2025. In Asset-Based, revenue was $784 million and the adjusted operating ratio improved to 90.8%, 200 bps better year over year and 650 bps better sequentially; daily tonnage rose 5%, weight per shipment rose 8%, and billed revenue per shipment increased 13%. In Asset-Light, revenue was $439 million, shipments per day increased 15%, and operating income was $6 million, up $5 million year over year. Management expects Q3 Asset-Based adjusted OR to be generally in line with Q2, assuming lower fuel surcharge revenue partly offset by restructuring savings, and Q3 Asset-Light operating income of about $6 million to $8 million.

Seth Runser said the quarter showed “meaningful improvement” in earnings and margin and reflected progress from disciplined pricing, a heavier freight mix, and efficiency gains. He framed the restructuring, brand consolidation, and facility closures as difficult but necessary steps to make ArcBest simpler, more efficient, and better positioned for profitable long-term growth. His tone was upbeat but measured: he said the market is gradually improving, demand has not yet broadly inflected, and the company is focused on what it can control while staying disciplined on capital and service.

J. Matthew Beasley emphasized that stronger pricing, higher weight per shipment, growth in managed solutions, and productivity gains drove sequential improvement. He disclosed $76.5 million of noncash impairment charges tied to the Panther trade name and U-Pack assets, plus an $8.8 million noncash office-space impairment; he also expects about $6 million to $7 million of cash costs, mostly in Q3. He said the restructuring should generate $40 million of annualized savings, with about $2 million realized in Q2, about $6 million in Q3, and full run-rate by Q1 2027. He also reiterated disciplined capital allocation, selective investment, a strong balance sheet, and returning capital to shareholders.

Analysts pressed management on fuel, July trends, truckload spillover, pricing, the restructuring, and liability/insurance implications after the Supreme Court broker-selection ruling. Management said fuel helped both revenue and costs in Q2 and expected Q3 fuel to step down a bit, but still guided ABF to flat sequential OR performance. On pricing, management pointed to a 5.8% annual negotiation increase and a 5.9% general rate increase on June 22 that is holding well, while saying low double-digit truckload rate increases are consistent with near-term expectations. They also said the restructuring is meant to simplify the company and is not a strategy change, and they do not expect a change in outlook from the liability ruling at this time.