ArcBest Announces Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

ArcBest (ARCB) reported Q4 2024 revenue of $1.0 billion, down from $1.1 billion in Q4 2023, with net income decreasing to $29.0 million ($1.24 per diluted share) from $48.8 million ($2.01 per diluted share). Full-year 2024 revenue was $4.2 billion versus $4.4 billion in 2023.

The Asset-Based segment saw Q4 revenue decline 7.6% to $656.2 million, with tonnage per day decreasing 7.3% and operating income falling to $52.3 million. The Asset-Light segment reported Q4 revenue of $375.4 million, down 9.2%, with an operating loss of $1.6 million.

The company returned over $85 million to shareholders through share repurchases and dividends in 2024. Total net capital expenditures were $288 million, including $160 million for revenue equipment and $85 million in real estate.

Positive

• Contract renewals achieved average price increases of 4.5% in Q4
• Productivity improvements of 2.3% helped offset market challenges
• Asset-Light segment improved shipments per employee per day by 20.8% year-over-year
• Returned $85 million to shareholders through dividends and share repurchases

Negative

• Q4 revenue declined 9.1% year-over-year to $1.0 billion
• Q4 net income decreased 40.6% to $29.0 million
• Asset-Based segment operating income fell $35.2 million compared to Q4 2023
• Asset-Light segment reported operating loss of $1.6 million in Q4

Insights

Financial Analyst

ArcBest's Q4 and FY2024 results reveal a company navigating effectively through industry headwinds while maintaining strategic investments. The 7.6% decline in Asset-Based revenue and 9.2% drop in Asset-Light revenue reflect broader market challenges, but several positive indicators emerge beneath the surface.

Three key operational achievements stand out:

• Productivity improved 2.3% in the Asset-Based segment, demonstrating successful operational optimization
• Contract renewals secured average increases of 4.5%, indicating pricing power despite soft market conditions
• Asset-Light segment achieved a remarkable 20.8% year-over-year improvement in shipments per employee

The $288 million capital expenditure, including $160 million in revenue equipment and $85 million in real estate, positions ArcBest for future growth. This substantial investment, combined with maintained shareholder returns of $85 million, demonstrates strong cash flow management and strategic balance.

The operating ratio of 92.0% in Q4 for the Asset-Based segment, while higher than last year's 87.7%, remains respectable given the challenging environment. The company's focus on cost control and efficiency gains through technology adoption provides a buffer against market pressures.

Looking ahead, ArcBest's emphasis on productivity gains and network optimization, coupled with rational industry pricing, suggests resilience in maintaining profitability despite volume pressures. The company's strategic investments in technology and infrastructure position it well for an eventual market recovery.

• Productivity gains from technology, training, and network design
• Continued focus on cost control initiatives to mitigate headwinds from challenging freight environment
• Significant investments to enable growth, improve service, and increase efficiencies across the network while returning over $85 million to shareholders in 2024 through both share repurchases and dividends

FORT SMITH, Ark.--(BUSINESS WIRE)-- ArcBest^® (Nasdaq: ARCB), a leader in supply chain logistics, today reported fourth quarter 2024 revenue of $1.0 billion, compared to $1.1 billion in fourth quarter 2023. Net income was $29.0 million, or $1.24 per diluted share, compared to $48.8 million, or $2.01 per diluted share in the prior year. On a non-GAAP basis, fourth quarter 2024 net income was $31.2 million, or $1.33 per diluted share, compared to $60.0 million, or $2.47 per diluted share in the prior year.

ArcBest’s full year 2024 revenue totaled $4.2 billion compared to $4.4 billion in 2023. Net income from continuing operations was $173.4 million, or $7.28 per diluted share, including a $67.9 million after-tax benefit from the reduction in the fair value of contingent consideration related to a 2021 acquisition, compared to net income of $142.2 million, or $5.77 per diluted share in 2023. On a non-GAAP basis, full year 2024 net income was $149.7 million, or $6.28 per diluted share, compared to net income of $194.1 million, or $7.88 per diluted share, in 2023.

“Throughout 2024, we made significant progress on controlling costs, improving productivity, and enhancing our service quality,” said Judy R. McReynolds, ArcBest Chairman and CEO. “These achievements underscore our commitment to excellent execution and are yielding tangible results. I want to extend a heartfelt thank you to our dedicated employees, whose hard work and innovation have been pivotal in reaching these milestones. Together, we are well-positioned for continued growth and success.”

Results of Operations Comparisons

Asset-Based

Fourth Quarter 2024 Versus Fourth Quarter 2023

• Revenue of $656.2 million compared to $710.0 million, a per-day decrease of 7.6 percent
• Total tonnage per day decrease of 7.3 percent
• Total shipments per day decrease of 1.1 percent
• Total billed revenue per hundredweight increase of 0.6 percent
• Operating income of $52.3 million and an operating ratio of 92.0 percent, compared to $87.5 million and an operating ratio of 87.7 percent

The Asset-Based segment generated $35.2 million less operating income than fourth quarter 2023. Fourth quarter tonnage declines were driven by a 6.3 percent decrease in weight per shipment and a 1.1 percent decrease in daily shipments. Prolonged manufacturing sector weakness continues to negatively impact weight per shipment metrics. Productivity improvements of 2.3 percent and other cost initiatives helped mitigate the impact of the soft market environment, higher insurance costs, and higher labor cost increases related to the annual union contract rate increase, which went into effect during the third quarter of 2024.

Contract renewals and deferred pricing agreements saw an average increase of 4.5% during the quarter. Price improvements were offset by declining fuel costs. Excluding fuel surcharges, revenue per hundredweight increased in the mid-single digits, year-over-year. Overall, LTL industry pricing remains rational.

Compared sequentially to the third quarter of 2024, fourth quarter 2024 revenue per day decreased 4.5 percent. Weight per shipment improved 0.6 percent and shipments per day declined by 2.6 percent, resulting in a 2.1 percent decrease in tonnage per day. Billed revenue per hundredweight was 2.9 percent lower, impacted by the increase in weight per shipment, reduced fuel prices, and the increase of project-related business. Lower tonnage, offset in part by cost savings, resulted in the operating ratio increase of 100 basis points sequentially, which was on the lower end of the historical seasonality range of a 100 to 200 basis point increase.

Asset-Light

Fourth Quarter 2024 Versus Fourth Quarter 2023

• Revenue of $375.4 million compared to $413.4 million, a per-day decrease of 9.2 percent
• Operating loss of $1.6 million, compared to operating loss of $7.7 million
• On a non‑GAAP basis, operating loss of $5.9 million compared to operating loss of $1.3 million
• Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), as defined in the attached non-GAAP reconciliation tables, of negative $4.2 million compared to $0.7 million

Compared to the fourth quarter of 2023, Asset-Light revenues were impacted by lower revenue per shipment associated with the soft rate environment and a higher mix of managed transportation business, which has smaller shipment sizes and lower revenue per shipment metrics. Shipments per day were lower by 2.1 percent. The segment continues to benefit from productivity initiatives, as shipments per employee per day improved 20.8 percent, on a year-over-year basis, but the soft freight environment and excess truckload capacity continue to impact results.

Compared sequentially to third quarter 2024, fourth quarter 2024 shipments per day were down 1.4 percent, yet daily revenue was up by 0.6 percent as revenue per shipment increased 2.0 percent. Shipments per employee per day, improved by 5.8 percent, but purchased transportation costs as a percentage of revenue, increased and compressed margins. The $2.0 million sequential increase in non-GAAP operating loss was due primarily to the current truckload brokerage pricing environment.

Full Year Results of Operations Comparisons

Asset-Based

Full Year 2024 Versus Full Year 2023

• Revenue of $2.8 billion, compared to $2.9 billion, a per-day decrease of 4.6 percent
• Tonnage per day decrease of 14.3 percent
• Shipments per day decrease of 3.3 percent
• Total billed revenue per hundredweight increase of 11.7 percent
• Operating income of $242.6 million and an operating ratio of 91.2 percent, compared to $253.2 million and an operating ratio of 91.2 percent
• On a non-GAAP basis, operating income of $242.6 million and an operating ratio of 91.2 percent, compared to $275.5 million and an operating ratio of 90.4 percent

Asset-Light

Full Year 2024 Versus Full Year 2023

• Revenue of $1.6 billion compared to $1.7 billion, a per-day decrease of 8.0 percent
• Operating income of $58.4 million, including the $90.3 million pre-tax change in the fair value of contingent earnout consideration related to an earnout, compared to operating loss of $12.3 million
• On a non-GAAP basis, operating loss of $17.1 million compared to operating income of $5.3 million
• Adjusted EBITDA of negative $9.8 million compared to $12.9 million

Capital Expenditures

In 2024, total net capital expenditures, including equipment financed, were $288 million. This included $160 million of revenue equipment and $85 million in real estate, the majority of which was for ArcBest’s Asset-Based operation. Depreciation and amortization costs on property, plant and equipment were $136 million in 2024.

Share Repurchase and Quarterly Dividend Programs

ArcBest returned over $85 million to shareholders in 2024 through both share repurchases and dividends, while making significant organic capital investments in the business. As of January 29, 2025, ArcBest had $48.7 million of repurchase authorization remaining under the current stock repurchase program. Management plans to continue acting opportunistically on repurchases based on share price, balanced against prioritizing organic capital investments while maintaining reasonable leverage levels.

Conference Call

ArcBest will host a conference call with company executives to discuss the quarterly results. The call will be today, Friday, January 31, 2025 at 9:30 a.m. EST (8:30 a.m. CST). Interested parties are invited to listen by calling (800) 715‑9871 or by joining the webcast which can be found on ArcBest’s website at arcb.com. Slides to accompany this call are included in Exhibit 99.3 of the Form 8-K filed on January 31, 2025, will be posted and available to download on the company’s website prior to the scheduled conference time, and will be included in the webcast. Following the call, a recorded playback will be available through the end of the day on February 14, 2025. To listen to the playback, dial (800) 770-2030. The conference call ID for the live conference call and the playback is 7688695. The conference call and playback can also be accessed through February 14, 2025 on ArcBest’s website at arcb.com.

About ArcBest

ArcBest^® (Nasdaq: ARCB) is a multibillion-dollar integrated logistics company that helps keep the global supply chain moving. Founded in 1923 and now with 14,000 employees across 250 campuses and service centers, the company is a logistics powerhouse, using its technology, expertise and scale to connect shippers with the solutions they need — from ground, air and ocean transportation to fully managed supply chains. ArcBest has a long history of innovation that is enriched by deep customer relationships. With a commitment to helping customers navigate supply chain challenges now and in the future, the company is developing ground-breaking technology like Vaux™, one of the TIME Best Inventions of 2023. For more information, visit arcb.com.

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding (i) our expectations about our intrinsic value or our prospects for growth and value creation and (ii) our financial outlook, position, strategies, goals, and expectations. Terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “may,” “plan,” “predict,” “project,” “scheduled,” “should,” “would,” and similar expressions and the negatives of such terms are intended to identify forward-looking statements. These statements are based on management’s beliefs, assumptions, and expectations based on currently available information, are not guarantees of future performance, and involve certain risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a number of factors, including, but not limited to: the effects of a widespread outbreak of an illness or disease or any other public health crisis, as well as regulatory measures implemented in response to such events; external events which may adversely affect us or the third parties who provide services for us, for which our business continuity plans may not adequately prepare us, including, but not limited to, acts of war or terrorism, or military conflicts; data privacy breaches, cybersecurity incidents, and/or failures of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely; interruption or failure of third-party software or information technology systems or licenses; untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with, new or enhanced technology or processes, including our customer pilot offering of Vaux; the loss or reduction of business from large customers or an overall reduction in our customer base; the timing and performance of growth initiatives and the ability to manage our cost structure; the cost, integration, and performance of any recent or future acquisitions and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; unsolicited takeover proposals, proxy contests, and other proposals/actions by activist investors; maintaining our corporate reputation and intellectual property rights; nationwide or global disruption in the supply chain resulting in increased volatility in freight volumes; competitive initiatives and pricing pressures; increased prices for and decreased availability of equipment, including new revenue equipment, decreases in value of used revenue equipment, and higher costs of equipment-related operating expenses such as maintenance, fuel, and related taxes; availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates, and the inability to collect fuel surcharges; relationships with employees, including unions, and our ability to attract, retain, and upskill employees; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight’s collective bargaining agreement; union employee wages and benefits, including changes in required contributions to multiemployer plans; availability and cost of reliable third-party services; our ability to secure independent owner-operators and/or operational or regulatory issues related to our use of their services; litigation or claims asserted against us; governmental regulations; environmental laws and regulations, including emissions-control regulations; default on covenants of financing arrangements and the availability and terms of future financing arrangements; our ability to generate sufficient cash from operations to support significant ongoing capital expenditure requirements and other business initiatives; self-insurance claims, insurance premium costs, and loss of our ability to self-insure; potential impairment of long-lived assets and goodwill and intangible assets; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers’ access to adequate financial resources; increasing costs due to inflation and higher interest rates; seasonal fluctuations, adverse weather conditions, natural disasters, and climate change; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest Corporation’s public filings with the Securities and Exchange Commission (“SEC”).

For additional information regarding known material factors that could cause our actual results to differ from those expressed in these forward-looking statements, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8K.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.

Financial Data and Operating Statistics

The following tables show financial data and operating statistics on ArcBest^® and its reportable segments.

ARCBEST CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
		Three Months Ended								Year Ended
		December 31								December 31
		2024				2023				2024				2023
		(Unaudited)
		($ thousands, except share and per share data)
REVENUES		$	1,001,645			$	1,089,535			$	4,179,019			$	4,427,443
OPERATING EXPENSES			963,484				1,025,282				3,934,585				4,254,824
OPERATING INCOME			38,161				64,253				244,434				172,619
OTHER INCOME (COSTS)
Interest and dividend income			1,932				4,124				11,618				14,728
Interest and other related financing costs			(2,393	)			(2,326	)			(8,980	)			(9,094	)
Other, net			(240	)			1,755				(28,358	)			8,662
			(701	)			3,553				(25,720	)			14,296
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES			37,460				67,806				218,714				186,915
INCOME TAX PROVISION			8,425				19,016				45,353				44,751
NET INCOME FROM CONTINUING OPERATIONS			29,035				48,790				173,361				142,164
INCOME FROM DISCONTINUED OPERATIONS, net of tax(1)			—				—				600				53,269
NET INCOME		$	29,035			$	48,790			$	173,961			$	195,433
BASIC EARNINGS PER COMMON SHARE(2)
Continuing operations		$	1.24			$	2.06			$	7.36			$	5.92
Discontinued operations(1)			—				—				0.03				2.22
		$	1.24			$	2.06			$	7.39			$	8.14
DILUTED EARNINGS PER COMMON SHARE(2)
Continuing operations		$	1.24			$	2.01			$	7.28			$	5.77
Discontinued operations(1)			—				—				0.03				2.16
		$	1.24			$	2.01			$	7.30			$	7.93
AVERAGE COMMON SHARES OUTSTANDING
Basic			23,410,038				23,713,434				23,553,410				24,018,801
Diluted			23,491,715				24,248,584				23,820,175				24,634,617

__________________________
1)	Represents the discontinued operations of FleetNet America® (“FleetNet”), which sold on February 28, 2023. The year ended December 31, 2024 represents adjustments related to the prior year gain on sale of FleetNet. The year ended December 31, 2023 includes the net gain on sale of FleetNet of $52.3 million after-tax, or $2.18 basic earnings per share and $2.12 diluted earnings per share.
2)	Earnings per common share is calculated in total and may not equal the sum of earnings per common share from continuing operations and discontinued operations due to rounding.

ARCBEST CORPORATION CONSOLIDATED BALANCE SHEETS
		December 31				December 31
		2024				2023
		(Unaudited)				Note
		($ thousands, except share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	127,444			$	262,226
Short-term investments			29,759				67,842
Accounts receivable, less allowances (2024 - $8,257; 2023 - $10,346)			394,838				430,122
Other accounts receivable, less allowances (2024 - $648; 2023 - $731)			36,055				52,124
Prepaid expenses			47,860				37,034
Prepaid and refundable income taxes			28,641				24,319
Other			11,045				11,116
TOTAL CURRENT ASSETS			675,642				884,783
PROPERTY, PLANT AND EQUIPMENT
Land and structures			520,119				460,068
Revenue equipment			1,166,161				1,126,055
Service, office, and other equipment			351,907				319,466
Software			182,396				173,354
Leasehold improvements			32,263				24,429
			2,252,846				2,103,372
Less allowances for depreciation and amortization			1,186,800				1,188,548
PROPERTY, PLANT AND EQUIPMENT, net			1,066,046				914,824
GOODWILL			304,753				304,753
INTANGIBLE ASSETS, net			88,615				101,150
OPERATING RIGHT-OF-USE ASSETS			192,753				169,999
DEFERRED INCOME TAXES			9,536				8,140
OTHER LONG-TERM ASSETS			92,386				101,445
TOTAL ASSETS		$	2,429,731			$	2,485,094
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		$	172,763			$	214,004
Income taxes payable			—				10,410
Accrued expenses			394,880				378,029
Current portion of long-term debt			63,978				66,948
Current portion of operating lease liabilities			34,364				32,172
TOTAL CURRENT LIABILITIES			665,985				701,563
LONG-TERM DEBT, less current portion			125,156				161,990
OPERATING LEASE LIABILITIES, less current portion			189,978				176,621
POSTRETIREMENT LIABILITIES, less current portion			13,361				13,319
CONTINGENT CONSIDERATION			2,650				92,900
DEFERRED INCOME TAXES			78,649				55,785
OTHER LONG-TERM LIABILITIES			39,590				40,553
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2024: 30,401,768 shares; 2023: 30,024,125 shares			304				300
Additional paid-in capital			329,575				340,961
Retained earnings			1,435,250				1,272,584
Treasury stock, at cost, 2024: 7,114,844 shares; 2023: 6,460,137 shares			(451,039	)			(375,806	)
Accumulated other comprehensive income			272				4,324
TOTAL STOCKHOLDERS’ EQUITY			1,314,362				1,242,363
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,429,731			$	2,485,094

__________________________

Note: The balance sheet at December 31, 2023 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

ARCBEST CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS
		Year Ended
		December 31
		2024				2023
		(Unaudited)
		($ thousands)
OPERATING ACTIVITIES
Net income		$	173,961			$	195,433
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			136,265				132,900
Amortization of intangibles			12,822				12,829
Share-based compensation expense			11,355				11,438
Provision for losses on accounts receivable			4,834				3,630
Change in deferred income taxes			22,437				(5,566	)
(Gain) loss on sale of property and equipment			(2,176	)			4,797
Pre-tax gain on sale of discontinued operations			(806	)			(70,201	)
Asset impairment charges			1,700				30,162
Change in fair value of contingent consideration			(90,250	)			(19,100	)
Change in fair value of equity investment			28,739				(3,739	)
Changes in operating assets and liabilities:
Receivables			45,499				41,189
Prepaid expenses			(11,214	)			2,563
Other assets			(4,120	)			3,830
Income taxes			(14,956	)			(10,657	)
Operating right-of-use assets and lease liabilities, net			(7,205	)			2,920
Accounts payable, accrued expenses, and other liabilities			(21,039	)			(10,261	)
NET CASH PROVIDED BY OPERATING ACTIVITIES			285,846				322,167
INVESTING ACTIVITIES
Purchases of property, plant and equipment, net of financings			(223,103	)			(219,021	)
Proceeds from sale of property and equipment			15,373				7,763
Proceeds from sale of discontinued operations			—				100,949
Purchases of short-term investments			(29,236	)			(96,537	)
Proceeds from sale of short-term investments			66,584				198,120
Capitalization of internally developed software			(16,897	)			(12,977	)
NET CASH USED IN INVESTING ACTIVITIES			(187,279	)			(21,703	)
FINANCING ACTIVITIES
Payments on long-term debt			(120,518	)			(69,180	)
Net change in book overdrafts			(3,504	)			(14,101	)
Deferred financing costs			(62	)			55
Payment of common stock dividends			(11,295	)			(11,542	)
Purchases of treasury stock			(75,233	)			(91,531	)
Payments for tax withheld on share-based compensation			(22,737	)			(10,311	)
NET CASH USED IN FINANCING ACTIVITIES			(233,349	)			(196,610	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(134,782	)			103,854
Cash and cash equivalents of continuing operations at beginning of period			262,226				158,264
Cash and cash equivalents of discontinued operations at beginning of period			—				108
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	127,444			$	262,226
NONCASH INVESTING ACTIVITIES
Equipment financed		$	80,714			$	33,495
Accruals for equipment received		$	463			$	1,727
Lease liabilities arising from obtaining right-of-use assets		$	49,452			$	62,425

__________________________

Note: The statements of cash flows for the year ended December 31, 2024 and 2023 include cash flows from continuing operations and cash flows from discontinued operations of FleetNet, which sold on February 28, 2023.

ARCBEST CORPORATION FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS
	Three Months Ended																Year Ended
	December 31																December 31
	2024								2023								2024								2023
	(Unaudited)
	($ thousands, except percentages)
REVENUES FROM CONTINUING OPERATIONS
Asset-Based	$	656,220							$	709,986							$	2,750,134							$	2,871,004
Asset-Light		375,432								413,425								1,552,936								1,680,645
Other and eliminations		(30,007	)							(33,876	)							(124,051	)							(124,206	)
Total consolidated revenues from continuing operations	$	1,001,645							$	1,089,535							$	4,179,019							$	4,427,443
OPERATING EXPENSES FROM CONTINUING OPERATIONS
Asset-Based
Salaries, wages, and benefits	$	331,345			50.5		%		$	342,031			48.2		%		$	1,387,491			50.5		%		$	1,379,756			48.1		%
Fuel, supplies, and expenses		73,374			11.2					84,677			11.9					316,526			11.5					361,355			12.6
Operating taxes and licenses		13,432			2.0					13,980			2.0					54,056			2.0					55,918			1.9
Insurance		21,345			3.3					12,209			1.7					72,610			2.6					52,025			1.8
Communications and utilities		5,332			0.8					4,702			0.6					19,336			0.7					19,288			0.7
Depreciation and amortization		29,401			4.5					27,444			3.9					110,021			4.0					104,165			3.6
Rents and purchased transportation		64,726			9.8					66,676			9.4					274,312			10.0					338,575			11.8
Shared services		63,560			9.7					69,468			9.8					270,182			9.8					279,248			9.7
(Gain) loss on sale of property and equipment and asset impairment charges(1)		827			0.1					77			—					(803	)		—					982			—
Innovative technology costs(2)		—			—					—			—					—			—					21,711			0.8
Other		543			0.1					1,189			0.2					3,800			0.1					4,829			0.2
Total Asset-Based		603,885			92.0		%			622,453			87.7		%			2,507,531			91.2		%			2,617,852			91.2		%
Asset-Light
Purchased transportation	$	325,307			86.6		%		$	357,122			86.4		%		$	1,339,783			86.3		%		$	1,435,604			85.4		%
Salaries, wages, and benefits(3)		27,493			7.3					30,395			7.4					118,983			7.7					129,083			7.7
Supplies and expenses		1,953			0.5					2,934			0.7					10,232			0.6					12,094			0.7
Depreciation and amortization(4)		4,908			1.3					5,120			1.2					20,062			1.3					20,370			1.2
Shared services(3)		17,228			4.6					16,076			3.9					68,346			4.4					65,308			3.9
Contingent consideration(5)		(9,510	)		(2.5	)				(6,300	)		(1.5	)				(90,250	)		(5.8	)				(19,100	)		(1.1	)
Asset impairment charges(6)		1,700			0.5					—			—					1,700			0.1					14,407			0.9
Legal settlement(7)		274			0.1					9,500			2.3					274			—					9,500			0.6
Other(3)		7,658			2.0					6,234			1.5					25,362			1.6					25,650			1.4
Total Asset-Light		377,011			100.4		%			421,081			101.9		%			1,494,492			96.2		%			1,692,916			100.7		%
Other and eliminations(8)		(17,412	)							(18,252	)							(67,438	)							(55,944	)
Total consolidated operating expenses from continuing operations	$	963,484			96.2		%		$	1,025,282			94.1		%		$	3,934,585			94.2		%		$	4,254,824			96.1		%
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS
Asset-Based	$	52,335							$	87,533							$	242,603							$	253,152
Asset-Light		(1,579	)							(7,656	)							58,444								(12,271	)
Other and eliminations(8)		(12,595	)							(15,624	)							(56,613	)							(68,262	)
Total consolidated operating income from continuing operations	$	38,161							$	64,253							$	244,434							$	172,619

__________________________
1)	The year ended December 31, 2023 include $0.7 million of noncash lease-related impairment charges for a service center.
2)	Represents costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023.
3)	For the 2023 periods, certain expenses have been reclassed to conform to the current year presentation, including amounts previously reported in “Shared services” that were reclassed to present “Salaries, wages, and benefits” expenses in a separate line item.
4)	Includes amortization of intangibles associated with acquired businesses.
5)	Represents the change in fair value of the contingent earnout consideration recorded for the MoLo acquisition. The liability for contingent consideration is remeasured at each quarterly reporting date, and any change in fair value as a result of the recurring assessments is recognized in operating income (loss). The contingent consideration for the MoLo acquisition will be paid based on achievement of certain targets of adjusted earnings before interest, taxes, depreciation, and amortization, as adjusted for certain items pursuant to the merger agreement, for years 2023 through 2025, including catch-up provisions.
6)	The 2024 periods represent noncash asset impairment charges for certain revenue equipment and software recognized during fourth quarter 2024 as part of a strategic decision to adjust capacity within Asset-Light’s operations. The 2023 period represents noncash lease-related impairment charges for certain office spaces that were made available for sublease.
7)	Represents settlement expenses related to the classification of certain Asset-Light employees under the Fair Labor Standards Act, which were paid during first quarter 2025.
8)	“Other and eliminations” includes corporate costs for certain unallocated shared service costs which are not attributable to any segment, additional investments to offer comprehensive transportation and logistics services across multiple operating segments, costs related to our customer pilot offering of Vaux, and other investments in ArcBest technology and innovations. The 2023 period also includes $15.1 million of noncash lease-related impairment charges for a freight handling pilot facility.

ARCBEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance measures and ratios utilized for internal analysis provide analysts, investors, and others the same information that we use internally for purposes of assessing our core operating performance and provides meaningful comparisons between current and prior period results, as well as important information regarding performance trends. Accordingly, non-GAAP results are presented on a continuing operations basis, excluding the discontinued operations of FleetNet, which sold on February 28, 2023. The use of certain non-GAAP measures improves comparability in analyzing our performance because it removes the impact of items from operating results that, in management's opinion, do not reflect our core operating performance. Other companies may calculate non-GAAP measures differently; therefore, our calculation may not be comparable to similarly titled measures of other companies. Certain information discussed in the scheduled conference call could be considered non-GAAP measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results. These financial measures should not be construed as better measurements than operating income, net income or earnings per share, as determined under GAAP.

		Three Months Ended								Year Ended
		December 31								December 31
		2024				2023				2024				2023
ArcBest Corporation - Consolidated		(Unaudited)
		($ thousands, except per share data)
Operating Income from Continuing Operations
Amounts on GAAP basis		$	38,161			$	64,253			$	244,434			$	172,619
Innovative technology costs, pre-tax(1)			7,560				11,005				34,081				52,363
Purchase accounting amortization, pre-tax(2)			3,192				3,192				12,768				12,768
Change in fair value of contingent consideration, pre-tax(3)			(9,510	)			(6,300	)			(90,250	)			(19,100	)
Asset impairment charges, pre-tax(4)			1,700				—				1,700				30,162
Legal settlement, pre-tax(5)			274				9,500				274				9,500
Non-GAAP amounts		$	41,377			$	81,650			$	203,007			$	258,312
Net Income from Continuing Operations
Amounts on GAAP basis		$	29,035			$	48,790			$	173,361			$	142,164
Innovative technology costs, after-tax (includes related financing costs)(1)			5,780				8,364				26,111				39,680
Purchase accounting amortization, after-tax(2)			2,401				2,399				9,603				9,593
Change in fair value of contingent consideration, after-tax(3)			(7,152	)			(4,733	)			(67,875	)			(14,350	)
Asset impairment charges, after-tax(4)			1,278				—				1,278				22,571
Legal settlement, after-tax(5)			206				7,137				206				7,137
Change in fair value of equity investment, after-tax(6)			—				—				21,603				(2,786	)
Life insurance proceeds and changes in cash surrender value			(311	)			(1,787	)			(3,317	)			(4,581	)
Tax benefit from vested RSUs(7)			(38	)			(187	)			(11,311	)			(5,290	)
Non-GAAP amounts		$	31,199			$	59,983			$	149,659			$	194,138
Diluted Earnings Per Share from Continuing Operations
Amounts on GAAP basis		$	1.24			$	2.01			$	7.28			$	5.77
Innovative technology costs, after-tax (includes related financing costs)(1)			0.25				0.34				1.10				1.61
Purchase accounting amortization, after-tax(2)			0.10				0.10				0.40				0.39
Change in fair value of contingent consideration, after-tax(3)			(0.30	)			(0.20	)			(2.85	)			(0.58	)
Asset impairment charges, after-tax(4)			0.05				—				0.05				0.92
Legal settlement, after-tax(5)			0.01				0.29				0.01				0.29
Change in fair value of equity investment, after-tax(6)			—				—				0.91				(0.11	)
Life insurance proceeds and changes in cash surrender value			(0.01	)			(0.07	)			(0.14	)			(0.19	)
Tax benefit from vested RSUs(7)			—				(0.01	)			(0.47	)			(0.21	)
Non-GAAP amounts(8)		$	1.33			$	2.47			$	6.28			$	7.88

__________________________

See “Notes to Non-GAAP Financial Tables” for footnotes to this ArcBest Corporation – Consolidated non-GAAP table.

ARCBEST CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued
		Three Months Ended																Year Ended
		December 31																December 31
		2024								2023								2024								2023
Segment Operating Income (Loss) Reconciliations		(Unaudited)
		($ thousands, except percentages)
Asset-Based Segment
Operating Income ($) and Operating Ratio (% of revenues)
Amounts on GAAP basis		$	52,335			92.0		%		$	87,533			87.7		%		$	242,603			91.2		%		$	253,152			91.2		%
Innovative technology costs, pre-tax(9)			—			—					—			—					—			—					21,711			(0.8	)
Asset impairment charges, pre-tax(4)			—			—					—			—					—			—					684			—
Non-GAAP amounts(8)		$	52,335			92.0		%		$	87,533			87.7		%		$	242,603			91.2		%		$	275,547			90.4		%
Asset-Light Segment
Operating Income (Loss) ($) and Operating Ratio (% of revenues)
Amounts on GAAP basis		$	(1,579	)		100.4		%		$	(7,656	)		101.9		%		$	58,444			96.2		%		$	(12,271	)		100.7		%
Purchase accounting amortization, pre-tax(2)			3,192			(0.9	)				3,192			(0.8	)				12,768			(0.8	)				12,768			(0.8	)
Change in fair value of contingent consideration, pre-tax(3)			(9,510	)		2.5					(6,300	)		1.5					(90,250	)		5.8					(19,100	)		1.1
Asset impairment charges, pre-tax(4)			1,700			(0.5	)				—			—					1,700			(0.1	)				14,407			(0.9	)
Legal settlement, pre-tax(5)			274			(0.1	)				9,500			(2.3	)				274			—					9,500			(0.6	)
Non-GAAP amounts(8)		$	(5,923	)		101.6		%		$	(1,264	)		100.3		%		$	(17,064	)		101.1		%		$	5,304			99.7		%
Other and Eliminations
Operating Income (Loss) ($)
Amounts on GAAP basis		$	(12,595	)						$	(15,624	)						$	(56,613	)						$	(68,262	)
Innovative technology costs, pre-tax(1)			7,560								11,005								34,081								30,652
Asset impairment charges, pre-tax(4)			—								—								—								15,071
Non-GAAP amounts		$	(5,035	)						$	(4,619	)						$	(22,532	)						$	(22,539	)

__________________________

Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Segment Operating Income (Loss) Reconciliations non-GAAP table.

ARCBEST CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued
Effective Tax Rate Reconciliation
ArcBest Corporation - Consolidated
(Unaudited)
($ thousands, except percentages)		Three Months Ended December 31, 2024
						Other				Income				Income
CONTINUING OPERATIONS		Operating				Income				Before Income				Tax				Net
		Income				(Costs)				Taxes				Provision				Income				Tax Rate(10)
Amounts on GAAP basis		$	38,161			$	(701	)		$	37,460			$	8,425			$	29,035			22.5		%
Innovative technology costs(1)			7,560				126				7,686				1,906				5,780			24.8
Purchase accounting amortization(2)			3,192				—				3,192				791				2,401			24.8
Change in fair value of contingent consideration(3)			(9,510	)			—				(9,510	)			(2,358	)			(7,152	)		(24.8	)
Asset impairment charges(4)			1,700				—				1,700				422				1,278			24.8
Legal settlement(5)			274				—				274				68				206			24.8
Life insurance proceeds and changes in cash surrender value			—				(311	)			(311	)			—				(311	)		—
Tax benefit from vested RSUs(7)			—				—				—				38				(38	)		—
Non-GAAP amounts		$	41,377			$	(886	)		$	40,491			$	9,292			$	31,199			22.9		%
		Year Ended December 31, 2024
						Other				Income				Income
		Operating				Income				Before Income				Tax				Net
		Income				(Costs)				Taxes				Provision				Income				Tax Rate(10)
Amounts on GAAP basis		$	244,434			$	(25,720	)		$	218,714			$	45,353			$	173,361			20.7		%
Innovative technology costs(1)			34,081				637				34,718				8,607				26,111			24.8
Purchase accounting amortization(2)			12,768				—				12,768				3,165				9,603			24.8
Change in fair value of contingent consideration(3)			(90,250	)			—				(90,250	)			(22,375	)			(67,875	)		(24.8	)
Asset impairment charges(4)			1,700				—				1,700				422				1,278			24.8
Legal settlement(5)			274				—				274				68				206			24.8
Change in fair value of equity investment(6)			—				28,739				28,739				7,136				21,603			24.8
Life insurance proceeds and changes in cash surrender value			—				(3,317	)			(3,317	)			—				(3,317	)		—
Tax benefit from vested RSUs(7)			—				—				—				11,311				(11,311	)		—
Non-GAAP amounts		$	203,007			$	339			$	203,346			$	53,687			$	149,659			26.4		%
		Three Months Ended December 31, 2023
						Other				Income				Income
CONTINUING OPERATIONS		Operating				Income				Before Income				Tax				Net
		Income				(Costs)				Taxes				Provision				Income				Tax Rate(10)
Amounts on GAAP basis		$	64,253			$	3,553			$	67,806			$	19,016			$	48,790			28.0		%
Innovative technology costs(1)			11,005				211				11,216				2,852				8,364			25.4
Purchase accounting amortization(2)			3,192				—				3,192				793				2,399			24.9
Change in fair value of contingent consideration(3)			(6,300	)			—				(6,300	)			(1,567	)			(4,733	)		(24.9	)
Legal settlement(5)			9,500				—				9,500				2,363				7,137			24.9
Life insurance proceeds and changes in cash surrender value			—				(1,787	)			(1,787	)			—				(1,787	)		—
Tax benefit from vested RSUs(7)			—				—				—				187				(187	)		—
Non-GAAP amounts		$	81,650			$	1,977			$	83,627			$	23,644			$	59,983			28.3		%
		Year Ended December 31, 2023
						Other				Income				Income
		Operating				Income				Before Income				Tax				Net
		Income				(Costs)				Taxes				Provision				Income				Tax Rate(10)
Amounts on GAAP basis		$	172,619			$	14,296			$	186,915			$	44,751			$	142,164			23.9		%
Innovative technology costs(1)			52,363				937				53,300				13,620				39,680			25.6
Purchase accounting amortization(2)			12,768				—				12,768				3,175				9,593			24.9
Change in fair value of contingent consideration(3)			(19,100	)			—				(19,100	)			(4,750	)			(14,350	)		(24.9	)
Asset impairment charges(4)			30,162				—				30,162				7,591				22,571			25.2
Legal settlement(5)			9,500				—				9,500				2,363				7,137			24.9
Change in fair value of equity investment(6)			—				(3,739	)			(3,739	)			(953	)			(2,786	)		(25.5	)
Life insurance proceeds and changes in cash surrender value			—				(4,581	)			(4,581	)			—				(4,581	)		—
Tax benefit from vested RSUs(7)			—				—				—				5,290				(5,290	)		—
Non-GAAP amounts		$	258,312			$	6,913			$	265,225			$	71,087			$	194,138			26.8		%

__________________________

Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Effective Tax Rate Reconciliation non-GAAP table.

ARCBEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA)

Management uses Adjusted EBITDA as a key measure of performance and for business planning. The measure is particularly meaningful for analysis of operating performance because it excludes amortization of acquired intangibles and software of the Asset-Light segment, changes in the fair values of contingent consideration and equity investment, and asset impairment charges, which are significant expenses or gains resulting from strategic decisions or other factors rather than core daily operations. Additionally, Adjusted EBITDA is a primary component of the financial covenants contained in our credit agreement. The calculation of Consolidated Adjusted EBITDA as presented below begins with net income from continuing operations, which is the most directly comparable GAAP measure. The calculation of Asset-Light Adjusted EBITDA as presented below begins with operating income (loss), as other income (costs), income taxes, and net income from continuing operations are reported at the consolidated level and not included in the operating segment financial information evaluated by management to make operating decisions.

		Three Months Ended								Year Ended
		December 31									December 31
		2024				2023				2024				2023
		(Unaudited)
		($ thousands)
ArcBest Corporation - Consolidated Adjusted EBITDA from Continuing Operations
Net Income from Continuing Operations		$	29,035			$	48,790			$	173,361			$	142,164
Interest and other related financing costs			2,393				2,326				8,980				9,094
Income tax provision			8,425				19,016				45,353				44,751
Depreciation and amortization(11)			39,367				37,387				149,087				145,349
Amortization of share-based compensation			2,315				2,848				11,355				11,385
Change in fair value of contingent consideration(3)			(9,510	)			(6,300	)			(90,250	)			(19,100	)
Asset impairment charges(4)			1,700				—				1,700				30,162
Legal settlement(5)			274				9,500				274				9,500
Change in fair value of equity investment(6)			—				—				28,739				(3,739	)
Consolidated Adjusted EBITDA from Continuing Operations		$	73,999			$	113,567			$	328,599			$	369,566

__________________________

Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this ArcBest Corporation – Consolidated Adjusted EBITDA from Continuing Operations non-GAAP table.

		Three Months Ended								Year Ended
		December 31								December 31
		2024				2023				2024				2023
		(Unaudited)
		($ thousands)
Asset-Light Adjusted EBITDA
Operating Income (Loss)		$	(1,579	)		$	(7,656	)		$	58,444			$	(12,271	)
Depreciation and amortization(11)			4,908				5,120				20,062				20,370
Change in fair value of contingent consideration(3)			(9,510	)			(6,300	)			(90,250	)			(19,100	)
Asset impairment charges(4)			1,700				—				1,700				14,407
Legal settlement(5)			274				9,500				274				9,500
Asset-Light Adjusted EBITDA		$	(4,207	)		$	664			$	(9,770	)		$	12,906

__________________________

Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Asset-Light Adjusted EBITDA non-GAAP table.

ARCBEST CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued
Notes to Non-GAAP Financial Tables
The following footnotes apply to the non-GAAP financial tables presented in this press release.
1)	Represents costs related to our customer pilot offering of Vaux and initiatives to optimize our performance through technological innovation. The 2023 period also includes costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023.
2)	Represents the amortization of acquired intangible assets in the Asset-Light segment.
3)	Represents change in fair value of the contingent earnout consideration recorded for the MoLo acquisition, as previously described in the footnotes to the Financial Statement Operating Segment Data and Operating Ratios table. As of December 31, 2024, the decrease in fair value reflects the reduction in payout assumptions projected for the earnout in 2025, due to the continued soft truckload environment and the latest industry expectations for a truckload market recovery being pushed further into 2025 than previously estimated.
4)	The 2024 periods represent noncash asset impairment charges for certain revenue equipment and software recognized during fourth quarter 2024 as part of a strategic decision to adjust capacity within Asset-Light’s operations. The 2023 period represents noncash lease-related impairment charges for a freight handling pilot facility reported in “Other”, an Asset‑Based service center, and Asset-Light office spaces that were made available for sublease.
5)	Represents settlement expenses related to the classification of certain Asset-Light employees under the Fair Labor Standards Act, which were paid during first quarter 2025.
6)	For the year ended December 31, 2024, represents a noncash impairment charge to write off an equity investment in Phantom Auto, a provider of human-centered remote operation software, which ceased operations during first quarter 2024. For the year ended December 31, 2023, represents the increase in fair value of an investment in Phantom Auto based on observable price changes during second quarter 2023.
7)	Represents recognition of the tax impact for the vesting of share-based compensation.
8)	Non-GAAP amounts are calculated in total and may not equal the sum of GAAP amounts and non-GAAP adjustments due to rounding.
9)	Represents costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023.
10)	Tax rate for total “Amounts on GAAP basis” represents the effective tax rate. The tax effects of non-GAAP adjustments are calculated based on the statutory rate applicable to each item based on tax jurisdiction unless the nature of the item requires the tax effect to be estimated by applying a specific tax treatment.
11)	Includes amortization of intangibles associated with acquired businesses.

ARCBEST CORPORATION
OPERATING STATISTICS
		Three Months Ended										Year Ended
		December 31										December 31
		2024			2023			% Change				2024			2023			% Change
		(Unaudited)
Asset-Based
Workdays			61.5			61.5							252.5			251.5
Billed Revenue(1) / CWT		$	49.27		$	48.98		0.6	%			$	49.68		$	44.46		11.7	%
Billed Revenue(1) / Shipment		$	538.20		$	570.64		(5.7	%)			$	548.81		$	554.53		(1.0	%)
Tonnage / Day			10,758			11,602		(7.3	%)				10,968			12,803		(14.3	%)
Shipments / Day			19,698			19,915		(1.1	%)				19,856			20,529		(3.3	%)
Shipments / DSY hour			0.441			0.431		2.3	%				0.444			0.425		4.5	%
Weight / Shipment			1,092			1,165		(6.3	%)				1,105			1,247		(11.4	%)
Average Length of Haul (Miles)			1,116			1,078		3.5	%				1,126			1,092		3.1	%

__________________________
1)	Revenue for undelivered freight is deferred for financial statement purposes in accordance with the Asset-Based segment revenue recognition policy. Billed revenue used for calculating revenue per hundredweight measurements has not been adjusted for the portion of revenue deferred for financial statement purposes.

		Year Over Year % Change
		Three Months Ended			Year Ended
		December 31, 2024			December 31, 2024
		(Unaudited)
Asset-Light
Revenue / Shipment			(7.2%)			(12.8%)
Shipments / Day			(2.1%)			5.5%
Shipments / Employee / Day			20.8%			24.2%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250131765970/en/

Investor Relations Contact: Amy Mendenhall

Phone: 479-785-6200

Email: invrel@arcb.com

Media Contact: Autumnn Mahar

Phone: 479-494-8221

Email: amahar@arcb.com

Source: ArcBest

FAQ

What was ArcBest's (ARCB) revenue and earnings per share for Q4 2024?

ArcBest reported Q4 2024 revenue of $1.0 billion and earnings of $1.24 per diluted share, or $1.33 per diluted share on a non-GAAP basis.

How much did ArcBest (ARCB) return to shareholders in 2024?

ArcBest returned over $85 million to shareholders in 2024 through both share repurchases and dividends.

What was ArcBest's (ARCB) Asset-Based segment performance in Q4 2024?

The Asset-Based segment revenue decreased 7.6% to $656.2 million, with tonnage per day down 7.3% and operating income of $52.3 million.

How much did ArcBest (ARCB) spend on capital expenditures in 2024?

Total net capital expenditures were $288 million, including $160 million for revenue equipment and $85 million in real estate.

What was the average price increase for ArcBest's (ARCB) contract renewals in Q4 2024?

Contract renewals and deferred pricing agreements saw an average increase of 4.5% during the quarter.