ArcBest Navigates Freight Downturn with Tech and Discipline, Posts Solid Q4 Amid Market Headwinds

Fort Smith, AR – January 30, 2026 – ArcBest Corporation (NASDAQ: ARCB), a leading logistics provider, concluded a challenging 2025 with a demonstration of operational resilience, reporting solid fourth-quarter results that underscored its strategic focus on efficiency and technological innovation amidst persistent industry softness.

In an earnings call Friday morning, CEO Seth Runser acknowledged the "prolonged freight recession and ongoing market volatility" but highlighted the company's ability to deliver premium service and grow its core less-than-truckload (LTL) shipment volumes. "Our people stayed focused on our long-term strategy built around growth, efficiency, and innovation," Runser stated, crediting disciplined execution for navigating the tough environment.

The quarter revealed a mixed financial picture. Consolidated revenue dipped 3% year-over-year to $973 million, with adjusted earnings per share of $0.36, down from $1.33 in Q4 2024. However, the company pointed to significant underlying strengths. Its asset-based LTL daily shipments grew 2%, and its Asset Light segment achieved a breakeven operating result, a $6 million improvement year-over-year, signaling a turnaround from 2024 losses.

A key theme of the call was the tangible payoff from ArcBest's aggressive technology investments. The company detailed how AI is being woven into its operations, from an AI virtual agent named "Ava" handling customer service inquiries to AI-driven route optimization and automated quoting systems. CFO Matt Beasley noted these initiatives contributed to $24 million in annual cost savings from continuous improvement programs and $15 million from city route optimization projects in 2025 alone.

"2025 was a pivotal year for accelerating AI across our organization," Runser said, describing it as a foundational period for future scaling. He emphasized that these technologies allow ArcBest to prepare for a market recovery "without adding the same level of incremental cost."

The company also announced leadership changes, officially welcoming Mac Pinkerton as Chief Operating Officer of the Asset Light business and adding two new independent directors to its board.

Looking ahead, management reaffirmed its long-term 2028 financial targets but offered a cautious near-term outlook. "We did not anticipate a significant freight market recovery in 2026 when we set those targets," Beasley clarified. For the first quarter of 2026, ArcBest expects a sequential operating ratio increase of 100-200 basis points, an improvement over typical seasonal patterns but still reflective of a soft demand environment. Severe winter weather in January was cited as a near-term operational challenge, though the company believes its network investments have improved its resilience.

Analyst & Market Reaction:

"The numbers are sobering, but the strategic execution is impressive," commented David Chen, a logistics analyst at Horizon Capital. "Turning the Asset Light segment to breakeven in this market isn't trivial. Their tech investments appear to be moving from pilot phases to real cost savings, which is exactly what you need to see."

Offering a more critical take, Marcus Thorne, editor of The Freight Skeptic newsletter, said: "Let's be real. Revenue is down, EPS is down 73%, and they're guiding to a worse operating ratio. All this talk of 'AI agents' and 'foundational years' feels like a smokescreen for a company still deeply caught in a freight downturn. The promised 'long-term targets' seem to be perpetually over the horizon."

"I'm encouraged by the shipment growth and the discipline," shared Anya Sharma, a portfolio manager focused on industrial equities. "In a cycle this long, the winners are those who control costs and gain share. ArcBest is showing it can do both. The managed solutions growth is a testament to their integrated model resonating with shippers."

Adding a ground-level perspective, Ben Carter, a former dispatcher and now independent consultant, noted: "The focus on driver tools and automated phone options for carriers is smart. Reducing abandonment rates and hassle directly impacts capacity access. In a tight market, that relational tech could give them a real edge."

ArcBest ended 2025 with a strong balance sheet, including approximately $400 million in available liquidity, positioning it to weather continued uncertainty and capitalize on strategic opportunities.