The reported earnings exclude approximately 38 cents per share in one-time costs related to technology pilot programs and acquisition expenses, which were factored out to give a clearer picture of ongoing performance.

Focusing on its asset-based segment—including results from its less-than-truckload (LTL) division—ArcBest saw revenues decline 3.7% year-over-year, reaching $646 million. Tonnage per day also decreased by 4.3%, with daily shipments down slightly by 0.4%, and the average weight of shipments dropping nearly 4%. Despite these declines, the company’s revenue per hundredweight, or yield, increased by 1.7%. When excluding fuel surcharges, the growth was in the low- to mid-single digits. The lighter shipment weights contributed to the yield increase, while contractual rates rose an average of 4.9%, indicating that pricing in the LTL industry remains rational amid market pressures.

Throughout the quarter, the decline in tonnage gradually eased from a 9.2% drop in January to just 1.6% in March. April saw a positive shift with tonnage rising 1% year-over-year. However, last year’s comparisons were much easier, with mid- to high-teen declines, and the company shifted more freight into truckload operations in February to improve throughput at its service centers. This change, however, temporarily impacted yields, which had increased 7% in January but declined by 1.8% in March. April results showed a 2% decrease, excluding fuel, illustrating the ongoing headwinds.

The company also noted that a shift to less complex, easier-to-handle freight from some key customers has been affecting overall yield. Additionally, a reduction in shipments from manufacturing sectors has added to the challenges.

The LTL segment’s operational efficiency was reflected in an adjusted operating ratio of 95.9%, roughly 390 basis points worse than last year, yet within the typical sequential decline range of 350 to 400 basis points. Expenses related to wages, salaries, and benefits as a percentage of revenue increased by 190 basis points compared to the prior year.

Looking ahead, ArcBest expects a seasonal improvement in the upcoming quarter, with the operating ratio expected to recover within the usual 300 to 400 basis point range. Based on this outlook, the company projects a midpoint OR around 92.4%, which would be roughly 260 basis points worse than the second quarter last year.

Finally, the asset-light segment, which includes its truck brokerage operations, reported an adjusted operating loss of $1.2 million—marking the seventh consecutive quarter of losses in that segment. ArcBest anticipates another similar loss in the upcoming quarter, underscoring ongoing challenges in this part of the business.