ArcBest Corporation Reports $4.18 Billion Revenue for Fiscal Year 2024, Net Income Increases to $173.4 Million

ArcBest Corporation reported a total revenue of $4.18 billion for the fiscal year ending December 31, 2024, reflecting a 5.6% decrease from $4.43 billion in 2023. The decline in revenue was primarily attributed to lower market rates in the Asset-Light segment and a decrease in daily tonnage levels in the Asset-Based segment. The Asset-Based segment generated revenues of approximately $2.75 billion, down from $2.87 billion in the previous year, while the Asset-Light segment's revenues fell to $1.55 billion from $1.68 billion. Despite the revenue drop, the company achieved a consolidated operating income of $244.4 million, an increase from $172.6 million in 2023, largely due to a reduction in operating expenses and a significant decrease in contingent earnout consideration.

In terms of profitability, ArcBest's net income from continuing operations rose to $173.4 million, or $7.28 per diluted share, compared to $142.2 million, or $5.77 per diluted share in 2023. The increase in net income was supported by lower operating expenses, particularly in purchased transportation costs, and a reduction in legal settlement expenses. The company also recognized a one-time impairment charge of $28.7 million related to its equity investment in Phantom Auto, which ceased operations in early 2024.

Operationally, ArcBest's workforce comprised approximately 14,000 employees as of December 2024, with about 82% of the Asset-Based segment's employees covered under a collective bargaining agreement with the International Brotherhood of Teamsters. The company reported a 14.3% decrease in tonnage per day in the Asset-Based segment, which was partially offset by an 11.7% increase in billed revenue per hundredweight, including fuel surcharges. The Asset-Light segment saw a 5.5% increase in shipments per day, although average revenue per shipment declined by 12.8% due to a soft market environment.

Looking ahead, ArcBest anticipates continued challenges in the logistics market, influenced by economic conditions, including higher interest rates and geopolitical tensions. The company plans to invest in technology and operational efficiencies to enhance service offerings and customer relationships. Additionally, it expects to maintain its quarterly dividend of $0.12 per share, reflecting a commitment to returning capital to shareholders while navigating the evolving market landscape.