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“Throughout 2024, we made significant progress on controlling costs, improving productivity and enhancing our service quality,” ArcBest CEO Judy McReynolds said. (ArcBest Corp.)

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ArcBest Corp. posted declines in profit and revenue for the fourth quarter of 2024, according to a Jan. 31 earnings release.

The Fort Smith, Ark.-based logistics company posted net income of $29 million, or $1.24 a diluted share, for the three months ending Dec. 31. That compared with $48.8 million, or $2.01, during the same time the previous year. Total revenue decreased 8.1% to $1 billion from $1.09 billion.

“Despite a challenging freight environment in 2024, we remain focused on executing our strategy to create value for our shareholders and customers and ensuring we are well-positioned to capture growth when the market turns,” ArcBest CEO Judy McReynolds said during a call with investors. “We believe in a win-win approach, providing premium value to our customers, which in turn, benefits our business.” 

McReynolds added that supply chains are becoming more complex. She pointed to her shipper customers using a mix of modes to keep their supply chains moving as an example. ArcBest works to support those efforts with services to connect different modes with the aim of creating better supply chains, improved customer retention and profitability.

“As supply chains modernize and customers seek efficiencies, the demand for better shipment visibility is growing,” McReynolds said. “We have invested significantly in this area to provide industry-leading visibility, enhancing trust, and enabling customers to make more informed decisions based on real-time data.”

ArcBest on Jan. 16 announced leadership and organizational updates aimed at advancing its strategic priorities and drive sustainable, long-term growth. Eddie Sorg was named chief commercial officer, Christopher Adkins was named chief strategy officer, Dennis Anderson became chief innovation officer and Steven Leonard announced his upcoming retirement.

“While we made tremendous progress, we recognize there is more to be done,” McReynolds said. “Two weeks ago, we announced a series of leadership and organizational updates across the business, reflecting our commitment to continuous improvement and innovation.

“I’m confident that we have the right team in place to advance our strategic priorities and drive sustainable long-term growth.”

For the full year, ArcBest reported net income of $174 million, or $7.28 a share, on revenue of $4.18 billion, compared with net income of $195.4 million, or $5.77, on revenue of $4.43 billion in 2023.

During Q4, asset-based segment revenue decreased 7.6% to $656.2 million from $710 million during the previous year. The segment experienced tonnage declines that were driven by decreases in daily shipments and weight per shipment. The report noted that prolonged manufacturing sector weakness continues to negatively impact weight per shipment metrics. But ArcBest said productivity improvements and cost initiatives helped mitigate the impact of the soft market, higher insurance costs and higher labor costs related to an annual union contract rate increase. Operating income in the segment decreased 40% to $52.3 million from $87.5 million.

Asset-light segment revenue decreased 9.2% to $375.4 million from $413.4 million the prior year. A weak freight environment and excess truckload capacity impacted results, as did lower revenue per shipment thanks to softer rates and a higher mix of managed transportation, ArcBest said. However, the segment continues to benefit from productivity initiatives, as shipments per employee per day keep improving. The segment reported a narrowed operating loss of $1.6 million, compared with a loss of $7.7 million the prior year.

TD Cowen noted in a report that the Q4 results came in above its forecast. But the report also warned Q1 guidance suggests earnings may fall over 50% off easy comparisons, as the company continues to shed tonnage, fight through difficult weather conditions and lose money in its asset-light business. 

“Pricing and productivity should help but unlikely to overcome [no-trading] market conditions,” Cowen analyst Jason Seidl wrote in the report. “[Management] looks to macro improving for business acceleration.”

ArcBest ranks No. 12 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 40 on the TT Top 100 logistics companies list.

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