Third quarter 2026
Filed Nov 4, 2026Third-quarter revenue increased 15% year over year to $1.2 billion, driven by stronger performance across both operating segments
Third-quarter revenue, GAAP operating income, GAAP net income and non-GAAP net income all increased year over year, while both operating segments reported improved profitability. Asset-Light returned to GAAP operating income from a prior-year loss.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $1.21B | – | increased 15% year over year |
| Operating expenses, three months ended September 30, 2026GAAP | $1.14B | – | – |
| Operating income, three months ended September 30, 2026GAAP | $73.33M | – | – |
| Operating income, three months ended September 30, 2026non-GAAP | $85.49M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $70.87M | – | – |
| Income tax provision, three months ended September 30, 2026GAAP | $19.21M | – | – |
| Effective tax rate, three months ended September 30, 2026GAAP | 27.1 % | – | – |
| Effective tax rate, three months ended September 30, 2026non-GAAP | 27.6 % | – | – |
| Net income, three months ended September 30, 2026GAAP | $51.66M | – | – |
| Net income, three months ended September 30, 2026non-GAAP | $58.67M | – | – |
| Diluted earnings per common share, three months ended September 30, 2026GAAP | $ 2.30 | – | – |
| Diluted earnings per share, three months ended September 30, 2026non-GAAP | $ 2.62 | – | – |
| Consolidated Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $119.7M | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $3.39B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $56.14M | – | – |
| Operating income, nine months ended September 30, 2026non-GAAP | $172.8M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $36.80M | – | – |
| Net income, nine months ended September 30, 2026non-GAAP | $119.4M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 1.64 | – | – |
| Diluted earnings per share, nine months ended September 30, 2026non-GAAP | $ 5.31 | – | – |
| Consolidated Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $284.1M | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $255.2M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Asset-Based, three months ended September 30, 2026Tonnage growth was driven by higher weight per shipment, reflecting a continued shift in freight profile, partially offset by fewer shipments per day. Revenue per shipment benefited from the heavier freight profile and slightly higher revenue per hundredweight, largely reflecting higher fuel surcharge revenue. | $798.6M | third quarter daily revenue improved 1.1 percent | a per-day increase of 9.9 percent |
| Asset-Light, three months ended September 30, 2026Revenue increased primarily due to higher revenue per shipment, reflecting a tightening capacity environment along with modest shipment growth. | $446.3M | third quarter daily revenue increased 0.9 percent | a per-day increase of 25.4 percent |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Payment of common stock dividends of $ 8,048 ($ thousands) for the nine months ended September 30, 2026.
- Purchases of treasury stock of $ 34,782 ($ thousands) for the nine months ended September 30, 2026.
What drove it
- Asset-Based tonnage per day increased 9.6%, while weight per shipment increased 13.0% and shipments per day decreased (3.0%) in the third quarter.
- Asset-Based billed revenue per shipment increased 14.2% and billed revenue per hundredweight increased 1.1%; excluding fuel surcharge, revenue per hundredweight decreased in the low single digits.
- Customer contracts and deferred pricing agreements renewed during the third quarter averaged a 5.1 percent increase.
- Asset-Light shipments per day increased 1.2% and revenue per shipment increased 23.8% year over year.
- Asset-Light purchased transportation expense was 85.0 percent of revenue, compared to 84.9 percent.
- Disciplined pricing, productivity initiatives, organizational cost savings and higher revenue per shipment supported improved earnings and profitability.
Concerns
- Asset-Based operating expenses increased due to annual union wage and benefit adjustments, as well as higher fuel and purchased transportation costs.
- Asset-Based shipments per day decreased (3.0%) year over year, and revenue per hundredweight excluding fuel surcharge decreased in the low single digits.
- Asset-Light purchased transportation expense increased to 85.0 percent of revenue from 84.9 percent.
- For the nine months ended September 30, 2026, Asset-Light reported an operating loss of $ (18,663) ($ thousands), compared to $ (5,384) ($ thousands) in the prior-year period.
- Nine-month GAAP operating income included $ 85,266 ($ thousands) in asset impairment charges, including charges related to Vaux assets, the Panther trade name and certain office space.
What to watch
- Whether Asset-Based tonnage growth continues while shipments per day remain below the prior-year period.
- Asset-Based pricing trends, including revenue per hundredweight excluding fuel surcharge and customer contract renewals.
- Asset-Light revenue per shipment and purchased transportation expense as a percentage of revenue.
- The realization of savings from the organizational restructuring and the benefit of productivity initiatives.
- The progress and cost of Vaux and other innovative technology initiatives, including the $ 50.8 million write-off of certain Freight Movement System assets associated with Vaux during the nine months ended September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $ 184,924 ($ thousands) at September 30, 2026, compared to $ 102,030 ($ thousands) at December 31, 2025.
- Short-term investments were $ 22,355 ($ thousands) at September 30, 2026, compared to $ 22,204 ($ thousands) at December 31, 2025.
- Current portion of long-term debt was $ 88,264 ($ thousands) and long-term debt, less current portion, was $ 106,257 ($ thousands) at September 30, 2026.
- Net cash provided by operating activities was $ 255,248 ($ thousands) for the nine months ended September 30, 2026, compared to $ 184,291 ($ thousands) in the prior-year period.
- Purchases of property, plant and equipment, net of financings, were $ 36,022 ($ thousands) for the nine months ended September 30, 2026, compared to $ 107,005 ($ thousands) in the prior-year period.
- Net cash used in investing activities was $ 34,273 ($ thousands), and net cash used in financing activities was $ 138,081 ($ thousands), for the nine months ended September 30, 2026.
- Cash and cash equivalents at end of period were $ 184,924 ($ thousands), compared to $ 120,604 ($ thousands) for the nine months ended September 30, 2025.
Analysis
ArcBest reported a stronger third quarter, with revenue of $ 1,210,503 ($ thousands), compared with $ 1,048,137 ($ thousands) in the prior-year quarter. GAAP operating income increased to $ 73,334 ($ thousands) from $ 54,627 ($ thousands), and GAAP net income increased to $ 51,659 ($ thousands) from $ 39,274 ($ thousands). Diluted GAAP earnings per share were $ 2.30, compared with $ 1.72. On a non-GAAP basis, net income was $ 58,666 ($ thousands) and diluted earnings per share were $ 2.62, compared with $ 33,417 ($ thousands) and $ 1.46, respectively.
The Asset-Based segment generated revenue of $ 798,613 ($ thousands), with a per-day increase of 9.9 percent. Tonnage per day increased 9.6 percent, driven by a 13.0 percent increase in weight per shipment, while shipments per day decreased 3.0 percent. Billed revenue per shipment increased 14.2 percent and billed revenue per hundredweight increased 1.1 percent, with higher fuel surcharge revenue contributing. The segment reported GAAP operating income of $ 75,556 ($ thousands), compared with $ 70,162 ($ thousands), while the GAAP operating ratio was 90.5 percent compared with 90.3 percent. Non-GAAP operating income was $ 76,289 ($ thousands), compared with $ 54,436 ($ thousands), and the non-GAAP operating ratio was 90.4 percent compared with 92.5 percent.
Asset-Light was the principal earnings inflection. Revenue was $ 446,291 ($ thousands), with a per-day increase of 25.4 percent, led primarily by a 23.8 percent increase in revenue per shipment in a tightening capacity environment. The segment moved to GAAP operating income of $ 12,454 ($ thousands) from a GAAP operating loss of $ (1,595) ($ thousands). Non-GAAP operating income was $ 14,435 ($ thousands), compared with $ 1,597 ($ thousands), and Adjusted EBITDA was $ 15,593 ($ thousands), compared with $ 3,052 ($ thousands). Purchased transportation expense remained elevated at 85.0 percent of revenue, compared with 84.9 percent.
Sequentially, both segments reported modest daily revenue improvement. Asset-Based daily revenue improved 1.1 percent from the second quarter, supported by a 0.6 percent increase in tonnage per day and a 0.9 percent increase in billed revenue per shipment. Asset-Light daily revenue increased 0.9 percent from the second quarter as a 3.8 percent increase in revenue per shipment partially offset a 2.7 percent decrease in daily shipments. The company stated that Asset-Based non-GAAP operating ratio was in line with the second quarter, while Asset-Light non-GAAP operating income improved from the previous quarter.
For the nine months ended September 30, 2026, revenue was $ 3,393,822 ($ thousands), compared with $ 3,037,470 ($ thousands), but GAAP operating income was $ 56,141 ($ thousands), compared with $ 98,566 ($ thousands), and GAAP net income was $ 36,798 ($ thousands), compared with $ 68,214 ($ thousands). The nine-month period included $ 85,266 ($ thousands) in asset impairment charges. Non-GAAP operating income was $ 172,842 ($ thousands), compared with $ 112,115 ($ thousands), and non-GAAP net income was $ 119,394 ($ thousands), compared with $ 76,565 ($ thousands). Operating cash flow was $ 255,248 ($ thousands), compared with $ 184,291 ($ thousands), while the company paid $ 8,048 ($ thousands) of common dividends and purchased $ 34,782 ($ thousands) of treasury stock during the nine-month period.
No financial outlook was provided in the filing. The central reported issues for subsequent periods are the durability of Asset-Based volume and base pricing, Asset-Light purchased transportation costs, continued restructuring savings, and the return on continuing technology and Vaux investments.
Management, verbatim
The third quarter reflected the progress we’ve been making across ArcBest and the commitment of our people.
Seth Runser, ArcBest President and CEO
Stronger earnings and profitability were driven by disciplined execution, continued momentum in Asset-Light and ongoing savings from actions to simplify our organization and improve efficiency. We also continued to invest in technology and innovation to better serve our customers and support long-term profitable growth.
Seth Runser, ArcBest President and CEO
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-release outlook was not provided.
- Gross profit and gross margin were not reported.
- Free cash flow was not reported.
- Quarterly operating cash flow was not reported.
- Quarterly capital expenditures were not reported.
- Quarterly dividends and share repurchases were not separately reported.
- Prior-quarter dollar values for consolidated revenue, operating income, net income and earnings per share were not reported.
- A reported percentage year-over-year change for consolidated operating income, net income and earnings per share was not provided.
- A reported percentage year-over-year change for segment revenue was not provided; the release instead reported per-day revenue changes.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.