ArcBest is preparing its less-than-truckload network for future recovery by implementing better technology tools and reducing costs. The company reported a fourth-quarter net loss of $8.1 million, with adjusted EPS of 36 cents, down 97 cents y/y. Revenue of $973 million exceeded expectations. The asset-based unit saw revenue dip 1% y/y.

Wins with new LTL customers offset lower shipment weights from legacy manufacturing customers. Contract renewals averaged 5% in the quarter. Tonnage per day improved monthly in Q4. Revenue per day in January was flat y/y. The unit posted a 96.2% adjusted operating ratio, 420 bps worse y/y.

Labor and benefits costs were 310 bps higher y/y. ArcBest expects a 260 bps deterioration in LTL OR in Q1. Cost reductions and tech enhancements have resulted in $24 million in annual savings. ArcBest reiterated long-term guidance of an OR target of 87% to 90% by 2028.

The asset-light segment reported breakeven results in the fourth quarter. Automation and AI agents are reducing structural costs. Shares of ARCB were 3.5% higher on Friday. ArcBest is still waiting for a recovery in the LTL market.

Read more at Yahoo Finance: ArcBest, LTLs still waiting on recovery