ArcBest sees tonnage growth and increase in revenue, expecting margin improvement in the second quarter.

From Yahoo Finance: 2025-06-09 11:17:00

ArcBest’s metrics have improved in the second quarter with tonnage growth and lagging yields. The asset-based segment saw a 2% y/y revenue increase in May. Tonnage increased by 6% y/y, the largest jump since August 2022. Easy comps and dynamic pricing drove the growth.

Despite increased shipments from core accounts, demand from manufacturing and household-moving customers remained soft. Manufacturing activity declined in May, affecting the industry’s freight demand. ArcBest’s tonnage was down 16% y/y in May, with revenue per hundredweight also decreasing.

ArcBest experienced a decline in yields due to more core customer shipments. The company’s yield was impacted by tough comps from a year ago. It maintained a rational pricing environment. ArcBest expects a margin improvement in the second quarter and raised its forecast for the asset-light unit, which includes truck brokerage.

Saia reported the end of a 22-month streak of y/y tonnage increases in May. The carrier was aggressive in gaining market share post-Yellow Corp.’s shutdown. ARCB shares were up 5.2% compared to the S&P 500. The company aims for improved margins and breakeven results for the asset-light unit in the second quarter.

Read more: Dynamic pricing, easy comps end 22-month tonnage downturn at ArcBest