ArcBest’s second-quarter performance demonstrated gains in operational efficiency across its two primary business divisions. The asset-based segment, which encompasses less-than-truckload operations including ABF Freight, generated $784 million in revenue, representing a 10% year-over-year increase. Despite a 3% decline in the number of shipments, tonnage per day climbed 5% due to an 8% increase in weight per shipment. Tonnage growth remained relatively consistent throughout the quarter, and management noted accelerating momentum in July with 8% year-over-year growth.
The improvement in shipment weights reflected freight returning from the depressed truckload market as spot rates recovered. Revenue per hundredweight increased 4% year-over-year, supported by higher fuel surcharge revenue tied to diesel prices that were 50% higher than the prior-year period. Contractual rate increases averaged 5.8% during the quarter. The asset-based unit posted a 90.8% adjusted operating ratio, an improvement of 200 basis points year-over-year and 650 basis points from the first quarter, aligning with management guidance.
The asset-light segment, which includes truck brokerage operations, reported 28% year-over-year revenue growth to $439 million, with daily shipments up 15% and revenue per shipment 12% higher. This division returned to profitability with adjusted operating income of $6.3 million, exceeding guidance of $3 million to $5 million. The segment faced higher purchased transportation costs as spot rates climbed, though productivity initiatives drove a 12% reduction in selling, general and administrative expenses.
ArcBest announced a brand restructuring and approximately 2% workforce reduction earlier in the month, including the closure of 10 LTL terminals. The company expects these actions to achieve a $40 million cost-savings run rate by the first quarter, supporting 2028 financial targets. The company also launched ArcBest View, a digital logistics platform for workflow management and visibility across transportation modes.
Consolidated revenue rose 16% year-over-year to $1.18 billion. Adjusted earnings per share reached $2.38, exceeding consensus estimates by 12 cents and climbing $1.02 from the prior-year quarter. The headline net loss totaled $13.8 million, or 62 cents per share, reflecting restructuring and other nonrecurring costs. Stock shares declined 7.6% during the trading session compared to a 0.8% decline in the S&P 500.
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