ArcBest Corporation reported its fourth quarter and full-year 2024 financial results, highlighting productivity improvements, cost control measures, and significant investments in network growth and efficiency. Despite these efforts, the company faced challenges due to a soft freight market and declining revenues.

For the fourth quarter of 2024, ArcBest reported revenue of $1.0 billion, a decline from $1.1 billion in the same quarter of 2023. Net income decreased to $29.0 million, or $1.24 per diluted share, from $48.8 million, or $2.01 per diluted share, in the prior year. On a non-GAAP basis, net income stood at $31.2 million, or $1.33 per diluted share, down from $60.0 million, or $2.47 per diluted share.

Full-year revenue for 2024 was $4.2 billion, compared to $4.4 billion in 2023. Net income from continuing operations was $173.4 million, or $7.28 per diluted share, including a $67.9 million after-tax benefit from a 2021 acquisition-related fair value reduction, compared to $142.2 million, or $5.77 per diluted share, in 2023. Non-GAAP net income was $149.7 million, or $6.28 per diluted share, down from $194.1 million, or $7.88 per diluted share, in 2023.

In the Asset-Based segment, fourth-quarter revenue declined 7.6% year-over-year to $656.2 million, with a 7.3% drop in daily tonnage and a 1.1% decline in daily shipments. Despite a 4.5% increase in contract renewals and deferred pricing agreements, revenue was negatively impacted by lower fuel surcharges. Operating income fell to $52.3 million, down from $87.5 million in the prior year, with the operating ratio increasing from 87.7% to 92.0%.

The Asset-Light segment reported fourth-quarter revenue of $375.4 million, a 9.2% decline from $413.4 million in Q4 2023. The segment posted an operating loss of $1.6 million, compared to a $7.7 million loss in the prior year. On a non-GAAP basis, the operating loss was $5.9 million, down from $1.3 million. Lower revenue per shipment due to soft rates and a higher mix of managed transportation business contributed to the decline.

For the full year, the Asset-Based segment reported revenue of $2.8 billion, down from $2.9 billion, with a 14.3% decline in daily tonnage. Operating income stood at $242.6 million, with an operating ratio of 91.2%. The Asset-Light segment posted revenue of $1.6 billion, compared to $1.7 billion in 2023, with an operating income of $58.4 million, including a $90.3 million pre-tax benefit from a fair value adjustment related to an acquisition. On a non-GAAP basis, the segment posted a $17.1 million operating loss.

ArcBest continued to invest heavily in its business, with net capital expenditures totaling $288 million in 2024, including $160 million for revenue equipment and $85 million for real estate. The company also returned over $85 million to shareholders through share repurchases and dividends.