ArcBest (NASDAQ: ARCB), a leader in supply chain logistics, has reported its fourth quarter and full year 2024 results. In the fourth quarter of 2024, the company saw a revenue of $1.0 billion, a decrease from $1.1 billion in the fourth quarter of 2023. Net income for the same period was $29.0 million, or $1.24 per diluted share, down from $48.8 million, or $2.01 per diluted share in the prior year.
For the full year 2024, ArcBest reported revenue of $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 the reduction in the fair value of contingent consideration related to a 2021 acquisition. This is compared to net income of $142.2 million, or $5.77 per diluted share in 2023.
In terms of specific segments, the asset-based segment generated $35.2 million less operating income than in the fourth quarter of 2023. Productivity improvements of 2.3% and other cost initiatives helped mitigate the impact of the soft market environment, higher insurance costs, and higher labor cost increases related to the annual union contract rate increase.
The asset-light segment saw revenues of $375.4 million, a decrease from $413.4 million in the fourth quarter of 2023. The operating loss for this segment was $1.6 million, compared to an operating loss of $7.7 million in the previous year.
Looking at the full year results, the asset-based segment reported revenue of $2.8 billion, a decrease from $2.9 billion in 2023. Tonnage per day decreased by 14.3%, while shipments per day decreased by 3.3%. On a non-GAAP basis, operating income was $242.6 million, and the operating ratio was 91.2%, compared to $275.5 million and an operating ratio of 90.4% in 2023.
For the asset-light segment, full year revenue was $1.6 billion, a decrease from $1.7 billion in 2023. The operating income was $58.4 million, including the $90.3 million pre-tax change in the fair value of contingent earnout consideration related to an earnout, compared to an operating loss of $12.3 million in 2023.
ArcBest made significant organic capital investments in the business and returned over $85 million to shareholders in 2024 through both share repurchases and dividends. As of January 29, 2025, ArcBest had $48.7 million of repurchase authorization remaining under the current stock repurchase program.
Following these announcements, the company's shares moved -0.3%, and are now trading at a price of $94.27. Check out the company's full 8-K submission here.
