0001104659-26-053753
SEC filingConsolidated revenues rose 3.3% but net loss of $1.0M vs prior-year income, pressured by Asset-Based cost inflation.
For Q1 2026, consolidated revenues grew 3.3% to $998.8 million from $967.1 million in Q1 2025, driven by higher shipment levels in both segments. However, net income swung to a loss of $1.0 million from a profit of $3.1 million, reflecting cost increases that outpaced top-line growth. Consolidated operating income fell to $3.4 million from $6.6 million. Diluted EPS was $(0.05) versus $0.13.
The Asset-Based segment saw revenues increase 1.3% to $655.0 million, with tonnage per day up 6.5% and shipments per day up 1.8%. However, operating income dropped to $17.5 million from $26.4 million as the operating ratio rose to 97.3% from 95.9%. Key headwinds included labor cost inflation (salaries, wages, and benefits up $11.0 million) and higher depreciation expenses, partially offset by productivity improvements and cost controls in shared services.
The Asset-Light segment posted a 6.1% revenue increase to $377.7 million, driven by a 9.8% rise in shipments per day. Operating income turned positive at $0.2 million versus a loss of $4.4 million, as revenue growth and cost management (including $2.8 million decrease in salaries, wages, and benefits) improved margins. Purchased transportation costs increased $21.1 million, but as a percentage of revenue they rose only modestly to 86.2% from 85.6%.
Asset-Based's performance was constrained by contractual wage and benefit increases (2.9% blended) and higher depreciation due to equipment and facility investments. Lower billed revenue per hundredweight (-3.9%) also pressured margins, though it was partly offset by higher fuel surcharge revenue. Asset-Light benefited from a shift toward managed transportation and higher spot rates, with average revenue per shipment declining 2.6% but volume growth more than compensating. The segment's adjusted EBITDA surged to $4.2 million from $0.2 million.
Management expressed cautious optimism, noting rational pricing and capacity tightening in truckload markets. Capital expenditures for 2026 are planned at $150–170 million, with investments in revenue equipment and facility upgrades. Depreciation (excluding intangibles) is estimated at ~$180 million. The company expects to continue returning capital via dividends and share repurchases ($7.4 million in Q1). Risks include tariff policies, geopolitical conflicts, inflation, and potential impacts on demand. No specific revenue or margin guidance was provided, but the tone suggested focus on cost discipline and strategic investments.
As of March 31, 2026, ArcBest held $64.1 million in cash and cash equivalents, a decrease of $37.9 million from $102.0 million at December 31, 2025. Short-term investments were $22.4 million, essentially flat. Total debt stood at $223.7 million (notes payable), with a current portion of $94.1 million. Stockholders' equity was $1,286.5 million, down from $1,295.7 million, driven by a net loss and share repurchases. The company had $223.9 million available under its revolving credit facility and $49.7 million under its accounts receivable securitization program.
The company disclosed $120.0 million in purchase obligations as of March 31, 2026, primarily for revenue equipment used in Asset-Based operations. Of this total, $102.6 million is expected to be paid within one year. This represents an increase of $14.2 million from December 31, 2025, mainly related to ABF Freight revenue equipment. No other significant changes to commitments or contingencies were noted.
During Q1 2026, ArcBest repurchased 85,011 shares for $7.4 million, leaving $97.3 million remaining under its share repurchase program. Dividends of $0.12 per share were declared and paid, totaling $2.7 million. The company repaid $22.3 million of long-term debt, with no new borrowings. Capital expenditures (purchases of property, plant and equipment, net of financings, plus capitalized software) totaled $13.3 million, or 1.3% of sales.
ArcBest operates two reportable segments: Asset-Based and Asset-Light. For Q1 2026, Asset-Based revenue was $655.0 million (up 1.3% YoY), with operating income of $17.5 million (2.7% margin). Asset-Light revenue was $377.7 million (up 6.1% YoY), with operating income of $0.2 million (0.1% margin). Intersegment revenues were eliminated in consolidation. The Asset-Based segment represented approximately 63% of total revenues before eliminations. Foreign operations were not significant.
Net income was negative ($1.0M) for Q1 FY2027, yet CFO of $8.5M was positive due to large non-cash add-backs: depreciation & amortization ($44.3M), share-based compensation ($2.1M), and deferred tax benefits ($12.2M). A significant working capital drag came from receivables increasing by $58.4M, partially offset by a $19.1M rise in payables/accrued liabilities and $11.8M in income tax inflows.
Capital spending (property, plant & equipment net of financings plus capitalized software) totaled $13.3M, representing the primary cash outflow from investing activities. Proceeds from asset sales provided $1.9M.
Free cash flow was negative approximately $4.8M ($8.5M CFO - $13.3M capex). Despite negative FCF, the company returned $10.1M to shareholders via dividends ($2.7M) and share repurchases ($7.4M), funded largely by financing activities including debt drawdowns and the use of existing cash.
A large favorable swing in deferred income taxes ($12.2M vs. $0.8M prior year) and a $30.6M improvement in payables/accrued liabilities versus prior year were key drivers of the positive CFO swing.