ArcBest’s second quarter was met with a negative market reaction, as the company missed Wall Street’s revenue and non-GAAP profit expectations. Management attributed this underperformance to a persistently soft freight environment, ongoing weakness in manufacturing, and sluggish housing activity, which pressured both pricing and profitability. CEO Judy McReynolds highlighted that, despite these headwinds, ArcBest delivered its most productive quarter since 2021 by leveraging technology and operational discipline. The company’s focus on integrated logistics and cost-reduction initiatives—such as AI-powered labor and routing tools—helped mitigate some of the challenges. However, management’s commentary reflected caution, noting the prolonged softness across key end markets and increased operating costs from annual labor and transportation contracts.

Is now the time to buy ARCB? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From ArcBest’s Q2 Earnings Call

• Jordan Alliger (Goldman Sachs) asked if easier year-over-year comparisons in upcoming months could lead to a step-up in revenue and shipment trends. CFO J. Matthew Beasley responded that continued commercial efforts may allow for some outperformance versus historical seasonality, but emphasized that shipment growth will depend on ongoing execution.
• Jason Seidl (TD Cowen) inquired about increased competition and pricing dynamics in the SMB market. Chief Customer Officer Eddie Sorg explained that SMB customers are generally less price-sensitive and that ArcBest focuses on building long-term relationships, making this segment more resilient.
• Chris Wetherbee (Wells Fargo) questioned the sustainability of ArcBest’s above-industry shipment growth and whether the current mix could be maintained. CEO-elect Seth Runser stated that strong customer engagement and a robust pipeline should support further growth, with continued discipline on profitable accounts.
• Daniel Imbro (Stephens) asked about the timing and expected impact of the recently announced 5.9% general rate increase (GRI). Sorg indicated that the GRI is in line with ArcBest’s typical cycle, with early customer feedback positive and the majority of core business expected to be covered.
• Bruce Chan (Stifel) sought clarity on the progress of operational improvements in the Asset-Light segment and the outlook for further gains. Runser and Beasley described ongoing productivity initiatives, particularly in managed solutions, but acknowledged that soft freight markets and excess capacity remain headwinds.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) the impact of AI-powered operational tools on network productivity and margins, (2) continued volume growth and customer retention in core LTL and managed solutions segments, and (3) the company’s ability to execute pricing discipline amidst soft market conditions and new tariff regimes. Leadership transition outcomes and updates from the upcoming Investor Day will also be critical in assessing ArcBest’s future trajectory.

ArcBest currently trades at $72.26, down from $81.91 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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