ArcBest Expects ABF’s Non-GAAP Operating Ratio to Deteriorate 50-150 BPS in Q4

ArcBest expects ABF’s non-GAAP operating ratio to deteriorate approximately 50 to 150 basis points sequentially in the fourth quarter of 2026, a projected increase below the unit’s average fourth-quarter deterioration over the past decade.

The outlook applies to ABF, which ArcBest reports separately from its Asset-Light segment. ArcBest’s estimate compares the fourth quarter with the third quarter, when ABF’s non-GAAP operating ratio was 90.4%. The company does not currently expect a significant difference between ABF’s GAAP and non-GAAP operating ratios in the fourth quarter.

From 2016 through 2025, ABF’s ratio deteriorated by an average of approximately 180 basis points between the third and fourth quarters. The calculation excludes 2020 and 2023, which were affected by significant market disruptions. The 2026 outlook’s 50-to-150-basis-point range is below that historical average.

For Asset-Light, ArcBest projects fourth-quarter GAAP operating income of $17 million to $20 million. That range includes an estimated $12 million gain from modifying an office lease. The non-GAAP operating income forecast is $7 million to $10 million after excluding the estimated gain and approximately $2 million in purchase-accounting amortization.

ArcBest agreed in October to modify an existing office lease used in Asset-Light operations. It paid $7.5 million upon signing and projects a fourth-quarter gain of about $12 million. The lease modification is expected to produce the gain included in the GAAP forecast.

Asset-Light posted $14.4 million in non-GAAP operating income and $446.3 million in revenue in the third quarter. Its revenue per day increased 25.4% from a year earlier.

Seth Runser, ArcBest’s president and CEO, said: “Stronger earnings and profitability were driven by disciplined execution, continued momentum in Asset-Light and ongoing savings from actions to simplify our organization and improve efficiency.”

ArcBest cautions that its forward-looking statements do not guarantee future performance and that actual results could differ materially.