ArcBest has reported a strong business pipeline, but noted that demand is still stabilizing and remains below mid-cycle norms.
This stabilization is attributed to a weak housing market and lingering softness in parts of manufacturing, which are headwinds for the company.
However, pricing is on the rise as the less-than-truckload industry remains rational and the truckload market benefits from structural capacity reductions.
The company's digital quote pool, which has visibility into 250,000 shipments each day, is driving the improvement in revenue growth.
Despite this, ArcBest reported a first-quarter net loss of $1 million, or 5 cents per share, with adjusted earnings per share of 32 cents.
The asset-based unit's ability to drive revenue growth through rate increases and cost savings will be crucial in navigating the market inflection.
