ARCBEST CORP /DE/ Segments Disclosure
NOTE M – OPERATING SEGMENT DATA
The Company uses the “management approach” to determine its reportable operating segments, as well as to determine the basis of reporting the operating segment information. Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company's former Chief Executive Officer and current Chairman of the Board was the CODM through December 31, 2025 and made decisions about resources to be acquired, allocated and utilized in each operating segment. The Company’s current President and Chief Executive Officer became the CODM as of January 1, 2026. The CODM uses segment revenues, operating expense categories, operating ratios, operating income (loss), and key operating statistics to evaluate performance and allocate resources to the Company’s operations.
The Company’s reportable operating segments are as follows:
| ● | The Asset-Based segment includes the results of operations of ABF Freight System, Inc. and certain other subsidiaries. The segment operations include national, inter-regional, and regional transportation of general commodities through standard, expedited, and guaranteed LTL services. The Asset-Based segment provides services to the Asset-Light segment, including freight transportation related to managed transportation solutions and other services. |
| ● | The Asset-Light segment includes the results of operations of the Company’s service offerings in truckload, managed transportation, ground expedite, intermodal, household goods moving, warehousing and distribution, and international freight transportation for air, ocean, and ground. The Asset-Light segment provides services to the Asset-Based segment. |
The Company’s other business activities and operations that are not reportable segments include ArcBest Corporation (the parent holding company) and certain subsidiaries. Certain costs incurred by the parent holding company and the Company’s shared services subsidiary are allocated to the reporting segments. The Company eliminates intercompany transactions in consolidation. However, the information used by the CODM with respect to its reportable operating segments is before intersegment eliminations of revenues and expenses. Likewise, the CODM does not review, evaluate, or consider asset information by segment when assessing segment operating performance or allocating resources. Accordingly, the Company does not report segment assets, and as such, a table of assets by reportable segment has not been presented.
Shared services represent costs incurred to support all segments, including sales, pricing, customer service, marketing, capacity sourcing functions, human resources, financial services, information technology, and other company-wide services. Certain overhead costs are not attributable to any segment and remain unallocated in “Other and eliminations.” Included in unallocated costs are expenses related to investor relations, legal, certain strategic expenses and investments, and certain investments in technology. Shared services costs attributable to the reportable operating segments are predominantly allocated based upon estimated and planned resource utilization‑related metrics such as estimated shipment levels or number of personnel supported. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the reportable operating segments. Management believes the methods used to allocate expenses are reasonable.
Further classifications of operations or revenues by geographic location are impracticable and, therefore, are not provided. The Company’s foreign operations are not significant.
The following tables reflect the Company’s reportable operating segment information from continuing operations for the years ended December 31:
| 2025 | | 2024 | | 2023 |
| ||||
(in thousands) |
| |||||||||
REVENUES | ||||||||||
Asset-Based | $ | 2,734,871 | $ | 2,750,134 | $ | 2,871,004 | ||||
Asset-Light |
| 1,407,436 |
| 1,552,936 |
| 1,680,645 | ||||
Other and eliminations |
| (132,149) |
| (124,051) |
| (124,206) | ||||
Total consolidated revenues | $ | 4,010,158 | $ | 4,179,019 | $ | 4,427,443 | ||||
OPERATING EXPENSES | ||||||||||
Asset-Based | ||||||||||
Salaries, wages, and benefits | $ | 1,428,225 | $ | 1,387,491 | $ | 1,379,756 | ||||
Fuel, supplies, and expenses |
| 317,126 |
| 316,526 |
| 361,355 | ||||
Operating taxes and licenses |
| 53,545 |
| 54,056 |
| 55,918 | ||||
Insurance |
| 70,121 |
| 72,610 |
| 52,025 | ||||
Communications and utilities |
| 21,541 |
| 19,336 |
| 19,288 | ||||
Depreciation and amortization |
| 133,014 |
| 110,021 |
| 104,165 | ||||
Rents and purchased transportation |
| 291,704 |
| 274,312 |
| 338,575 | ||||
Shared services | 258,971 | 270,182 | 279,248 | |||||||
(Gain) loss on sale of property and equipment and asset impairment charges(1) |
| (15,818) |
| (803) |
| 982 | ||||
Innovative technology costs(2) | — | — | 21,711 | |||||||
Other |
| 4,447 |
| 3,800 |
| 4,829 | ||||
Total Asset-Based |
| 2,562,876 |
| 2,507,531 |
| 2,617,852 | ||||
Asset-Light | ||||||||||
Purchased transportation |
| 1,201,122 |
| 1,339,783 |
| 1,435,604 | ||||
Salaries, wages, and benefits | 99,060 | 118,983 | 129,083 | |||||||
Supplies and expenses |
| 6,951 |
| 10,232 |
| 12,094 | ||||
Depreciation and amortization(3) |
| 18,494 |
| 20,062 |
| 20,370 | ||||
Shared services | 73,092 | 68,346 | 65,308 | |||||||
Contingent consideration(4) | (2,650) | (90,250) | (19,100) | |||||||
Asset impairment charges(5) | 6,640 | 1,700 | 14,407 | |||||||
Legal settlement(6) | — | 274 | 9,500 | |||||||
Other | 19,988 |
| 25,362 |
| 25,650 | |||||
Total Asset-Light |
| 1,422,697 |
| 1,494,492 |
| 1,692,916 | ||||
Other and eliminations |
| (65,724) |
| (67,438) |
| (55,944) | ||||
Total consolidated operating expenses | $ | 3,919,849 | $ | 3,934,585 | $ | 4,254,824 | ||||
| (1) | For 2025, includes a net gain of $15.7 million, primarily related to two service center sales during third quarter 2025. For 2023, includes a $0.7 million noncash lease-related impairment charge for an Asset-Based service center. |
| (2) | Represents costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023. |
| (3) | Includes amortization of intangibles associated with acquired businesses. |
| (4) | Represents the change in fair value of the contingent earnout consideration recorded for the MoLo acquisition (see Note C). |
| (5) | For 2025, represents a noncash asset impairment charge recognized during fourth quarter 2025 related to the indefinite-lived intangible asset within the Asset-Light segment (see Notes C and D). For 2024, represents noncash asset impairment charges for certain revenue equipment and software recognized during fourth quarter 2024 as part of a strategic decision to adjust capacity within Asset-Light’s operations. For 2023, represents noncash lease-related impairment charges for certain office spaces that were made available for sublease. |
| (6) | Represents settlement expenses related to the classification of certain Asset-Light employees under the Fair Labor Standards Act, which were paid during first quarter 2025. |
| 2025 | | 2024 | | 2023 |
| ||||
| (in thousands) |
| ||||||||
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS | ||||||||||
Asset-Based | $ | 171,995 | $ | 242,603 | $ | 253,152 | ||||
Asset-Light(1) |
| (15,261) |
| 58,444 |
| (12,271) | ||||
Other and eliminations(2) |
| (66,425) |
| (56,613) |
| (68,262) | ||||
Total consolidated operating income | $ | 90,309 | $ | 244,434 | $ | 172,619 | ||||
OTHER INCOME (COSTS) FROM CONTINUING OPERATIONS | ||||||||||
Interest and dividend income | $ | 4,755 | $ | 11,618 | $ | 14,728 | ||||
Interest and other related financing costs |
| (12,363) |
| (8,980) |
| (9,094) | ||||
Other, net(3) |
| 394 |
| (28,358) |
| 8,662 | ||||
Total other income (costs) |
| (7,214) |
| (25,720) |
| 14,296 | ||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | $ | 83,095 | $ | 218,714 | $ | 186,915 | ||||
| (1) | Includes the change in fair value of the contingent earnout consideration related to the MoLo acquisition (see Note C). |
| (2) | For 2025, includes noncash asset impairment charges recognized during fourth quarter 2025 of $5.4 million associated with the write-off of certain obsolete assets utilized in the Vaux suite (see Note B). For 2023, includes $15.1 million of noncash lease‑related impairment charges for a freight handling pilot facility. |
| (3) | Includes the components of net periodic benefit cost (credit) other than service cost related to the Company’s SBP and postretirement plans (see Note I) and proceeds and changes in cash surrender value of life insurance policies. For 2024, includes a $28.7 million noncash impairment charge to write off the Company’s equity investment in Phantom Auto (see Note C). |
The following table reflects information about revenues from customers and intersegment revenues for the years ended December 31:
| 2025 | | 2024 | | 2023 |
| ||||
(in thousands) |
| |||||||||
Revenues from customers | ||||||||||
Asset-Based | $ | 2,603,859 | $ | 2,626,408 | $ | 2,749,803 | ||||
Asset-Light |
| 1,400,735 |
| 1,547,627 |
| 1,673,399 | ||||
Other |
| 5,564 |
| 4,984 |
| 4,241 | ||||
Total consolidated revenues | $ | 4,010,158 | $ | 4,179,019 | $ | 4,427,443 | ||||
Intersegment revenues | ||||||||||
Asset-Based | $ | 131,012 | $ | 123,726 | $ | 121,201 | ||||
Asset-Light | 6,701 | 5,309 | 7,246 | |||||||
Other and eliminations | (137,713) | (129,035) | (128,447) | |||||||
Total intersegment revenues | $ | — | $ | — | $ | — | ||||
Total segment revenues | ||||||||||
Asset-Based | $ | 2,734,871 | $ | 2,750,134 | $ | 2,871,004 | ||||
Asset-Light | 1,407,436 | 1,552,936 | 1,680,645 | |||||||
Other and eliminations | (132,149) | (124,051) | (124,206) | |||||||
Total consolidated revenues | $ | 4,010,158 | $ | 4,179,019 | $ | 4,427,443 | ||||
The following table provides capital expenditure and depreciation and amortization information by reportable operating segment from continuing operations for the years ended December 31:
| 2025 | | 2024 | | 2023 | |||||
(in thousands) | ||||||||||
CAPITAL EXPENDITURES, GROSS | ||||||||||
Asset-Based(1) | $ | 210,547 | $ | 239,842 | $ | 207,072 | ||||
Asset-Light | 867 | 3,062 | 7,587 | |||||||
Other and eliminations(2) |
| 21,216 |
| 60,913 |
| 37,752 | ||||
$ | 232,630 | $ | 303,817 | $ | 252,411 | |||||
2025 | | 2024 | | 2023 | ||||||
(in thousands) | ||||||||||
DEPRECIATION AND AMORTIZATION EXPENSE(2) | ||||||||||
Asset-Based | $ | 133,014 | $ | 110,021 | $ | 104,165 | ||||
Asset-Light(3) | 18,494 | 20,062 | 20,370 | |||||||
Other and eliminations(2) |
| 18,827 |
| 19,004 |
| 20,814 | ||||
$ | 170,335 | $ | 149,087 | $ | 145,349 | |||||
| (1) | Includes assets acquired through notes payable of $117.9 million, $80.7 million, and $33.5 million in 2025, 2024, and 2023, respectively. |
| (2) | Includes certain assets held for the benefit of multiple segments, including information systems equipment. Depreciation and amortization associated with these assets is allocated to the reporting segments. Depreciation and amortization expense includes amortization of internally developed capitalized software which has not been included in gross capital expenditures presented in the table. |
| (3) | Includes amortization of intangibles of $12.8 million for each of the three years ended December 31, 2025, 2024, and 2023. |
The Company incurred research and development costs of $29.1 million, $34.1 million, and $52.4 million for the years ended December 31, 2025, 2024, and 2023, respectively, related to innovative technology initiatives.
The following table presents operating expenses by category on a consolidated basis for the years ended December 31:
| 2025 | | 2024 | | 2023 |
| ||||
(in thousands) | ||||||||||
OPERATING EXPENSES | ||||||||||
Salaries, wages, and benefits | $ | 1,782,603 | $ | 1,768,581 | $ | 1,781,304 | ||||
Rents, purchased transportation, and other costs of services |
| 1,348,922 |
| 1,478,114 |
| 1,642,669 | ||||
Fuel, supplies, and expenses |
| 433,042 |
| 433,237 |
| 479,688 | ||||
Depreciation and amortization(1) |
| 170,335 |
| 149,087 |
| 145,349 | ||||
Contingent consideration(2) | (2,650) | (90,250) | (19,100) | |||||||
Asset impairment charges(3) | 12,037 | 1,700 | 30,162 | |||||||
Other(4) |
| 175,560 |
| 194,116 |
| 194,752 | ||||
$ | 3,919,849 | $ | 3,934,585 | $ | 4,254,824 | |||||
| (1) | Includes amortization of intangible assets. |
| (2) | Represents the change in fair value of the contingent earnout consideration related to the MoLo acquisition (see Note C). |
| (3) | For 2025, includes noncash asset impairment charges recognized during fourth quarter 2025 of $6.6 million related to intangible assets within the Asset-Light segment (see Notes C and D) and the write-off of certain obsolete assets utilized in the Vaux suite of $5.4 million. For 2024, represents noncash asset impairment charges for certain revenue equipment and software recognized during fourth quarter 2024 as part of a strategic decision to adjust capacity within Asset-Light’s operations. For 2023, represents noncash lease-related impairment charges for a freight handling pilot facility, a service center, and office spaces that were made available for sublease. |
| (4) | For 2025, includes a net gain of $15.7 million, primarily related to two service center sales during third quarter 2025. For 2023, includes $9.5 million settlement expenses related to the classification of certain Asset-Light employees under the Fair Labor Standards Act, which were paid during first quarter 2025. Includes research and development costs for innovative technology initiatives, as discussed previously. For 2023, innovative technology costs were also incurred associated with the freight handling pilot program at ABF Freight, until the decision was made to pause the pilot during third quarter 2023. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.