ArcBest (ARCB) investor relations material

Executive summary

• Second quarter 2026 revenue reached $1.2 billion, up 16% year-over-year, with strong growth in both Asset-Based and Asset-Light segments and significant improvements in earnings and operating margins, driven by disciplined pricing, heavier freight profile, and efficiency gains.

• Non-GAAP net income was $53.6 million, while GAAP net loss was $13.8 million due to $85.3 million in asset impairment and restructuring charges.

• Major restructuring included brand consolidation, discontinuation of the Vaux Freight Movement System, workforce reduction by 2%, and closure of 10 service centers, targeting $40 million in annualized cost savings.

• Launched ArcBest View, a new digital logistics platform, and implemented organizational changes to simplify operations and enhance customer experience.

• Continued focus on profitable growth, yield discipline, productivity, and advancing technology initiatives, including AI-enabled solutions.

Financial highlights

• Q2 2026 consolidated revenue was $1.2 billion, up from $1.02 billion in Q2 2025; non-GAAP operating income was $74 million, and adjusted EPS was $2.38, up 75% year-over-year.

• Asset-Based segment revenue was $783.7 million (up 9.9%), with operating income of $74.3 million and an improved operating ratio of 90.5%.

• Asset-Light segment revenue was $438.7 million (up 28.3%), with non-GAAP operating income of $6.3 million but a GAAP operating loss of $31.3 million due to impairment charges.

• Consolidated Adjusted EBITDA for Q2 2026 was $115.0 million, up from $81.0 million in Q2 2025.

• Cash and cash equivalents increased to $145.9 million as of June 30, 2026.

Outlook and guidance

• The restructuring is expected to generate $40 million in annualized cost savings, with long-term financial targets unchanged and restructuring actions supporting their achievability.

• Asset-Light segment projected to deliver $6–$8 million in non-GAAP operating income in Q3.

• Capital expenditures for 2026 are projected at $140–$160 million, with $75–$80 million for revenue equipment and $25–$35 million for real estate and facility upgrades.

• The company expects to continue quarterly dividends and share repurchases, subject to board discretion and financial performance.

• 2028 financial targets include Asset-Based non-GAAP operating ratio of 87%-90%, Asset-Light non-GAAP operating income of $40M-$70M, and non-GAAP diluted EPS of $12-$15.