ArcBest (ARCB) investor relations material

Executive summary

• Q4 2025 revenue was $973M, with non-GAAP EPS of $0.36; full-year revenue was $4.0B, and non-GAAP net income was $84.8M, or $3.70 per share.

• Asset-Based segment saw flat revenue per day and 2-3% growth in daily shipments and tonnage; Asset-Light segment achieved breakeven non-GAAP operating income and record productivity.

• AI and technology initiatives delivered $24M in annual cost savings and improved productivity, with 15-20% of office staff using AI tools daily.

• Leadership was strengthened with a new COO for Asset-Light and two new independent directors.

• Over $86M was returned to shareholders in 2025 via share repurchases and dividends.

Financial highlights

• Q4 consolidated revenue was $973M, non-GAAP operating income was $14M, and adjusted non-GAAP EPS was $0.36, down from $1.33 in Q4 2024.

• Asset-Based Q4 revenue was $649M, with a 96.2% non-GAAP operating ratio; Asset-Light Q4 revenue was $354M, with shipments per day up 5% and breakeven non-GAAP operating income.

• Full-year Asset-Based non-GAAP operating income was $156.3M (94.3% ratio); Asset-Light full-year non-GAAP operating income was $1.5M.

• Adjusted EBITDA for 2025 was $285.8M, down from $328.6M in 2024.

• Return on capital employed (ROCE) was 6% in 2025.

Outlook and guidance

• Q1 Asset-Based operating ratio expected to increase 100-200 bps sequentially, better than typical seasonality.

• Asset-Light segment expects up to $1M operating loss in Q1, reflecting seasonality and market conditions.

• 2026 net CapEx anticipated at $150M-$170M, below 5% of revenue, with lower real estate and equipment spending.

• 2028 targets: Asset-Based non-GAAP operating ratio of 87%-90%, Asset-Light non-GAAP operating income of $40M-$70M, non-GAAP EPS of $12-$15, annual operating cash flow of $400M-$500M, and ROCE of 16%-19%.

• Reaffirmed 2028 financial targets, with no significant macro recovery expected in 2026; focus remains on productivity and cost initiatives.