ArcBest Announces Third Quarter 2025 Results

FORT SMITH, Ark.--( BUSINESS WIRE)--ArcBest ® (Nasdaq: ARCB), a leader in supply chain logistics, today announced financial results for the third quarter ended September 30, 2025.

Third quarter 2025 revenue totaled $1.0 billion, compared to $1.1 billion in the prior-year period. Net income from continuing operations was $39.3 million, or $1.72 per diluted share, versus $100.3 million, or $4.23 per diluted share, in the third quarter of 2024, which included a $69.1 million after-tax benefit from the reduction in the fair value of contingent consideration related to the MoLo acquisition. On a non-GAAP basis, net income was $33.4 million, or $1.46 per diluted share, compared to $38.8 million, or $1.64 per diluted share, in the prior year.

“ArcBest continues to deliver, even in this challenging freight environment,” said Judy R. McReynolds, ArcBest Chairman and CEO. “We achieved growth in LTL shipments and tonnage, and our Asset-Light segment delivered record shipment volumes and productivity. These results underscore the strength of our customer relationships and the value of our integrated solutions.”

Results of Operations Comparisons

Asset-Based

Third Quarter 2025 Versus Third Quarter 2024

Tonnage growth was driven by a 4.3 percent increase in daily shipments, primarily from newly onboarded core LTL customers. This was partially offset by a 1.9 percent decline in total weight per shipment. While new shipments were generally heavier, ongoing weakness in the manufacturing sector continues to pressure weight per shipment metrics, reducing revenue per shipment without corresponding cost decreases.

To support shipment growth, labor was added, and network capacity was supplemented with purchased transportation and local cartage during peak vacation season. Annual increases in contracted union labor rates, combined with higher purchased transportation spending and equipment depreciation, drove operating expenses higher. Despite these pressures, cost per shipment improved one percent year-over-year as a result of continued productivity gains. Cartage and purchased transportation costs normalized in September after elevated activity in July and August.

Customer contract renewals and deferred pricing agreements averaged a 4.5 percent increase during the quarter. Billed revenue per hundredweight, including and excluding fuel, decreased by 1.1 percent in the third quarter, compared to the third quarter of 2024. Price improvements were offset by a shift in freight profile. Overall, LTL industry pricing remains rational.

Compared sequentially to the second quarter of 2025, third quarter revenue and shipments per day were flat, while weight per shipment declined 3.9 percent, resulting in a 3.7 percent decrease in tonnage per day. Billed revenue per shipment decreased 0.6 percent as price improvements were offset by lower-weight shipments. Billed revenue per hundredweight increased 3.4 percent, reflecting the lower-weight shipments, combined with higher prices and fuel surcharges. Excluding fuel surcharges, revenue per hundredweight increased in the low single digits. The sequential non-GAAP operating ratio improved by 30 basis points.

Asset-Light

Third Quarter 2025 Versus Third Quarter 2024

Revenue decline was primarily due to lower revenue per shipment in a soft-rate environment and a higher mix of managed transportation business, which typically involves smaller, lower-revenue shipments. A 2.5 percent increase in shipments per day reflects continued growth in managed solutions, partially offset by a strategic reduction in less profitable truckload volumes.

Despite revenue declines, the Asset-Light segment delivered $1.6 million of non-GAAP operating income, supported by record volumes, improved margins and disciplined cost management. Productivity, measured by shipments per person per day, reached an all-time high during the quarter.

Compared sequentially to second quarter of 2025, daily revenue increased 3.3 percent, driven by a 10.1 percent increase in shipments per day. This increase was offset by a 6.2 percent decline in revenue per shipment, reflecting a higher proportion of smaller, lower-revenue managed solutions shipments. However, increased revenues combined with productivity gains contributed to improved financial performance.

Conference Call

ArcBest will host a conference call with company executives to discuss the quarterly results. The call will be today, Wednesday, November 5, 2025, at 9:30 a.m. ET (8:30 a.m. CT). Interested parties are invited to listen by calling (800) 715‑9871 or by joining the webcast which can be found on ArcBest’s website at arcb.com. Slides to accompany this call are included in Exhibit 99.3 of the Form 8-K filed on November 5, 2025, will be posted and available to download on the company’s website prior to the scheduled conference time, and will be included in the webcast. Following the call, a recorded playback will be available through the end of the day on November 19, 2025. To listen to the playback, dial (800) 770-2030. The conference call ID for the live conference call and the playback is 6423434. The conference call and playback can also be accessed through November 19, 2025, on ArcBest’s website at arcb.com.

About ArcBest

ArcBest ® (Nasdaq: ARCB) is a multibillion-dollar integrated logistics company that helps keep the global supply chain moving. Founded in 1923 and now with 14,000 employees across 250 campuses and service centers, the company is a logistics powerhouse, using its technology, expertise and scale to connect shippers with the solutions they need — from ground, air and ocean transportation to fully managed supply chains. ArcBest has a long history of innovation that is enriched by deep customer relationships. With a commitment to helping customers navigate supply chain challenges now and in the future, the company is developing ground-breaking technology like Vaux™, one of the TIME Best Inventions of 2023. For more information, visit arcb.com.

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding (i) our expectations about our intrinsic value or our prospects for growth and value creation and (ii) our financial outlook, position, strategies, goals, and expectations. Terms such as “anticipate,” “believe,” “could,” “designed,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “likely,” “may,” “plan,” “predict,” “project,” “scheduled,” “seek,” “should,” “would,” and similar expressions and the negatives of such terms are intended to identify forward-looking statements. These statements are based on management’s beliefs, assumptions, and expectations based on currently available information, are not guarantees of future performance, and involve certain risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct and caution the reader not to place undue reliance on our forward-looking statements. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a number of factors, including, but not limited to: data privacy breaches, cybersecurity incidents, and/or failures of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely; interruption or failure of third-party software or information technology systems, including but not limited to licensed software; untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with, new or enhanced technology or processes; the loss or reduction of business from large customers or an overall reduction in our customer base; the timing and performance of growth initiatives and the ability to manage our cost structure; the cost, integration, and performance of acquisitions and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; unsolicited takeover proposals, proxy contests, and other proposals or actions by activist investors; maintaining our corporate reputation and intellectual property rights; establishing and maintaining adequate internal controls over financial reporting; nationwide or global disruption in the supply chain resulting in increased volatility in freight volumes; competitive initiatives and pricing pressures; increased prices for and decreased availability of equipment, including new revenue equipment, and higher costs of equipment-related operating expenses such as maintenance, fuel, and related taxes; availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates, and the inability to collect fuel surcharges; relationships with employees, including unions, and our ability to attract, retain, and upskill employees; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight’s collective bargaining agreement; union employee wages and benefits, including changes in required contributions to multiemployer plans; availability and cost of reliable third-party services; our ability to secure independent owner-operators and/or operational or regulatory issues related to our use of their services; litigation or claims asserted against us; the effects, costs and potential liabilities related to changes in and compliance with, or violation of, existing or future governmental laws and regulations, including, but not limited to, environmental laws and regulations, such as emissions-control regulations and fuel efficiency regulations; default on covenants of financing arrangements and the availability and terms of future financing arrangements; our ability to generate sufficient cash from operations to support significant ongoing capital expenditure requirements and other business initiatives; self-insurance claims, insurance premium costs, and loss of our ability to self-insure; potential impairment of long-lived assets and goodwill and intangible assets; the effects of a widespread outbreak of an illness or disease or any other public health crisis, as well as regulatory measures implemented in response to such events; external events which may adversely affect us or the third parties who provide services for us, for which our business continuity plans may not adequately prepare us, including, but not limited to, the occurrence of natural disasters, health epidemics, geopolitical conflicts, acts of war, cybersecurity incidents, or trade restrictions; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers’ access to adequate financial resources; seasonal fluctuations, adverse weather conditions, natural disasters, and climate change; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest Corporation’s public filings with the Securities and Exchange Commission (“SEC”).

For additional information regarding known material factors that could cause our actual results to differ from those expressed in these forward-looking statements, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.

Financial Data and Operating Statistics

The following tables show financial data and operating statistics on ArcBest ® and its reportable segments.

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

Nine Months Ended

September 30

2025

2024

2025

2024

(Unaudited)

($ thousands, except share and per share data)

REVENUES

1,048,137

1,063,124

3,037,470

3,177,374

OPERATING EXPENSES

993,510

928,131

2,938,904

2,971,101

OPERATING INCOME

54,627

134,993

98,566

206,273

OTHER INCOME (COSTS)

Interest and dividend income

1,368

3,130

3,555

9,686

Interest and other related financing costs

(3,334

)

(2,281

)

(9,045

)

(6,587

)

Other, net

847

862

574

(28,118

)

(1,119

)

1,711

(4,916

)

(25,019

)

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

53,508

136,704

93,650

181,254

INCOME TAX PROVISION

14,234

36,390

25,436

36,928

NET INCOME FROM CONTINUING OPERATIONS

39,274

100,314

68,214

144,326

INCOME FROM DISCONTINUED OPERATIONS, net of tax (1)

—

600

NET INCOME

39,274

100,314

68,214

144,926

BASIC EARNINGS PER COMMON SHARE (2)

Continuing operations

1.73

4.25

2.97

6.12

Discontinued operations (1)

—

0.03

1.73

4.25

2.97

6.14

DILUTED EARNINGS PER COMMON SHARE (2)

Continuing operations

1.72

4.23

2.96

6.03

Discontinued operations (1)

—

0.03

1.72

4.23

2.96

6.06

AVERAGE COMMON SHARES OUTSTANDING

Basic

22,718,292

23,624,761

22,952,014

23,601,548

Diluted

22,811,670

23,690,120

23,037,638

23,923,047

________________________________________

Represents adjustments related to the gain on sale of FleetNet America ® (“FleetNet”), which sold on February 28, 2023.

Earnings per common share is calculated in total and may not equal the sum of earnings per common share from continuing operations and discontinued operations due to rounding.

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS

September 30

December 31

2025

2024

(Unaudited)

($ thousands, except share data)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

120,604

127,444

Short-term investments

12,023

29,759

Accounts receivable, less allowances (2025 - $8,372; 2024 - $8,257)

408,610

394,838

Other accounts receivable, less allowances (2025 - $648; 2024 - $648)

23,538

36,055

Prepaid expenses

35,365

47,860

Prepaid and refundable income taxes

46,066

28,641

Other

10,925

11,045

TOTAL CURRENT ASSETS

657,131

675,642

PROPERTY, PLANT AND EQUIPMENT

Land and structures

550,883

520,119

Revenue equipment

1,223,311

1,166,161

Service, office, and other equipment

362,243

351,907

Software

187,197

182,396

Leasehold improvements

37,175

32,263

2,360,809

2,252,846

Less allowances for depreciation and amortization

1,210,512

1,186,800

PROPERTY, PLANT AND EQUIPMENT, net

1,150,297

1,066,046

GOODWILL

304,753

INTANGIBLE ASSETS, net

79,227

88,615

OPERATING RIGHT-OF-USE ASSETS

226,033

192,753

DEFERRED INCOME TAXES

7,825

9,536

OTHER LONG-TERM ASSETS

75,915

92,386

TOTAL ASSETS

2,501,181

2,429,731

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable

164,266

168,943

Accrued expenses

392,088

398,700

Current portion of long-term debt

78,631

63,978

Current portion of operating lease liabilities

35,470

34,364

TOTAL CURRENT LIABILITIES

670,455

665,985

LONG-TERM DEBT, less current portion

135,469

125,156

OPERATING LEASE LIABILITIES, less current portion

210,958

189,978

POSTRETIREMENT LIABILITIES, less current portion

13,400

13,361

DEFERRED INCOME TAXES

113,999

78,649

OTHER LONG-TERM LIABILITIES

33,982

42,240

STOCKHOLDERS’ EQUITY

Common stock, $0.01 par value, authorized 70,000,000 shares;

issued 2025: 30,484,689 shares; 2024: 30,401,768 shares

305

304

Additional paid-in capital

336,484

329,575

Retained earnings

1,495,194

1,435,250

Treasury stock, at cost, 2025: 7,892,752 shares; 2024: 7,114,844 shares

(509,169

)

(451,039

)

Accumulated other comprehensive income

104

272

TOTAL STOCKHOLDERS’ EQUITY

1,322,918

1,314,362

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

2,501,181

2,429,731

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

September 30

2025

2024

(Unaudited)

($ thousands)

OPERATING ACTIVITIES

Net income

68,214

144,926

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

115,690

100,104

Amortization of intangibles

9,600

9,616

Share-based compensation expense

8,904

9,040

Provision for losses on accounts receivable

2,386

2,038

Change in deferred income taxes

37,117

10,547

Gain on sale of property and equipment

(15,684

)

(1,063

)

Pre-tax gain on sale of discontinued operations

—

(806

)

Change in fair value of contingent consideration

(2,650

)

(80,740

)

Change in fair value of equity investment

—

28,739

Changes in operating assets and liabilities:

Receivables

(2,931

)

44,344

Prepaid expenses

12,495

4,634

Other assets

(4,994

)

(3,364

)

Income taxes

(17,320

)

(2,870

)

Operating right-of-use assets and lease liabilities, net

(11,194

)

(7,088

)

Accounts payable, accrued expenses, and other liabilities

(15,342

)

(29,009

)

NET CASH PROVIDED BY OPERATING ACTIVITIES

184,291

229,048

INVESTING ACTIVITIES

Purchases of property, plant and equipment, net of financings

(107,005

)

(169,839

)

Proceeds from sale of property and equipment

32,518

6,187

Purchases of short-term investments

(12,000

)

(29,236

)

Proceeds from sale of short-term investments

30,226

55,874

Capitalization of internally developed software

(9,958

)

(12,437

)

Other investing activities

8,756

—

NET CASH USED IN INVESTING ACTIVITIES

(57,463

)

(149,451

)

FINANCING ACTIVITIES

Borrowings under credit facilities

25,000

—

Payments on long-term debt

(87,275

)

(102,366

)

Net change in book overdrafts

(2,887

)

(1,676

)

Deferred financing costs

(112

)

(65

)

Payment of common stock dividends

(8,270

)

(8,485

)

Purchases of treasury stock

(58,130

)

(56,108

)

Payments for tax withheld on share-based compensation

(1,994

)

(22,662

)

NET CASH USED IN FINANCING ACTIVITIES

(133,668

)

(191,362

)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(6,840

)

(111,765

)

Cash and cash equivalents at beginning of period

127,444

262,226

CASH AND CASH EQUIVALENTS AT END OF PERIOD

120,604

150,461

NONCASH INVESTING ACTIVITIES

Equipment financed

87,241

53,939

Accruals for equipment received

1,333

5,114

Lease liabilities arising from obtaining right-of-use assets

47,306

40,872

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS

Three Months Ended

Nine Months Ended

September 30

2025

2024

2025

2024

(Unaudited)

($ thousands, except percentages)

REVENUES FROM CONTINUING OPERATIONS

Asset-Based

726,475

709,722

2,086,081

2,093,914

Asset-Light

355,969

385,324

1,053,903

1,177,504

Other and eliminations

(34,307

)

(31,922

)

(102,514

)

(94,044

)

Total consolidated revenues from continuing operations

1,048,137

1,063,124

3,037,470

3,177,374

OPERATING EXPENSES FROM CONTINUING OPERATIONS

Asset-Based

Salaries, wages, and benefits

370,164

51.0

358,469

50.5

1,080,234

51.8

1,056,146

50.4

Fuel, supplies, and expenses

81,861

11.3

79,170

11.2

239,337

11.5

243,152

11.6

Operating taxes and licenses

13,373

1.8

13,538

1.9

40,330

1.9

40,624

1.9

Insurance

18,560

2.5

19,819

2.8

54,176

2.6

51,265

2.4

Communications and utilities

5,166

0.7

4,793

0.6

16,126

0.8

14,004

0.7

Depreciation and amortization

35,054

4.8

26,967

3.8

97,308

4.7

80,620

3.9

Rents and purchased transportation

81,142

11.2

73,600

10.4

224,501

10.8

209,586

10.0

Shared services

66,892

9.2

69,463

9.8

199,203

9.5

206,622

9.9

Gain on sale of property and equipment (1)

(15,874

)

(2.2

)

(1,688

)

(0.2

)

(16,010

)

(0.8

)

(1,630

)

(0.1

)

Other

(25

)

—

1,571

0.2

3,268

0.1

3,257

0.2

Total Asset-Based

656,313

90.3

645,702

91.0

1,938,473

92.9

1,903,646

90.9

Asset-Light

Purchased transportation

302,309

84.9

331,107

85.9

895,503

85.0

1,014,476

86.2

Salaries, wages, and benefits

24,913

7.0

30,150

7.8

76,091

7.2

91,490

7.8

Supplies and expenses

1,970

0.6

2,702

0.7

5,448

0.5

8,279

0.7

Depreciation and amortization (2)

4,647

1.3

5,037

1.3

13,870

1.3

15,154

1.3

Shared services

18,657

5.2

17,547

4.6

55,232

5.2

51,118

4.3

Contingent consideration (3)

—

(91,910

)

(23.9

)

(2,650

)

(0.2

)

(80,740

)

(6.9

)

Other

5,068

1.4

5,912

1.6

15,793

1.5

17,704

1.5

Total Asset-Light

357,564

100.4

300,545

78.0

1,059,287

100.5

1,117,481

94.9

Other and eliminations (4)

(20,367

)

(18,116

)

(58,856

)

(50,026

)

Total consolidated operating expenses from continuing operations

993,510

94.8

928,131

87.3

2,938,904

96.8

2,971,101

93.5

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

Asset-Based

70,162

64,020

147,608

190,268

Asset-Light

(1,595

)

84,779

(5,384

)

60,023

Other and eliminations (4)

(13,940

)

(13,806

)

(43,658

)

(44,018

)

Total consolidated operating income from continuing operations

54,627

134,993

98,566

206,273

________________________________________

The 2025 periods include a net gain of $15.7 million, primarily related to two service center sales during third quarter 2025.

Includes amortization of intangibles associated with acquired businesses.

Represents the change in fair value of the contingent earnout consideration recorded for the MoLo acquisition. The liability for contingent consideration is remeasured at each quarterly reporting date, and any change in fair value as a result of the recurring assessments is recognized in operating income (loss). The Company reduced the contingent consideration for the MoLo acquisition to zero in second quarter 2025, reflecting the probability of no earnout payment based on projections of adjusted earnings before interest, taxes, depreciation, and amortization for 2025.

“Other and eliminations” includes corporate costs for certain unallocated shared service costs which are not attributable to any segment, additional investments to offer comprehensive transportation and logistics services across multiple operating segments, costs related to our customer pilot offering of Vaux, and other investments in ArcBest technology and innovations.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance measures and ratios utilized for internal analysis provide analysts, investors, and others the same information that we use internally for purposes of assessing our core operating performance and provides meaningful comparisons between current and prior period results, as well as important information regarding performance trends. Accordingly, non-GAAP results are presented on a continuing operations basis, excluding the discontinued operations of FleetNet, which sold on February 28, 2023. The use of certain non-GAAP measures improves comparability in analyzing our performance because it removes the impact of items from operating results that, in management's opinion, do not reflect our core operating performance. Other companies may calculate non-GAAP measures differently; therefore, our calculation may not be comparable to similarly titled measures of other companies. Certain information discussed in the scheduled conference call could be considered non-GAAP measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results. These financial measures should not be construed as better measurements than operating income, net income or earnings per share, as determined under GAAP.

Three Months Ended

Nine Months Ended

September 30

2025

2024

2025

2024

ArcBest Corporation — Consolidated

(Unaudited)

($ thousands, except per share data)

Operating Income from Continuing Operations

Amounts on GAAP basis

54,627

134,993

98,566

206,273

Innovative technology costs, pre-tax (1)

7,713

8,512

22,349

26,521

Purchase accounting amortization, pre-tax (2)

3,192

9,576

Change in fair value of contingent consideration, pre-tax (3)

—

(91,910

)

(2,650

)

(80,740

)

Gain on sale of certain properties, pre-tax (4)

(15,726

)

—

(15,726

)

—

Non-GAAP amounts

49,806

54,787

112,115

161,630

Net Income from Continuing Operations

Amounts on GAAP basis

39,274

100,314

68,214

144,326

Innovative technology costs, after-tax (includes related financing costs) (1)

5,862

6,511

17,014

20,331

Purchase accounting amortization, after-tax (2)

2,399

2,401

7,195

7,202

Change in fair value of contingent consideration, after-tax (3)

—

(69,124

)

(1,991

)

(60,723

)

Gain on sale of certain properties, after-tax (4)

(11,778

)

—

(11,778

)

—

Change in fair value of equity investment, after-tax (5)

—

21,603

Changes in cash surrender value and gains on life insurance policies

(2,348

)

(1,333

)

(3,089

)

(3,006

)

Tax expense (benefit) from vested RSUs (6)

)

1,000

(11,273

)

Non-GAAP amounts

33,417

38,760

76,565

118,460

Diluted Earnings Per Share from Continuing Operations

Amounts on GAAP basis

1.72

4.23

2.96

6.03

Innovative technology costs, after-tax (includes related financing costs) (1)

0.26

0.27

0.74

0.85

Purchase accounting amortization, after-tax (2)

0.11

0.10

0.31

0.30

Change in fair value of contingent consideration, after-tax (3)

—

(2.92

)

(0.09

)

(2.54

)

Gain on sale of certain properties, after-tax (4)

(0.52

)

—

(0.51

)

—

Change in fair value of equity investment, after-tax (5)

—

0.90

Changes in cash surrender value and gains on life insurance policies

(0.10

)

(0.06

)

(0.13

)

(0.13

)

Tax expense (benefit) from vested RSUs (6)

—

0.04

(0.47

)

Non-GAAP amounts (7)

1.46

1.64

3.32

4.95

________________________________________

See “Notes to Non-GAAP Financial Tables” for footnotes to this ArcBest Corporation – Consolidated non-GAAP table.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

Three Months Ended

Nine Months Ended

September 30

2025

2024

2025

2024

Segment Operating Income (Loss) Reconciliations

(Unaudited)

($ thousands, except percentages)

Asset-Based Segment

Operating Income ($) and Operating Ratio (% of revenues)

Amounts on GAAP basis

70,162

90.3

64,020

91.0

147,608

92.9

190,268

90.9

Gain on sale of certain properties, pre-tax (4)

(15,726

)

2.2

—

(15,726

)

0.8

—

Non-GAAP amounts (7)

54,436

92.5

64,020

91.0

131,882

93.7

190,268

90.9

Asset-Light

Asset-Light Segment

Operating Income (Loss) ($) and Operating Ratio (% of revenues)

Amounts on GAAP basis

(1,595

)

100.4

84,779

78.0

(5,384

)

100.5

60,023

94.9

Purchase accounting amortization, pre-tax (2)

3,192

(0.9

)

3,192

(0.8

)

9,576

(0.9

)

9,576

(0.8

)

Change in fair value of contingent consideration, pre-tax (3)

—

(91,910

)

23.9

(2,650

)

0.2

(80,740

)

6.9

Non-GAAP amounts (7)

1,597

99.6

(3,939

)

101.0

1,542

99.9

(11,141

)

100.9

Other and Eliminations

Operating Loss ($)

Amounts on GAAP basis

(13,940

)

(13,806

)

(43,658

)

(44,018

)

Innovative technology costs, pre-tax (1)

7,713

8,512

22,349

26,521

Non-GAAP amounts

(6,227

)

(5,294

)

(21,309

)

(17,497

)

________________________________________

Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Segment Operating Income (Loss) Reconciliations non-GAAP table.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

Effective Tax Rate Reconciliation

ArcBest Corporation - Consolidated

(Unaudited)

($ thousands, except percentages)

Three Months Ended September 30, 2025

Other

Income

CONTINUING OPERATIONS

Operating

Income

Before Income

Tax

Net

Income

(Costs)

Taxes

Provision

Income

Tax Rate (8)

Amounts on GAAP basis

54,627

(1,119

)

53,508

14,234

39,274

26.6

Innovative technology costs (1)

7,713

7,794

1,932

5,862

24.8

Purchase accounting amortization (2)

3,192

—

3,192

793

2,399

24.9

Gain on sale of certain properties (4)

(15,726

)

—

(15,726

)

(3,948

)

(11,778

)

(25.1

)

Changes in cash surrender value and gains on life insurance policies

—

(2,348

)

(2,348

)

—

(2,348

)

—

Tax expense from vested RSUs (6)

—

)

—

Non-GAAP amounts

49,806

(3,386

)

46,420

13,003

33,417

28.0

Nine Months Ended September 30, 2025

Other

Income

Operating

Income

Before Income

Tax

Net

Income

(Costs)

Taxes

Provision

Income

Tax Rate (8)

Amounts on GAAP basis

98,566

(4,916

)

93,650

25,436

68,214

27.2

Innovative technology costs (1)

22,349

274

22,623

5,609

17,014

24.8

Purchase accounting amortization (2)

9,576

—

9,576

2,381

7,195

24.9

Change in fair value of contingent consideration (3)

(2,650

)

—

(2,650

)

(659

)

(1,991

)

(24.9

)

Gain on sale of certain properties (4)

(15,726

)

—

(15,726

)

(3,948

)

(11,778

)

(25.1

)

Changes in cash surrender value and gains on life insurance policies

—

(3,089

)

(3,089

)

—

(3,089

)

—

Tax expense from vested RSUs (6)

—

(1,000

)

1,000

—

Non-GAAP amounts

112,115

(7,731

)

104,384

27,819

76,565

26.7

Three Months Ended September 30, 2024

Other

Income

CONTINUING OPERATIONS

Operating

Income

Before Income

Tax

Net

Income

(Costs)

Taxes

Provision

Income

Tax Rate (8)

Amounts on GAAP basis

134,993

1,711

136,704

36,390

100,314

26.6

Innovative technology costs (1)

8,512

145

8,657

2,146

6,511

24.8

Purchase accounting amortization (2)

3,192

—

3,192

791

2,401

24.8

Change in fair value of contingent consideration (3)

(91,910

)

—

(91,910

)

(22,786

)

(69,124

)

(24.8

)

Changes in cash surrender value and gains on life insurance policies

—

(1,333

)

(1,333

)

—

(1,333

)

—

Tax benefit from vested RSUs (6)

—

)

—

Non-GAAP amounts

54,787

523

55,310

16,550

38,760

29.9

Nine Months Ended September 30, 2024

Other

Income

Operating

Income

Before Income

Tax

Net

Income

(Costs)

Taxes

Provision

Income

Tax Rate (8)

Amounts on GAAP basis

206,273

(25,019

)

181,254

36,928

144,326

20.4

Innovative technology costs (1)

26,521

512

27,033

6,702

20,331

24.8

Purchase accounting amortization (2)

9,576

—

9,576

2,374

7,202

24.8

Change in fair value of contingent consideration (3)

(80,740

)

—

(80,740

)

(20,017

)

(60,723

)

(24.8

)

Change in fair value of equity investment (5)

—

28,739

7,136

21,603

24.8

Changes in cash surrender value and gains on life insurance policies

—

(3,006

)

(3,006

)

—

(3,006

)

—

Tax benefit from vested RSUs (6)

—

11,273

(11,273

)

—

Non-GAAP amounts

161,630

1,226

162,856

44,396

118,460

27.3

________________________________________

Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Effective Tax Rate Reconciliation non-GAAP table.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA)

Management uses Adjusted EBITDA as a key measure of performance and for business planning. The measure is particularly meaningful for analysis of operating performance because it excludes amortization of acquired intangibles and software of the Asset-Light segment and changes in the fair values of contingent consideration and equity investment, which are significant expenses or gains resulting from strategic decisions or other factors rather than core daily operations. Additionally, Adjusted EBITDA is a primary component of the financial covenants contained in our credit agreement. The calculation of Consolidated Adjusted EBITDA as presented below begins with net income from continuing operations, which is the most directly comparable GAAP measure. The calculation of Asset-Light Adjusted EBITDA as presented below begins with operating income (loss), as other income (costs), income tax provision, and net income from continuing operations are reported at the consolidated level and not included in the operating segment financial information evaluated by management to make operating decisions.

Three Months Ended

Nine Months Ended

September 30

2025

2024

2025

2024

(Unaudited)

($ thousands)

ArcBest Corporation - Consolidated Adjusted EBITDA from Continuing Operations

Net Income from Continuing Operations

39,274

100,314

68,214

144,326

Interest and other related financing costs

3,334

2,281

9,045

6,587

Income tax provision

14,234

36,390

25,436

36,928

Depreciation and amortization (9)

44,400

36,611

125,290

109,720

Amortization of share-based compensation

2,742

2,718

8,904

9,040

Change in fair value of contingent consideration (3)

—

(91,910

)

(2,650

)

(80,740

)

Change in fair value of equity investment (5)

—

28,739

Consolidated Adjusted EBITDA from Continuing Operations

103,984

86,404

234,239

254,600

________________________________________

Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this ArcBest Corporation – Consolidated Adjusted EBITDA from Continuing Operations non-GAAP table.

Three Months Ended

Nine Months Ended

September 30

2025

2024

2025

2024

(Unaudited)

($ thousands)

Asset-Light Adjusted EBITDA

Operating Income (Loss)

(1,595

)

84,779

(5,384

)

60,023

Depreciation and amortization (9)

4,647

5,037

13,870

15,154

Change in fair value of contingent consideration (3)

—

(91,910

)

(2,650

)

(80,740

)

Asset-Light Adjusted EBITDA

3,052

(2,094

)

5,836

(5,563

)

________________________________________

Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Asset-Light Adjusted EBITDA non-GAAP table.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

Notes to Non-GAAP Financial Tables

The following footnotes apply to the non-GAAP financial tables presented in this press release.

Represents costs related to our customer pilot offering of Vaux and initiatives to optimize our performance through technological innovation.

Represents the amortization of acquired intangible assets in the Asset-Light segment.

Represents change in fair value of the contingent earnout consideration recorded for the MoLo acquisition, as previously described in the footnotes to the Financial Statement Operating Segment Data and Operating Ratios table.

Primarily includes gains on two service center sales within the Asset-Based operations.

Represents a noncash impairment charge to write off an equity investment in Phantom Auto, a provider of human-centered remote operation software, which ceased operations during first quarter 2024.

Represents recognition of the tax impact for vesting of share-based compensation.

Non-GAAP amounts are calculated in total and may not equal the sum of GAAP amounts and non-GAAP adjustments due to rounding.

Tax rate for total “Amounts on GAAP basis” represents the effective tax rate. The tax effects of non-GAAP adjustments are calculated based on the statutory rate applicable to each item based on tax jurisdiction unless the nature of the item requires the tax effect to be estimated by applying a specific tax treatment.

Includes amortization of intangibles associated with acquired businesses.

ARCBEST CORPORATION

OPERATING STATISTICS

Three Months Ended

Nine Months Ended

September 30

2025

2024

% Change

2025

2024

% Change

(Unaudited)

Asset-Based

Workdays

64.0

63.5

190.5

191.0

Billed Revenue (1) / CWT

50.19

50.76

(1.1

49.37

49.81

(0.9

Billed Revenue (1) / Shipment

534.80

551.34

(3.0

534.52

552.20

(3.2

Tonnage / Day

11,238

10,983

2.3

11,125

11,035

0.8

Shipments / Day

21,095

20,221

4.3

20,550

19,907

3.2

Shipments / DSY hour

0.446

0.445

0.2

0.448

0.445

0.7

Weight / Shipment

1,065

1,086

(1.9

1,083

1,109

(2.3

Average Length of Haul (Miles)

1,129

1,143

(1.2

1,128

1,130

(0.2

________________________________________

Revenue for undelivered freight is deferred for financial statement purposes in accordance with the Asset-Based segment revenue recognition policy. Billed revenue used for calculating revenue per hundredweight measurements has not been adjusted for the portion of revenue deferred for financial statement purposes.

Year Over Year % Change

Three Months Ended

Nine Months Ended

September 30, 2025

(Unaudited)

Asset-Light

Revenue / Shipment

(10.6

(7.9

Shipments / Day

2.5

(2.6

Shipments / Employee / Day

32.6

23.6