Slide 1: Earnings Presentation 4Q'24
Earnings Presentation 4Q’24
Slide 2: Forward Looking Statements
Forward Looking Statements The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of
Slide 3: Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth
Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth 1 2 3 Accelerate Growth Increase Efficiency Drive Innovation Secure new customers to Leverage technology Develop and implement maximize profitability disruptive and game changing ENHANCED Optimize ABF network innovat
Slide 4: ArcBest Managed Transportation Solution 5x
A R C B E S T P R O V I D E S P R E M I U M VA L U E CUSTOMERS Flexibility Efficiency Resiliency NEED & WANT ARCBEST’S INTEGRATED SOLUTIONS International Full Warehousing & Less-than- Premium Expedite Final EXPAND MARKET Shipping Truckload Distribution Truckload Logistics Shipping Mile OPPORTUNITY $
Slide 5: ArcBest's Customer-Led Strategy Yields Results
A R C B E S T ’ S C U S T O M E R - L E D S T R AT E G Y Y I E L D S R E S U LT S >3x >70% 5% Revenue & Profit Asset-Light + Higher Customer Revenue & Profit per account is over 3X higher in cross-sold accounts Asset-Based Retention Over 70% of our Retention rates are 5 3x 3x customers who use perce
Slide 6: Year in Review – Excellence in Action
YEAR IN REVIEW – EXCELLENCE IN ACTION Trained 5,000 Employees Exceeded Industry Problem elimination process empowers employees to identify and resolve Benchmark for 19 Years inefficiencies 19x Best On-Time Performance in Five Years Shipment Visibility +30% -20% Customer Service ETA Accuracy >$4B Req
Slide 7: Modern Fleet Strategically Adding Capacity
S T R AT E G I C I N V E S T M E N T S I N T E C H N O L O G Y, F L E E T A N D FA C I L I T I E S ✓ Enables Growth ✓ Improves Service ✓ Increases Efficiency Dock Management Software Modern Fleet • Employee Level Productivity • Lowers Total Cost of Ownership • Consistent Processes & Service • Suppor
Slide 8: Pricing Intelligence and Innovation Enhance Yield
P R I C I N G I N T E L L I G E N C E A N D I N N O VAT I O N E N H A N C E Y I E L D Industry-Leading Innovation Value-Enhancing Solutions Improved Pricing Intelligence Tech Capability Large dataset with deep Led the industry in launching + Core LTL understanding of our costs provides Space-Based P
Slide 9: Strategy in Action: 670 bps Operating Ratio Improvement
Strategy in Action Improvement 670 bps IMPROVEMENT in Asset-Based Compared to 2016 Operating 97.9% Ratio (1) 95% 96.9% 93.3% 94.5% 94.2% (Non-GAAP) 90.4% 91.2% 90% 88.8% 86.4% 85% (1) Operating Ratio adjusted for certain unusual items. See Reconciliations of GAAP to non-GAAP Financial 80% Measures i
Slide 10: Leadership Changes
LEADERSHIP CHANGES Eddie Sorg named Chief Commercial Officer 30-year tenure with ArcBest Leading expanded commercial team – aligning our revenue engine across sales, marketing, yield and customer solutions Fosters increased collaboration and faster decision making Christopher Adkins named Chief Stra
Slide 11: Taking Action and Making Investments to Further Accelerate Growth
Organizational Updates for Increased Efficiency Taking Action Enables faster Encourages focus on Fosters better And Making decision making highest priorities collaboration Investments Investing for Investing for To Further Accelerated Growth Improved Service Accelerate Growing sales force Expanding
Slide 12: Continually Raising the Bar on Excellence
C O N T I N U A L LY R A I S I N G T H E B A R O N E X C E L L E N C E • Culture of continuous improvement Process and compliance Surpassed • 40-years of using the Quality Process training exceeding annual goal 2024 to drive efficiencies expectations on >2x in 2024 Actual Net Savings net revenue imp
Slide 13: Transforming Operations Through Technology
T R A N S F O R M I N G O P E R AT I O N S T H R O U G H T E C H N O L O G Y 75 Projects in City Route Optimization Phase 1 Savings ABF Optimization Portfolio • 36% operationalized • 25% in pilot to expand stages $13M+ Per Year City Route Optimization Phase 1 is Complete and Saving $13M+ Annually •
Slide 14: Strategy in Action
Strategy in Action Our strategy is delivering solid results Revenues ($B) Operating Income ($M) Earnings Per Share (Unaudited)(1) (Non-GAAP, Unaudited)(1)(2) (Non-GAAP, Unaudited)(1)(2) +44% +32% +55% $13.52 $5.0 $468 $4.4 $4.2 $314 $8.40 $3.8 $7.88 $258 $6.28 $2.9 $203 $2.8 $2.8 $154 $4.05 $112 $12
Slide 15: Key Metrics: ArcBest Consolidated
(1) Q4 2024 Key $1.0B $41.4M ArcBest Non-GAAP Metrics Consolidated Revenue Operating Income (2) ARCBEST -8% -49% C O N S O L I D AT E D (From Continuing Operations) 1) 2) All comparisons are on a year-over-year basis. See non-GAAP reconciliation in the Additional Information section of this presenta
Slide 16: Key Metrics: Asset-Based
(1) $52.3M Q4 2024 Operating Income $656M -40% Key Revenue 92.0% Metrics -8% per day Operating Ratio 430 bps deterioration A S S E T- B A S E D Daily Total Daily Total Total Billed Weight/ Tonnage Shipments Rev/CWT Shipment 1) All comparisons are on a year-over-year basis. -7% -1% +1% -6% Average In
Slide 17: Asset-Based Operating Income Bridge 4Q23 vs 4Q24
Q4 2024 4Q23 vs 4Q24 $100M Operating $90M Income $80M $70M Bridge $60M ($54M) $50M A S S E T- B A S E D $40M $88M $35M $30M ($7M) $52M $20M ($9M) $10M (1) Operating Income adjusted for certain unusual items. See Reconciliations of GAAP to non-GAAP Financial Measures in the Additional Information sec
Slide 18: Key Metrics: Asset-Based January Preliminary
J A N U A RY 2 0 2 5 PR ELIMIN A RY (1) January 2025 Daily Billed Daily Total Total Billed Revenue Shipments Rev/Shipment Key -4% -3% -1% Metrics Daily Total Tonnage Total Billed Rev/CWT Total Weight/Shipment A S S E T- B A S E D -11% +8% -8% 1) All comparisons are on a year-over-year basis. 18
Slide 19: Key Metrics: Asset-Light
Q4 2024 (1) ($5.9M) Non-GAAP Operating Loss (2) Key $375M Revenue Metrics ($4.2M) -9% per day A S S E T- L I G H T Adjusted EBITDA (2) 1) All comparisons are on a year-over-year basis. 2) See non-GAAP reconciliation in the Additional Information section of this presentation. Revenue/ Daily Total Shi
Slide 20: Key Metrics: Asset-Light January Preliminary
J A N U A RY 2 0 2 5 PR ELIMIN A RY (1) January 2025 Revenue/Day Daily Total Shipments Key -6% -3% Metrics Revenue/Shipment Purchased Transportation as % of Revenue A S S E T- L I G H T -3% 87% 1) All comparisons are on a year-over-year basis. 20
Slide 21: Balanced Investment Approach
BALANCED INVESTMENT APPROACH Strong business performance enables ArcBest to invest organically in the business and provide returns to shareholders while maintaining a solid balance sheet and investment-grade credit metrics Solid Financial Position Share Repurchases & Dividends • Approximately $450M
Slide 22: Excellence in Action
EXCELLENCE IN ACTION The Only 10x Winner ATA Excellence in Security 22
Slide 23: Reconciliations of GAAP to Non-GAAP Financial Measures
A D D I T I O N A L I N F O R M AT I O N Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) Note: ArcBest Corporation reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance mea
Slide 24: Asset-Based
Asset-Based (Unaudited) RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES 2016 2017 2018 2019 2020 2021 2022 2023 2024 Asset-Based ($ millions, except percentages) Operating Income Amounts on a GAAP basis (1) $36.9 98.1% $57.9 97.1% $103.9 95.2% $102.1 95.2% $98.9 95.3% $260.7 89.9% $381.1 87.3
Slide 25: ArcBest Consolidated
ArcBest Consolidated (continuing operations)(1) (Unaudited) RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES* 2018 2019 2020 2021 2022 2023 2024 ArcBest Corporation – Consolidated ($ millions) Operating Income Amounts on a GAAP basis $ 103.6 $57.9 $ 93.7 $ 277.0 $ 394.5 $ 172.6 $ 244.4 Restruc
Slide 26: ArcBest Consolidated
ArcBest Consolidated (continuing operations)(1) (Unaudited) RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES* 2018 2019 2020 2021 2022 2023 2024 ArcBest Corporation – Consolidated Diluted Earnings Per Share Amounts on a GAAP basis $ 2.35 $ 1.33 $ 2.55 $ 7.86 $ 11.56 $ 5.77 $ 7.28 Restructuring
Slide 27: ArcBest Consolidated Notes to Non-GAAP Financial Tables
ArcBest Consolidated (continuing operations)(1) Notes to Non-GAAP Financial Tables The following footnotes apply to the non-GAAP financial tables on slides 25 and 26 in this presentation. 1) Historical results of FleetNet have been excluded from results for all periods presented, and reclassificatio
Slide 28: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of ARCBEST CORPORATION - CONSOLIDATED Millions ($000,000), except per share data Three Months Ended 12/31/2024 12/31/2023 GAAP to Non-GAAP Operating Income from Continuing Operations Amounts on a GAAP basis $ 38.2 $ 64.3 Financial Measures Innovative technology costs, pre-tax (1) Pur
Slide 29: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Three Months Ended Financial Measures ASSET-LIGHT OPERATING INCOME (LOSS) 12/31/2024 12/31/2023 ($ millions) (Unaudited) 1) Represents the amortization of acquired intangible assets in the Asset-Light segment. 2) Represents change in fair value of the contingent e