ArcBest Announces First Quarter 2025 Results

About this update from Arcbest Corporation

Continued productivity gains driven by technology, training, and network design Record Managed solution shipment levels despite challenging freight environment Over $24 million returned to shareholders through share repurchases and dividends FORT SMITH, Ark. --(BUSINESS WIRE)-- ArcBest ® (Nasdaq: ARCB), a leader in supply chain logistics, today reported first quarter 2025 revenue of $967.1 million , compared to $1.0 billion in first quarter 2024. Net income from continuing operations was $3.1 million , or $0.13 per diluted share, compared to a net loss of $2.9 million , or $0.12 per diluted share in the prior year. On a non-GAAP basis, first quarter 2025 net income was $11.9 million , or $0.51 per diluted share, compared to $32.3 million , or $1.34 per diluted share in the prior year. "I want to thank our employees for their commitment to excellence as they serve customers,” said Judy R. McReynolds , ArcBest Chairman and CEO. “Customers need trusted partners to help them navigate the ever-changing environment, and I’m proud of our employees for working hand-in-hand with customers to develop solutions, solve challenges and build trust.” Results of Operations Comparisons Asset-Based First Quarter 20 25 Versus First Quarter 20 24 Revenue of $646.3 million compared to $671.5 million , a per-day decrease of 3.0 percent Total tonnage per day decrease of 4.3 percent Total shipments per day were flat Total billed revenue per hundredweight increase of 1.7 percent Operating income of $26.4 million and an operating ratio of 95.9 percent, compared to $53.5 million and an operating ratio of 92.0 percent Asset-Based first quarter tonnage declines were driven by a 3.9 percent decrease in weight per shipment and flat daily shipments. Prolonged manufacturing sector weakness continues to negatively impact weight per shipment metrics and profitability. Productivity improvements of 1.1 percent and other cost initiatives helped mitigate the impact of the soft market environment, higher insurance and healthcare costs, and annual labor cost increases associated with ABF’s union contract. Customer contract renewals and deferred pricing agreements saw an average increase of 4.9 percent during the quarter. Price improvements were offset by declining fuel costs. Excluding fuel surcharges, revenue per hundredweight increased in the low- to mid-single digits, year-over-year. Overall, LTL industry pricing remains rational. Compared sequentially to the fourth quarter of 2024, first quarter 2025 revenue per day decreased 3.9 percent. Weight per shipment declined 1.7 percent and shipments per day declined by 1.1 percent, resulting in a 2.7 percent decrease in tonnage per day. Billed revenue per hundredweight was flat. Lower tonnage, offset in part by cost savings, resulted in the operating ratio increase of 390 basis points sequentially, which was within the historical seasonality range of a 350 to 400 basis point increase. Asset-Light First Quarter 2025 Versus First Quarter 2024 Revenue of $356.0 million compared to $396.4 million , a per-day decrease of 9.5 percent Operating loss of $4.4 million compared to operating loss of $15.3 million On a non-GAAP basis, operating loss of $1.2 million compared to operating loss of $4.7 million Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), as defined in the attached non-GAAP reconciliation tables, of $0.2 million compared to negative $2.9 million Compared to the first quarter of 2024, Asset-Light revenues were impacted by lower revenue per shipment associated with the soft rate environment and a higher mix of managed transportation business, which has smaller shipment sizes and lower revenue per shipment metrics. Shipments per day were lower by 3.7 percent, from a strategic reduction in less profitable truckload volumes, which offset the continued strength in shipment growth for our Managed solution. The segment benefitted from improved margins, lower operating costs and productivity improvements, as shipments per employee per day improved 23.6 percent, on a year-over-year basis. However, the soft freight environment and excess truckload capacity continued to impact results. Compared sequentially to fourth quarter 2024, first quarter 2025 daily revenue was down 7.4 percent, as shipments per day decreased 1.4 percent, and revenue per shipment decreased 6.1 percent. Shipments per employee per day improved 5.0 percent, margins expanded, and operating costs were managed lower, resulting in a $4.7 million improvement in the non-GAAP operating loss. Conference Call ArcBest will host a conference call with company executives to discuss the quarterly results. The call will be today, Tuesday, April 29, 2025 , at 9:30 a.m. EDT ( 8:30 a.m. CDT ). 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 April 29, 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 May 13, 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 May 13, 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 March 31 2025 2024 (Unaudited) ($ thousands, except share and per share data) REVENUES $ 967,077 $ 1,036,419 OPERATING EXPENSES 960,447 1,013,984 OPERATING INCOME 6,630 22,435 OTHER INCOME (COSTS) Interest and dividend income 1,150 3,315 Interest and other related financing costs (2,755 ) (2,228 ) Other, net (851 ) (28,199 ) (2,456 ) (27,112 ) INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 4,174 (4,677 ) INCOME TAX PROVISION (BENEFIT) 1,043 (1,765 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS 3,131 (2,912 ) INCOME FROM DISCONTINUED OPERATIONS, net of tax(1) — 600 NET INCOME (LOSS) $ 3,131 $ (2,312 ) BASIC EARNINGS PER COMMON SHARE(2) Continuing operations $ 0.13 $ (0.12 ) Discontinued operations(1) — 0.03 $ 0.13 $ (0.10 ) DILUTED EARNINGS PER COMMON SHARE(2) Continuing operations $ 0.13 $ (0.12 ) Discontinued operations(1) — 0.03 $ 0.13 $ (0.10 ) AVERAGE COMMON SHARES OUTSTANDING Basic 23,198,805 23,561,309 Diluted 23,272,766 23,561,309 ____________________ 1) Represents adjustments related to the gain on sale of FleetNet America® (“FleetNet”), which sold on February 28, 2023 . 2) 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 March 31 December 31 2025 2024 (Unaudited) ($ thousands, except share data) ASSETS CURRENT ASSETS Cash and cash equivalents $ 74,122 $ 127,444 Short-term investments 24,552 29,759 Accounts receivable, less allowances (2025 - $8,269 ; 2024 - $8,257 ) 414,133 394,838 Other accounts receivable, less allowances (2025 - $656 ; 2024 - $648 ) 25,027 36,055 Prepaid expenses 46,666 47,860 Prepaid and refundable income taxes 29,106 28,641 Other 11,557 11,045 TOTAL CURRENT ASSETS 625,163 675,642 PROPERTY, PLANT AND EQUIPMENT Land and structures 530,957 520,119 Revenue equipment 1,160,332 1,166,161 Service, office, and other equipment 352,383 351,907 Software 185,526 182,396 Leasehold improvements 33,368 32,263 2,262,566 2,252,846 Less allowances for depreciation and amortization 1,199,180 1,186,800 PROPERTY, PLANT AND EQUIPMENT, net 1,063,386 1,066,046 GOODWILL 304,753 304,753 INTANGIBLE ASSETS, net 85,449 88,615 OPERATING RIGHT-OF-USE ASSETS 228,684 192,753 DEFERRED INCOME TAXES 9,273 9,536 OTHER LONG-TERM ASSETS 90,176 92,386 TOTAL ASSETS $ 2,406,884 $ 2,429,731 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $ 166,869 $ 168,943 Accrued expenses 356,702 398,700 Current portion of long-term debt 66,692 63,978 Current portion of operating lease liabilities 34,080 34,364 TOTAL CURRENT LIABILITIES 624,343 665,985 LONG-TERM DEBT, less current portion 147,528 125,156 OPERATING LEASE LIABILITIES, less current portion 214,606 189,978 POSTRETIREMENT LIABILITIES, less current portion 13,378 13,361 DEFERRED INCOME TAXES 79,315 78,649 OTHER LONG-TERM LIABILITIES 32,970 42,240 STOCKHOLDERS’ EQUITY Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2025: 30,402,056 shares; 2024: 30,401,768 shares 304 304 Additional paid-in capital 331,944 329,575 Retained earnings 1,435,596 1,435,250 Treasury stock, at cost, 2025: 7,373,609 shares; 2024: 7,114,844 shares (473,029 ) (451,039 ) Accumulated other comprehensive income (loss) (71 ) 272 TOTAL STOCKHOLDERS’ EQUITY 1,294,744 1,314,362 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,406,884 $ 2,429,731 ARCBEST CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended March 31 2025 2024 (Unaudited) ($ thousands) OPERATING ACTIVITIES Net income (loss) $ 3,131 $ (2,312 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 36,764 33,616 Amortization of intangibles 3,200 3,217 Share-based compensation expense 2,383 2,889 Provision for losses on accounts receivable 1,129 1,055 Change in deferred income taxes 764 (12,548 ) (Gain) loss on sale of property and equipment (49 ) 217 Pre-tax gain on sale of discontinued operations — (806 ) Change in fair value of contingent consideration — 7,320 Change in fair value of equity investment — 28,739 Changes in operating assets and liabilities: Receivables (9,615 ) 35,059 Prepaid expenses 1,194 (2,198 ) Other assets 156 (1,218 ) Income taxes (248 ) (8,305 ) Operating right-of-use assets and lease liabilities, net (11,587 ) (7,710 ) Accounts payable, accrued expenses, and other liabilities (49,543 ) (70,548 ) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (22,321 ) 6,467 INVESTING ACTIVITIES Purchases of property, plant and equipment, net of financings (14,523 ) (55,049 ) Proceeds from sale of property and equipment 3,276 1,292 Purchases of short-term investments — (5,236 ) Proceeds from sale of short-term investments 5,236 5,635 Capitalization of internally developed software (3,122 ) (3,635 ) NET CASH USED IN INVESTING ACTIVITIES (9,133 ) (56,993 ) FINANCING ACTIVITIES Borrowings under credit facilities 25,000 — Payments on long-term debt (17,317 ) (16,767 ) Net change in book overdrafts (4,762 ) (2,850 ) Payment of common stock dividends (2,785 ) (2,828 ) Purchases of treasury stock (21,990 ) (15,652 ) Payments for tax withheld on share-based compensation (14 ) (748 ) NET CASH USED IN FINANCING ACTIVITIES (21,868 ) (38,845 ) NET DECREASE IN CASH AND CASH EQUIVALENTS (53,322 ) (89,371 ) Cash and cash equivalents at beginning of period 127,444 262,226 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 74,122 $ 172,855 NONCASH INVESTING ACTIVITIES Equipment financed $ 17,403 $ — Accruals for equipment received $ 1,236 $ 915 Lease liabilities arising from obtaining right-of-use assets $ 32,909 $ 5,694 ARCBEST CORPORATION FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS Three Months Ended March 31 2025 2024 (Unaudited) ($ thousands, except percentages) REVENUES FROM CONTINUING OPERATIONS Asset-Based $ 646,294 $ 671,467 Asset-Light 356,012 396,363 Other and eliminations (35,229 ) (31,411 ) Total consolidated revenues from continuing operations $ 967,077 $ 1,036,419 OPERATING EXPENSES FROM CONTINUING OPERATIONS Asset-Based Salaries, wages, and benefits $ 344,141 53.2 % $ 344,999 51.4 % Fuel, supplies, and expenses 77,642 12.0 81,044 12.1 Operating taxes and licenses 13,112 2.0 13,529 2.0 Insurance 17,963 2.8 14,482 2.1 Communications and utilities 5,810 0.9 4,799 0.7 Depreciation and amortization 30,590 4.7 27,007 4.0 Rents and purchased transportation 67,161 10.4 65,671 9.8 Shared services 62,443 9.7 64,914 9.7 Loss on sale of property and equipment 23 — 149 — Other 992 0.2 1,417 0.2 Total Asset-Based 619,877 95.9 % 618,011 92.0 % Asset-Light Purchased transportation $ 304,614 85.6 % $ 344,122 86.8 % Salaries, wages, and benefits 25,549 7.2 30,304 7.6 Supplies and expenses 1,739 0.5 2,809 0.7 Depreciation and amortization(1) 4,618 1.3 5,078 1.3 Shared services 17,981 5.0 16,274 4.1 Contingent consideration(2) — — 7,320 1.8 Other 5,891 1.6 5,714 1.5 Total Asset-Light 360,392 101.2 % 411,621 103.8 % Other and eliminations(3) (19,822 ) (15,648 ) Total consolidated operating expenses from continuing operations $ 960,447 99.3 % $ 1,013,984 97.8 % OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS Asset-Based $ 26,417 $ 53,456 Asset-Light (4,380 ) (15,258 ) Other and eliminations(3) (15,407 ) (15,763 ) Total consolidated operating income from continuing operations $ 6,630 $ 22,435 ____________________ 1) Includes amortization of intangibles associated with acquired businesses. 2) 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 contingent consideration for the MoLo acquisition will be paid based on achievement of certain targets of adjusted earnings before interest, taxes, depreciation, and amortization, as adjusted for certain items pursuant to the merger agreement, for years 2023 through 2025, including catch-up provisions. 3) “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 (loss) or earnings per share, as determined under GAAP. Three Months Ended March 31 2025 2024 ArcBest Corporation - Consolidated (Unaudited) ($ thousands, except per share data) Operating Income from Continuing Operations Amounts on GAAP basis $ 6,630 $ 22,435 Innovative technology costs, pre-tax(1) 7,513 9,698 Purchase accounting amortization, pre-tax(2) 3,192 3,192 Change in fair value of contingent consideration, pre-tax(3) — 7,320 Non-GAAP amounts $ 17,335 $ 42,645 Net Income (Loss) from Continuing Operations Amounts on GAAP basis $ 3,131 $ (2,912 ) Innovative technology costs, after-tax (includes related financing costs)(1) 5,724 7,440 Purchase accounting amortization, after-tax(2) 2,398 2,401 Change in fair value of contingent consideration, after-tax(3) — 5,505 Change in fair value of equity investment, after-tax(4) — 21,603 Life insurance proceeds and changes in cash surrender value 687 (1,233 ) Tax benefit from vested RSUs(5) (3 ) (487 ) Non-GAAP amounts $ 11,937 $ 32,317 Diluted Earnings Per Share from Continuing Operations(6) Amounts on GAAP basis $ 0.13 $ (0.12 ) Innovative technology costs, after-tax (includes related financing costs)(1) 0.25 0.31 Purchase accounting amortization, after-tax(2) 0.10 0.10 Change in fair value of contingent consideration, after-tax(3) — 0.23 Change in fair value of equity investment, after-tax(4) — 0.90 Life insurance proceeds and changes in cash surrender value 0.03 (0.05 ) Tax benefit from vested RSUs(5) — (0.02 ) Non-GAAP amounts(7) $ 0.51 $ 1.34 ____________________ 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 March 31 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 $ 26,417 95.9 % $ 53,456 92.0 % Asset-Light Segment Operating Loss ($) and Operating Ratio (% of revenues) Amounts on GAAP basis $ (4,380 ) 101.2 % $ (15,258 ) 103.8 % Purchase accounting amortization, pre-tax(2) 3,192 (0.9 ) 3,192 (0.8 ) Change in fair value of contingent consideration, pre-tax(3) — — 7,320 (1.8 ) Non-GAAP amounts(7) $ (1,188 ) 100.3 % $ (4,746 ) 101.2 % Other and Eliminations Operating Loss ($) Amounts on GAAP basis $ (15,407 ) $ (15,763 ) Innovative technology costs, pre-tax(1) 7,513 9,698 Non-GAAP amounts $ (7,894 ) $ (6,065 ) ____________________ 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 March 31, 2025 Other Income Income CONTINUING OPERATIONS Operating Income Before Income Tax Net Income (Costs) Taxes Provision Income Tax Rate(8) Amounts on GAAP basis $ 6,630 $ (2,456 ) $ 4,174 $ 1,043 $ 3,131 25.0 % Innovative technology costs(1) 7,513 98 7,611 1,887 5,724 24.8 Purchase accounting amortization(2) 3,192 — 3,192 794 2,398 24.9 Life insurance proceeds and changes in cash surrender value — 687 687 — 687 — Tax benefit from vested RSUs(5) — — — 3 (3 ) — Non-GAAP amounts $ 17,335 $ (1,671 ) $ 15,664 $ 3,727 $ 11,937 23.8 % Three Months Ended March 31, 2024 Other Income (Loss) Income Tax Net CONTINUING OPERATIONS Operating Income Before Income Provision Income Income (Costs) Taxes (Benefit) (Loss) Tax Rate(8) Amounts on GAAP basis $ 22,435 $ (27,112 ) $ (4,677 ) $ (1,765 ) $ (2,912 ) (37.7 ) % Innovative technology costs(1) 9,698 195 9,893 2,453 7,440 24.8 Purchase accounting amortization(2) 3,192 — 3,192 791 2,401 24.8 Change in fair value of contingent consideration(3) 7,320 — 7,320 1,815 5,505 24.8 Change in fair value of equity investment(4) — 28,739 28,739 7,136 21,603 24.8 Life insurance proceeds and changes in cash surrender value — (1,233 ) (1,233 ) — (1,233 ) — Tax benefit from vested RSUs(5) — — — 487 (487 ) — Non-GAAP amounts $ 42,645 $ 589 $ 43,234 $ 10,917 $ 32,317 25.3 % ____________________ 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, 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 (loss) from continuing operations, which is the most directly comparable GAAP measure. The calculation of Asset-Light Adjusted EBITDA as presented below begins with operating loss, as other income (costs), income taxes, and net income (loss) 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 March 31 2025 2024 (Unaudited) ($ thousands) ArcBest Corporation - Consolidated Adjusted EBITDA from Continuing Operations Net Income (Loss) from Continuing Operations $ 3,131 $ (2,912 ) Interest and other related financing costs 2,755 2,228 Income tax provision (benefit) 1,043 (1,765 ) Depreciation and amortization(9) 39,964 36,833 Amortization of share-based compensation 2,383 2,889 Change in fair value of contingent consideration(3) — 7,320 Change in fair value of equity investment(4) — 28,739 Consolidated Adjusted EBITDA from Continuing Operations $ 49,276 $ 73,332 ____________________ 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 March 31 2025 2024 (Unaudited) ($ thousands) Asset-Light Adjusted EBITDA Operating Loss $ (4,380 ) $ (15,258 ) Depreciation and amortization(9) 4,618 5,078 Change in fair value of contingent consideration(3) — 7,320 Asset-Light Adjusted EBITDA $ 238 $ (2,860 ) ____________________ 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. 1) Represents costs related to our customer pilot offering of Vaux and initiatives to optimize our performance through technological innovation. 2) Represents the amortization of acquired intangible assets in the Asset-Light segment. 3) 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. 4) 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. 5) Represents recognition of the tax impact for the vesting of share-based compensation. 6) For first quarter 2024, ArcBest reported a net loss on a GAAP basis and reported net income on a non-GAAP basis. The average common shares outstanding used to calculate non-GAAP diluted earnings per share for first quarter 2024 were adjusted to include unvested restricted stock awards, which were excluded from the calculation of GAAP diluted earnings per share due to the net loss. Three Months Ended March 31, 2024 Average Common Shares Outstanding Diluted shares on GAAP basis 23,561,309 Effect of unvested restricted stock awards 568,770 Non-GAAP diluted shares 24,130,079 7) Non-GAAP amounts are calculated in total and may not equal the sum of GAAP amounts and non-GAAP adjustments due to rounding. 8) 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. 9) Includes amortization of intangibles associated with acquired businesses. ARCBEST CORPORATION OPERATING STATISTICS Three Months Ended March 31 2025 2024 % Change (Unaudited) Asset-Based Workdays 63.0 63.5 Billed Revenue(1) / CWT $ 49.40 $ 48.56 1.7 % Billed Revenue(1) / Shipment $ 530.49 $ 542.84 (2.3 %) Tonnage / Day 10,466 10,937 (4.3 %) Shipments / Day 19,491 19,566 (0.4 %) Shipments / DSY hour 0.447 0.442 1.1 % Weight / Shipment 1,074 1,118 (3.9 %) Average Length of Haul (Miles) 1,124 1,110 1.3 % ____________________ 1) 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 March 31, 2025 (Unaudited) Asset-Light Revenue / Shipment (5.9%) Shipments / Day (3.7%) Shipments / Employee / Day 23.6% View source version on businesswire.com : https://www.businesswire.com/news/home/20250429129393/en/ Investor Relations Contact : Amy Mendenhall Phone : 479-785-6200 Email : [email protected] Media Contact : Autumnn Mahar Phone : 479-494-8221 Email : [email protected] Source: ArcBest

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