ArcBest (ARCB) investor relations material

Strategic transformation, direction, and market positioning

• The company has evolved into a full-service, integrated logistics provider, leveraging both asset-based and asset-light capabilities to serve a broad, balanced customer base and deliver value through innovation and execution.

• Customer relationships are diversified, with the top 10 customers accounting for only 13% of revenue, supporting resilience across economic cycles.

• Focused on customer-led solutions, leveraging a diversified and flexible capacity network with both owned and third-party assets to address complex supply chain needs and drive value creation.

• Integrated solutions and technology investments, such as the Vox/Vaux suite and AI-powered optimization, have enabled tailored logistics offerings, driving customer retention and revenue growth, with 80% of revenue from customers with over a decade of loyalty.

• Strategic acquisitions, organic investments, and a refined go-to-market approach since 2012 have created a scalable, synergistic platform, with managed solutions and LTL brokerage as key growth drivers.

Growth, efficiency, and innovation initiatives

• Strategic priorities include accelerating profitable growth, increasing efficiency, and driving innovation, with a focus on premium service, digital engagement, and operational excellence.

• Dynamic pricing and AI-driven tools optimize network capacity, improve yield, and enable real-time, profitable decision-making, with daily quote volume reaching 250,000 and revenue per shipment up nearly 50% since 2020.

• Managed solutions pipeline exceeds $1B, with 62% shipment growth since 2021 and high customer retention rates.

• Facility and fleet investments since 2021 have expanded network capacity, improved service reliability, and reduced costs, with 800 net doors added and record trailer utilization achieved.

• Technology advancements, such as ArcBest View and AVA, enhance customer experience, reduce support needs, and drive digital adoption.

Financial performance and future targets

• Since 2019, revenue has increased by 49%, operating income by 81%, and EPS has more than doubled, with a 330 bps improvement in asset-based operating ratio and 112% EPS growth from 2019 to 2024.

• 2028 targets include asset-based OR of 87–90%, asset-light operating income of $40–70M, non-GAAP EPS of $13.50 at the midpoint, and annual operating cash flow of $400–500M.

• Capital intensity is expected to decrease, with capex below 5% of revenue post-2025, supporting growth without major new buildouts.

• Maintains a strong balance sheet with net debt to EBITDA averaging -0.1x and nearly $500M returned to shareholders since 2019.

• Balanced capital allocation prioritizes organic investments, shareholder returns, and selective M&A, while maintaining investment-grade credit metrics.