ArcBest (ARCB) investor relations material

Executive summary

• Q1 2026 revenue reached $998.8 million–$1 billion, up 3–3.3% year-over-year, with steady customer demand and shipment growth in both Asset-Based and Asset-Light segments despite severe winter weather, higher fuel prices, and market uncertainty.

• Net loss was $1.0 million, or $(0.05) per diluted share, compared to net income of $3.1 million in Q1 2025, reflecting higher operating expenses, especially in salaries, wages, and depreciation.

• Non-GAAP net income was $7.2 million, or $0.32 per diluted share, down from $11.9 million, or $0.51 per diluted share, in the prior year.

• Launched ArcBest View, a digital platform for quoting, booking, and tracking shipments, and continued investments in technology and AI-driven initiatives to enhance efficiency and customer experience.

• Over $10 million was returned to shareholders through dividends and share repurchases in Q1.

Financial highlights

• Q1 2026 consolidated revenue was $998.8 million–$1 billion, up 3–3.3% year-over-year.

• Non-GAAP operating income was $13 million, down from $17 million in Q1 2025; consolidated operating income was $3.4 million, down from $6.6 million.

• Adjusted EBITDA was $49.4 million, nearly flat year-over-year.

• Asset-Based segment revenue was $655 million, up 1.3–2% per day; Asset-Light segment revenue was $377.7–$378 million, up 6.1–7% per day year-over-year.

• Asset-Light segment operating income improved to $0.2–$3 million from a loss last year.

Outlook and guidance

• Expect Q2 Asset-Based operating ratio to improve sequentially by 400–500 basis points, outperforming typical seasonality.

• Asset-Light Q2 non-GAAP operating income projected at $1–$3 million, supported by yield discipline and productivity.

• 2026 capital expenditures are estimated at $150–$170 million, with $75–$80 million for revenue equipment and $35–$45 million for real estate and facility upgrades.

• Confident in achieving long-term 2028 targets outlined at Investor Day, with upside potential if industrial production and housing normalize.

• Management expects existing liquidity and credit facilities to be sufficient for ongoing operations and growth initiatives.