ArcBest — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue increased 15% year-over-year to $1.2 billion ($1,210.5 million) for the third quarter ended September 30, 2026, compared to $1.0 billion ($1,048.1 million) in the prior-year period.
• Net income was $51.7 million ($2.30 per diluted share) for the quarter, compared to $39.3 million ($1.72 per diluted share) in the prior year.
• Non-GAAP net income was $58.7 million ($2.62 per diluted share), compared to $33.4 million ($1.46 per diluted share) in the prior year.
• Consolidated operating income was $73.3 million with an operating ratio of 93.9%, compared to $54.6 million and 94.8% in the prior year.
• Non-GAAP operating income was $85.5 million, compared to $49.8 million in the prior year.
• For the nine months ended September 30, 2026, revenue was $3.39 billion compared to $3.04 billion in the prior year; net income was $36.8 million compared to $68.2 million.
• Cash and cash equivalents increased to $184.9 million at September 30, 2026, from $102.0 million at December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $255.2 million, compared to $184.3 million in the prior year.
• Total long-term debt decreased to $106.3 million at September 30, 2026, from $136.0 million at December 31, 2025.

Guidance and Future Outlook:

• Management stated the third quarter reflected progress and commitment, with stronger earnings driven by disciplined execution, momentum in the Asset-Light segment, and ongoing savings from organizational simplification.
• The company continues to invest in technology and innovation to better serve customers and support long-term profitable growth.
• Customer contracts and deferred pricing agreements renewed during the third quarter averaged a 5.1 percent increase.
• LTL industry pricing remains rational.

Business Segments and Product Lines:

• Asset-Based Segment: Revenue increased 9.9% per day to $798.6 million. Tonnage per day increased 9.6%, while shipments per day decreased 3.0%. Billed revenue per shipment increased 14.2% and weight per shipment increased 13.0%. Operating income was $75.6 million with an operating ratio of 90.5% (90.4% non-GAAP).
• Asset-Light Segment: Revenue increased 25.4% per day to $446.3 million. Shipments per day increased 1.2%, and revenue per shipment increased 23.8%. Purchased transportation expense was 85.0% of revenue. The segment turned profitable with operating income of $12.5 million compared to a $1.6 million loss in the prior year; non-GAAP operating income was $14.4 million.
• Vaux Technology: The Asset-Light segment recognized $25.7 million in noncash asset impairment charges to write off the remaining carrying value of the Panther trade name as part of a strategic brand consolidation. Other and eliminations included $50.8 million in asset impairment charges related to the write-off of certain Freight Movement System assets associated with Vaux.
• MoLo Acquisition: The change in fair value of contingent consideration related to the MoLo acquisition was zero for the quarter, following a reduction to zero in the second quarter of 2025.

Market and Competitive Landscape:

• Revenue growth in the Asset-Light segment was driven by a tightening capacity environment and modest shipment growth.
• Revenue per shipment in the Asset-Based segment benefited from a heavier freight profile and slightly higher revenue per hundredweight, largely reflecting higher fuel surcharge revenue. Excluding fuel surcharge, revenue per hundredweight decreased in the low single digits.
• Operating expenses increased due to annual union wage and benefit adjustments, as well as higher fuel and purchased transportation costs.

Risks and Challenges:

• Forward-looking statements highlight risks including data breaches, cybersecurity incidents, failure to realize benefits from new technology, loss of large customers, and inability to manage cost structures.
• Risks include the cost and performance of future acquisitions, inability to secure owner-operators, union employee wages and benefits, and potential disruptions in global manufacturing or supply chains.
• Specific risks include failure to achieve market acceptance for Vaux technologies, inability to collect fuel surcharges, and adverse effects from natural disasters, geopolitical conflicts, or trade restrictions.

Management Commentary and Tone:

• Seth Runser, President and CEO, stated: "The third quarter reflected the progress we've been making across ArcBest and the commitment of our people."
• Management highlighted disciplined execution and ongoing savings from organizational simplification as key drivers of improved profitability.
• The tone emphasizes continued investment in technology and innovation to support long-term growth.

Other Key Points:

• A conference call to discuss results was held on November 4, 2026, at 9:00 a.m. ET.
• The company recognized $85.3 million in asset impairment charges for the nine months ended September 30, 2026, primarily related to Vaux and Panther brand consolidation.
• Restructuring charges of $4.3 million were recorded for the quarter, related to the realignment of the company's organizational structure.
• The company paid $8.0 million in common stock dividends for the nine months ended September 30, 2026.
• Purchases of treasury stock totaled $34.8 million for the nine months ended September 30, 2026.
• ArcBest partners with over 30,000 customers globally and employs approximately 14,000 people across 240 campuses and service centers.