PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents ArcBest Corporation's unaudited consolidated financial statements, including Balance Sheets, Operations, Cash Flows, and detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$2.47 billion** as of June 30, 2025, driven by property, plant, and equipment, with liabilities rising and equity at **$1.30 billion** Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $638,168 | $675,642 | | **Property, Plant and Equipment, net** | $1,113,157 | $1,066,046 | | **Total Assets** | **$2,467,436** | **$2,429,731** | | **Total Current Liabilities** | $661,402 | $665,985 | | **Long-Term Debt, less current portion** | $163,850 | $125,156 | | **Total Liabilities** | $1,167,010 | $1,115,369 | | **Total Stockholders' Equity** | $1,300,426 | $1,314,362 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenues decreased to **$1.02 billion** and net income fell to **$25.8 million** year-over-year, reflecting a challenging market for both quarterly and year-to-date periods Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $1,022,256 | $1,077,831 | $1,989,333 | $2,114,250 | | **Operating Income** | $37,309 | $48,845 | $43,939 | $71,280 | | **Net Income** | $25,809 | $46,924 | $28,940 | $44,612 | | **Diluted EPS** | $1.12 | $1.96 | $1.25 | $1.86 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for the first six months of 2025 decreased to **$86.1 million**, with cash used in investing and financing leading to a **$12.6 million** decrease in cash Six Months Ended June 30 Cash Flow (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $86,111 | $140,202 | | **Net Cash Used in Investing Activities** | ($36,897) | ($87,079) | | **Net Cash Used in Financing Activities** | ($61,784) | ($99,759) | | **Net Decrease in Cash and Cash Equivalents** | ($12,570) | ($46,636) | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail the company's business structure, accounting policies, financial instruments, goodwill, income taxes, debt, leases, and segment performance - The company operates through two reportable segments: Asset-Based (ABF Freight) and Asset-Light (MoLo, Panther), with the Asset-Based segment accounting for approximately **66% of total revenues** for the first six months of 2025[18](index=18&type=chunk)[19](index=19&type=chunk) - The goodwill balance of **$304.8 million** relates entirely to the Asset-Light segment[39](index=39&type=chunk) - The company's effective tax rate for the first six months of 2025 was **27.9%**, significantly higher than the **1.6%** in the same period of 2024, which was impacted by a noncash impairment charge[42](index=42&type=chunk) - During the first six months of 2025, the company repurchased **565,562 shares** for **$41.7 million**[63](index=63&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the **5.9% year-to-date revenue decline** due to lower market rates and shipment levels in the Asset-Light segment, covering segment results, liquidity, and capital resources [Consolidated Results](index=34&type=section&id=Consolidated%20Results) Consolidated revenues decreased **5.9%** year-to-date, primarily due to an **11.9% decline** in the Asset-Light segment, while operating income fell, positively impacted by a **$2.7 million** reduction in MoLo contingent consideration Consolidated Revenue and Operating Income (in thousands) | Metric | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,989,333 | $2,114,250 | (5.9)% | | **Operating Income** | $43,939 | $71,280 | (38.4)% | - The MoLo contingent consideration liability was reduced to zero in Q2 2025, resulting in a **$2.7 million** pre-tax gain, compared to an **$11.2 million** pre-tax expense in the first half of 2024[95](index=95&type=chunk) - The first half of 2024 included a one-time, noncash impairment charge of **$28.7 million** (pre-tax) to write off the equity investment in Phantom Auto[96](index=96&type=chunk) [Asset-Based Operations](index=38&type=section&id=Asset-Based%20Operations) The Asset-Based segment's year-to-date revenue was nearly flat, with operating income declining to **$77.4 million** and the operating ratio increasing to **94.3%** due to higher labor costs from the new collective bargaining agreement Asset-Based Segment Key Operating Statistics (% Change YTD 2025 vs YTD 2024) | Metric | % Change | | :--- | :--- | | Billed revenue per hundredweight | (0.8)% | | Tonnage per day | 0.1% | | Shipments per day | 2.6% | | Weight per shipment | (2.5)% | - Salaries, wages, and benefits as a percentage of revenue increased to **52.2%** year-to-date from **50.4%** in the prior year, reflecting contractual rate increases under the 2023 ABF NMFA[119](index=119&type=chunk) - A nominal general rate increase of **5.9%** on LTL base rate tariffs will take effect on August 4, 2025[116](index=116&type=chunk) [Asset-Light Operations](index=45&type=section&id=Asset-Light%20Operations) The Asset-Light segment's revenues decreased **11.9%** year-to-date due to a soft market and lower revenue per shipment, but its operating loss significantly narrowed to **$3.8 million** due to improved cost management Asset-Light Segment Key Operating Statistics (% Change YTD 2025 vs YTD 2024) | Metric | % Change | | :--- | :--- | | Revenue per shipment | (6.4)% | | Shipments per day | (5.1)% | | Shipments per employee per day | 19.2% | - The segment's operating loss for the first six months improved to **$(3.8) million** in 2025 from **$(24.8) million** in 2024[133](index=133&type=chunk) - Purchased transportation costs as a percentage of revenue decreased by **1.3 percentage points** year-to-date, reflecting improved cost management[135](index=135&type=chunk) [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains solid liquidity with **$139.7 million** in cash and short-term investments, estimating 2025 capital expenditures at the lower end of **$225.0 million to $275.0 million**, while returning capital to shareholders - Total cash, cash equivalents, and short-term investments stood at **$139.7 million** as of June 30, 2025, down from **$157.2 million** at year-end 2024[158](index=158&type=chunk) - 2025 net capital expenditures are estimated to be at the lower end of the **$225.0 million to $275.0 million** range[168](index=168&type=chunk) - The company has **$225.0 million** available under its revolving credit facility and **$26.3 million** under its A/R Securitization Program as of June 30, 2025[163](index=163&type=chunk)[164](index=164&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is from interest rate fluctuations on variable-rate debt, with no significant changes reported since December 31, 2024 - The primary market risk is from interest rate fluctuations on variable-rate debt[189](index=189&type=chunk) - No significant changes in market risks were reported since the 2024 Annual Report on Form 10-K[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[191](index=191&type=chunk) - There were no changes in internal controls over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[192](index=192&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note J for details on legal proceedings, including an ongoing state sales and use tax audit with an estimated loss range of **$0.2 million to $14.2 million** - For details on legal proceedings, the report refers to Note J in Part I, Item 1[194](index=194&type=chunk) [Item 1A. Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the filing of its 2024 Annual Report on Form 10-K - No material changes to the company's risk factors have occurred since the 2024 Annual Report on Form 10-K was filed[195](index=195&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **306,797 shares** for approximately **$19.7 million** in Q2 2025, with **$14.8 million** remaining available under the share repurchase program as of June 30, 2025 Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining in Program (in thousands) | | :--- | :--- | :--- | :--- | | April 2025 | 117,859 | $62.36 | $27,236 | | May 2025 | 101,017 | $63.35 | $20,837 | | June 2025 | 87,921 | $68.22 | $14,838 | | **Total Q2** | **306,797** | **$64.37** | **$14,838** | - For the six months ended June 30, 2025, the company repurchased a total of **565,562 shares** for an aggregate cost of **$41.7 million**[199](index=199&type=chunk) [Item 5. Other Information](index=68&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the second quarter of 2025 - No directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the quarter[204](index=204&type=chunk) [Item 6. Exhibits](index=69&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including amendments to financing agreements, the company's change in control plan, and Sarbanes-Oxley Act certifications - Exhibits filed include the Fourth Amendment to the Receivables Loan Agreement, the Amended and Restated 2012 Change in Control Plan, and Sarbanes-Oxley Act certifications[205](index=205&type=chunk)

Company Participants - The conference call featured key executives including Judy McReynolds (Chairman & CEO), Seth Runser (President), and Matt Beasley (CFO) [1][3] - Other members of the executive leadership team were also present for the Q&A session [3] Conference Call Overview - The call was initiated by Amy Mendenhall, Vice President of Treasury and Investor Relations, who welcomed participants and provided instructions [2] - The call was recorded for future reference [2] Forward-Looking Statements - The company indicated that some comments made during the call would be forward-looking statements, which are subject to risks and uncertainties [4] - The company plans to discuss certain non-GAAP financial measures to provide meaningful comparisons [4]

Financial Data and Key Metrics Changes - The company generated over $1 billion in revenue for the quarter, down 5% year over year [23] - Non-GAAP operating income was $45 million, compared to $64 million in the prior year [24] - Adjusted earnings per share were $1.36, down from $1.98 in 2024 [24] Business Line Data and Key Metrics Changes - The Asset Based segment reported revenue of $713 million, a 1% increase year over year, with an operating ratio of 92.8, an increase of 300 basis points from 2024 [25] - Daily shipments in the Asset Based segment grew by 6%, while weight per shipment decreased by 1%, resulting in a 4% increase in tons per day [25] - The Asset Light segment saw revenue of $342 million, a 13% decrease year over year, with shipments per day down 7% [29] Market Data and Key Metrics Changes - The freight environment remained challenging with softness in manufacturing and a sluggish housing market [6] - Daily shipments in July 2025 grew by 2% year over year, indicating continued success in capturing new core business opportunities [28] Company Strategy and Development Direction - The company is focused on driving profitable growth, advancing premium service for customers, and optimizing efficiency [13] - Investments in technology and innovation are aimed at creating long-term value for customers, employees, and shareholders [5] - The company plans to host its first Investor Day in a decade on September 29, showcasing strategic priorities and long-term financial targets [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current soft freight market and emphasized the importance of strategic investments [34] - The company anticipates continued growth in its core business and is well-positioned to improve margins as demand grows and capacity tightens [52] Other Important Information - The company welcomed Tom Albrecht to the Board of Directors, bringing extensive industry experience [8] - Judy McReynolds plans to retire as CEO at the end of the year, with Seth Renser set to succeed her [11] Q&A Session Summary Question: Potential for revenue growth in August and September - Management indicated potential for outperforming historical trends due to ongoing commercial efforts [41] Question: Pricing strategy in the SMB market - Management noted that the SMB market is less price-sensitive and emphasized the importance of building long-term relationships [46] Question: Sustainability of outperformance in freight volumes - Management highlighted strong pipeline growth and the ability to provide value to customers as key factors for sustained outperformance [50] Question: Impact of the general rate increase (GRI) - Management explained that the timing of the GRI aligns with historical cycles and is necessary to cover inflationary costs [56] Question: Stickiness of new freight volumes - Management expressed confidence that new business is sticky, driven by strong customer relationships and service offerings [62] Question: Service levels and performance - Management emphasized ongoing investments in optimization initiatives and collaboration with customers to enhance service [70] Question: Context of tonnage drop in July - Management indicated that the drop was in line with historical performance and attributed it to seasonal factors [76]

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 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 e ...

Exhibit 99.1 Investor Relations Contact: Amy Mendenhall Media Contact: Autumnn Mahar Phone: 479-785-6200 Phone: 479-494-8221 Email: invrel@arcb.com Email: amahar@arcb.com ArcBest Announces Second Quarter 2025 Results FORT SMITH, Arkansas, July 30, 2025 — ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today announced financial results for the second quarter ended June 30, 2025. Second quarter 2025 revenue totaled $1.0 billion, compared to $1.1 billion in the prior-year period. Net income from c ...

Company Overview - ArcBest (ARCB) is expected to report a year-over-year decline in earnings, with a projected EPS of $1.46, reflecting a decrease of 26.3% compared to the previous year [3] - Revenues for the upcoming quarter are anticipated to be $1.04 billion, down 3.7% from the same quarter last year [3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised down by 5.67% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for ArcBest is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.23% [12] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - ArcBest currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, ArcBest was expected to post earnings of $0.52 per share but delivered $0.51, resulting in a surprise of -1.92% [13] - Over the past four quarters, ArcBest has only beaten consensus EPS estimates once [14] Industry Context - In the Zacks Transportation - Truck industry, Landstar System (LSTR) is also expected to report a decline in earnings, with an EPS estimate of $1.16, down 21.6% year-over-year [18] - Landstar's revenue is projected to be $1.21 billion, a decrease of 1.5% from the previous year [18] - The consensus EPS estimate for Landstar has been revised down by 1.4% in the last 30 days, and it has a negative Earnings ESP of -0.54% combined with a Zacks Rank of 4, indicating difficulty in predicting an earnings beat [19]

The longtime leader of trucking and logistics company ArcBest, Judy McReynolds, will retire Dec. 31 and be succeeded by Seth Runser, the company’s president https://t.co/ARnUdz8N8M ...

Core Viewpoint - ArcBest (ARCB) is currently identified as a strong value stock, supported by its favorable valuation metrics and earnings outlook [4][9]. Valuation Metrics - ArcBest has a P/E ratio of 11.62, significantly lower than the industry average of 26.27 [4]. - The company holds a PEG ratio of 0.64, compared to the industry's average of 1.18, indicating potential undervaluation [5]. - ArcBest's P/B ratio is 1.35, which is attractive against the industry's average P/B of 3.60 [6]. - The P/S ratio for ArcBest is 0.43, while the industry average is 0.97, suggesting a favorable valuation [7]. - The P/CF ratio for ArcBest is 5.30, compared to the industry's average of 13.65, indicating strong cash flow relative to its market value [8]. Investment Outlook - The combination of these metrics suggests that ArcBest is likely undervalued, making it an appealing option for value investors [9].

Market Overview - The first half of 2025 experienced increased volatility and uncertainty due to President Trump's tariffs and a faster-than-expected cooling of inflation, leading to market recovery [1] - Recent months have shown favorable market conditions with easing trade tensions and a reduction in the Middle East crisis [1] Stock Performance and Recommendations - Optimism regarding artificial intelligence is expected to continue supporting stock prices, particularly in technology sectors [2] - Cooling inflation raises expectations for potential rate cuts starting in September 2025, contributing to a positive market outlook [2] - Stocks such as Cracker Barrel Old Country Store (CBRL), BGSF, ArcBest Corporation (ARCB), Cardinal Health (CAH), and AutoNation (AN) are recommended for monitoring as the second half of 2025 begins [2][6] Screening Strategy - A screening strategy has been developed to identify stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks [3] - The price/sales ratio is included as a valuation metric, focusing on companies with strong top-line performance [3] Screening Criteria - The top 75 companies with net upgrades in broker ratings over the last four weeks are identified [4] - The top 10 stocks with the highest percentage change in earnings estimates for the upcoming quarter are highlighted [4] - Companies in the bottom 10% of price-to-sales ratios are included for better valuation [4] Company Highlights - Cracker Barrel is focusing on menu innovation and pricing strategies to drive growth, introducing new offerings to attract customers [5] - BGSF has seen a 25% increase in shares over the past month and has a Zacks Rank 1, with earnings estimates rising over 300% in the last 60 days [7] - ArcBest is improving productivity and service quality, expecting a 52.1% increase in earnings per share for 2026 compared to 2025 [8] - Cardinal Health is undergoing strategic improvements to revitalize its business model, with its Medical segment expected to drive growth [9][10] - AutoNation's diversified product portfolio and strategic acquisitions support its market position, currently holding a Zacks Rank 3 [11]

Group 1 - ArcBest Corporation (NASDAQ: ARCB) is experiencing positive revenue growth momentum, with tonnage per day turning positive in April and May [1] - The expectation is for continued growth due to improving macroeconomic conditions and effective execution by the company [1] Group 2 - The analyst has over 15 years of investment experience, focusing on mid-sized hedge funds and has a background in sell-side analysis [1] - The investment strategy is medium-term, targeting ideas with catalysts for value unlocking or short selling in case of downside catalysts [1] - The analyst has a generalist approach but has primarily analyzed industrial, consumer, and technology sectors, where higher conviction in investments is noted [1]