How ArcBest plans to double earnings by 2028

Core Insights - ArcBest aims to achieve adjusted earnings per share of $12 to $15 by 2028, more than double the $6.40 reported last year, driven by recovery in manufacturing and housing markets [2] - The company has set a long-term adjusted operating ratio target of 87% to 90% by 2028, with the higher end nearing the 86.4% level from the last upcycle [4] - ArcBest's shares increased by 1.4% on the announcement day, outperforming the S&P 500's 0.3% rise [3] Revenue Growth Initiatives - The asset-based segment, including ABF Freight, is expected to drive growth, with low-single-digit shipment growth forecasted annually [5] - A focused sales campaign has resulted in approximately 2,000 additional daily shipments, with a target of 4,000 new shipments per day by 2028 [5] - High net promoter scores have led to a 70% tonnage growth at new accounts, with revenue per hundredweight increasing by low-double-digit percentages [6] Cost Management Strategies - The company is implementing 70 optimization projects, with 45% already executed and 25% in the pilot stage [7] - Proprietary pricing tools have enabled ArcBest to achieve yields 1.6 times higher than the industry average [6]