Runser continued, "We are grateful for Craig's, Kathy's and Fredrik's leadership and their significant contributions during a period of growth and transformation for ArcBest. On behalf of the entire board, I thank them for their service and wish them all the best.†These changes are the result of ArcBest's ongoing assessment of board size and composition, as well as directors' diverse skills and capabilities. ArcBest is committed to best-in-class corporate governance and remains focused on advancing its st ...

Core Insights - Ace investor Mukul Mahavir Agrawal reshuffled his Rs 6,500-crore equity portfolio during the December quarter, reflecting a mix of fresh bets and tactical adjustments following sharp stock-specific corrections and a selloff in smallcap stocks in 2025 [18] Company Summaries - **Hindustan Construction**: Agrawal acquired a 1.68% stake, amounting to 4.40 crore shares, after the stock experienced a correction of over 30% in the past year [1] - **Alcargo Logistics**: Agrawal purchased a 2.9% stake in the company, which has seen a decline of about 80% over the last year. Alcargo specializes in integrated logistics services [2] - **Sudeep Pharma**: A 1.3% stake was acquired by Agrawal, with the stock down nearly 30% in the last year. Sudeep is a manufacturer of mineral-based pharmaceutical excipients and specialty ingredients [3] - **Vasa Denticity**: Agrawal increased his stake by 0.4%, bringing his total holding to 2.4%. The company is a leading B2B e-commerce platform for dental products [4] - **Vikran Engineering**: Agrawal increased his stake by 0.2%. The stock is down 10% from its issue price of Rs 97 since its market debut in September last year [7] - **N R Agrawal**: A marginal stake increase of 0.1% was made, with the stock down nearly 20% from its 52-week high of Rs 514 [8] - **Monolithisch**: Agrawal reduced his stake by 0.2% to 2.76%, with the stock down 20.5% from its 52-week high of Rs 607 [9] - **Pearl Global**: The investor offloaded 0.2% in the company, which has fallen nearly 15% in January alone [10] - **InfoBeans Technologies**: Agrawal reduced his stake by 0.2% to 3.9%, with the stock up 97% in the last year [11] - **Autoriders**: A stake reduction of 0.7% occurred, with the stock rising over 1,100% in the last year [12] - **Zota Healthcare**: Agrawal reduced his stake by 0.8%, with the stock up nearly 40% in the last year [13] - **ASM Technologies**: A stake reduction of 0.4% was noted, with the stock having doubled in the last year, rising about 115% [14] - **Stanley Lifestyles**: Agrawal appears to have exited the stock, which is down nearly 50% in the last year [15]

Financial Performance & Targets - ArcBest Consolidated revenue reached $1 billion, a 1% increase compared to Q3 2024 [125] - Asset-Based revenue was $726 million [129] - Asset-Light revenue reached $356 million [145] - The company targets Non-GAAP Diluted EPS of $12-$15 and annual operating cash flow of $400M-$500M by 2028 [40, 41] - The company is targeting an Asset-Based Non-GAAP Operating Ratio between 87%-90% by 2028 [37] Growth & Efficiency Strategies - Over 70% of customers using Asset-Light services also utilize Asset-Based services [29] - Revenue & Profit per account is over 3X higher on cross-sold accounts [31] - Retention rates are 5 percentage points higher on cross-sold accounts than on single-solution accounts [33] - Managed Solutions pipeline is growing, reaching $1 billion as of 3Q 2025 [61] - The company has achieved a 140 basis points YoY Net Margin Expansion in Expedite services as of 3Q'25 [75]

Core Insights - ArcBest held its 2025 investor day to discuss strategic direction, financial performance, and future vision [1] - The event highlighted the company's long-term business outlook and roadmap for growth and value creation [1] Strategic Pillars - ArcBest's leadership outlined strategic pillars aimed at driving long-term value [1]

Company Overview - ArcBest is a leading integrated logistics company with an addressable market of approximately $400 billion[16] - The company has extensive United States coverage with 99% reach[16] - ArcBest has a diversified customer base, with the top 10 customers accounting for only 13% of 2024 consolidated revenues[20] Financial Performance & Targets - ArcBest's revenues increased from $2.8 billion in 2019 to $4.2 billion in 2024, a 49% increase[100] - Operating income grew from $112 million in 2019 to $203 million in 2024, an 81% increase[100] - Earnings per share increased from $2.96 in 2019 to $6.28 in 2024, a 112% increase[100] - The company targets an Asset-Based Non-GAAP Operating Ratio of 87%-90% by 2028[249] - ArcBest aims for Asset-Light Non-GAAP Operating Income between $40 million and $70 million by 2028[249] - The company projects Non-GAAP Diluted EPS between $12 and $15 and annual operating cash flow between $400 million and $500 million[250, 251] Strategic Growth & Innovation - Customers using both Asset-Light and Asset-Based services represent over 70% of the customer base[56] - Revenue and profit per account are over 3 times higher on cross-sold accounts[58]

Core Insights - DHL is hiring hundreds of customs experts to assist businesses in navigating the complexities of current trade turbulence, anticipating a muted peak shipping season this fall [1] Group 1: Trade Environment - The U.S. tariff policies have created volatility in freight markets, leading to shippers accelerating overseas orders to avoid tariffs, then reducing imports due to high inventories, and seeking suppliers outside China where tariffs average 58% [2] - The cancellation of the de minimis rule on May 2 has significantly reduced airfreight for e-commerce shipments [2] Group 2: Company Response - DHL executives are working overtime to help customers manage the rising costs and complexities associated with the changing tariff landscape [3] - The company has added over 680 customs, finance, and customer service specialists this year to assist small businesses with new compliance requirements [5] - A strong customs broker operation is emphasized as a competitive advantage in the current volatile trade environment [6] Group 3: Operational Adjustments - DHL Express has seen a 30% year-over-year drop in volumes from China and Hong Kong to the U.S., partially offset by growth from countries like Vietnam, India, Malaysia, and Mexico [6] - Due to the decline in inbound volume, DHL Express has reduced daily ground delivery routes and will hire fewer seasonal workers for the holiday rush, expecting only a 20% to 25% sequential lift in business during peak season, compared to the usual 40% to 50% [7]

Core Viewpoint - ArcBest has increased its share repurchase authorization to a total of $125 million, reflecting the board's confidence in the company's strategy and long-term outlook [1]. Group 1 - The board of directors approved the increase in share repurchase authorization [1]. - Judy R. McReynolds, Chairman and CEO, emphasized the company's commitment to a balanced and disciplined capital allocation approach [1].

Company Performance & Strategy - Judy McReynolds is retiring as CEO, retaining her position as Chairman of the Board, and Seth Runser will assume the role of CEO and President, effective January 1, 2026 [15] - The company is focused on a three-point strategy: increasing efficiency, driving innovation, and accelerating growth [11, 12] - ArcBest's integrated solutions expand market opportunity by seamlessly connecting modes, enabling growth with 5x larger deals [33] - Cross-sold accounts have over 3x higher revenue and profit compared to single-solution accounts [35, 36] - Over 70% of customers using asset-light services also utilize asset-based services, with 5% higher retention rates on cross-sold accounts [38, 39] Q2 2025 Financial Results - ArcBest's consolidated revenue for Q2 2025 was $1 billion [82] - Non-GAAP earnings per diluted share were $136, a decrease of 31% [83] - Non-GAAP operating income was $45 million [83] - Asset-Based revenue was $713 million, with a 30% decrease in operating income [86] - Asset-Light revenue decreased by 13% [101]

Company Strategy and Performance - ArcBest leverages technology and a full suite of solutions to meet customer supply chain needs, addressing a $398 billion addressable market[8] - The company focuses on a three-point strategy: increasing efficiency, driving innovation, and accelerating growth to enhance shareholder value[11, 12, 13] - Cross-selling accounts yields over 3x higher revenue and profit compared to single-solution accounts, with customer retention rates 5 percentage points higher[29, 30, 32, 33] - ArcBest's strategy has improved the asset-based operating ratio by 240 bps compared to 2019[79] Technology and Innovation - The company is improving efficiency through technology, training, and network design, achieving a +1% increase in asset-based shipments/DSY hour and a +24% increase in asset-light shipments/employee/day[24] - Dynamic pricing improves as quotes grow, leading to approximately 50% more revenue per shipment since 2020[40] - Vaux Vision transforms forklifts into intelligent mobile dimensioners, capturing certified dimensions and shipment attributes[43] Q1 2025 Financial Results - ArcBest's consolidated revenue for Q1 2025 was $967 million, a decrease of 7% year-over-year[89, 90] - Non-GAAP earnings per diluted share for Q1 2025 were $0.51, a decrease of 62% year-over-year[91] - Asset-Based revenue in Q1 2025 was $646 million, with a 3% decrease per day[95] - Asset-Light revenue in Q1 2025 was $356 million, a decrease of 9% per day[109]