Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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General

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ArcBest Corporation™ (together with its subsidiaries, the "Company," "ArcBest^®," "we," "us," and "our") is a multibillion-dollar integrated logistics company that leverages connected technology, flexible capacity, and a full suite of shipping and logistics solutions across multiple modes of transportation to meet customers' supply chain needs. Our operations are conducted through two reportable operating segments: Asset-Based, which consists of ABF Freight System, Inc. and certain other subsidiaries ("ABF Freight"), and Asset-Light, the Company's logistics operations. References to the Company, including "we," "us," and "our," in this Quarterly Report on Form 10-Q, are primarily to the Company and its subsidiaries on a consolidated basis.

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Restructuring Plan

In July 2026, the Company announced a restructuring plan to realign our operating structure, reduce costs and simplify brand architecture, create a more seamless customer experience, and position the Company for long-term growth and profitability. Effective August 1, 2026, the Company unified the MoLo^® and Panther^® brands and certain other subsidiaries under the ArcBest^® brand. The organizational changes included the immediate discontinuation of the Vaux Freight Movement System, as the Company focuses on the Vaux Autonomy™ product offering. During the second quarter of 2026, the Company recorded asset impairment charges of $25.7 million to write off the remaining carrying value of the indefinite-lived Panther trade name and $50.8 million related to the discontinuation of the Vaux Freight Movement System.

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The restructuring plan eliminates approximately 2% of the Company's total positions through workforce reductions and the elimination of certain open positions and includes the closure of ten ABF Freight service centers, collectively representing approximately 1% of our network doors. The service center consolidations constituted a change of operations under our collective bargaining agreement (the "2023 ABF NMFA") with the International Brotherhood of Teamsters (the "IBT"). The joint union-management Change of Operations Committee approved the consolidations pursuant to the 2023 ABF NMFA, and the closures are expected to be completed during the fourth quarter of 2026. The Company evaluated the remaining restructuring actions for impairment and does not currently expect additional material impairment charges related to the restructuring plan. During the three and nine months ended September 30, 2026, the Company recorded $4.3 million and $6.5 million, respectively, of restructuring charges for severance and related costs, which were included in operating expenses.

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These measures are expected to improve operational efficiency and generate approximately $40.0 million in annualized run-rate cost savings while maintaining ArcBest's commitment to premium service. The Company has realized year-to-date cost savings of approximately $8.0 million as of September 30, 2026 as a result of these actions, including $6.0 million during the third quarter of 2026. Quarterly cost savings are expected to reach approximately $10.0 million by the first quarter of 2027, representing the full quarterly run-rate savings.

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The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

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Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is provided to assist readers in understanding our financial performance during the periods presented and significant trends which may impact our future performance, including the principal factors affecting our results of operations, liquidity and capital resources, and critical accounting policies. This discussion should be read in conjunction with the accompanying quarterly unaudited consolidated financial statements and related notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q and in the audited consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025. Our 2025 Annual Report on Form 10-K includes additional information about significant accounting policies, practices, and the transactions that underlie our financial results, as well as a detailed discussion of the most significant risks and uncertainties to which our financial and operating results are subject.

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Results of Operations

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Consolidated Results

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The following table reflects the Company's consolidated results, including segment revenues and operating income (loss):

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Our consolidated revenues increased 15.5% for the three months ended September 30, 2026 and 11.7% for the nine months ended September 30, 2026, compared to the same prior-year periods. The increases were primarily attributable to improved market rates, higher fuel prices, and for our Asset-Light segment, higher shipment levels. For the three months ended September 30, 2026, Asset-Light revenues increased 25.4% and Asset-Based revenues increased 9.9%, compared to the same period of 2025. For the nine months ended September 30, 2026, Asset-Light revenues increased 19.8% while Asset-Based revenues increased 7.2%, compared to the corresponding prior-year period. Asset-Based billed revenue per day increased 10.8% for the three months ended September 30, 2026 and 7.7% for the nine months ended September 30, 2026, primarily due to increases in billed revenue per hundredweight, including fuel surcharges, and weight per shipment in both periods of 2026 when compared to the same periods of 2025. The elimination of intersegment revenues reported in the "Other and eliminations" line of consolidated revenues increased 7.5% for the three-month period ended September 30, 2026 and 6.4% for the nine-month period ended September 30, 2026, compared to the same periods of 2025, reflecting year-over-year changes in intersegment business levels.

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Asset-Based tonnage per day increased for the three and nine months ended September 30, 2026, compared to the same periods of 2025, supported by higher weight per shipment. This tonnage growth occurred despite lower daily shipment volumes and ongoing uncertainty associated with geopolitical conflicts and tariff volatility. Billed revenue per hundredweight, including fuel surcharges, increased for the three and nine months ended September 30, 2026, compared to the same prior-year periods. These increases were primarily driven by higher fuel surcharge revenue resulting from increased fuel prices during the three- and nine-month periods ended September 30, 2026, partially offset by a shift in freight profile toward heavier shipments, which generally reduces billed revenue per hundredweight.

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An increase in average revenue per shipment and higher shipment volumes in our Asset-Light segment for the three and nine months ended September 30, 2026, compared to the same prior-year periods, contributed to increased segment revenues. Improved rates associated with tightening capacity and higher fuel costs more than offset a higher mix of managed logistics business, which typically carries smaller shipment sizes and lower revenue per shipment. Our Asset-Light segment generated approximately 36% of total revenues before other revenues and intercompany eliminations for the three and nine months ended September 30, 2026, compared to 33% and 34% for the same respective periods of 2025.

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Consolidated operating income increased for the three months ended September 30, 2026, compared to the same prior-year period, primarily due to higher revenues, partially offset by restructuring charges. For the nine months ended September 30, 2026, consolidated operating income decreased despite higher revenues, primarily due to asset impairment charges and restructuring charges as discussed below. The year-over-year comparison of consolidated operating income was also impacted by lower gains on sales of service centers in our Asset-Based segment, as discussed below.

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The Company recognized noncash asset impairment charges totaling $85.3 million during the second quarter of 2026, including $50.8 million related to the write-off of certain Freight Movement System assets associated with Vaux^®, $25.7 million to write off the remaining carrying value of the indefinite-lived Panther trade name as part of a strategic brand consolidation decision, and $8.8 million in lease-related impairment charges associated with certain leased office space. Asset impairment charges reduced operating results by $85.3 million (pre-tax), or $64.2 million (after-tax) and $2.86 per diluted share for the nine months ended September 30, 2026. These asset impairment charges are further described within Notes B, C, and E to our consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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Consolidated operating results for the three and nine months ended September 30, 2026 and 2025 were impacted by the amortization of acquired intangible assets related to acquired businesses within the Asset-Light segment. Purchase accounting amortization reduced operating results by $1.8 million (pre-tax), or $1.4 million (after-tax) and $0.06 per diluted share for the three months ended September 30, 2026, compared to $3.2 million (pre-tax), or $2.4 million (after-tax) and $0.11 per diluted share for the same period of 2025. For the nine months ended September 30, 2026, amortization reduced operating results by $6.9 million (pre-tax), or $5.2 million (after-tax) and $0.23 per diluted share, compared to $9.6 million (pre-tax), or $7.2 million (after-tax) and $0.31 per diluted share for the same prior-year period. The year-over-year decrease in amortization expense was primarily due to the MoLo trade name being fully amortized at December 31, 2025.

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Restructuring charges, as previously described, reduced operating results by $4.3 million (pre-tax), or $3.2 million (after-tax) and $0.14 per diluted share for the third quarter of 2026 and $6.5 million (pre-tax), or $4.9 million (after-tax) and $0.22 per diluted share for the nine months ended September 30, 2026.

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Consolidated operating results benefited from the sales of certain properties. These sales resulted in a gain of $2.9 million (pre-tax), or $2.2 million (after-tax) and $0.10 per diluted share for the nine months ended September 30, 2026, compared to net gains of $15.7 million (pre-tax), or $11.8 million (after-tax) and $0.52 and $0.51 per diluted share for the three and nine months ended September 30, 2025, respectively.

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During the second quarter of 2025, the Company reduced the contingent earnout consideration liability for the MoLo acquisition to zero as the earnout calculation did not meet the then-current projections which indicated that the adjusted earnings before interest, taxes, depreciation, and amortization threshold for the 2025 earnout period would not be achieved. This quarterly remeasurement of the contingent earnout consideration increased operating results by $2.7 million (pre-tax), or $2.0 million (after-tax) and $0.09 per diluted share for the nine months ended September 30, 2025.

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In addition to the above items, the year-over-year changes in consolidated net income and earnings per share were impacted by changes in the cash surrender value of variable life insurance policies, tax effects from the vesting of share-based compensation awards, and other changes in the effective tax rate described in the Income Taxes section of MD&A. Certain variable life insurance policies are invested, through separate accounts, in equity and fixed income securities and, therefore, are subject to market volatility. Changes in the cash surrender value of life insurance policies, which are reported below operating income in the consolidated statements of operations, increased consolidated net income by $2.0 million, or $0.09 per diluted share, and $3.8 million, or $0.17 per diluted share, for the three and nine months ended September 30, 2026, respectively, compared to $2.3 million, or $0.10 per diluted share, and $3.1 million, or $0.13 per diluted share, for the same respective prior-year periods. The vesting of restricted stock units resulted in a tax benefit of $1.5 million, or $0.07 per diluted share, for the nine months ended September 30, 2026 compared to a tax expense of $1.0 million, or $0.04 per diluted share, for the same prior-year period. A small number of restricted stock units vested during the three months ended September 30, 2026 and 2025, resulting in an immaterial tax benefit and an immaterial tax expense, respectively.

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Consolidated Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization ("Adjusted EBITDA")

We report financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). However, management believes that certain non-GAAP financial measures and ratios, such as Adjusted EBITDA, utilized internally to assess core performance offer analysts, investors, and others insights into performance trends by excluding items from operating results that management believes do not reflect our core operating performance. Adjusted EBITDA is used for business planning and as a key performance measure, particularly because it excludes interest and other financing costs, income taxes, depreciation and amortization, share-based compensation expense, and certain significant expenses resulting from strategic decisions or other factors rather than core daily operations, such as amortization of acquired intangibles of the Asset-Light segment, asset impairment charges, and changes in the fair value of contingent consideration. Our calculation of Adjusted EBITDA may not be comparable to similarly titled measures of other companies as other companies may calculate Adjusted EBITDA differently. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for or better measurement than net income, as determined under GAAP, which is the most directly comparable GAAP measure for the periods presented. The following table presents a reconciliation of Adjusted EBITDA to our net income.

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Asset-Based Operations

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Asset-Based Segment Overview

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The Asset-Based segment consists of ABF Freight, one of North America's largest less-than-truckload ("LTL") carriers and a wholly owned subsidiary of the Company, and certain other subsidiaries. Our customers have relied on ABF Freight's LTL solutions for over a century, trusting our unwavering commitment to quality, safety, and customer service to solve their transportation challenges, including through market disruptions and rapidly changing economic conditions. We are strategically investing in our Asset-Based operations to leverage technology that enhances efficiency and productivity, along with capital investments to renovate and modernize our service centers to strengthen our network infrastructure and support our operations.

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Our Asset-Based operations are affected by general economic conditions, as well as a number of other competitive factors that are more fully described in Part I, Items 1 and 1A of our 2025 Annual Report on Form 10-K. See Note I to our consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a description of the Asset-Based segment and additional segment information, including revenues, operating expenses, and operating income for the three and nine months ended September 30, 2026 and 2025.

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Key indicators necessary to understand the operating results of our Asset-Based segment are described in Part II, Item 7 of our 2025 Annual Report on Form 10-K. Management uses these key indicators and related operating statistics to

evaluate segment performance and assess the effectiveness of strategic initiatives. These statistics are important measures in analyzing period-to-period segment operating results.

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Other companies in our industry may present different key performance indicators or operating statistics, or they may calculate their measures differently; therefore, our measures may not be comparable to similarly titled measures of other companies. These measures should be viewed in addition to, and not as an alternative for, our reported results, and should not be construed as better measurements of our results than operating income, net income, or earnings per share, as determined under GAAP.

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As of September 2026, approximately 82% of our Asset-Based segment's employees were covered under the 2023 ABF NMFA and other related supplemental agreements with the IBT, which will remain in effect through June 30, 2028. The terms of the 2023 ABF NMFA continue to provide some of the best wages and benefits in the industry to our contractual employees. The combined contractual wage and benefits top hourly rate is estimated to increase approximately 4.2% on a compounded annual basis over the term of the agreement, with potential profit-sharing bonuses representing additional costs under the 2023 ABF NMFA. The contractual wage rate under the 2023 ABF NMFA increased, effective July 1, 2026, and the health, welfare, and pension benefit contribution rate increased, effective primarily on August 1, 2026, resulting in a combined contractual wage and benefits top hourly rate increase of approximately 3.2%.

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Asset-Based Segment Results

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The following table sets forth a summary of operating expenses and operating income as a percentage of revenue for the Asset-Based segment:

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The following table provides a comparison of key operating statistics for the Asset-Based segment, as previously defined in our 2025 Annual Report on Form 10-K:

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Asset-Based Revenues

Asset-Based segment revenues for the three and nine months ended September 30, 2026, totaled $798.6 million and $2,237.3 million, respectively, compared to $726.5 million and $2,086.1 million for the same periods of 2025. Revenue growth for both 2026 periods was driven by higher daily tonnage and billed revenue per hundredweight, including fuel surcharges, which more than offset lower shipment levels and resulted in higher billed revenue per day. The tonnage increase was driven by higher weight per shipment, reflecting a continued shift in freight profile, partially offset by fewer shipments per day. The increase in billed revenue per hundredweight was primarily due to higher fuel surcharge revenue resulting from increased fuel prices. The number of workdays was unchanged in the third quarter of 2026 and was lower by one-half day for the nine months ended September 30, 2026, compared to the same respective periods of 2025.

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The pricing environment remained rational. Excluding fuel surcharges, billed revenue per hundredweight decreased in the low-single digits for the three and nine months ended September 30, 2026, compared to the same periods of 2025. Prices on accounts subject to deferred pricing agreements and annually negotiated contracts that were renewed during the three and nine months ended September 30, 2026, increased an average of 5.1% and 5.8%, respectively. The Asset-Based segment implemented nominal general rate increases on its LTL base rate tariffs of 5.9% effective on August 4, 2025 and June 22, 2026, although the rate changes vary by lane and shipment characteristics.

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The Asset-Based segment's average nominal fuel surcharge rate increased by approximately 17 percentage points for the third quarter of 2026 and 13 percentage points for the nine months ended September 30, 2026, compared to the same periods of 2025. The segment's operating results are impacted by changes in fuel prices and related fuel surcharges. Operating results may be adversely affected if competitive pressures limit our ability to recover fuel surcharges. During periods of changing diesel fuel prices, the fuel surcharge and associated direct diesel fuel costs vary by differing degrees.

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Asset-Based Operating Income

The Asset-Based segment generated operating income of $75.6 million in the third quarter of 2026, compared to $70.2 million in the prior-year quarter, and $167.3 million in the nine months ended September 30, 2026, compared to $147.6 million in the same prior-year period. The Asset-Based segment's operating ratio for both 2026 periods benefited from increased billed revenue per shipment, partially offset by higher operating expenses. The 2025 periods included $15.7 million in net gains on the sales of property and equipment, including gains on two service center sales.

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Asset-Based Operating Expenses

Labor costs, which are reported in operating expenses as salaries, wages, and benefits, increased $13.6 million for the three months ended September 30, 2026 and $32.8 million for the nine months ended September 30, 2026, compared to the corresponding 2025 periods, primarily reflecting contract rate increases under the 2023 ABF NMFA, including a 2.4% wage rate increase effective July 1, 2026, and a 4.3% increase in health, welfare and pension rates effective primarily on

August 1, 2026, for a blended increase of 3.2%, and increases in headcount to align with higher tonnage. Labor costs decreased as a percentage of revenue in both 2026 periods, compared to the corresponding 2025 periods, primarily due to higher revenues.

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Fuel, supplies, and expenses increased $20.3 million, or 1.5 percentage points as a percentage of revenue, in the third quarter of 2026 and $42.2 million, or 1.1 percentage points, for the nine months ended September 30, 2026, compared to the same prior-year periods, as the segment's average fuel price per gallon (excluding taxes) increased approximately 68% and 50% during the three- and nine-month periods ended September 30, 2026, respectively, compared to the same periods of 2025.

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The Asset-Based segment manages costs with shipment levels; however, a number of factors impact dock, street, and yard ("DSY") productivity, including the effect of freight profile changes, utilization of local delivery agents, and efficiency of personnel. Shipments per DSY hour declined for the three and nine months ended September 30, 2026, compared to the same periods of 2025, primarily due to changes in freight profile, offset in part by the positive impact from continued investments in technology and in the Asset-Based network and ongoing training and development at certain key locations. The nine-month period was also affected by severe weather experienced in the first quarter of 2026. Pounds per mile increased 6.6% for the three months ended September 30, 2026 and 3.8% for the nine months ended September 30, 2026, compared to the respective periods of 2025, reflecting increased weight per shipment and improved linehaul efficiency.

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Rents and purchased transportation as a percentage of revenue increased 0.4 percentage points for both the three and nine months ended September 30, 2026, compared to the same periods of 2025. These costs increased $11.7 million in the third quarter of 2026 and $27.1 million for the nine months ended September 30, 2026, compared to the same prior-year periods, primarily due to higher rail fuel surcharge costs per mile and increased utilization of rail and linehaul purchased transportation. Rail miles increased approximately 4% in the third quarter of 2026 and 2% in the nine months ended September 30, 2026, compared to the same 2025 periods.

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Shared services as a percentage of revenue decreased 0.6 percentage points for the three months ended September 30, 2026 and 0.4 percentage points for the nine months ended September 30, 2026, compared to the same prior-year periods, primarily due to higher revenues.

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Operating expenses also benefited from a gain of $2.9 million on the sale of a service center during the nine months ended September 30, 2026, compared to a net gain of $15.7 million on property sales during the same period of 2025.

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Asset-Light Operations

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Asset-Light Segment Overview

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Our Asset-Light segment is a key component of our strategy to provide customers with a single, integrated source of logistics solutions that satisfies increasingly complex supply chain requirements. Through strategic investments in our Asset-Light segment, we continue to enhance service offerings and improve productivity. Across the segment, we are seeking opportunities to expand our revenues by deepening existing customer relationships, securing new customers, and broadening capacity options available to shippers.

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As supply chains become more complex, shippers increasingly rely on multimodal solutions. Our managed logistics solution efficiently connects these modes to help build resilient supply chains. Its continued development exemplifies our strategy to cross-sell services and meet demand for solutions that improve operational efficiency, reduce costs, and enhance supply chain visibility. We expect these and other strategic initiatives to support future growth as we deliver innovative solutions to our customers.

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Our Asset-Light operations are affected by general economic conditions, as well as several other competitive factors that are more fully described in Part I, Item 1 of our 2025 Annual Report on Form 10-K. See Note I to our consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for descriptions of the Asset-Light

segment and additional segment information, including revenues, operating expenses, and operating income (loss) for the three and nine months ended September 30, 2026 and 2025.

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Management uses key indicators to evaluate segment operating performance and measure the effectiveness of strategic initiatives in the results of our Asset-Light segment. The key indicators necessary to understand our Asset-Light segment operating results are outlined in the Asset-Light Segment Overview within the Asset-Light Operations section of Results of Operations in Part II, Item 7 of our 2025 Annual Report on Form 10-K. We quantify certain key indicators using key operating statistics which are important measures in analyzing segment operating results from period to period.

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Other companies within our industry may present different key performance indicators or they may calculate their key performance indicators differently; therefore, our key performance indicators may not be comparable to similarly titled measures of other companies. Key performance indicators should be viewed in addition to, and not as an alternative for, our reported results. Our key performance indicators should not be construed as better measurements of our results than operating income (loss), net income, or earnings per share, as determined under GAAP.

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Asset-Light Segment Results

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The following table sets forth a summary of operating expenses and operating income (loss) as a percentage of revenue for the Asset-Light segment:

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The following table provides a comparison of key operating statistics for the Asset-Light segment, as defined in our 2025 Annual Report on Form 10-K:

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Asset-Light Revenues

Asset-Light segment revenues increased 25.4% to $446.3 million for the three months ended September 30, 2026 from $356.0 million in the prior-year period. Revenues increased 19.8% to $1,262.7 million for the nine months ended September 30, 2026 from $1,053.9 million in the prior-year period. Revenue growth was driven by increased revenue per shipment and higher average daily shipments, led by growth in our managed logistics business. The increase in revenue per shipment was driven by higher spot rates amid tightening truckload capacity and rising fuel costs, reflecting a shift in the freight environment following an extended period of market softness.

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Asset-Light Operating Income (Loss)

Asset-Light segment operating income totaled $12.5 million for the three months ended September 30, 2026, compared to an operating loss of $1.6 million for the prior-year period. Asset-Light segment operating loss totaled $18.7 million for the nine months ended September 30, 2026, including $34.5 million of asset impairment charges and $0.9 million of restructuring charges, compared to an operating loss of $5.4 million for the same prior-year period. Operating results reflected revenue growth, disciplined cost management, and productivity improvements, partially offset by higher year-over-year operating expenses, including increased purchased transportation costs associated with higher shipment volumes, discussed in the paragraphs below.

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Asset-Light Operating Expenses

Operating expenses increased $76.3 million in the third quarter of 2026, compared to the third quarter of 2025, primarily due to higher business levels. As a percentage of revenue, operating expenses decreased 3.2 percentage points, primarily due to higher revenue. For the nine months ended September 30, 2026, operating expenses increased $222.1 million, or 1.0 percentage point as a percentage of revenue, compared to the same prior-year period. The increase primarily reflected higher business levels and included $34.5 million of asset impairment charges and $0.9 million of restructuring charges recorded during the nine months ended September 30, 2026. The asset impairment charges represented 2.7 percentage points of revenue for the nine months ended September 30, 2026. Additional information regarding the impairment charges is included in Notes B, C and E to the consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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Purchased transportation costs increased $76.9 million, or 0.1 percentage points as a percentage of revenue, for the three months ended September 30, 2026 and $188.7 million, or 0.9 percentage points as a percentage of revenue for the nine months ended September 30, 2026, compared to the same prior-year periods. The increase in purchased transportation costs, including as a percentage of revenue, primarily reflected higher fuel costs driven by rising diesel prices, as well as increased shipment volumes and tightening capacity. Changes in market capacity, fuel costs, and freight mix impact the cost of purchased transportation and may not correspond to the timing of revisions to customer pricing and revenue per shipment. There can be no assurance that we will be able to secure prices from customers sufficient to maintain or improve margins on the cost of sourcing carrier capacity.

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Salaries, wages, and benefits decreased as a percentage of revenue by 1.5 percentage points for the three months ended September 30, 2026 and 1.1 percentage points for the nine months ended September 30, 2026, compared with the same prior-year periods, reflecting primarily higher revenues. Shipments per person per day improved for the three and nine months ended September 30, 2026, compared to the same prior-year periods. The improvement was attributable to efforts to align staffing with business levels and improve efficiency, combined with changes in business mix and technology-enabled process improvements.

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Shared services as a percentage of revenue decreased 1.1 percentage points for the three months ended September 30, 2026 and 1.2 percentage points for the nine months ended September 30, 2026, compared to the same prior-year periods, primarily reflecting the impact of higher revenues and efficiency gains from process improvements and technology-enabled productivity enhancements.

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Depreciation and amortization as a percentage of revenue decreased 0.6 percentage points for the three months ended September 30, 2026 and 0.4 percentage points for the nine months ended September 30, 2026, compared to the same periods of 2025, reflecting higher revenues and lower amortization expense resulting from the full amortization of the finite-lived MoLo trade name at December 31, 2025.

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In October 2026, the Company entered into an agreement to modify an existing office lease used in its Asset-Light operations, effective during the fourth quarter of 2026, as further described in Note E to the consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. The Company paid $7.5 million upon execution of the agreement and expects to recognize a gain of approximately $12.0 million related to the lease modification during the fourth quarter of 2026. The lease modification is expected to result in savings of approximately $26.0 million of lease costs over the remaining term of the lease, which expires on April 30, 2034.

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Asset-Light Adjusted EBITDA

We report financial results in accordance with GAAP. However, management believes that certain non-GAAP financial measures and ratios, such as Asset-Light Adjusted EBITDA, utilized internally to assess core performance offer analysts, investors, and others insights into performance trends by excluding items from operating results that management believes do not reflect our core operating performance. Asset-Light Adjusted EBITDA is used for business planning and as a key performance measure, particularly because it excludes certain significant expenses resulting from strategic decisions or other factors rather than core daily operations, such as amortization of acquired intangibles, asset impairment charges, and changes in the fair value of contingent consideration. Management also believes Asset-Light Adjusted EBITDA to be relevant and useful, as EBITDA is a standard measure commonly reported and widely used by analysts, investors, and others to measure financial performance of asset-light businesses. Our calculation of Asset-Light Adjusted EBITDA may not be comparable to similarly titled measures of other companies as other companies may calculate adjusted EBITDA differently. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for or better measurement than operating income (loss), as determined under GAAP.

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Current Economic Conditions

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The U.S. economy grew in the third quarter of 2026, with real gross domestic product increasing at an annual rate of 3.4%, according to an advance estimate released on October 29, 2026. Growth was driven by increases in investment and consumer and government spending, partially offset by a decrease in exports and an increase in imports. Persistent inflation, including fuel price volatility, elevated interest rates, and a slowing labor market continue to affect business confidence and contribute to market volatility. Geopolitical conflicts and fluctuating trade and tariff policies continue to present risks to economic activity and freight demand.

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The manufacturing sector, as measured by the Purchasing Managers' Index, expanded in October 2026 for the tenth consecutive month after a period of nearly continuous contraction since November 2022. Although we secured increases

on deferred pricing agreements and annually negotiated contracts during the nine months ended September 30, 2026, there can be no assurance that the economic environment, including the impact of interest rates on consumer demand, or fluctuations in fuel costs, will be favorable for our freight services in future periods.

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Significant declines in our business levels or other factors that negatively impact the fair value of our reporting units could result in impairment and a resulting noncash write-off of a significant portion of the goodwill and intangible assets of our Asset-Light segment, which would have an adverse effect on our financial condition and operating results. During the second quarter of 2026, we recorded an asset impairment charge related to our indefinite-lived Panther trade name within the Asset-Light reporting unit. See Notes B and C to our consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion of the impairment valuation.

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Effects of Inflation

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Inflation remains above the Federal Reserve's long-term target inflation rate of 2%. Elevated costs across a broad array of consumer goods continue to be driven by supply chain volatility, labor and energy shortages, geopolitical developments, and trade and tariff policies, in addition to the impact of federal monetary policy. The consumer price index increased 3.7%, before seasonal adjustment, year-over-year in September 2026. Most of our expenses are affected by inflation. While an increase in inflation generally results in increased operating costs, the potential impact of inflationary conditions on our business, including demand for our transportation services, remains uncertain. In September 2026, in response to continued inflationary pressures, the Federal Reserve raised the target range for the federal funds rate for the first time since July 2023. This action followed a series of rate reductions in 2025.

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Generally, inflationary increases in labor and fuel costs as they relate to our Asset-Based operations have historically been largely offset through price increases and fuel surcharges. In periods of increasing fuel prices, the effect of higher associated fuel surcharges on the overall price to the customer influences our ability to obtain increases in base freight rates. In addition, certain nonstandard arrangements with some of our customers have limited the amount of fuel surcharge recovered.

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Generally, inflationary increases in labor and operating costs related to our Asset-Light operations have historically been offset through price increases and efficiency improvements. Productivity improvements, as measured by shipments per person per day, and disciplined cost management have helped mitigate the impact of rising operating costs. The pricing environment, however, generally becomes more competitive during economic downturns, which may, as it has in the past, affect the ability to obtain price increases from customers both during and following such periods. The pricing environment remains competitive, although market conditions improved during the first nine months of 2026. Tightening truckload capacity contributed to higher spot rates following a prolonged period of economic pressure and continued carrier exits. While freight demand showed signs of improvement, market conditions remained influenced by supply-driven capacity tightening, and brokerage margins remained below historical levels.

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The market continues to adjust to the impact of supply chain disruptions, including as a result of geopolitical conflicts and changes in trade and tariff policies. The prices for our revenue equipment (tractors and trailers) have also increased, partly as a result of inflationary pressures, and we expect replacement equipment to be purchased at higher per-unit costs, which could result in higher depreciation charges on a per-unit basis. We consider these costs in setting our pricing policies, although the overall freight rate structure is governed by market forces. In addition to general effects of inflation, the motor carrier freight transportation industry faces rising costs related to insurance claims, compliance with government regulations on safety, equipment design and maintenance, driver utilization, emissions, and fuel economy.

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Environmental and Legal Matters

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We are subject to federal, state, and local environmental laws and regulations relating to, among other things: emissions control, transportation or handling of hazardous materials, underground and aboveground storage tanks, stormwater pollution prevention, contingency planning for petroleum spills, and disposal of waste oil. We may transport or arrange for the transportation of hazardous materials and explosives, and we operate in industrial areas where truck service centers and other industrial activities are located and where groundwater or other forms of environmental contamination could occur.

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Physical effects from climate change, including more frequent and severe weather events, have the potential to adversely impact our business levels and employee working conditions, cause shipping delays or disruptions to our operations, increase our operating costs, and cause damage to our property and equipment. Due to the uncertainty of these matters, we cannot estimate the effect of any future climate-related developments on our operations or financial condition at this time. These and other matters related to climate change and the related risks to our business are further discussed in Part I, Item 1 and Item 1A of our 2025 Annual Report on Form 10-K. We continue to pursue sustainability initiatives through investments in technology, employee development, and capabilities and services for customers.

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We are involved in various legal actions, the majority of which arise in the ordinary course of business. We maintain liability insurance against certain risks arising out of the normal course of our business, subject to certain self-insured retention limits. We routinely establish and review the adequacy of reserves for estimated legal, environmental, and self-insurance exposures. While management believes that amounts accrued in the consolidated financial statements are adequate, estimates of these liabilities may change as circumstances develop. Based on currently available information and amounts recorded, these routine legal matters are not expected to have a material adverse effect on our financial condition, results of operations, or cash flows.

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Liquidity and Capital Resources

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Our primary sources of liquidity are cash, cash equivalents, and short-term investments; cash generated by operations; and available borrowing capacity under our revolving credit facility (the "Credit Facility").

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Cash Flow and Short-Term Investments

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Components of cash and cash equivalents and short-term investments, which are further described in Note B to our consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, were as follows:

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Cash, cash equivalents, and short-term investments increased $83.0 million from December 31, 2025 to September 30, 2026, primarily due to cash generated by operating activities, partially offset by payments of long-term debt, share repurchases and dividends, and planned capital expenditures.

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Cash provided by operating activities was $255.2 million during the nine months ended September 30, 2026, compared to $184.3 million in the same prior-year period, primarily due to improved operating performance before noncash asset impairment charges, as discussed further in the Results of Operations section. Changes in operating assets and liabilities, excluding income taxes, reduced operating cash flow by $6.1 million during the nine months ended September 30, 2026, driven primarily by higher business levels that increased receivables, partially offset by increases in accounts payable and accrued expenses. In comparison, changes in operating assets and liabilities, excluding income taxes, reduced operating cash flow by $22.0 million during the nine months ended September 30, 2025, primarily due to decreases in accounts payable and accrued expenses and operating right-of-use assets and lease liabilities, net.

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Cash used in investing activities during the nine months ended September 30, 2026 primarily reflected $28.9 million of capital expenditures, including renovations of properties for our Asset-Based network, net of proceeds from asset sales and financings, along with $10.6 million in capitalization of internally developed software. See Capital Expenditures below for estimated annual expenditure amounts for 2026.

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Cash used in financing activities during the nine months ended September 30, 2026 included $89.2 million in payments on notes payable. During the nine months ended September 30, 2026, we also repurchased 283,737 shares of our common

stock under our share repurchase program for an aggregate cost of $34.8 million and paid quarterly dividends totaling $8.0 million. Our dividends and share repurchase program are further discussed in Other Liquidity Information below.

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Financing Arrangements

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We financed the purchase of $59.8 million of revenue equipment through notes payable during the nine months ended September 30, 2026. Future payments due under notes payable totaled $206.4 million, including interest, as of September 30, 2026, a decrease of $33.4 million from December 31, 2025.

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As of September 30, 2026, standby letters of credit of $25.9 million were outstanding under our Credit Facility which reduced our available borrowing capacity under the Credit Facility to $224.1 million. In May 2026, we terminated our accounts receivable securitization program prior to the scheduled maturity date of July 1, 2026.

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Our financing arrangements are disclosed in Note F to our consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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Contractual Obligations

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We have purchase obligations, consisting of authorizations to purchase and binding agreements with vendors, relating to revenue equipment used in our Asset-Based operations, other equipment, facility improvements, software, service contracts, and other items for which amounts were not accrued in the consolidated balance sheet as of September 30, 2026. These purchase obligations totaled $167.7 million as of September 30, 2026, with $136.6 million expected to be paid within the next year, subject to vendors' fulfillment of their commitments. As of September 30, 2026, the amount of our purchase obligations increased $61.9 million from December 31, 2025, primarily related to expected purchases of ABF Freight revenue equipment.

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There have been no other material changes in the contractual obligations disclosed in our 2025 Annual Report on Form 10-K during the nine months ended September 30, 2026. We have no investments, loans, or any other known contractual arrangements with unconsolidated special-purpose entities, variable interest entities, or financial partnerships and have no outstanding loans with our executive officers or directors.

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Capital Expenditures

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For 2026, our total capital expenditures, including amounts financed, are estimated to range from $130.0 million to $140.0 million, net of proceeds from asset sales. These 2026 estimated net capital expenditures include revenue equipment purchases of $75.0 million to $80.0 million, primarily for our Asset-Based operations and $25.0 million to $35.0 million of investments in real estate and facility upgrades to support our growth plans, in addition to other investments across the enterprise, primarily technology-related items and miscellaneous dock equipment upgrades and enhancements. We have the flexibility to adjust certain planned 2026 capital expenditures as business levels dictate. Depreciation and amortization expense, excluding amortization of intangibles, is estimated to be approximately $170.0 million in 2026. The amortization of intangible assets is estimated to be $8.7 million in 2026, related to purchase accounting amortization associated with business acquisitions in our Asset-Light segment.

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Other Liquidity Information

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Freight market conditions continue to be influenced by customer demand levels, industrial production trends, truckload capacity, geopolitical conflicts, tariff and trade policies, and fuel price volatility, among other factors. These conditions, and the related impact on our business, including tonnage and shipment levels and the pricing for our services, could affect our ability to generate cash from operating activities and maintain liquidity. Our Credit Facility provides available sources of liquidity with flexible borrowing and payment options. We believe our Credit Facility provides the borrowing capacity necessary to support our business and growth initiatives. During the next twelve months and for the foreseeable future, we believe existing cash, cash equivalents, short-term investments, cash generated by operating activities, and amounts available under our Credit Facility, will be sufficient to finance our operating expenses, ongoing initiatives, and grow our

business, including investments in technology. Notes payable, finance leases, and other secured financing may also be used to fund capital expenditures, provided that such arrangements are available and the terms are acceptable to us.

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We continue to return capital to shareholders through quarterly dividends and share repurchases. On October 30, 2026, we announced that our Board of Directors declared a dividend of $0.12 per share payable to stockholders of record as of November 13, 2026. We expect to continue to pay quarterly dividends on our common stock for the foreseeable future. However, future dividends are at the discretion of the Board of Directors and depend on our future earnings, capital requirements, financial condition, contractual restrictions under our Credit Facility, and other factors.

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During the nine months ended September 30, 2026, we repurchased 283,737 shares of our common stock for an aggregate cost of $34.8 million under our share repurchase program, including excise taxes. As of September 30, 2026, $70.5 million remained available for repurchase under the share repurchase program (see Note G to our consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q).

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Balance Sheet Changes

The following discussion summarizes significant changes in selected balance sheet lines from December 31, 2025 to September 30, 2026:

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Accounts Receivable

Accounts receivable increased $118.0 million, primarily reflecting higher revenue and improved pricing in September 2026, compared to December 2025.

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Other Accounts Receivable

Other accounts receivable decreased $16.8 million, primarily reflecting the second quarter 2026 settlement by the insurer of the receivable (and offsetting liability) for an insured third-party casualty claim recorded at December 31, 2025.

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Prepaid Expenses

Prepaid expenses decreased $14.9 million as amortization exceeded prepayments, including prepayments for various insurance policies.

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Prepaid and Refundable Income Taxes and Income Taxes Payable

Prepaid and refundable income taxes decreased $35.1 million and income taxes payable increased $18.4 million, primarily due to the accrual on $48.6 million of pre-tax income and tax-related timing differences including book-over-tax depreciation, as discussed further below in the Income Taxes section. The changes are partially offset by tax payments made during the first nine months of 2026.

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Property, Plant, and Equipment, Net

The $71.7 million decrease in property, plant, and equipment, net was primarily related to Vaux Freight Movement System write-offs recorded during the second quarter of 2026 and net depreciation and disposal activity, offset partially by planned service center remodels and the purchase of revenue equipment used in our Asset-Based operations.

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Intangible Assets, Net

Intangible assets, net decreased $33.5 million primarily due to the $25.7 million noncash asset impairment charge related to the Panther trade name.

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Operating Right-of-Use Assets

The $11.9 million decrease in operating right-of-use assets primarily reflects the $8.4 million lease-related impairment charge recorded during the second quarter of 2026, along with year-to-date amortization, offset partially by lease additions and renewals.

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Deferred Income Taxes

The $55.2 million net decrease in deferred income tax liabilities represents deferred tax benefits associated with timing differences related to the tax addback of book impairment charges and book-over-tax depreciation, as discussed further below in the Income Taxes section.

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Accounts Payable

Accounts payable increased $44.4 million primarily due to higher purchased transportation costs and the timing of payables.

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Accrued Expenses

The $42.5 million increase in accrued expenses is primarily due to higher accruals for certain performance-based incentive plans associated with improved operating results in 2026, compared with 2025. Accrued expenses also increased due to higher accrued wages associated with increased business levels and the July and August 2026 wage and benefit rate increases under the 2023 ABF NMFA, as previously described, and higher third-party casualty and workers' compensation reserves resulting from higher average claim costs and increased retention levels. These increases were partially offset by the second quarter 2026 settlement by the insurer of the receivable (and offsetting liability) for an insured third-party casualty claim recorded at December 31, 2025, as previously described.

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Long-Term Debt

The $29.3 million decrease in long-term debt, including current portion, is primarily due to payments on notes payable of $89.2 million, offset by $59.8 million in equipment financed.

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Income Taxes

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Our effective tax rate was 27.1% and 24.3% for the three and nine months ended September 30, 2026, respectively, compared to 26.6% and 27.2% for the same respective periods of 2025. For the third quarter of 2026, the U.S. statutory tax rate was 21.0%, and the average state tax rate, net of the associated federal deduction, was approximately 5%. However, various factors and changes in nondeductible expenses, the cash surrender value of life insurance, and the tax effects from vesting of restricted stock units ("RSUs") primarily vesting in the second quarter, may cause the full-year 2026 tax rate to vary from the statutory rate.

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Reconciliation between the effective income tax rate, as computed on income before income taxes, and the statutory federal income tax rate is presented in the following table:

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As of September 30, 2026, we had $47.1 million of net deferred tax liabilities after valuation allowances. We evaluated the need for a valuation allowance for deferred tax assets at September 30, 2026 by considering the future reversal of existing taxable temporary differences, future taxable income, and available tax planning strategies. Valuation allowances for deferred tax assets totaled $5.2 million as of September 30, 2026 and $4.5 million as of December 31, 2025. As of September 30, 2026, deferred tax liabilities which will reverse in future years exceeded deferred tax assets.

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The difference between the financial reporting income and taxable income for the nine months ended September 30, 2026 was primarily attributable to permanent and temporary tax differences related to depreciation, asset impairments,

stock-based compensation, the deductibility of accrued liabilities, and other items that are treated differently for financial reporting and income tax purposes. For the nine months ended September 30, 2026, income determined under income tax law exceeded financial reporting income.

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Critical Accounting Policies

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The accounting policies that are "critical," or the most important, to understand our financial condition and results of operations and that require management to make the most difficult judgments are described in our 2025 Annual Report on Form 10-K. There have been no updates to our critical accounting policies during 2026. Management believes that there is no new accounting guidance issued but not yet effective that will impact our critical accounting policies.

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Forward-Looking Statements

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Certain statements and information in this report 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 expectations, including our expectations with respect to our restructuring plans. Terms such as "anticipate," "believe," "could," "designed," "estimate," "expect," "forecast," "foresee," "intend," "likely," "may," "plan," "predict," "project," "scheduled," "seek," "should," "would," and similar expressions and the negatives of such terms are intended to identify forward-looking statements. These statements are based on management's beliefs, assumptions, and expectations based on currently available information, are not guarantees of future performance, and involve certain risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct and caution the reader not to place undue reliance on our forward-looking statements. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a number of factors, including, but not limited to: data breaches, cybersecurity incidents, and/or interruptions or failures of our information systems that we depend on, including software programs and applications provided by third parties; untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with new or enhanced technology or processes; the loss or reduction of business from multiple large customers or an overall reduction in our customer base; the timing and performance of growth initiatives and the ability to manage our cost structure; the cost, integration, and performance of future acquisitions and the inability to realize the anticipated benefits of the acquisition; unsolicited takeover proposals, proxy contests, and other proposals or actions by activist investors; maintaining our corporate reputation and intellectual property rights; failure to achieve market acceptance or generate adequate returns through our Vaux^® technologies; failure to recognize the benefits associated with our restructuring plans; establishing and maintaining adequate internal controls over financial reporting; disruptions in domestic or global manufacturing activity, supply chains, and related changes in spending, resulting in material reductions in freight volumes; competitive initiatives and pricing pressures; increased prices for and decreased availability of equipment, including new revenue equipment, and higher costs of equipment-related operating expenses such as maintenance, fuel, and related taxes; availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates, and the inability to collect fuel surcharges; relationships with employees, including unions, and our ability to attract, retain, and upskill employees; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight's collective bargaining agreement; union employee wages and benefits, including changes in required contributions to multiemployer plans; availability and cost of reliable third-party services; our ability to secure independent owner-operators and/or operational or regulatory issues related to our use of their services; litigation or claims asserted against us; the effects, costs and potential liabilities related to changes in and compliance with, or violation of, existing or future governmental laws and regulations, including, but not limited to, environmental laws and regulations, such as emissions-control regulations and fuel efficiency regulations; default on covenants of financing arrangements and the availability and terms of future financing arrangements; our ability to generate sufficient cash from operations to support significant ongoing capital expenditure requirements and other business initiatives; self-insurance claims, insurance premium costs, and loss of our ability to self-insure; potential impairment of long-lived assets and goodwill and intangible assets; external events which may adversely affect us or the third parties who provide services for us, for which our business continuity plans may not adequately prepare us, including, but not limited

to, the occurrence of natural disasters, public health crises, geopolitical conflicts, acts of terrorism or war, cybersecurity incidents, or trade restrictions; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers' access to adequate financial resources; seasonal fluctuations, adverse weather conditions, natural disasters, and climate change; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest Corporation's public filings with the Securities and Exchange Commission ("SEC").

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For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

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Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.

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