ArcBest Corporation

Good morning and thank you for standing by. Welcome to the ARCFEST fourth quarter 2025 earnings conference call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. As a reminder, this call is being recorded. I will now turn it over to Amy Mendenhall, Vice President, Treasury and Investor Relations. Please go ahead.

Good morning. I'm here today with Seth Brunser, our president and CEO, and Matt Beasley, our chief financial officer. Other members of our executive leadership team will also be available during the Q&A session. Before we begin, please note that some of the comments we make today will be forward-looking statements. These statements are subject to risks and uncertainties, which are detailed in the forward-looking statements section of our earnings release and FCC filings. To provide meaningful comparisons, we will also discuss certain non-GAAP financial measures that are outlined and described in the tables of our earnings release. Reconciliations of GAAP to non-GAAP measures are provided in the additional information section of the presentation slide. You can access the conference call slide deck on our website at arcb.com in our 8K filed earlier this morning or follow along on the webcast. And now, I will turn the call over to Seth.

Thank you, Amy, and good morning, everyone. ARCBEST delivered solid fourth quarter and four-year results, and I want to begin by recognizing the outstanding execution of our entire team. Over the past year, we navigated a prolonged freight recession and ongoing market volatility. Through it all, our people stayed focused and committed to our long-term strategy built around our three pillars, growth, efficiency, and innovation. Throughout the year, we leaned into our strengths, made disciplined decisions, and continued investing in initiatives that set our best apart. As a result, we delivered premium service to our customers, grew daily LTL shipment volumes, restored asset-light profitability, achieved record revenue and shipments in our managed solution, and advanced strategic priorities through technology and optimization projects. These accomplishments demonstrate the resilience and dedication of our team, and we're confident that the strong foundation we've built positions us for continued success. We are also advancing the initiatives we outlined at our Investor Day in September, which are designed to help us achieve our long-term targets and deliver greater value to shareholders. As always, our customer-first mindset remains core to our strategies. We will continue listening to our customers' evolving needs in delivering flexible, efficient, and fully integrated solutions that keep them coming back to ArcBest. With our unique focus on innovation and operational excellence, ArcBest remains a trusted partner, ready to help customers navigate whatever comes next. We're excited to officially welcome Mac Pinkerton as Chief Operating Officer of our AssetLite business. Mack brings deep industry expertise and proven leadership. He will help us build on our momentum, drive value for our customers and shareholders, and further strengthen our competitive position in this important part of our business. And as part of our ongoing assessment of board size and composition and the skills and capabilities needed for effective oversight, we're also pleased to welcome Ann Bordelon and Bobby George as independent directors. They bring financial expertise and proven leadership in digital transformation that will further strengthen our board. We also want to thank Kathy McElligot and Frederick Eliason for their many years of dedicated service. Their guidance and contributions have been invaluable to ArcBest. Now let's review our results for the quarter. In the fourth quarter, asset-based LTL shipments increased 2% year-over-year, averaging about 20,000 shipments per day. While seasonal softness and unusually weak October across the industry impacted volumes, this year-over-year improvement demonstrates the effectiveness of our refined go-to-market strategy and our intentional focus on expanding our core LTL business. By sharpening our approach, we're capturing new opportunities while continuing to deliver strong service and greater value to customers. Maintaining solid yield performance remains central to our approach. In the fourth quarter, deferred price increases averaged 5%, up from 4.5 in the third quarter. This improvement reflects the strength of our disciplined pricing approach. We take a rigorous, data-driven look at every account in Lane, making adjustments to ensure we're fairly compensated for the service and value we deliver. This discipline supports our long-term financial health and mutually beneficial customer relationships. Shifting to managed solutions. Demand remains high, and we delivered double-digit growth in shipments per day again this quarter. The sustained momentum highlights the value our managed offering brings to our customers, navigating today's complex logistics landscape. Truckload performance was another bright spot. Throughout the quarter, we demonstrated strong pricing discipline. Revenue per ship increased 11% year-over-year, and gross margins on a per shipment basis improved by 17% over the same period. In addition, we grow our business from SMB customers, which diversifies our portfolio and positions ArcBest for additional growth and profitability. Throughout 2025, we made meaningful progress on efficiency and innovation, two pillars of our long-term strategy. Our continuous improvement training program has now been successfully implemented across approximately 60% of the network. Our dedicated team trains employees on process and safety best practices, deploys new technologies, and ensures adoption of new tools. These efforts have delivered $24 million in annual cost savings. In addition, we are actively rolling out Phases 2 and 3 of City Route Optimization, which uses AI to reduce manual tasks, improve route planning, and maximize asset utilization. Phase 2 and 3 delivered $2 million in savings last year, bringing the total savings from the project to $15 million in 2025. These initiatives reflect our commitment to building a more efficient, innovative arc best and help offset cost inflation. 2025 was also a pivotal year for accelerating AI across our organization and advancing on our technology roadmap. Here are just a few highlights. In truckload, AI-powered process improvements are helping us make better decisions when covering freight and improving buy rates, delivering $2.5 million in operating income benefit last year. Our truckload carrier portal adoption has reached 32%, and more than half of our truckload shipments are digitally augmented. Over 30 AI agents now support document processing, automated quoting, and shipment booking across multiple channels. Ava, our AI-powered virtual agent, is transforming customer service by routing inquiries, resolving common issues instantly, and freeing our people to focus on more complex, value-added support. Our quote augmentation project streamlines load building and automated 120,000 email quotes in 2025, enabling faster and more efficient customer responses. Automated phone options for carriers have cut abandonment rates in half and boosted productivity. Last year, more than 23,000 carriers used our AI phone agent to cover over 7,000 shipments. Through targeted training, 15 to 20% of our office employees now consistently use AI tools in their daily work. And through AI-driven automations, we've eliminated millions of unnecessary e-mails, giving teams more time to focus on what matters most. These efficiency and innovation efforts are delivering tangible results, elevating performance across the organization, and helping us counter inflationary pressures. Prioritizing these projects will allow us to grow when the market turns without adding the same level of incremental cost. And while technology is unlocking new levels of productivity, it's our talented people who make these advancements real. Their expertise, creativity, and commitment continue to drive our success. As I step into the CEO role, my priorities are clear, sharpen our customer focus, raise the bar on operational excellence, leverage technology to amplify productivity, and maintain cost discipline that drives profitable growth. I'm excited about the opportunities ahead and honored to lead our team as we continue creating lasting value for our customers, our shareholders, and our employees. Before closing, I want to acknowledge the recent severe winter weather that affected much of the country. These conditions disrupted transportation networks across the industry and created challenging circumstances for many of our teams. I'm extremely proud of our people. They acted quickly and continue to work tirelessly to restore full network operations. Safety is our highest priority, and the team has responded. Their dedication ensured we continued serving customers with the reliability they expect from ARTbest, even in difficult conditions. I want to extend my sincere thanks to every team member involved in that effort. I'll now turn it over to Matt to walk through the financial results for the quarter.