ArcBest sets 2028 financial targets amid logistics transformation

FORT SMITH, Ark. - ArcBest (NASDAQ:ARCB), currently trading at $69.96 with a market capitalization of $1.59 billion, unveiled its 2028 financial targets during an investor day event, outlining plans to transform into a technology-enabled logistics provider serving over 30,000 customers in a nearly $400 billion addressable market. According to InvestingPro analysis, the company appears undervalued at current levels, making these ambitious targets particularly interesting to value investors.

The logistics company announced consolidated targets including a non-GAAP diluted earnings per share of $12 to $15, operating cash flow of $400 to $500 million, and a return on capital employed of 16% to 19% by 2028. For its asset-based segment, ArcBest aims for a non-GAAP operating ratio of 87% to 90%, while targeting $40 to $70 million in asset-light non-GAAP operating income. These targets are particularly notable given the company’s current performance, with InvestingPro data showing trailing twelve-month revenue of $4.05 billion and a healthy return on equity of 13%.

"Our strategy leverages more than a century of experience and is anchored in a differentiated operating model, a relentless customer focus, and a culture of innovation," said Judy R. McReynolds, ArcBest chairman and CEO, according to the press release.

The company highlighted three strategic pillars: accelerating profitable growth, increasing efficiency, and driving innovation. ArcBest reported that daily managed solutions shipments have grown at a 44% annual rate since launch, with over 90% customer retention and a pipeline exceeding $1 billion.

The company has expanded its LTL network by approximately 800 net doors since 2021, enabling service to 80% of U.S. businesses within one hour. ArcBest also noted that 80% of its revenue comes from customers with 10+ year relationships.

Operational improvements have delivered significant savings, including record trailer utilization that cut total miles by 8 million since 2021 and city route optimization generating $13 million in annual savings.

In early 2026, ArcBest plans to launch ArcBest View, a unified digital platform for quoting, booking, and visibility across all solutions.

The information in this article is based on a press release statement from ArcBest. For deeper insights into ArcBest’s financial health, valuation metrics, and expert analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers this and over 1,400 other US stocks with detailed metrics and actionable intelligence.

In other recent news, ArcBest reported its second-quarter earnings for 2025, revealing adjusted earnings per share of $1.36, which missed the consensus forecast of $1.46. The company’s revenue also fell short of expectations, coming in at $1.02 billion compared to the anticipated $1.04 billion. Following these results, several financial firms adjusted their price targets for ArcBest. UBS lowered its price target to $73 from $84 while maintaining a Neutral rating, citing the earnings miss. Stifel also reduced its price target to $81 from $93, although it maintained a Buy rating despite the mixed quarterly results. BofA Securities adjusted its price target to $78 from $86, maintaining a Neutral rating due to perceived weaknesses in the less-than-truckload (LTL) segment. In addition to these developments, ArcBest announced an increase in its share repurchase authorization to a total of $125 million, providing the company with flexibility to buy back shares depending on market conditions.

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