Arcbest (ARCB) risk factors, FY2025 10-K

Arcbest's FY2025 10-K, filed Feb 25, 2026, lists 30 risk factors in 8 groups. Against the prior year's 31: 5 new, 6 dropped, 13 substantially reworded.

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Risk factors listed
308 groups
New this year
5vs 31 last year
Dropped
6since the prior 10-K
Substantially reworded
13of those kept
Section length
11k wordsItem 1A

What the changes say

  • Arcbest highlights new technology, supply chain, and regulatory risks impacting its freight and logistics operations.

What changed since the prior 10-K

New

  • NewRisks Related to Cybersecurity, Data Privacy, and Information Technology

    Some of our employees work remotely, including under hybrid work arrangements, which has increased demand for IT resources and heightened our exposure to unauthorized access to proprietary information or sensitive or confidential data and other cybersecurity incidents

    Remote work increases IT resource demands and exposes us to AI-driven cybersecurity threats and potential data breaches.

  • NewRisks Related to Our Business

    VauxTM technologies may not achieve market acceptance or generate adequate returns

    Our investments in Vaux technologies may fail to achieve market acceptance or expected operational reliability in logistics environments.

  • NewRisks Related to Our Industry

    Disruptions in domestic or global manufacturing activity, supply chains, and related changes in producer and consumer spending could materially reduce our freight volumes and adversely affect our business

    Disruptions in manufacturing and supply chains can reduce freight volumes and limit our ability to obtain tractors and trailers.

  • NewRisks Related to Legal and Regulatory Matters

    transportation services. Failure to comply with laws and regulations can result in penalties, revocation of our permits or licenses, or both civil and criminal actions against us, in addition to potentially harming our reputation and brands

    Failures by our third-party carriers to comply with safety laws could result in lost customers and the loss of our ability to self-insure.

  • NewRisks Related to Financial Considerations

    value (see Notes C and D to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K). There can be no assurance that an impairment of our goodwill or further impairment of our indefinite-lived intangible asset will not occur in the future

    Economic uncertainty could lead to a noncash write-off or impairment of our goodwill, indefinite-lived intangible assets, and long-lived assets.

Dropped

  • DroppedRisks Related to Cybersecurity, Data Privacy, and Information Technology

    We depend on our Information Technology (“IT”) systems as well as software programs and applications provided by third parties, and a systems failure, perceived or actual data privacy breach, or cybersecurity incident could have a material adverse effect on our business, results of operations, and financial condition

    Dependence on IT systems and third-party software vulnerability.

  • DroppedRisks Related to Cybersecurity, Data Privacy, and Information Technology

    Interruptions or failures in third-party systems, including licensed software, that we utilize to meet certain IT needs, could adversely affect our business

    Interruptions or failures in third-party systems.

  • DroppedRisks Related to Our Business

    to enter or expand our services in markets with established competitors and new competitive challenges, and we may not be able to successfully gain market share

  • DroppedRisks Related to Our Industry

    A nationwide or global disruption in the supply chain could increase volatility in freight volumes and materially impact our business

  • DroppedRisks Related to Legal and Regulatory Matters

    with whom we contract agree to comply with applicable laws and regulations, we may not be aware of, and may therefore be unable to address or remedy, violations by them

    Challenges entering competitive markets and managing fixed labor costs.

  • DroppedRisks Related to Other External Conditions

    The widespread outbreak of an illness or disease or any other public health crisis, as well as regulatory measures implemented in response to such events, could negatively impact the health and safety of our employees and/or adversely affect our business, results of operations, financial condition, and cash flows

Reworded

  • 74% rewrittenRisks Related to Financial Considerations

    Impairment of our long-lived assets and our goodwill and intangible assets could adversely affect our financial condition and results of operations

    Removed references to specific 2023 and 2024 lease and revenue equipment impairment charges, adding details about Asset-Light segment goodwill.

    Was: Future impairment, if any, of our long-lived assets and our goodwill and intangible assets could adversely affect our financial condition and results of operations

  • 73% rewrittenRisks Related to Legal and Regulatory Matters

    Our business operations are subject to numerous governmental regulations in the transportation industry, and costs of compliance with, or liability for violations of, existing or future regulations could have a material adverse effect on our financial condition and results of operations

    Truncated the discussion regarding potential regulatory impacts and penalties on demand for transportation services.

  • 65% rewrittenRisks Related to Our Business

    We may be unsuccessful in realizing all or any part of the anticipated benefits of future acquisitions. The cost, integration, and performance of any such acquisition may disrupt or adversely affect our business, results of operations, financial condition, and cash flows

    Broadened the acquisition risk from specific past deals like MoLo to future potential asset and business acquisitions.

    Was: We may be unsuccessful in realizing all or any part of the anticipated benefits of acquisitions within the expected time period or at all. The cost, integration, and performance of any such acquisition may adversely affect our business, results of operations, financial condition, and cash flows

  • 62% rewrittenRisks Related to Our Business

    Our initiatives to grow our business operations or to manage our cost structure to business levels may take longer than anticipated, may not generate adequate returns, or may not be successful

    Updated growth and cost management text to clarify demand for management and operating personnel in the Asset-Light segment.

    Was: Our initiatives to grow our business operations or to manage our cost structure to business levels may take longer than anticipated or may not be successful

  • 54% rewrittenRisks Related to Other External Conditions

    We, or the third parties who provide services for us, may be adversely affected by external events for which our business continuity plans may not adequately prepare us

    Added a statement noting that external events may heighten other risks related to U.S. and global economic outlooks.

  • 53% rewrittenRisks Related to Employees and Benefits

    Difficulty attracting, retaining, and upskilling employees, or ABF Freight’s inability to reach agreement on future collective bargaining agreements, could result in labor inefficiencies, disruptions, stoppages, or delayed growth

    Added specific mention of government regulations and English proficiency and domicile mandates impacting driver recruitment and retention.

  • 48% rewrittenRisks Related to Our Business

    Damage to our corporate reputation may cause our business to suffer

    Added the Vaux brand to the list of company brands vulnerable to reputation damage and brand image issues.

  • 45% rewrittenRisks Related to Legal and Regulatory Matters

    We are subject to litigation risks, and at times may need to initiate litigation, which could result in significant costs and have other material adverse effects on our business, results of operations, and financial condition

    Explicitly included both Asset-Based and Asset-Light segments in the scope of litigation risks and potential liabilities.

  • 42% rewrittenRisks Related to Legal and Regulatory Matters

    Our operations are subject to various environmental laws and regulations, the violation of which could result in substantial fines or penalties. The costs of compliance with current and future environmental laws and regulations may be significant and could adversely impact our results of operations

  • 26% rewrittenRisks Related to Our Industry

    Increased prices for, or decreases in the availability of, equipment, including new revenue equipment, as well as higher costs of related operating expenses, could adversely affect our results of operations and cash flows

  • 24% rewrittenRisks Related to Other External Conditions

    We are subject to general economic factors and instability in financial and credit markets that are largely beyond our control

  • 24% rewrittenRisks Related to Other External Conditions

    Our business and results of operations could be impacted by seasonal fluctuations, adverse weather conditions, natural disasters, and climate change

  • 24% rewrittenRisks Related to Our Business

    Unsolicited takeover proposals, proxy contests, and other proposals or actions by activist investors may adversely affect our business and our stock price

All 30 risk factors

Headings as the filing states them, in filing order.

Risks Related to Cybersecurity, Data Privacy, and Information Technology

  1. 01Some of our employees work remotely, including under hybrid work arrangements, which has increased demand for IT resources and heightened our exposure to unauthorized access to proprietary information or sensitive or confidential data and other cybersecurity incidentsNew

Risks Related to Our Business

  1. 02The loss of or reduction in business from multiple large customers or an overall reduction in our customer base could have a material adverse effect on our business, results of operations, financial condition, and cash flows
  2. 03Our initiatives to grow our business operations or to manage our cost structure to business levels may take longer than anticipated, may not generate adequate returns, or may not be successful62% rewritten
  3. 04We may be unsuccessful in realizing all or any part of the anticipated benefits of future acquisitions. The cost, integration, and performance of any such acquisition may disrupt or adversely affect our business, results of operations, financial condition, and cash flows65% rewritten
  4. 05Unsolicited takeover proposals, proxy contests, and other proposals or actions by activist investors may adversely affect our business and our stock price24% rewritten
  5. 06Damage to our corporate reputation may cause our business to suffer48% rewritten
  6. 07Our corporate reputation and business depend on a variety of intellectual property rights, and the costs and resources expended to enforce or protect our rights or to defend against infringement claims could adversely impact our business, results of operations, and financial condition
  7. 08VauxTM technologies may not achieve market acceptance or generate adequate returnsNew
  8. 09Ineffective internal controls could negatively impact our business, results of operations, and reputation

Risks Related to Our Industry

  1. 10Disruptions in domestic or global manufacturing activity, supply chains, and related changes in producer and consumer spending could materially reduce our freight volumes and adversely affect our businessNew
  2. 11We operate in a highly competitive and fragmented industry, and our business could suffer if we are unable to adequately address factors that could affect our profitability, growth prospects, and ability to compete in the transportation and logistics market
  3. 12Increased prices for, or decreases in the availability of, equipment, including new revenue equipment, as well as higher costs of related operating expenses, could adversely affect our results of operations and cash flows26% rewritten
  4. 13Fuel shortages, changes in fuel prices, or the inability to collect fuel surcharges, could have a material adverse effect on our business, results of operations, financial condition, and cash flows

Risks Related to Employees and Benefits

  1. 14Difficulty attracting, retaining, and upskilling employees, or ABF Freight’s inability to reach agreement on future collective bargaining agreements, could result in labor inefficiencies, disruptions, stoppages, or delayed growth53% rewritten
  2. 15We could be obligated to make additional significant contributions to multiemployer pension plans

Risks Related to Third Parties

  1. 16We depend on services provided by third parties and could be adversely impacted by increased costs or disruption of these services, and claims arising from these services
  2. 17Our engagement of independent contractor drivers to provide a portion of the capacity for our Asset-Light segment exposes us to different risks than we face with our employee drivers, which could have an adverse effect on our business
  3. 18If the independent contractors with which we contract are deemed by regulators or judicial process to be employees, or if we experience operational or regulatory issues related to our use of these contract drivers, our financial condition, results of operations, and cash flows could be adversely affected

Risks Related to Legal and Regulatory Matters

  1. 19We are subject to litigation risks, and at times may need to initiate litigation, which could result in significant costs and have other material adverse effects on our business, results of operations, and financial condition45% rewritten
  2. 20Our business operations are subject to numerous governmental regulations in the transportation industry, and costs of compliance with, or liability for violations of, existing or future regulations could have a material adverse effect on our financial condition and results of operations73% rewritten
  3. 21transportation services. Failure to comply with laws and regulations can result in penalties, revocation of our permits or licenses, or both civil and criminal actions against us, in addition to potentially harming our reputation and brandsNew
  4. 22Our operations are subject to various environmental laws and regulations, the violation of which could result in substantial fines or penalties. The costs of compliance with current and future environmental laws and regulations may be significant and could adversely impact our results of operations42% rewritten

Risks Related to Financial Considerations

  1. 23We are subject to interest rate risk and certain covenants under our financing arrangements. A default under these financing arrangements or changes in regulations could impact the availability of funds or our borrowing costs
  2. 24Our business is capital intensive. If we are unable to generate sufficient cash from operations, our growth and profitability could be limited due to significant ongoing capital expenditure requirements
  3. 25Claims expenses, the cost of maintaining our insurance, or the loss of our ability to self-insure could have a material adverse effect on our results of operations and financial condition
  4. 26Impairment of our long-lived assets and our goodwill and intangible assets could adversely affect our financial condition and results of operations74% rewritten
  5. 27value (see Notes C and D to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K). There can be no assurance that an impairment of our goodwill or further impairment of our indefinite-lived intangible asset will not occur in the futureNew

Risks Related to Other External Conditions

  1. 28We, or the third parties who provide services for us, may be adversely affected by external events for which our business continuity plans may not adequately prepare us54% rewritten
  2. 29We are subject to general economic factors and instability in financial and credit markets that are largely beyond our control24% rewritten
  3. 30Our business and results of operations could be impacted by seasonal fluctuations, adverse weather conditions, natural disasters, and climate change24% rewritten

Other Arcbest 10-Ks

  • FY2024 10-K risk factors
    31 risks

    ArcBest faces critical risks related to labor negotiations for ABF Freight and multiemployer pension obligations. Equipment availability, rising OEM costs, and fuel price volatility heavily impact operations. Dependence on IT systems and third-party transportation networks introduces significant cybersecurity and disruption risks.

    Filed Mar 03, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.