Old Dominion Freight Line beat earnings expectations for the fourth quarter as cost reductions and higher yields helped minimize the impact of declining volumes.
The Thomasville, North Carolina-based less-than-truckload carrier reported earnings per share of $1.09 on Wednesday ahead of the market open, 3 cents better than the consensus estimate but 14 cents lower year over year. (A Higher tax rate compared to the 2024 fourth quarter was a 5-cent drag on EPS.)
“Old Dominion’s fourth quarter financial results reflect our ongoing commitment to revenue quality and cost discipline in what remains a challenging operating environment,” said Old Dominion President and CEO Marty Freeman in a news release.
Click for full report – “Old Dominion hoping stars align in 2026”
Revenue of $1.31 billion was 5.7% lower y/y but slightly ahead on consensus.
Tonnage per day was down 10.7% y/y—the combination of a 9.7% decline in daily shipments and a 1% dip in weight per shipment. Revenue per hundredweight (yield) was 5.6% higher in the period (4.9% higher excluding fuel surcharges).
The tonnage decline accelerated from down approximately 9% y/y in the prior two quarters. Old Dominion’s tonnage was off 18.9% on a two-year-stacked comparison.
Click for full report – “Old Dominion hoping stars align in 2026”
Old Dominion (NASDAQ: ODFL) reported a 76.7% operating ratio (inverse of operating margin), which was 80 basis points worse y/y and 240 bps worse sequentially. That was better than management’s guide (250 to 350 bps of sequential deterioration) and in line with the normal seasonal change (200 to 250 bps of degradation).
Salaries, wages and benefits (as a percentage of revenue) were 180 bps higher y/y even as head count was down 6% y/y to 20,706 (1.7% lower sequentially). Shipments per day per employee were down 4% y/y.
Depreciation and amortization expense was 70 bps higher y/y. The carrier has been maintaining over 35% excess terminal capacity awaiting a turn in the market.
Cost per shipment was up 5.6% with revenue per shipment up 4.6%, a 110-bp negative spread, but 170 bps better sequentially.
The company is targeting capex of approximately $265 million in 2026. Capex totaled $415 million last year.
Shares of ODFL were up 0.6% in pre-market trading on Wednesday.
Old Dominion will host a conference call at 10 a.m. EST on Wednesday to discuss fourth-quarter results.
