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Old Dominion Freight Line Reports Decline

Old Dominion Freight Line, Inc. (NASDAQ: ODFL) has reported its financial results for the three-month and twelve-month periods ended December 31, 2025. Here are the key financial metrics comparing the fourth quarter of 2025 with the fourth quarter of 2024:

  • Total revenue decreased by 5.7% to $1,307,296, down from $1,385,829 in the same period the previous year.
  • LTL (Less-Than-Truckload) services revenue also decreased by 5.6% to $1,295,862, from $1,372,297 in the fourth quarter of 2024.
  • Operating income saw a decline of 8.9%, dropping to $304,251 from $334,020 in the same period the previous year.
  • Net income decreased by 12.8% to $229,470, down from $263,144 in the fourth quarter of 2024.
  • Diluted earnings per share fell by 11.4% to $1.09, compared to $1.23 in the same period the previous year.

Additionally, comparing the twelve-month periods ended December 31, 2025, with the same period in 2024, the following changes were observed:

  • Total revenue decreased by 5.5% to $5,496,389, down from $5,814,810 in 2024.
  • LTL services revenue also decreased by 5.5% to $5,446,151, from $5,761,105 in the same period the previous year.
  • Operating income saw a decline of 11.8%, dropping to $1,361,045 from $1,543,998 in 2024.
  • Net income decreased by 13.7% to $1,023,703, down from $1,186,073 in 2024.
  • Diluted earnings per share fell by 11.7% to $4.84, compared to $5.48 in 2024.

The company's operating ratio for the fourth quarter increased to 76.7% from 75.9% in the same period the previous year. Old Dominion's president and chief executive officer, Marty Freeman, attributed the decrease in revenue to a 10.7% decrease in LTL tons per day, partially offset by an increase in LTL revenue per hundredweight.

Old Dominion's net cash provided by operating activities was $310.2 million for the fourth quarter of 2025 and $1.4 billion for the year. The company had $120.1 million in cash and cash equivalents at December 31, 2025. Capital expenditures were $45.7 million for the fourth quarter of 2025 and $415.0 million for the year. The company expects its aggregate capital expenditures for 2026 to total approximately $265 million.

The company's board of directors has declared a first-quarter cash dividend of $0.29 per share, representing a 3.6% increase compared to the quarterly cash dividend paid in the first quarter of 2025.

The market has reacted to these announcements by moving the company's shares -1.44% to a price of $175.65. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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