Old Dominion Returned to Growth as Pricing Lifted Profit
The carrier improved its operating ratio 450 basis points to 70.1%.
Old Dominion Freight Line (ODFL), the less-than-truckload carrier, returned to revenue growth in the second quarter as stronger pricing lifted diluted earnings to a record-tying $1.68 a share.
The quarter marked a turn from two consecutive periods of contraction. Revenue had declined 2.9% in the first quarter and 5.7% in the fourth quarter, while operating income had also fallen in both periods.
Second-quarter revenue rose 10.4% from a year earlier to $1.554 billion and increased 16.4% sequentially. Diluted earnings climbed 32.3% and rose 47.4% from the first quarter, while operating income increased 30.0% to $465.3 million.
Pricing drove the rebound despite continued volume pressure. Less-than-truckload revenue per hundredweight increased 15.2% to $37.84, outweighing a 4.1% decline in tons per day and lifting LTL-services revenue 10.3% to $1.539 billion. Yield excluding fuel surcharges rose 5.5%, accelerating from 4.4% growth in the first quarter.
The volume declines continued to moderate. Shipments per day fell 5.7%, compared with a 7.9% decline in the first quarter and a 9.7% drop in the fourth quarter. Weight per shipment increased 1.7% to 1,503 pounds after rising 0.3% in the prior quarter.
Profitability also benefited from lower direct operating costs as a share of revenue and improved overhead leverage, which included $17.2 million in net gains on property-and-equipment disposals. Average active full-time employment declined 7.1% to 20,081 even as revenue grew, raising revenue per employee.
Old Dominion now expects about $380 million of capital expenditures in 2026, up from its previous forecast of $265 million. The plan includes $180 million for real estate and service centers and $155 million for tractors and trailers, while technology and other spending remains $45 million. The increased investment followed a quarter in which pricing and operating leverage restored growth even as freight volumes remained below year-earlier levels.