Old Dominion Freight Line, Inc.
ODFL · Nasdaq
Next quarter
Reports Nov 4, 2026.
Consensus is $1.60 EPS for Sep 2026 across 8 estimates, ranging $1.55 to $1.62.
ODFL Jun 2026
- 10.53%
- -4.63%
- $1.52
- $1.68
- —
- $1.55B
Reported results
- $1.55B
- $465.30M
- 29.94%
- $350.60M
- $1.68
Highlights
- Second-quarter revenue was $1,554.004 million, up 10.4% year over year, while segment net income was $350.601 million, up 30.5%; diluted EPS increased 32.3% to $1.68.
- ODFL operates as one reportable segment providing regional, inter-regional and national LTL services. The operating ratio improved to 70.1% from 74.6%, and net margin rose to 22.6% from 19.1%.
- LTL tonnage per day declined 4.1% and shipments per day fell 5.7%, but weight per shipment rose 1.7% to 1,503 pounds. LTL revenue per hundredweight increased 15.2% to $37.84, or 5.5% excluding fuel surcharges.
- The company maintained 99% on-time service and a 0.1% cargo claims ratio. July revenue per day increased 8.2% year over year, while tons per day decreased 1.0% and shipments per day declined 3.0%.
- Management estimates 2026 capital expenditures of approximately $380 million, including approximately $180 million for service centers, $155 million for tractors and trailers, and $45 million for technology and other assets.
Analysis
No consensus figures are on file, so the quarter’s performance cannot be assessed against an external estimate. Revenue increased 10.4% to $1,554.004 million, with higher yield more than offsetting lower freight volumes: tonnage per day fell 4.1% and shipments per day declined 5.7%. Revenue per hundredweight rose 15.2%, including fuel surcharges, and increased 5.5% excluding them, reflecting yield-management execution. The single integrated LTL segment produced $350.601 million of net income, up 30.5%, as the operating ratio improved to 70.1% from 74.6%. Productive labor costs improved to 21.7% of revenue from 24.4%, despite lower network density, while higher diesel costs lifted operating supplies and expenses 24.7%. A $17.2 million net gain on property sales also benefited results. Growth was stronger in the quarter than in the first half, when revenue rose 3.8% and net income increased 12.5%.
Guidance
Management did not provide revenue, tonnage, earnings or margin guidance. It did provide 2026 capital-spending guidance of approximately $380 million, $115 million above the initial plan, while still expecting spending to remain below its historical 10% to 15% of revenue range because the company is using available capacity in its existing network. The plan includes approximately $180 million for service centers, $155 million for tractors and trailers, and $45 million for technology and other assets. Service-center spending depends on suitable real estate and construction timing, and funding is expected primarily from operating cash flow and existing liquidity.
What drove it
- Yield management — LTL revenue per hundredweight increased 15.2% to $37.84, including fuel surcharges, and rose 5.5% excluding fuel surcharges.
- Freight volumes — LTL tonnage per day decreased 4.1% and shipments per day decreased 5.7%, partly offset by a 1.7% increase in weight per shipment.
- Operating efficiency — The operating ratio improved to 70.1% from 74.6%, while productive labor costs declined to 21.7% of revenue from 24.4%.
- Diesel costs — Average diesel cost per gallon increased 70.5% year over year, contributing to a 24.7% increase in operating supplies and expenses.
- Capital investment — 2026 capital expenditures are estimated at approximately $380 million, including $180 million for service centers and $155 million for tractors and trailers.
Watch items
- Freight demand remained volume-constrained, with second-quarter tonnage per day down 4.1% and shipments per day down 5.7% year over year.
- Fuel costs are a material headwind: average diesel cost per gallon rose 70.5%, and the company does not use diesel-fuel hedging instruments.
- Employee benefit costs increased to 42.0% of salaries and wages from 39.5%, driven by higher retirement-plan and group-health costs.
- The higher 2026 capital-spending plan depends partly on the availability of suitable real estate and the timing of construction projects.
