| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 1.3K | 2.9% |
| Total Income | 1.3K | 2.9% |
| Expenditure | 1.0K | 1.9% |
| PBT | 317.68 | 6.2% |
| Net Profit | 238.26 | 6.4% |
| OPM | 23.78% | 0.81pp |
| NPM | 17.85% | 0.67pp |
| EPS | 1.14 | 5.0% |
Old Dominion Reports Q1 2026 Earnings Per Diluted Share of $1.14
29 Apr 2026 · 29 Apr, 6:38 pm
Summary
Old Dominion Freight Line, Inc. announced a decline in its first quarter 2026 financial results, with diluted earnings per share decreasing 4.2% to $1.14 and total revenue falling 2.9% year-over-year to $1,334,696,000. Operating income also saw a 6.1% reduction to $317,341,000, and the operating ratio worsened by 80 basis points to 76.2%. Despite these challenges, management noted improving demand for LTL service as the quarter progressed and highlighted a 4.4% increase in LTL revenue per hundredweight, excluding fuel surcharges. The company remains confident in its ability to gain market share, drive profitable revenue growth, and enhance shareholder value over the long term through consistent investments and superior service.
Key Highlights
- 1
Old Dominion Freight Line reported diluted earnings per share of $1.14 for the first quarter of 2026, marking a 4.2% decrease from $1.19 in the comparable period of 2025.
- 2
Total revenue for Q1 2026 declined by 2.9% year-over-year to $1,334,696,000, primarily attributed to a 7.7% decrease in LTL tons per day.
- 3
Operating income for the first quarter of 2026 stood at $317,341,000, representing a 6.1% reduction compared to the prior year's first quarter.
- 4
The company's operating ratio increased by 80 basis points to 76.2% for Q1 2026, as overhead costs rose as a percentage of revenue.
- 5
Despite the overall revenue decrease, LTL revenue per hundredweight, excluding fuel surcharges, saw a 4.4% increase year-over-year, reflecting disciplined yield management.
- 6
Old Dominion generated $373.6 million in net cash from operating activities during the first quarter of 2026.
- 7
The company returned capital to shareholders by utilizing $88.1 million for its share repurchase program and paying $60.5 million in cash dividends during the quarter.
Management Comments
Marty Freeman
Old Dominion’s first quarter financial results reflect a continuation of encouraging trends that started developing late last year. While our first quarter revenue decreased on a year-over-year basis, demand for our LTL service improved as the quarter progressed. The improvement in demand, coupled with our ability to consistently deliver superior service to our customers, contributed to both the acceleration in our LTL volumes and improvement in our yield during the quarter. Our industry-leading service metrics for the first quarter once again included 99% on-time service and a claims ratio below 0.1%. These service standards form the foundation of our unmatched value proposition, which we believe will support our ability to win market share over the long term.
Marty Freeman
Our revenue decreased 2.9% as compared to the first quarter of 2025. This decrease was primarily due to a 7.7% decrease in our LTL tons per day that was partially offset by an increase in our LTL revenue per hundredweight. The decrease in our LTL tons per day reflects the net impact of a 7.9% decrease in our LTL shipments per day and a 0.3% increase in our LTL weight per shipment. LTL revenue per hundredweight, excluding fuel surcharges, increased 4.4% compared to the first quarter of 2025, reflecting our long-term, disciplined approach to yield management.
Marty Freeman
Our operating ratio increased by 80 basis points to 76.2% for the first quarter of 2026, as the increase in our overhead costs as a percent of revenue more than offset the improvement in our direct operating costs. Our overhead costs increased as a percent of revenue primarily due to the deleveraging effect associated with the decrease in revenue as well as an overall increase in our general supplies and expenses. Our direct operating costs, however, improved as a percent of revenue due to our continued focus on revenue quality and operating efficiencies. The combination of a decrease in our revenue and an increase in our operating ratio resulted in a 4.2% reduction in our earnings per diluted share to $1.14 for the first quarter.
Marty Freeman
Old Dominion produced solid results during the first quarter as we continued to diligently execute our long-term strategic plan, the cornerstone of which remains our commitment to provide our customers with superior service at a fair price. Our industry-leading customer service, combined with our consistent investments in our network, our technology and our people, uniquely positions us to capitalize on an improving demand environment. Our team has all the necessary elements of capacity to effectively manage incremental volume opportunities. As a result, we are confident in our ability to win market share, generate profitable revenue growth and increase shareholder value over the long term.
Informational and educational content only. Not investment advice.