Old Dominion EPS Jumps Nearly 29% as Pricing Lifts Revenue and Operating Ratio Improves

Old Dominion Freight Line grew third-quarter earnings per share nearly 29% on Wednesday as higher pricing more than offset slightly lower freight volumes, and the less-than-truckload carrier said demand improved as the quarter went on.

The Thomasville, North Carolina-based trucker reported diluted earnings of $1.65 per share, up 28.9% from $1.28 a year earlier, according to its earnings release filed with an 8-K on Wednesday. Total revenue rose 13.1% to $1,590.7 million, and net income climbed 26.9% to $343.7 million.

Pricing powers the quarter

The revenue gain was primarily due to a 13.3% increase in LTL revenue per hundredweight, partially offset by a 0.1% decrease in LTL tons per day, the company said. Excluding fuel surcharges, revenue per hundredweight rose 5.1%.

Volumes were mixed beneath the surface. LTL shipments per day fell 2.0%, while weight per shipment rose 1.9%. President and CEO Marty Freeman said "demand for our service improved during the quarter" and that LTL tons per day increased year over year in September.

A sharper operating ratio

Old Dominion's operating ratio improved 280 basis points to 71.5% from 74.3%. Operating income rose 25.4% to $452.6 million.

Freeman said lower salaries, wages and benefits as a percentage of revenue more than offset higher operating supplies and expenses. Overhead costs improved by 170 basis points, which he attributed primarily to leverage from higher revenue and efforts to control discretionary spending.

The company also highlighted service metrics, saying it delivered 99% on-time service and a claims ratio of 0.1% in the quarter.

Cash, capex and buybacks

Operating cash flow was $469.5 million in the third quarter and $1.1 billion for the first nine months. Old Dominion held $466.2 million in cash and cash equivalents at Sept. 30.

Capital expenditures were $67.1 million in the quarter. The company expects 2026 capital spending of approximately $380 million, including $180 million for real estate and service center expansion, $155 million for tractors and trailers and $45 million for information technology and other assets.

Through the first nine months, Old Dominion used $400.6 million for share repurchases and paid $180.7 million in cash dividends. Diluted weighted average shares outstanding fell 1.3% in the quarter to about 208.1 million.

CEO on market share

"Our consistent investments in our network, our people and our technology provide us with the flexibility to respond quickly to changes in the demand environment," Freeman said. He added that the company remains "confident in our ability to win profitable market share and increase shareholder value over the long term."

Old Dominion scheduled a conference call for 10 a.m. ET on Wednesday.

By the numbers

• Revenue: $1,590.7 million, up 13.1%
• Diluted EPS: $1.65, up 28.9%
• Operating ratio: 71.5%, improved 280 basis points
• LTL revenue per hundredweight: up 13.3%; up 5.1% excluding fuel surcharges
• LTL tons per day: down 0.1%
• 2026 capex plan: approximately $380 million

Sources

1. Old Dominion Freight Line Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0000878927-26-000031)

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