Old Dominion Posts Revenue Decline to $1.4 Billion During Q4

Although profit and revenue dropped year over year for Old Dominion in the fourth quarter, its results still beat the expectations of Wall Street. (Old Dominion Freight Line)

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Old Dominion Freight Line experienced a year-over-year decline in revenue during the fourth quarter because of its less-than-truckload operations moving fewer tons, the company reported Feb. 5.

The Thomasville, N.C.-based LTL carrier posted net income of $263.1 million, or $1.23 per diluted share, for the three months that ended Dec. 31. That compared with $322.8 million, $1.47, during the same time the previous year. Total revenue decreased 7.3% to $1.39 billion from $1.5 billion.

ODFL ranks No. 8 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 2 on the LTL list.

“Old Dominion’s fourth-quarter financial results reflect continued softness in the domestic economy,” ODFL President Marty Freeman said during a call with investors. “While our revenue declined 7.3% in the quarter due to a decrease in our volumes, our market share remained relatively consistent while we continued to strengthen our customer relationships.”

For the full year, ODFL reported net income of $1.19 billion, $5.48, on revenue of $5.81 billion, compared with net income of $1.24 billion, $5.63, on revenue of $5.87 billion in 2023.

“Although our fourth-quarter earnings per diluted share of $1.23 represents a 16.3% decrease compared to the same period a year ago, I’m proud of how our team continued to deliver superior service while also operating very efficiently despite headwinds from lower density,” Freeman said.

The results beat the expectations of investment analysts on Wall Street, who had been looking for $1.17 per share and quarterly revenue of $1.38 billion, according to Zacks Consensus Estimate.

“The past few years have been full of challenges with our industry, especially given the sluggish macroeconomic environment that has continued far longer than most of us would have anticipated,” Freeman said. “Through all of this, we have remained committed to the key elements of our proven long-term strategic plan, and I would like to thank our OD family of employees for unwavering dedication to our core strategic priorities.”

These investments underscore our commitment to optimizing efficiency and delivering reliable solutions for LTL shippers. These efforts ensure a seamless shipping experience while staying ahead of your business needs. Read More: https://t.co/NAYUkKboPT. pic.twitter.com/DfTviT9q1B — ODFL, Inc. (@ODFL_Inc) February 5, 2025

Freeman added that the company has focused on what it can control, like customer service, cost discipline, operating efficiency and discretionary spending. He also highlighted ODFL’s investments into its operations network, technology and personnel. These efforts also have involved strengthening the company balance sheet so that it can remain focused on long-term market share opportunities.

“The consistency of our execution through the ups and downs of the economic cycle has been a key element in our ability to win market share through the years,” Freeman said. “Our customers know they can rely on us to be there for them and help them keep their promises to their customers.”

ODFL achieved a 99% on-time service rate during the quarter. Its cargo claims ratio is also below 0.1. Freeman noted that the long-term approach to pricing is focused on individual customer profitability while also being designed to help offset cost inflation and support future investments in capacity, technology and employees.

“Importantly, our efforts to control costs have not prevented us from continuing to invest in our business for the long term,” Freeman said. “We spent $771 million on capital expenditures in 2024, which follows the $757 million in capital spending we executed in 2023. These figures include $664 million we have invested over the two-year period in the ongoing expansion of our service center network. We opened four new service centers in 2024, and we also have several other facilities remaining under construction or nearly complete that we can open quickly once the demand environment supports it.”

ODFL said its main LTL services unit saw a revenue decline of 7.4% to $1.37 billion from $1.48 billion during the same time last year. The report attributed the decline in revenue primarily to an 8.2% decrease in LTL tons per day. The decrease in tons per day reflected a 7.6% decline in LTL shipments per day to 45,763 from 49,520 and a 0.7% decrease in LTL weight per shipment to 1,501 pounds from 1,511 pounds.

Still, LTL revenue per hundredweight increased 3.8% to $27.52 from $26.50 when excluding fuel surcharges. The report noted that this reflects the success of long-term yield management.

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