Old Dominion Freight Line, Inc. (ODFL.O) on Wednesday reported a decline in fourth-quarter profit and revenue, as a “prolonged period of macroeconomic softness” pressured shipping volumes across its network.
Despite the dip in earnings, the less-than-truckload (LTL) carrier increased its quarterly cash dividend by 3.6% to $0.29 per share, payable on March 18, 2026.
Quarterly Performance
The company posted net income of $229.5 million, or $1.09 per diluted share, for the quarter ended Dec. 31, 2025. This represents an 11.4% decrease from the $1.23 per diluted share reported in the same period a year earlier.
Total revenue fell 5.7% to $1.31 billion, down from $1.39 billion in the fourth quarter of 2024. For the full year 2025, revenue totaled $5.50 billion, a 5.5% decrease from the prior year.
Volume vs. Yield
The revenue decline was primarily driven by a 10.7% drop in LTL tons per day, which reflected a 9.7% decrease in daily shipments and a 1.0% decline in weight per shipment. However, Old Dominion continued to see success in its “disciplined, cost-based approach to pricing”. LTL revenue per hundredweight, excluding fuel surcharges, rose 4.9% compared to the fourth quarter of 2024.
The company maintained high service levels, reporting 99% on-time service and a 0.1% cargo claims ratio.
Operating Efficiency
The company’s operating ratio (OR), a key metric of profitability where a lower number is better, deteriorated by 80 basis points to 76.7%. This increase to a “deleveraging effect” on operating expenses caused by falling revenue. Specifically, overhead costs increased by 140 basis points as a percentage of revenue, though this was partially offset by a reduction in direct operating costs.
2026 Outlook and Capital Spending
Old Dominion remains focused on long-term capacity, announcing that it expects 2026 capital expenditures to total approximately $265 million. Planned spending includes:
- $125 million for real estate and service center expansions.
- $95 million for tractors and trailers.
- $45 million for information technology and other assets.
In 2025, the company returned significant value to investors, utilizing $730.3 million for share repurchases and paying $235.6 million in cash dividends.