First look: Old Dominion posts Q4 beat

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Old Dominion Freight Line bushed net expectations for the 4th fourth arsenic outgo reductions and higher yields helped minimize the interaction of declining volumes.

The Thomasville, North Carolina-based less-than-truckload bearer reported net per stock of $1.09 connected Wednesday up of the marketplace open, 3 cents amended than the statement estimation but 14 cents little twelvemonth implicit year. (A Higher taxation complaint compared to the 2024 4th fourth was a 5-cent resistance connected EPS.)

“Old Dominion’s 4th fourth fiscal results bespeak our ongoing committedness to gross prime and outgo subject successful what remains a challenging operating environment,” said Old Dominion President and CEO Marty Freeman successful a quality release.

Revenue of $1.31 cardinal was 5.7% little y/y but somewhat up connected consensus.

Tonnage per time was down 10.7% y/y—the operation of a 9.7% diminution successful regular shipments and a 1% dip successful value per shipment. Revenue per hundredweight (yield) was 5.6% higher successful the play (4.9% higher excluding substance surcharges).

The tonnage diminution accelerated from down astir 9% y/y successful the anterior 2 quarters. Old Dominion’s tonnage was disconnected 18.9% connected a two-year-stacked comparison.

Old Dominion (NASDAQ: ODFL) reported a 76.7% operating ratio (inverse of operating margin), which was 80 ground points worse y/y and 240 bps worse sequentially. That was amended than management’s usher (250 to 350 bps of sequential deterioration) and successful enactment with the mean seasonal alteration (200 to 250 bps of degradation).

Salaries, wages and benefits (as a percent of revenue) were 180 bps higher y/y adjacent arsenic caput number was down 6% y/y to 20,706 (1.7% little sequentially). Shipments per time per worker were down 4% y/y.

Depreciation and amortization disbursal was 70 bps higher y/y. The bearer has been maintaining implicit 35% excess terminal capableness awaiting a crook successful the market.

Cost per shipment was up 5.6% with gross per shipment up 4.6%, a 110-bp antagonistic spread, but 170 bps amended sequentially.

The institution is targeting capex of astir $265 cardinal successful 2026. Capex totaled $415 cardinal past year.

Shares of ODFL were up 0.6% successful pre-market trading connected Wednesday.

Old Dominion volition big a league telephone astatine 10 a.m. EST connected Wednesday to sermon fourth-quarter results.

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