Old Dominion Freight Line Inc. (NASDAQ:ODFL) shares fell on Wednesday after the company reported second-quarter 2026 results.
Revenue and Earnings
Revenue rose 10.4% year over year (Y/Y) to $1.554 billion, topping analyst expectations of $1.524 billion.
CEO Marty Freeman added that the results reflected continued demand improvement, disciplined yield management, and strong operational execution.
Revenue growth was primarily driven by a 15.2% Y/Y increase in LTL revenue per hundredweight, partially offset by a 4.1% Y/Y decline in LTL tons per day.
The decline in daily tonnage was due to a 5.7% Y/Y decrease in LTL shipments per day, partly offset by a 1.7% Y/Y increase in weight per shipment. Excluding fuel surcharges, LTL revenue per hundredweight increased 5.5% Y/Y in the quarter.
Earnings came in at $1.68 per share, surging 32.3% Y/Y but above the consensus estimate of $1.49.
Customer service performance remained strong, with 99% on-time delivery and a claims ratio of 0.1%.
Old Dominion’s operating ratio improved 450 basis points to 70.1% in the second quarter of 2026, driven by operational efficiency and improved revenue quality. Direct operating costs as a percentage of revenue improved by 230 basis points, while overhead costs also benefited from $17.2 million in net gains from property and equipment disposals.
Cash Flow and Capital Allocation
Old Dominion generated $272.7 million in operating cash flow in the quarter. The company ended the quarter with cash and cash equivalents of $283.9 million.
Capital expenditures totaled $77 million in the quarter.
During the first half of 2026, Old Dominion allocated $239.7 million toward share repurchases and paid $120.7 million in cash dividends.
Outlook
Old Dominion expects full-year 2026 capital spending of approximately $380 million, including $180 million for real estate and service centre expansion, $155 million for tractors and trailers, and $45 million for information technology and other assets.
ODFL Stock Price Activity: Old Dominion Freight Line shares were down 1.83% at $222.14 at the time of publication Wednesday.
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