Old Dominion Freight Line Reports Third Quarter 2025 Earnings of $1.28 Per Diluted Share
Old Dominion Freight Line, Inc., one of the nation’s leading less-than-truckload (LTL) motor carriers, today announced its financial results for the three-month and nine-month periods ended September 30, 2025. The company reported a decline in both revenue and earnings per diluted share for the third quarter, reflecting ongoing softness in the broader economy and a modest decrease in freight volumes. Despite these challenges, Old Dominion continued to deliver industry-leading service performance and maintained strong profitability, highlighting the strength and resilience of its business model.
Financial Overview and Operating Results
For the third quarter of 2025, Old Dominion reported earnings per diluted share of $1.28, representing a decrease of 10.5% compared with the same period in 2024. The company’s total revenue declined primarily as a result of reduced shipment volumes, although this was partially offset by continued improvement in revenue per hundredweight, a key indicator of pricing strength and service value.
President and Chief Executive Officer Marty Freeman commented on the results, noting, “Old Dominion’s third-quarter financial performance reflects the current challenges within the LTL sector and the broader economic environment. Our revenue decline was driven mainly by a 9.0% decrease in LTL tons per day, which was in turn the result of a 7.9% drop in LTL shipments per day and a 1.2% decline in LTL weight per shipment. These figures collectively point to weaker demand conditions across many of the industrial and retail sectors we serve.”
Freeman emphasized that, despite the lower freight volumes, the company continues to execute on its long-term strategy of improving yield and maintaining best-in-class service. “Our LTL revenue per hundredweight, excluding fuel surcharges, increased 4.7% year over year, reflecting the strength of our pricing discipline and the continued value customers place on our superior service network,” he said. “The OD Family of employees once again delivered outstanding results for our customers, achieving 99% on-time performance and maintaining an exceptionally low cargo claims ratio of just 0.1%. This level of service reliability remains a cornerstone of our brand and a key differentiator in the marketplace.”
Operating Ratio and Cost Management
Old Dominion’s operating ratio — a key measure of efficiency in the transportation industry — rose 160 basis points to 74.3% for the third quarter of 2025. This increase was largely the result of revenue deleveraging, as lower freight volumes caused certain fixed costs to represent a larger percentage of revenue.
“Our operating ratio was impacted by the decline in revenue,” Freeman explained. “As shipment levels softened, our overhead costs as a percent of revenue increased by a similar 160 basis points. However, I’m proud of the operational discipline demonstrated by our team, which allowed us to hold our direct operating expenses steady as a percentage of revenue compared with last year’s third quarter.”
Freeman added that maintaining cost efficiency while sustaining service quality remains a top priority. “Even in a softer freight environment, we continue to make strategic investments in our people, facilities, and equipment. These investments are essential to supporting our long-term growth objectives and ensuring that we are well-positioned to capture market share when demand conditions improve,” he said.
Cash Flow and Liquidity Position
Old Dominion continued to generate substantial cash flow from operations during the third quarter. Net cash provided by operating activities totaled $437.5 million for the quarter and approximately $1.1 billion for the first nine months of 2025. The company ended the quarter with $46.6 million in cash and cash equivalents, maintaining a strong balance sheet and ample liquidity to support ongoing capital and shareholder return programs.
Freeman noted that the company’s robust cash flow underscores the resilience of its operating model. “Even in a challenging freight environment, Old Dominion’s disciplined approach to managing costs and capital continues to generate significant cash flow,” he said. “This financial strength provides us with the flexibility to invest in strategic initiatives, enhance our service capabilities, and deliver consistent value to shareholders.”
Capital Expenditures and Investment Strategy
During the third quarter of 2025, Old Dominion invested $94.0 million in capital expenditures, bringing total year-to-date capital spending to $369.3 million. The company reaffirmed its full-year capital expenditure guidance of approximately $450 million, with funds allocated across three key areas:
- $210 million for real estate and service center expansion projects,
- $190 million for tractors and trailers, and
- $50 million for information technology and other assets.
These investments reflect Old Dominion’s ongoing commitment to expanding capacity, improving efficiency, and enhancing its service infrastructure. Over the years, the company has followed a consistent approach of reinvesting in its network to support long-term growth and customer satisfaction.
“Our capital expenditure program is focused on strengthening our foundation for the future,” Freeman said. “We continue to invest in real estate to expand and modernize our service centers, enabling faster and more reliable transit times. At the same time, we are refreshing our fleet with state-of-the-art equipment that improves fuel efficiency and safety performance. Finally, we are advancing our technology infrastructure to support greater visibility, automation, and data-driven decision-making across the network.”
Shareholder Returns
Old Dominion also continued to demonstrate its commitment to returning capital to shareholders. Through the first nine months of 2025, the company allocated a total of $782.6 million toward shareholder return programs. This included $605.4 million for share repurchases and $177.2 million in cash dividends.
“Returning capital to our shareholders remains an important component of our balanced capital allocation strategy,” Freeman stated. “Our strong cash flow generation allows us to both reinvest in the business and provide meaningful returns to our investors. We will continue to evaluate opportunities to deploy capital in ways that enhance long-term shareholder value while maintaining the financial flexibility to support future growth.”
Market Environment and Strategic Outlook
Freeman acknowledged that 2025 has presented challenges for the freight transportation industry, with many carriers experiencing lower shipment volumes due to a softer macroeconomic backdrop. However, he expressed confidence in Old Dominion’s ability to navigate the current environment and position itself for renewed growth once economic conditions stabilize.
“The LTL industry remains highly competitive, and we expect demand to remain somewhat constrained in the near term as customers manage inventories and adjust to shifting market conditions,” he said. “Nevertheless, our long-term fundamentals remain strong. Old Dominion’s reputation for superior service, reliability, and operational efficiency gives us a competitive edge that enables us to retain existing customers and attract new business even in slower markets.”
Freeman added that the company continues to focus on executing its strategic plan, which centers on providing premium service, improving yield, maintaining disciplined cost management, and investing in network capacity and technology. “These guiding principles have driven our success for decades and will continue to do so in the years ahead,” he said.
Commitment to Operational Excellence
Throughout the third quarter, Old Dominion once again demonstrated its commitment to operational excellence. The company’s ability to sustain 99% on-time service and maintain a cargo claims ratio of just 0.1% underscores the consistency and reliability that customers have come to expect.
“Our employees — the OD Family — are at the heart of everything we do,” Freeman concluded. “Their dedication, professionalism, and commitment to excellence are what make Old Dominion stand out in the industry. I am proud of the way our team continues to deliver outstanding service and uphold our company values, even during challenging market conditions. With their continued focus and determination, I am confident that Old Dominion is well positioned for future success.”
Old Dominion Freight Line, Inc. is one of the largest North American less-than-truckload (LTL) motor carriers, providing regional, inter-regional, and national LTL services through a single integrated network. The company also offers value-added services including container drayage, truckload brokerage, and supply chain consulting. Headquartered in Thomasville, North Carolina, Old Dominion is widely recognized for its industry-leading service, strong financial performance, and commitment to safety and sustainability.