Old Dominion Freight Line reported higher revenue, operating income and earnings in the third quarter of 2026, with growth in its less-than-truckload business and a lower operating ratio. The carrier said demand improved during the quarter and that daily LTL tonnage was higher year over year in September, though it was fractionally lower for the quarter as a whole.
Revenue rose 13.1% from a year earlier to $1.59 billion. Net income increased 26.9% to $343.7 million, and diluted earnings per share climbed 28.9% to $1.65.
Key details
- Revenue and LTL activity: LTL services revenue increased 13.1% to $1.58 billion. Revenue per hundredweight, including fuel surcharges, rose 13.3%; excluding fuel surcharges, it was up 5.1%. LTL tons per day declined 0.1%, as shipments per day fell 2.0% while average weight per shipment rose 1.9%. The company said daily tonnage improved year over year in September.
- Profitability: Operating income rose 25.4% to $452.6 million. The operating ratio — operating expenses as a share of revenue, where lower is better — improved to 71.5% from 74.3%, a 2.8-percentage-point improvement. Old Dominion attributed the change in part to lower salaries, wages and benefits as a percentage of revenue, along with overhead leverage from higher revenue and control of discretionary spending. Higher operating supplies and expenses partially offset those gains.
- Earnings: Net income was $343.7 million, compared with $270.9 million a year earlier. Diluted EPS increased to $1.65 from $1.28. The diluted weighted-average share count was down 1.3% year over year to 208.1 million.
- Service measures: The company reported 99% on-time service and a claims ratio of 0.1% for the quarter.
- Nine-month results: For the first nine months of 2026, revenue increased 6.9% to $4.48 billion, operating income rose 16.9% to $1.24 billion, and net income grew 17.4% to $932.6 million. Diluted EPS was $4.47, up 19.5% from $3.74.
- Cash and investment: Operating cash flow was $469.5 million in the third quarter and $1.1 billion for the first nine months. The company had $466.2 million in cash and cash equivalents at Sept. 30.
- Capital spending: Capital expenditures totaled $67.1 million in the quarter and $206.7 million year to date. Old Dominion expects full-year 2026 capital spending of about $380 million: $180 million for real estate and service-center expansion, $155 million for tractors and trailers, and $45 million for information technology and other assets.
- Shareholder returns: During the first nine months, the company spent $400.6 million on share repurchases and paid $180.7 million in dividends.
Plain-English implications
Revenue growth was accompanied by a stronger operating margin, allowing operating income and earnings to grow faster than sales. The lower share count also contributed to per-share results. The company continued to direct cash both to network and equipment investments and to shareholder returns.