Old Dominion Freight Line Reports Growth in Q1 Revenue and Earnings

CEO Credits Success to Strategic Long-Term Plan

Old Dominion Freight Line announced its financial results for the first quarter of 2024 on April 24, revealing an increase in both revenue and earnings. The Thomasville, N.C.-based less-than-truckload (LTL) carrier reported a net income of $292.3 million, or $1.34 per diluted share, up from $285 million, or $1.29 per share, in the same period last year. Total revenue for the quarter rose by 1.2% to $1.46 billion from $1.44 billion.

Old Dominion holds the number 10 spot on the Transport Topics Top 100 list of the largest for-hire carriers in North America and ranks second on the LTL list.

Consistent Performance Amid Economic Softness

President Marty Freeman highlighted the company’s resilience in the face of ongoing economic challenges. “Old Dominion’s financial results improved during the first quarter despite continued softness in the domestic economy,” Freeman stated. He attributed the positive results to the effective execution of the company’s long-term strategic plan, which has focused on customer service and fair pricing.

This strategy has yielded a 99% on-time service rate and a 0.1% claims ratio, supporting the company’s yield management initiatives and its ability to continuously gain market share.

Operational Efficiencies Lead to Improved Margins

Freeman also noted improvements in operational efficiencies. “Our first-quarter operating ratio increased 10 basis points to 73.5% compared to the first quarter of 2023,” he explained. The increase in yield and a focus on operating efficiencies have led to better direct operating costs as a percentage of revenue.

Despite a slight decline in daily LTL shipments, which fell by 0.5% to 46,931, revenue per shipment grew by 1.3% to $482.24. However, overhead costs rose as a percentage of revenue, partly due to a 50-basis point increase in depreciation costs, reflecting Old Dominion’s commitment to a long-term capital expenditure strategy.

Meeting Expectations and Looking Ahead

The financial results were closely aligned with Wall Street expectations, with analysts predicting earnings of $1.33 per share and quarterly revenue of $1.47 billion. Freeman remains optimistic about the company’s future, citing its proven ability to navigate economic cycles and recent signs of improving demand for their services. “We believe these results, and our long-term record of financial success, are grounded in our ability to execute on a proven strategic plan,” Freeman concluded.