Old Dominion's third-quarter profit rises 27% as pricing climbs and LTL tonnage holds steady

Old Dominion Freight Line reported higher third-quarter 2026 profit on October 28. Stronger pricing more than made up for flat freight volumes, and the Thomasville, North Carolina, less-than-truckload carrier said demand improved as the quarter went on.

Revenue for the three months ended September 30 was $1.59 billion, up 13.1% from $1.41 billion a year earlier. Net income rose 26.9% to $343.7 million, and diluted earnings per share rose 28.9% to $1.65.

Pricing did the work

Almost all of the revenue gain came from yield. LTL revenue per hundredweight rose 13.3% to $38.40. Excluding fuel surcharges, it rose 5.1% to $30.25, which the company credited to its disciplined approach to yield management.

Volumes were close to flat. LTL tons per day slipped 0.1%, as a 2.0% drop in shipments per day was mostly offset by a 1.9% rise in weight per shipment, to 1,486 pounds. The company said its tons per day rose year over year in September. Average length of haul was 912 miles, up slightly from 909.

Operating ratio improves

Old Dominion's operating ratio improved 280 basis points to 71.5%, from 74.3% in the third quarter of 2025. Salaries, wages and benefits fell to 44.3% of revenue from 47.1%. Operating supplies and expenses rose to 11.9% from 10.3%. The company said overhead costs improved by 170 basis points, mainly because revenue grew faster than costs.

The company did that with fewer people. Average active full-time employees fell 4.1% from a year earlier, to 20,202.

Chief Executive Marty Freeman said the cornerstone of the company's strategy is still superior service at a fair price. He pointed to 99% on-time service and a cargo claims ratio of 0.1% for the quarter. He said the company's investment in its network, people and technology lets it respond quickly when demand changes.

Spending and cash

Old Dominion produced $469.5 million in operating cash during the quarter and ended September with $466.2 million in cash and equivalents. Capital spending was $67.1 million in the quarter and $206.7 million through nine months.

The company still expects about $380 million in capital expenditures for 2026:

• $180 million for real estate and service center expansion
• $155 million for tractors and trailers
• $45 million for information technology and other assets

Through the first nine months, it spent $400.6 million on share buybacks and paid $180.7 million in dividends.

For the year to date, revenue was $4.48 billion, up 6.9%, and the operating ratio was 72.4%, compared with 74.8% a year earlier. LTL tons per day are still down 4.0% for the nine months. A full recovery in volume has not happened yet, but the third quarter showed the trend improving.