Old Dominion Freight Line (ODFL) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue declined 2.9% year-over-year to $1.33 billion, with net income down 6.4% to $238.3 million and diluted EPS falling 4.2% to $1.14, primarily due to lower volumes, though yield improved with LTL revenue per hundredweight up 5.7%.

• Maintained 99% on-time service and claims ratio below 0.1%, reinforcing best-in-class service reputation.

• Operating ratio increased to 76.2% from 75.4% due to deleveraging from lower revenue and higher overhead costs.

• April 2026 saw a 7.6% increase in revenue per day and a 14.6% rise in LTL revenue per hundredweight year-over-year.

• Continued disciplined yield management, strategic investments in capacity, technology, and workforce, and confidence in capturing market share as demand recovers.

Financial highlights

• Operating income for Q1 2026 was $317.3 million, down 6.1% year-over-year.

• LTL tons per day decreased 7.7% year-over-year, partially offset by a 5.7% increase in LTL revenue per hundredweight.

• Net cash from operating activities was $373.6 million; cash and equivalents at quarter-end were $288.1 million.

• Capital expenditures for Q1 2026 totaled $62.6 million, with $88.1 million used for share repurchases and $60.5 million paid in dividends.

• Gross margin (operating income as % of revenue) was 23.8%.

Outlook and guidance

• Capital expenditures for 2026 are projected at $265 million, including $125 million for facilities, $95 million for tractors/trailers, and $45 million for technology and other assets.

• Expecting a 300–350 basis point sequential improvement in operating ratio from Q1 to Q2, in line with 10-year averages, assuming volume growth.

• April revenue per day up 7.6% year-over-year, with LTL tons per day down 6.5% and revenue per hundredweight up 4–14.6%.

• Management expects sufficient liquidity to fund operations and capital needs through cash flow, cash on hand, and available credit.

• Pricing discipline expected to deliver 4–4.5% yield growth in Q2, with weight per shipment up about 1%.