Key Highlights

  • Consensus EPS of 1.61 compares with second-quarter diluted EPS of 1.68, against 1.27 a year earlier.
  • Consensus revenue of USD 1.57 billion is above management's third-quarter revenue range of USD 1.54 billion to USD 1.55 billion.
  • Second-quarter revenue was USD 1,554,004 thousand against USD 1,407,724 thousand, with an operating ratio of 70.1%.
  • Management put 2026 capital expenditures at USD 380 million, an increase of USD 115 million from the original budget.

Old Dominion Freight Line (NASDAQ:ODFL) reports third-quarter results on Wednesday, Oct. 28, before the market opens. Consensus stands at EPS of 1.61 on revenue of USD 1.57 billion, and the company has a market capitalization of USD 37.84 billion.

Old Dominion Freight Line provides less-than-truckload freight services across the United States. Second-quarter revenue was USD 1,554,004 thousand against USD 1,407,724 thousand, and net income was USD 350,601 thousand against USD 268,626 thousand.

Estimates Against Third-Quarter Guidance

Management guided third-quarter revenue growth of 10%, equal to USD 1.54 billion to USD 1.55 billion. The revenue estimate of USD 1.57 billion is above that range. The EPS estimate of 1.61 is below the second-quarter diluted EPS of 1.68, and the estimates table does not state its EPS basis.

Management guided a third-quarter operating ratio 150 to 200 basis points above the 70.1% reported in the second quarter, after normalizing for real estate gains. It put LTL revenue per hundredweight growth excluding fuel at 4.0% to 4.5% for the quarter.

What Management Guided and What It Left Open

Management said revenue per day rose 7.5% to 8.0% through early July, with tons per day down 1.0% year over year. It set the third-quarter effective tax rate at 25.0% and used a baseline diesel price of USD 4.95 per gallon for the quarter.

Management left open the path of fuel prices, which drove operating supplies and expenses to 11.4% of revenue from 10.1%. It also noted that fringe benefit costs were a headwind in the first and second quarters.

Volume, Pricing and Cost Lines

LTL revenue per hundredweight was USD 37.84, up 15.2% including fuel surcharges and up 5.5% excluding them. LTL tons per day were 31,804, down 4.1%, and shipments per day were 42,332, down 5.7%. Weight per shipment was 1,503 pounds.

The operating ratio improved 450 basis points to 70.1% from 74.6%. Salaries, wages and benefits were 44.2% of revenue against 47.7%, and average active full-time employees were 20,081, down 7.1%. A net gain of USD 17.2 million came from selling three older facilities.

Capital Spending, Returns and Cash

Planned 2026 capital expenditures include USD 180 million for service center expansion and USD 155 million for tractors and trailers, with USD 60 million pulled forward from 2027. Management estimated excess service center capacity at 35%.

Cash from operations was USD 272.7 million for the quarter and USD 646.3 million for six months. The company repurchased USD 151.6 million of shares in the quarter and paid USD 60.2 million in dividends. Cash was USD 283,939 thousand against USD 120,091 thousand. The estimates table lists a market capitalization of USD 37.84 billion.

Figures to Follow in the Release

Reported EPS against 1.61 and revenue against USD 1.57 billion are the headline comparisons. Other markers are the operating ratio, tons per day and yield growth.