If you're looking for a title, you could consider something like: "Old Dominion Freight Line, Inc. Reports Financial Results for the Quarter Ended March 31, 2025" or "Old Dominion Freight Line, Inc. Files Quarterly Report (Form 10-Q) for the Period Ended March 31, 2025
Old Dominion Freight Line, Inc. (ODFL) reported its financial results for the quarter ended March 31, 2025. The company’s revenue increased by 12.5% to $1.43 billion, driven by a 10.3% increase in total tons and a 2.2% increase in average revenue per ton. Net income rose by 14.1% to $143.1 million, resulting in diluted earnings per share of $0.67. The company’s operating ratio improved by 1.1 percentage points to 84.5%, driven by cost savings initiatives and operational efficiencies. As of March 31, 2025, ODFL had $1.23 billion in cash and cash equivalents, and $1.45 billion in total debt. The company’s financial position remains strong, with a debt-to-equity ratio of 0.35 and a current ratio of 1.43.
Overview
We are one of the largest North American less-than-truckload (LTL) motor carriers, providing regional, inter-regional and national LTL services through a single integrated, union-free organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental United States. We also offer a range of value-added services including container drayage, truckload brokerage and supply chain consulting.
Financial Performance
Our financial results for the first quarter of 2025 reflect continued softness in the domestic economy, which contributed to a 5.8% decline in revenue, a 12.9% decrease in net income, and an 11.2% decrease in diluted earnings per share compared to the first quarter of 2024. Key metrics:
- LTL tonnage per day decreased 6.3% due to a 5.0% decrease in LTL shipments per day and a 1.4% decrease in LTL weight per shipment.
- LTL revenue per hundredweight increased 2.2%, or 4.1% excluding fuel surcharges, driven by our yield management strategy.
- Operating ratio increased to 75.4% from 73.5% due to the deleveraging effect of lower revenue and higher depreciation expense.
Operational Highlights
- Maintained 99% on-time service and a cargo claims ratio below 0.1% during the quarter, supporting continued yield improvement.
- Focused on operating efficiently and controlling discretionary spending, though the decrease in revenue and increase in depreciation led to the higher operating ratio.
- Salaries, wages and benefits decreased 1.5% due to a 3.4% decline in salaries and wages, partially offset by a 3.6% increase in employee benefit costs.
- Operating supplies and expenses decreased 13.1% primarily due to lower diesel fuel and maintenance costs.
- Depreciation and amortization costs increased 5.4% due to the 2024 and 2025 capital expenditure programs.
Outlook and Liquidity
- April 2025 revenue per day decreased 5.5% and LTL tons per day decreased 8.8% compared to the prior year.
- Estimated 2025 capital expenditures of $450 million, a $125 million reduction from the initial plan, to be funded primarily through cash flows, existing cash, and borrowings if needed.
- Returned $265 million to shareholders through stock repurchases and dividends in Q1 2025.
- Maintain sufficient liquidity through cash flows, cash on hand, and available credit facilities to fund operations and capital needs.
Overall, the first quarter results reflect the impact of the softer economic environment, though we remain focused on providing excellent customer service, operating efficiently, and investing in the business to support long-term growth.
