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Old Dominion Beats on Q4 Earnings and Revenues, Hikes Dividend
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Key Takeaways
ODFL beat Q4 earnings and revenue estimates even as both metrics declined YoY amid weak freight demand.
Old Dominion's Q4 revenues fell 5.7% as LTL tons per day dropped 10.7%, though pricing metrics improved.
ODFL raised quarterly dividend 3.6% for Q1 2026 and returned over $965M via dividends and buybacks in 2025.
Old Dominion Freight Line (ODFL - Free Report) reported solid fourth-quarter 2025 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
Quarterly earnings per share of $1.09 beat the Zacks Consensus Estimate of $1.06 but dipped 11.4% year over year. The decrease in ODFL’s revenues resulted in a year-over-year decline in the bottom line in the fourth quarter.
Revenues of $1.31 billion beat the Zacks Consensus Estimate of $1.3 billion but decreased 5.7% year over year. The downside in ODFL’s fourth-quarter revenues was owing to a 10.7% decrease in its LTL tons per day. Revenues from LTL services came in at $1.29 billion (down 5.6% year over year), due to the freight downturn. Other services revenues fell 15.5% year over year to $11.4 million.
Old Dominion Freight Line Price, Consensus and EPS Surprise
In the quarter under review, LTL weight per shipment dipped 1% and LTL revenue per shipment inched up 4.6% year over year. LTL shipments and LTL shipments per day were both down 9.7% on a year-over-year basis. LTL revenue per hundredweight, excluding fuel surcharges, grew 4.9% year over year.
Total operating expenses declined 4.7% year over year to $1 billion. The operating income decreased 8.9% year over year to $304.2 million. Operating ratio (operating expenses as a % of revenues) worsened to 76.7% from 75.9% in the year-ago quarter. A lower value of the metric is preferable.
Old Dominion exited the December-end quarter with cash and cash equivalents of $120.1 million compared with $108.7 million at the end of the prior year. Long-term debt at the end of the final quarter of 2025 was $20 million compared with $39.9 million at 2024-end.
During 2025, ODFL rewarded its shareholders with $235.6 million of cash dividends and $730.3 million worth of share repurchases. ODFL generated $310.2 million of net cash from operating activities during the fourth quarter of 2025. Capital expenditures were $45.7 million during the reported quarter.
For 2026, ODFL anticipates its aggregate capital expenditures to be around $265 million, which includes planned expenditures of $125 million for real estate and service center expansion projects, $95 million for tractors and trailers, and $45 million for information technology and other assets.
ODFL’s Dividend Hike
Highlighting its pro-investor stance, ODFL’s management announced a 3.6% increase to the first-quarter 2026 dividend over the first quarter of 2025 payout. The new dividend of 29 cents per share is payable on March 18, 2026, to its shareholders of record at the close of business on March 4. The dividend hike raises Old Dominion’s annualized cash dividend rate to $1.16 per share from $1.12.
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2025 earnings (excluding 31 cents from non-recurring items) of $1.55 per share, which beat the Zacks Consensus Estimate of $1.53. Earnings decreased 16.22% on a year-over-year basis due to high labor costs.
Revenues in the December-end quarter were $16 billion, beating the Zacks Consensus Estimate of $15.63 billion and increasing 2.9% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1.2% year over year to $14.6 billion. Revenue growth was impacted by about 2 points due to the government shutdown.
J.B. Hunt Transport Services (JBHT - Free Report) reported fourth-quarter 2025 earnings of $1.90 per share, which surpassed the Zacks Consensus Estimate of $1.81 and improved 24.2% year over year.
Total operating revenues of $3.09 billion fell short of the Zacks Consensus Estimate of $3.12 billion and decreased 1.6% year over year. JBHT’s fourth-quarter revenue performance was hurt by a 2% and 4% decline in revenue per load excluding fuel surcharge revenues in Intermodal and Truckload, respectively.
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Old Dominion Beats on Q4 Earnings and Revenues, Hikes Dividend
Key Takeaways
Old Dominion Freight Line (ODFL - Free Report) reported solid fourth-quarter 2025 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
Quarterly earnings per share of $1.09 beat the Zacks Consensus Estimate of $1.06 but dipped 11.4% year over year. The decrease in ODFL’s revenues resulted in a year-over-year decline in the bottom line in the fourth quarter.
Revenues of $1.31 billion beat the Zacks Consensus Estimate of $1.3 billion but decreased 5.7% year over year. The downside in ODFL’s fourth-quarter revenues was owing to a 10.7% decrease in its LTL tons per day. Revenues from LTL services came in at $1.29 billion (down 5.6% year over year), due to the freight downturn. Other services revenues fell 15.5% year over year to $11.4 million.
Old Dominion Freight Line Price, Consensus and EPS Surprise
Old Dominion Freight Line, Inc. price-consensus-eps-surprise-chart | Old Dominion Freight Line, Inc. Quote
In the quarter under review, LTL weight per shipment dipped 1% and LTL revenue per shipment inched up 4.6% year over year. LTL shipments and LTL shipments per day were both down 9.7% on a year-over-year basis. LTL revenue per hundredweight, excluding fuel surcharges, grew 4.9% year over year.
Total operating expenses declined 4.7% year over year to $1 billion. The operating income decreased 8.9% year over year to $304.2 million. Operating ratio (operating expenses as a % of revenues) worsened to 76.7% from 75.9% in the year-ago quarter. A lower value of the metric is preferable.
Old Dominion exited the December-end quarter with cash and cash equivalents of $120.1 million compared with $108.7 million at the end of the prior year. Long-term debt at the end of the final quarter of 2025 was $20 million compared with $39.9 million at 2024-end.
During 2025, ODFL rewarded its shareholders with $235.6 million of cash dividends and $730.3 million worth of share repurchases. ODFL generated $310.2 million of net cash from operating activities during the fourth quarter of 2025. Capital expenditures were $45.7 million during the reported quarter.
For 2026, ODFL anticipates its aggregate capital expenditures to be around $265 million, which includes planned expenditures of $125 million for real estate and service center expansion projects, $95 million for tractors and trailers, and $45 million for information technology and other assets.
ODFL’s Dividend Hike
Highlighting its pro-investor stance, ODFL’s management announced a 3.6% increase to the first-quarter 2026 dividend over the first quarter of 2025 payout. The new dividend of 29 cents per share is payable on March 18, 2026, to its shareholders of record at the close of business on March 4. The dividend hike raises Old Dominion’s annualized cash dividend rate to $1.16 per share from $1.12.
ODFL’s Zacks Rank
Currently, ODFL carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q4 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2025 earnings (excluding 31 cents from non-recurring items) of $1.55 per share, which beat the Zacks Consensus Estimate of $1.53. Earnings decreased 16.22% on a year-over-year basis due to high labor costs.
Revenues in the December-end quarter were $16 billion, beating the Zacks Consensus Estimate of $15.63 billion and increasing 2.9% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1.2% year over year to $14.6 billion. Revenue growth was impacted by about 2 points due to the government shutdown.
J.B. Hunt Transport Services (JBHT - Free Report) reported fourth-quarter 2025 earnings of $1.90 per share, which surpassed the Zacks Consensus Estimate of $1.81 and improved 24.2% year over year.
Total operating revenues of $3.09 billion fell short of the Zacks Consensus Estimate of $3.12 billion and decreased 1.6% year over year. JBHT’s fourth-quarter revenue performance was hurt by a 2% and 4% decline in revenue per load excluding fuel surcharge revenues in Intermodal and Truckload, respectively.