Old Dominion Nearly Posts Sub-70 Operating Ratio
Key Takeaways
- •Old Dominion’s second-quarter operating ratio improved to 70.1% from 74.6% in the same period a year earlier.
- •Most volume metrics fell year over year, including tons shipped, tonnage per day and total shipments.
- •Revenue per hundredweight excluding fuel rose 5.5% to $29.71, while revenue per shipment excluding fuel increased 7.2%.
- •CEO Marty Freeman said the company posted a 99% on-time service rate and a 0.1% claims ratio.
- •SeekingAlpha reported earnings of $1.68 per share and revenue of $1.55 billion, both above Wall Street expectations.
Old Dominion is getting very close to an operating ratio that starts with a six.
The less-than-truckload carrier reported a second-quarter operating ratio of 70.1%, a marked improvement from 74.6% in the second quarter of 2025. For the first six months of the year, Old Dominion’s operating ratio stands at 72.9%.
The company delivered the stronger result even though most of its volume-related metrics declined year over year. Compared with the same period a year earlier, Old Dominion shipped fewer tons, posted lower tonnage per day and handled fewer shipments. That mix matters in the LTL industry because operating ratio is one of the clearest gauges of profitability, and it can improve even when freight volumes soften if a carrier holds the line on pricing and execution.
At the same time, pricing improved. Revenue per hundredweight excluding fuel rose 5.5% to $29.71. Revenue per hundredweight including fuel increased to $37.84 from $32.84, a development that appeared to benefit the company during the quarter. Revenue per shipment excluding fuel rose 7.2%, while weight per shipment edged up 1.7%.
In a prepared statement released with the earnings report, CEO Marty Freeman said Old Dominion also recorded a 99% on-time service rate and a claims ratio of 0.1%.
“The strength of our second quarter financial results reflects continued improvement in demand trends and the benefits of our long-term focus on yield discipline and operational execution,” Freeman said.
Old Dominion, like several other publicly traded LTL carriers, has faced pressure since early June. Concerns tied to potential Amazon activity in the LTL market have weighed on several trucking stocks in recent weeks, adding a layer of investor attention to results from established carriers with large national networks.
The company’s 52-week high came on June 9, when the stock reached $252.03. It closed Tuesday at $226.28 and remains up 37.7% over the past 52 weeks.
SeekingAlpha reported earnings per share of $1.68, which beat Wall Street consensus by 15 cents. Revenue of $1.55 billion was also slightly above expectations.
Old Dominion’s earnings call is scheduled for 10 a.m. EDT.