Old Dominion Freight Line Reports Revenue Decline to $5.81 Billion for Fiscal Year 2024

Old Dominion Freight Line, Inc. reported a slight decline in financial performance for the fiscal year ending December 31, 2024, with total revenue of $5.81 billion, down 0.9% from $5.87 billion in 2023. The company's net income also decreased by 4.3% to $1.19 billion, resulting in diluted earnings per share of $5.48, compared to $5.63 in the previous year. The decline in revenue was attributed to a decrease in LTL (less-than-truckload) tonnage, which fell by 2.8% to 9 million tons, primarily due to reduced shipment volumes amid a softening domestic economy.

In terms of operational metrics, Old Dominion experienced a decrease in LTL shipments, which totaled 12 million, down 1.4% from the previous year. The average weight per shipment also declined by 1.4% to 1,499 pounds. However, the company saw a 2.4% increase in LTL revenue per hundredweight, which rose to $32.05, indicating effective yield management strategies despite the overall volume decline. The operating ratio, a key profitability measure, increased to 73.4% from 72.0% in 2023, reflecting higher operating costs and the impact of reduced revenue.

Strategically, Old Dominion continued to expand its service center network, operating 261 centers as of December 31, 2024, with 239 owned and 22 leased. The company has focused on enhancing its technological capabilities to improve operational efficiency and customer service. In 2024, capital expenditures totaled $751.2 million, with significant investments in land, structures, and equipment to support long-term growth. The company anticipates capital expenditures of approximately $575 million for 2025, with plans to allocate funds for service center expansions and technology investments.

Old Dominion's workforce remained stable, employing 21,895 full-time employees as of December 31, 2024, with no employees represented under collective bargaining agreements. The company has maintained a strong focus on employee engagement and development, which is reflected in its low turnover rates. The company also declared a cash dividend of $1.04 per share for 2024, up from $0.80 in 2023, demonstrating its commitment to returning value to shareholders.

Looking ahead, Old Dominion acknowledges the ongoing challenges posed by economic conditions, including inflation and potential downturns in freight demand. The company remains focused on executing its growth strategy, which includes increasing market share and enhancing service offerings. Management expressed confidence in the company's ability to navigate these challenges while continuing to provide high-quality service to its customers.