Outdated Dominion Freight Line beat earnings expectations for the fourth quarter as value reductions and better yields helped reduce the impression of declining volumes.
The Thomasville, North Carolina-based less-than-truckload provider reported earnings per share of $1.09 on Wednesday forward of the market open, 3 cents higher than the consensus estimate however 14 cents decrease 12 months over 12 months. (A Greater tax price in comparison with the 2024 fourth quarter was a 5-cent drag on EPS.)
“Outdated Dominion’s fourth quarter monetary outcomes replicate our ongoing dedication to income high quality and value self-discipline in what stays a difficult working atmosphere,” mentioned Outdated Dominion President and CEO Marty Freeman in a information launch.
Income of $1.31 billion was 5.7% decrease y/y however barely forward on consensus.
Tonnage per day was down 10.7% y/y—the mix of a 9.7% decline in day by day shipments and a 1% dip in weight per cargo. Income per hundredweight (yield) was 5.6% greater within the interval (4.9% greater excluding gas surcharges).
The tonnage decline accelerated from down roughly 9% y/y within the prior two quarters. Outdated Dominion’s tonnage was off 18.9% on a two-year-stacked comparability.
Outdated Dominion (NASDAQ: ODFL) reported a 76.7% working ratio (inverse of working margin), which was 80 foundation factors worse y/y and 240 bps worse sequentially. That was higher than administration’s information (250 to 350 bps of sequential deterioration) and consistent with the traditional seasonal change (200 to 250 bps of degradation).
Salaries, wages and advantages (as a proportion of income) had been 180 bps greater y/y whilst head depend was down 6% y/y to twenty,706 (1.7% decrease sequentially). Shipments per day per worker had been down 4% y/y.
Depreciation and amortization expense was 70 bps greater y/y. The provider has been sustaining over 35% extra terminal capability awaiting a flip available in the market.
Price per cargo was up 5.6% with income per cargo up 4.6%, a 110-bp unfavourable unfold, however 170 bps higher sequentially.
The corporate is focusing on capex of roughly $265 million in 2026. Capex totaled $415 million final 12 months.
Shares of ODFL had been up 0.6% in pre-market buying and selling on Wednesday.
Outdated Dominion will host a convention name at 10 a.m. EST on Wednesday to debate fourth-quarter outcomes.
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