Old Dominion Freight Line reported some promising signs in the market as it weathered a slight uptick in its operating ratio and a decline in revenue.
The carrier’s operating ratio rose to 76.2% in Q1, up from 75.4% a year ago, the company reported. Its operating income declined 6.1% to $317 million.
“The retail side of the sector has probably been driving more of the volume performance at this point, and we're looking for the industrial to start contributing as well,” CFO Adam Satterfield said Wednesday on an earnings call.
But industrial signs are emerging. The Institute for Supply Management’s manufacturing purchasing managers’ index has been in expansion territory for the first three months of 2026, and Old Dominion expects that to hold true in April. Industrial volumes usually lag that ISM indicator, Satterfield noted.
“Hopefully, this is the early stage of recovery that we typically outperform our competitors the most,” Satterfield said.
Meanwhile, the carrier’s LTL shipments per day declined to 41,037 in Q1, a 7.9% decrease from a year ago. But volumes accelerated in the quarter, President and CEO Kevin “Marty” Freeman said on the call.
“While we are always focused on long term, it is critical that we remain diligent in controlling our cost and continue to operate as efficiently as possible without compromising our superior service standards,” Freeman said on the call.
Tonnage per day declined by 7.7%, but tonnage showed strong sequential growth in February and March, Freeman said.
Satterfield said excluding fuel charges, LTL revenue per hundredweight increased 4.4% YoY, “which reflects our long-term disciplined approach to yield management.”
