Old Dominion Freight Line adjusts capex budget due to trade policy uncertainty, revenue down.
From Yahoo Finance: 2025-04-23 15:43:00
Less-than-truckload carrier Old Dominion Freight Line adjusts capex budget for 2025 due to trade policy uncertainty. Revenue down 5.8% year over year. Earnings per share beat expectations. Company plans to spend $450 million in capex for the year. Operating ratio at 75.4%, 190 bps worse year over year.
Old Dominion sees growth in February and March, but softer April due to tariffs. Revenue per day down 4.3% year over year. Tonnage per day drops 6.3% year over year. Revenue per hundredweight up 2.2% year over year. Company expects favorable pricing trends to continue, forecasting second-quarter yields to increase by 5% to 5.5% year over year excluding fuel. Old Dominion Freight Line reported an increase in total employee benefit costs and depreciation expenses. The company forecasts only a 100 bps OR improvement from Q1 to Q2, lower than usual due to a small revenue increase. Despite this, Old Dominion is prepared to handle more growth when the market improves.
Shares of ODFL were up 2.2% on Wednesday, outperforming competitors in the LTL sector. The transportation industry, particularly LTL carriers, has struggled this year due to an extended industrial downturn, capacity additions, and the threat of a trade war. Earnings estimates and valuation multiples are declining as a result.
Read more: Market shook, LTL carrier Old Dominion isn’t