Old Dominion Freight Line’s stock has significantly outperformed the market over the past 20 years. However, the company is currently facing a downcycle with pressure on volumes and premium valuations on shares. Despite maintaining high service standards, the company’s revenue fell by 4.3% in the third quarter of 2025, with net income and earnings per share also declining.

Old Dominion’s operating ratio rose to 74.3% due to falling volumes not being matched by cost reductions. Shipments per day and weight per shipment also decreased. Despite weaker volumes, pricing remained firm, showing a consistent trend in the company’s performance. In November 2025, revenue per day declined by 4.4% year over year, reflecting a drop in LTL tons shipped per day.

The company’s long-term success is attributed to its focus on service, fleet ownership, and market share expansion during economic booms. Despite the current challenges, Old Dominion continues to invest in service center expansion, equipment, and technology. The company also returns significant capital to shareholders, with a market cap of $32 billion.

Investors considering Old Dominion shares must weigh the company’s historical performance against the current freight downturn. While the stock has a price-to-earnings ratio of 32, reflecting confidence in a rebound, the timing of that recovery remains uncertain. Despite the challenges, Old Dominion’s commitment to service, investment, and returning capital to shareholders positions it well for future growth.

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Daniel Sparks and his clients have no position in Old Dominion Freight Line, but The Motley Fool has and recommends the company. The Motley Fool has a disclosure policy in place. “This Stock Has Soared About 4,000% in Just 2 Decades. After Declining Last Year, Is It Finally a Buy?” article from The Motley Fool provides further insights into investment opportunities.

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