# Old Dominion Freight Line Inc. (ODFL) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/ODFL/thesis · /stocks/ODFL/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: ODFL
step: "04"
title: Financial Snapshot — P&L, Margins, and Key Metrics
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Three-Year Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 |
|--------|--------|--------|--------|
| **Revenue** | $6,259M | $5,868M | $5,927M |
| YoY Growth | +27.6% | -6.3% | +1.0% |
| **Operating Expenses** | $4,444M | $4,247M | $4,287M |
| **Operating Income** | $1,815M | $1,621M | $1,640M |
| **Operating Ratio** | 71.0% | 72.5% | 72.3% |
| **Net Income** | $1,361M | $1,245M | $1,256M |
| **EPS (Diluted)** | $6.24 | $5.78 | $5.90 |
| **Net Margin** | 21.7% | 21.2% | 21.2% |
| **EBITDA** | ~$2,080M | ~$1,900M | ~$1,930M |
| **EBITDA Margin** | ~33.2% | ~32.4% | ~32.6% |

*Note: FY2024 figures are estimates based on reported Q1-Q3 actuals plus management guidance directional commentary. Final 10-K values may differ slightly.*

#### Operating Ratio — The Industry's Defining Metric

The **operating ratio (OR)** is the single most important metric in LTL. It measures operating expenses as a percentage of revenue (lower = more profitable). ODFL's OR is the best among major public LTL carriers by a wide margin:

| Company | FY2022 OR | FY2023 OR | FY2024 OR (Est.) |
|---------|-----------|-----------|-----------------|
| **ODFL** | **71.0%** | **72.5%** | **72.3%** |
| SAIA | 83.2% | 84.5% | 83.1% |
| XPO (LTL) | 88.4% | 86.0% | 84.5% |
| ABF Freight | 89.5% | 90.2% | 89.0% |

ODFL's 10-13 point OR advantage over its closest meaningful competitor (SAIA) is enormous. In a low-margin industry where operating income margins of 10-15% are considered good, ODFL operates at 27-29% — an extraordinary achievement.

#### Margin Waterfall Analysis

**Revenue per hundredweight less direct costs:**

| Cost Category | % of Revenue (FY2023) | Notes |
|-------------|----------------------|-------|
| Salaries, wages, benefits | ~47% | Largest cost; driver and dock labor |
| Purchased transportation | ~6% | Third-party line-haul and drayage |
| Fuel & fuel surcharge | ~7% | Net of fuel surcharge revenue |
| Operations & maintenance | ~5% | Equipment and facility maintenance |
| Depreciation | ~5% | Fleet and service center assets |
| General & administrative | ~3% | Corporate overhead |
| **Total Operating Expenses** | **~72.5%** | |
| **Operating Income** | **~27.5%** | |

**Labor cost breakdown**: ODFL's ~47% labor cost ratio includes company drivers (vs. owner-operators), dock workers, and administrative staff. The non-union workforce allows management to implement efficiency-oriented scheduling, incentive pay, and operational practices that unionized peers cannot match.

#### Revenue Per Employee

A useful productivity metric:
- FY2022: $6,259M / ~23,000 employees ≈ **$272K per employee**
- FY2023: $5,868M / ~23,200 employees ≈ **$253K per employee**
- FY2024: $5,927M / ~23,000 employees ≈ **$258K per employee**

This is high for the trucking industry and reflects ODFL's premium pricing and efficient operations.

#### Detailed Income Statement (FY2023 — Most Recent Full Year Actuals)

| Line Item | Amount | % Revenue |
|-----------|--------|-----------|
| LTL Revenue | $5,683M | 96.8% |
| Other Revenue | $185M | 3.2% |
| **Total Revenue** | **$5,868M** | **100%** |
| Salaries, wages, benefits | $2,758M | 47.0% |
| Purchased transportation | $328M | 5.6% |
| Fuel & surcharge (net) | $386M | 6.6% |
| Depreciation & amortization | $280M | 4.8% |
| Operations & maintenance | $285M | 4.9% |
| Building & occupancy | $155M | 2.6% |
| General & administrative | $164M | 2.8% |
| Other operating | $91M | 1.5% |
| **Total Operating Expenses** | **$4,247M** | **72.4%** |
| **Operating Income** | **$1,621M** | **27.6%** |
| Interest income (net) | $64M | 1.1% |
| **Pre-tax income** | **$1,685M** | **28.7%** |
| Income taxes (~26% effective) | $440M | 7.5% |
| **Net Income** | **$1,245M** | **21.2%** |

#### Cash Flow Generation

| Metric | FY2022 | FY2023 | FY2024 (Est.) |
|--------|--------|--------|--------------|
| Operating Cash Flow | $1,652M | $1,567M | ~$1,590M |
| Capital Expenditures | ($748M) | ($794M) | (~$800M) |
| **Free Cash Flow** | **$904M** | **$773M** | **~$790M** |
| FCF Margin | 14.4% | 13.2% | ~13.3% |
| FCF Conversion (of Net Income) | 66% | 62% | ~63% |

FCF conversion below net income is a structural feature of ODFL's capital-intensive growth model. The company is consistently investing $750M+ annually in service center expansion and fleet renewal — this CapEx is primarily growth CapEx, not maintenance. When the investment cycle matures, FCF conversion will improve.

#### Key Valuation Metrics (May 2026 Context)

| Metric | Value | Notes |
|--------|-------|-------|
| Share Price (approximate) | ~$170 | Declined from $225+ peak |
| Market Cap | ~$36B | ~210M shares |
| Enterprise Value | ~$36B | Net cash position offsets debt |
| EV/EBITDA | ~19x | FY2024E EBITDA |
| P/E (NTM) | ~28x | Based on ~$6.10 NTM EPS |
| EV/Revenue | ~6.1x | Premium to peers |
| EV/EBIT | ~22x | Based on FY2024E operating income |
| FCF Yield | ~2.2% | At current market cap |

ODFL commands a significant valuation premium to LTL peers (SAIA trades at 35-40x P/E, XPO at 20-25x, ARCB at 10-15x) reflecting its best-in-class margins, balance sheet quality, and demonstrated long-term compounding.

#### Tax Rate

ODFL's effective tax rate has been consistently in the 25-26% range. The company benefits from no significant tax controversies and clean domestic-only operations.

#### Key Takeaways

1. **Best-in-class OR**: 71-73% operating ratio is 10+ points better than the next major peer, a gap that has persisted for a decade and is the result of structural competitive advantage, not cyclical luck.
2. **Resilient margins through downcycle**: Net margins held at ~21% in FY2023 and FY2024 despite ~6% revenue decline from peak — exceptional earnings durability.
3. **High-quality earnings**: Operating cash flow tracks closely to reported earnings; minimal accounting complexity.
4. **Capital intensive but high-returning**: Heavy CapEx constrains near-term FCF but generates 25-35%+ ROIC — among the highest in industrials.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/ODFL/fundamental

## Navigation

- Overview: /stocks/ODFL
- Financials (this page): /stocks/ODFL/financials
- Thesis: /stocks/ODFL/thesis
- Investment Memo: /stocks/ODFL/memo
- Coverage universe: /stocks