Old Dominion's Q4 revenue falls on lower shipment deliveries

Feb 5 (Reuters) - Old Dominion Freight Line ODFL.O reported a year-over-year fall in fourth-quarter revenue on Wednesday, as the less-than-truckload carrier hauled fewer shipments in the quarter.

The U.S. freight industry has seen a downward trend since 2022 owing to higher capacity, lower rates and only seasonal improvements in volumes. Experts, however, expect the situation to improve by the second half of 2025, buoyed by a significant increase in pricing.

"The challenging macroeconomic environment over the past couple of years has created persistent demand headwinds for our business," said Old Dominion's CEO Marty Freeman.

He said the company's fourth-quarter results reflect the ongoing softness in the domestic economy.

Old Dominion's total revenue fell 7.3% to $1.39 billion in the quarter, which was in line with analysts' estimate, according to data compiled by LSEG.

Less-than-truckload companies carry multiple shipments from different customers on a single truck, which are then routed through a network of service centers where they get transferred to other trucks with similar destinations.

The Thomasville, North Carolina-based carrier, which caters to companies in the retail, manufacturing, automotive and healthcare sectors, reported profit per share of $1.23, down 16.3% year-over-year, but above analysts' estimate of $1.16 per share.

The company handled a total of 2.8 million shipments in the fourth quarter, down 6.1% from a year earlier. Its revenue per shipment fell 1.1% from a year ago.

Its quarterly operating ratio, a key metric indicating operating expenses as a percentage of revenue, deteriorated to 75.9% from 71.8% a year ago.

A higher operating ratio reflects an increase in costs, suggesting lower profitability.