Old Dominion Freight Line In — Income Statement, Cash Flows & Balance Sheet
Is Old Dominion profitable?
Old Dominion remains highly profitable, though revenue and earnings have declined meaningfully over the past two years as freight volumes softened.
| Metric | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Revenue | $5,866M | $5,815M | $5,496M | -5.5% |
| Operating Income | $1,641M | $1,544M | $1,361M | -11.9% |
| Operating Margin | 28.0% | 26.6% | 24.8% | -1.8 pp |
| Net Income | $1,240M | $1,186M | $1,024M | -13.7% |
| Diluted EPS | $5.63 | $5.48 | $4.84 | -11.7% |
Revenue has now slipped for two consecutive years, and operating profit has fallen faster than revenue, compressing margins. That said, an operating margin close to 25% is exceptionally strong for a trucking company — this is a business that still converts roughly one in four revenue dollars into operating profit even in a down cycle.
One cost line worth noting is a jump in miscellaneous expenses, which partially obscures the underlying margin picture.
| Expense | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Miscellaneous expenses, net | $4.8M | $24.4M | $32.9M | +34.9% |
This line has grown sharply from a negligible level in 2023. The filing does not provide a detailed breakdown, so investors may want to monitor whether this reflects a one-time item or a recurring drag on earnings.
Does Old Dominion generate cash?
Old Dominion generates substantial cash from operations, though the pace has slowed alongside lower earnings.
| Cash Flow Item | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Operating Cash Flow | $1,569M | $1,659M | $1,370M | -17.4% |
| Capital Expenditures | ($757M) | ($771M) | ($415M) | -46.2% |
| Free Cash Flow (GAAP operating CF minus capex) | $812M | $888M | $955M | +7.5% |
Despite lower earnings, free cash flow (cash left after investing in the business) actually improved because Old Dominion significantly pulled back on capital spending in 2025. The company used that free cash flow generously — returning roughly $964M to shareholders through buybacks and dividends combined.
Old Dominion returned nearly a billion dollars to shareholders in 2025 through buybacks and dividends.
| Capital Return | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Share repurchases | $458M | $972M | $728M | -25.1% |
| Dividends paid | $175M | $224M | $236M | +5.4% |
| Total returned | $633M | $1,196M | $964M | -19.4% |
The dividend per share has grown steadily each year, and a further increase was announced in early 2026, signalling management's confidence in the business.
How strong is Old Dominion's balance sheet?
Old Dominion carries almost no debt, making it one of the more conservatively financed companies in its industry.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Total Long-term Debt (incl. current portion) | $60.0M | $40.0M | -$20.0M |
| Total Shareholders' Equity | $4,245M | $4,311M | +$66M |
| Debt-to-Equity Ratio | 1.4% | 0.9% | -0.5 pp |
The remaining debt is a single series of fixed-rate senior notes being repaid in scheduled $20M annual installments, with the final payment due in 2027. The company also has a $400M revolving credit facility with nothing drawn against it, providing ample backup liquidity.
The asset base is dominated by physical infrastructure, reflecting Old Dominion's long-term investment in its own service center network.
| Asset Item | 2024 | 2025 | Change |
|---|---|---|---|
| Net Property & Equipment | $4,505M | $4,504M | -$1M |
| Total Assets | $5,491M | $5,470M | -$21M |
| Cash & Equivalents | $109M | $120M | +$11M |
Nearly all of Old Dominion's assets are tangible — trucks, land, and service center buildings — which underpins the company's competitive position but also means the balance sheet is relatively illiquid. Cash on hand is modest relative to earnings power, though this is by design given the active buyback program and low debt needs.