10/28/2026

speaker
Dave
Conference Operator

Good day and welcome to the Old Dominion Freight Line third quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the start key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone keypad. To withdraw your question, please press star and then 2. Please note this event is being recorded. I would now like to turn the conference over to Jack Atkins, Director of Finance and Investor Relations. Please go ahead.

speaker
Jack Atkins
Director of Finance and Investor Relations

Thank you, Dave. Good morning, everyone, and welcome to the third quarter of 2026 conference call for Old Dominion Freight Lines. Today's call is being recorded and will be available for replay beginning today through November 4th, 2026 by dialing 1-855-669-9658, access code 1955363. The replay of the webcast may also be accessed for 30 days at the company's website. This conference call may contain forward-looking statements. within the meaning of the Private Securities Litigation Reform Act of 1995, including statements, among others, regarding Old Dominion's expected financial and operating performance. For this purpose and any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words believes, anticipates, plans, expects, and similar expressions are intended to identify forward-looking statements. You are hereby cautioned that these statements may be affected by the important factors, among others, set forth in Old Dominion's filings with the Securities and Exchange Commission and in this morning's news release. Consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. The company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. As a final note before we begin, we welcome your questions today. They ask that you limit yourself to just one question at a time before returning to the queue. At this time for opening remarks, I would like to turn the conference over to our President and Chief Executive Officer, Marty Freeman. Marty, please go ahead.

speaker
Marty Freeman
President and Chief Executive Officer

Good morning, everyone, and welcome to our third quarter conference call. With me on the call today is Adam Satterfield, our CFO, and after some brief remarks, we will be glad to take your questions. Old Dominion produced strong financial results in the third quarter that include a 13.1% increase in revenue and a 28.9% increase in earnings per diluted share. In addition, our operating ratio improved by 280 basis points to a 71.5. While the underlying macroeconomic environment remains stable, Demand for our service continued to improve during the quarter and our LTL tons per day increased on a year-over-year basis in September. The strength of our third quarter results is due to hard work and dedication of our OD family of employees who continue to execute on the fundamental aspects of our long-term strategic plan. I want to thank our outstanding team for their dedication and commitment to our customers and our companies. Our ongoing focus on providing our customers with superior service at a fair price is the cornerstone of our long-term strategic plan. Our ability to consistently deliver the highest standard of service through the ups and downs of the economic cycle has created an unmatched value proposition in our industry and this is something that we take tremendous pride in. As a result, in the third quarter, We were pleased to once again provide our customers with on-time service of 99% and a cargo claims ratio of 0.1%. That said, we also know that there is much more to providing best-in-class service to our customers than simply picking up and delivering freight on time and without damages. During its annual survey of shippers and logistic professionals, MathEO and company measures 28 different service and value-oriented attributes. We were honored earlier this month to be named the number one national LTL provider for the 17th consecutive year. In addition, we finished first in 24 of the 28 categories that MassEO evaluates, and we increased our already sizable advantage against our competition. I would like to thank our customers for this recognition and for trusting us with their business. I also would like to congratulate our OD family of employees on this incredible accomplishment. Our teams remain highly motivated to continue delivering superior customer service every single day. We know that the strength and consistency of our service drives value for our customers and differentiates us from our competitors. It also supports our long-term pricing initiatives. Our disciplined approach to yield management, which focuses on individual account-level profitability, is designed to offset our cost inflation over the long term while also supporting our ability to make strategic investments back into our business. Our ability to take a long-term approach to the investments in our network, our people, and our technology provides us with significant flexibility to respond quickly to changes in the operating environment. This flexibility allows us to support our customers with the capacity that they require while also continuing to effectively manage our costs. As a result, we once again generated strong operating leverage on our incremental revenue this quarter. We produced strong third quarter results by remaining focused on executing our long-term strategic plan. Due to our disciplined execution and consistent investment, we have all the necessary elements of capacity in place to effectively handle incremental volume opportunities while also continuing to operate efficiently. In addition, our business model contains significant operating leverage, which will allow us to further improve our profits as we regain density in our network. As a result, we continue to believe that we are uniquely positioned within our industry to win market share, generate profitable revenue growth, and increase shareholder value over the long term. Thank you for joining us this morning, and now I will turn it over to Adam to discuss our third quarter in greater detail.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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