On this page of StockholderLetter.com we present the latest annual shareholder letter from OLD DOMINION FREIGHT LINE, INC. — ticker symbol ODFL. Reading current and past ODFL letters to shareholders can bring important insights into the investment thesis.

 •  4/21/2025 Letter Continued (Full PDF)
 •  4/17/2023 ODFL Stockholder Letter
 •  4/15/2024 ODFL Stockholder Letter
 •  More "Trucking" Category Stockholder Letters
 •  ODFL Benford's Law Stock Score = 83

ODFL Shareholder/Stockholder Letter Transcript:

OLD DOMINION
FREIGHT LINE, INC.
2024 ANNUAL REPORT
OD DOMESTIC
OD EXPEDITED
OD PEOPLE
OD GLOBAL
OD TECHNOLOGY

CONSISTENT INVESTMENT
& EXECUTION DRIVES VALUE

OLD DOMINION FREIGHT LINE continued to execute on our proven, long-term strategic plan in 2024, the
cornerstone of which remains our commitment to provide our customers with superior service at a fair
price. We spent $771 million in capital expenditures so that we are prepared to capitalize on future growth
opportunities, while also remaining committed to investing in our OD Family of employees and supporting
our unique culture. We are confident that through consistent investment in our network and technology and
a relentless focus by our team on customer service, Old Dominion will continue to deliver an unmatched
value proposition for our customers, win market share and drive long-term shareholder value.
OD DOMESTIC
OD   s ongoing investment in our domestic
service center network is key to our
ability to deliver superior service and
support our customers throughout
the economic cycle. We have invested
approximately $2.5 billion in our service
center network over the last ten years,
and we have expanded to 261 service
centers* across the United States to
provide capacity for further customer
growth and additional market share
opportunities. In 2024, our superior
customer service and commitment to
excellence earned OD the Mastio Quality
Award** for National LTL Carrier for an
unprecedented 15th consecutive year.
OD GLOBAL
OD Global offers established freight
services with a global reach through our
strategic alliances. Our customers enjoy
extensive door-to-door freight tracking
and professional customer service. OD
Global helps our customers manage
less-than-container load (LCL) and fullcontainer load (FCL) shipping, nationwide
container drayage, ocean and air freight
forwarding and expedited LCL imports.
We also provide access to customs
compliance consulting for international
cross-border shipments.
OD EXPEDITED
We are proud of our commitment to
on-time delivery of time-sensitive and
highly critical shipments. Our ability to
consistently meet customer demand
through various economic cycles is
a hallmark of our success. As supply
chains tighten and delivery windows
contract, OD Expedited service provides
customers with customizable solutions
to meet their needs, from Guaranteed
and On-Demand shipping to Weekend
Promise with Friday pickup and Monday
delivery. We tailor each service to meet
the customers    needs and monitor
each shipment 24 hours a day, 7 days a
week to help ensure on-time delivery.
In addition, OD   s Must Arrive By Date
service helps our retail customers meet
their increasingly complex and stringent
supply chain demands.
OD PEOPLE
OD   s dedicated, highly-trained
employees have made us an industry
leader. We are proud to foster a culture
of safety and performance excellence,
while also providing competitive
compensation, robust benefits, and
career advancement opportunities. We
support our employees    ability to grow
and progress in their careers by offering
skills and leadership development
training programs. This commitment
to our team allows us to attract and
retain exceptional talent, which drives
improvement across all areas of our
business. Our efforts have earned us
recognition, including being named as
one of the Top Companies for Women to
Work in Transportation*** and inclusion
on Forbes    listing of America   s Best
Large Employers****.
OD TECHNOLOGY
We are committed to making our
services efficient and convenient for our
customers     and that means keeping up
with the industry   s latest developments
in technology. We believe our sizable
investments in information systems have
made the OD network one of the most
efficient in the industry. We create value
for our customers by providing superior
service and data visibility. From our
convenient customer website, connected
systems and mobile experience, to our
track-and-trace system, to our load
planning and routing processes, OD   s
advanced technologies are another
example of how we make it easy to do
business with us.
* As of December 31, 2024 ** Source: 2024 Mastio and Company National LTL Carrier Report *** Source: Women in Trucking Association, 2024 **** Source: Forbes Magazine, 2024
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TO OUR SHAREHOLDERS AND
OUR OD FAMILY OF EMPLOYEES
OLD DOMINION   S FINANCIAL RESULTS in 2024 reflect
continued softness in the domestic economy. While the past
few years have been challenging given the macroeconomic
headwinds and disruption we have faced
within our industry, we are proud of how
our team has executed. During this period,
we have continued to focus on what we
can control: providing our customers with
superior service; remaining disciplined
in our approach to pricing; continuing to
invest in our capacity to support future
growth; and controlling our expenses. By
maintaining our commitment to these core
pillars of our long-term strategic plan,
we are confident in our ability to continue
to drive profitable revenue growth as the
economy improves.
We generated revenue of $5.8 billion in
2024. While this represents a modest
decline in our revenue performance
compared to 2023, over the past 10
years we have increased revenue at a
compound annual growth rate of 7.6%. Our
operating ratio of 73.4% resulted in diluted
earnings per share of $5.48 in 2024, which
represents a 2.7% decline compared to the prior year period
when giving effect to our two-for-one stock split. Our diluted
earnings per share have grown at a compound rate of 18.2%
over the last 10 years.
Our outstanding team continued to deliver superior customer
service in 2024 while also operating efficiently. Our ability
to be there for our customers through the ups and downs of
the economic cycle, while also keeping a tight rein on costs,
is a testament to our unique culture. Decades of strategic
investment in our network and an unwavering focus on
superior customer service position OD to continue to build
on our past success in the years ahead. The foundation of
our success, and our most valuable asset, continues to be
our people. The OD Family of employees is what makes our
Company The Best In The Game  . The commitment our team
demonstrates every day to deliver on behalf of our customers
and drive value for our shareholders will always be what
makes our Company special. Thanks to our people and
culture, Old Dominion cannot be duplicated.
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For this reason, we continue to invest in our people by
providing a competitive wage and benefits package as well as
opportunities for career development via our Driver Training,
Supervisor Training and Management Training
programs. Within our benefits package is
our 401(k) plan, which includes a matching
provision and a discretionary contribution that
is based on our net income and is allocated
to all contributing 401(k) participants. We are
proud that our people view themselves as
financial stakeholders in our Company, not
just as employees. This is a key part of what
makes our culture unique and encourages
our team to remain focused on the key
elements of our strategic plan. We were
pleased that our efforts in these areas were
recognized in 2024 as we were ranked as one
of the Top Companies for Women to Work in
Transportation by Women in Trucking and one
of America   s Best Large Employers by Forbes.
In addition to our people and culture, our
willingness to consistently invest in our
network and capacity so that we are positioned
to grow with our customers has been, and
remains, a critical component of our ability to
win long-term market share. We spent $771 million on capital
expenditures in 2024, including $373 million that we invested
in real estate and in service center expansion projects. While
we ended 2024 with over 30% excess capacity in our network,
we know how quickly the demand environment can change
and we remain committed to staying ahead of the growth
curve. As a result, we plan to invest another $300 million in
our real estate network in 2025 as a part of our $575 million
capital spending plan that also includes $225 million for
tractors and trailers and $50 million for technology and
other assets.
Delivering superior service for our customers is the
cornerstone of our long-term strategic plan. Doing so allows
us to continue to maintain our disciplined approach to pricing,
which seeks to offset our cost inflation and support further
investment in the capacity and technology that our customers
require. We were pleased to continue to provide our
customers with industry-leading service in 2024, including
99% on-time service and a cargo claims ratio of 0.1%. While

important, we also know that superior customer service
goes far beyond delivering freight on time and damage free.
As a result, we were pleased to be named the No. 1 national
LTL carrier in 2024 by Mastio and Company for the fifteenth
consecutive year. This is an incredible accomplishment
that every member of the OD Family of employees takes
tremendous pride in, and we are highly motivated to continue
to deliver the highest standard of service for our customers
in the years ahead.
their promises to their own customers. The combination
of a unique culture built around best-in-class service and
consistent investments in our capacity has produced an
unmatched value proposition for our customers, which
has allowed us to win more market share than any other
LTL carrier over the past decade. We are confident that by
remaining committed to our proven, long-term business plan,
we are also the best-positioned carrier to win market share
in the years ahead.
We see a long runway for future growth and will continue to
prioritize investments in our capacity, our technology and,
most importantly, our people. The strength of our cash flow
and balance sheet also gives us the financial flexibility to
return capital to our shareholders. During 2024 we utilized
$967 million in cash for share repurchases, including a $200
million accelerated share repurchase program, and $224
million for our cash dividend program. We were pleased
that our Board of Directors authorized a 7.7% increase to our
quarterly cash dividend in the first quarter of 2025 to $0.28
per share. Our compounded annualized total shareholder
returns, assuming reinvestment of all dividends, were 23.3%
and 21.6% over the past five-year and ten-year periods,
respectively.
In closing, our team produced solid results over the past
year while also continuing to position our Company for
future growth. We thank our OD Family of employees for
Helping the World Keep Promises   in 2024, our 90th year
of operation. We are especially grateful to all our valued
customers for choosing Old Dominion. Finally, we thank our
fellow shareholders for your continued support.
As a result of the consistent investments we have made in
our network, our technology and our OD Family of employees,
we know that we are in a strong position to respond to an
improved demand environment when it materializes. We
stand ready to support our customers with the industryleading service and the capacity they will require to keep
Together, we look forward to the opportunities ahead for Old
Dominion in 2025.
Kevin M. Freeman
President and Chief Executive Officer
David S. Congdon
Executive Chairman of the Board
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 4/21/2025 Letter Continued (Full PDF)