High fuel, health costs to dent ODFL’s OR in Q4

Higher fuel costs and employee health and dental benefits are set to hurt Old Dominion Freight Line’s industry-leading operating ratio in the fourth quarter of 2026, executives said Oct. 28. ODFL expects an OR of about 73.5, plus or minus 20 basis points, in the current quarter. A carrier’s OR provides insight on how well a company is balancing its costs and revenue generation. The lower the ratio, the better a company’s performance. An OR of 80 is considered exceptional, with most less-than-truckload carriers running an OR of between 85 and 90. “Based on what we’ve seen in October so far, I’m anticipating a few cost headwinds. But I still think that the low end of that normal range is appropriate for a target if our revenue trends continue to hold steady and we continue to outperform seasonality there from a top-line standpoint,” Chief Financial Officer Adam Satterfield told analysts during the company’s third-quarter 2026 earnings call. That’s despite October revenue per day running about 22% higher than in the same month in 2025, aided by a general rate increase that took effect Oct. 1, a month earlier than the prior year’s GRI. ODFL expects Q4 revenue of $1.54 billion to $1.58 billion. However, the Department of Energy’s weekly nationwide diesel price average was $6.352 a gallon on Oct. 26 and has not been below $6 a gallon since early September. In contrast, the price hovered around $3.70 a gallon in the same period 12 months earlier. The company’s OR improved to 71.5 in the most recent quarter from 74.3…

This story was originally published by Transport Topics. Read the full story at Transport Topics →