Old Dominion Freight Line Ramps up a $3 Billion Share Repurchase – Buyback Wednesdays

Key Insights:

• Old Dominion Freight Line, Inc. (ODFL) is a prominent American less-than-truckload (LTL) shipping company operating at regional, inter-regional, and national levels
• The company boasts a history of substantial revenue growth and strong profitability, reflecting its sound business strategies.
• The recent shut down of operations at Yellow Corporation (YELL) should provide a short-term catalyst for other trucking companies like Old Dominion.

In addition to its core LTL services, Old Dominion Freight Line, Inc. (ODFL) offers expedited, logistics and household moving services. With a market capitalization of approximately $46 billion, the company operates a fleet of over 5,800 tractors and more than 22,500 trailers. Established in 1934, Old Dominion currently runs 256 service center locations across 48 states strategically positioned to ensure top-notch service quality and minimize freight rehandling costs. The company’s commitment to on-time service is noteworthy, with a substantial improvement from 94% in 2002 to an exceptional 99% in 2022. The name “Old Dominion” refers to a common nickname for the Commonwealth of Virginia, where the company’s first center of operation was located.

Recently, on July 26, 2023, Old Dominion announced that its Board of Directors has approved a share buyback program. The company is authorized to repurchase up to $3 billion worth of outstanding shares through open market purchases, allowing for the reacquisition of up to 6.5% of its stock. This buyback program follows the completion of its existing $2 billion repurchase program, which was announced in July 2021. As of March 31, 2023, the company still had $537.4 million remaining under the authorized amount from the 2021 repurchase program.

Source: Old Dominion – Investor Presentation

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