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Old Dominion Raises Capital Spending Plan to $380M, Targets Sub-70% Operating Ratio

Old Dominion Freight Lines is accelerating capital expenditures to achieve its operating ratio below 70%, a benchmark it last reached in the second quarter of 2022. The company raised its full-year capex guidance to $380 million, up from an initial $265 million forecast, with $240 million allocated for the second half of 2026. The spending breakdown includes $180 million for real estate and service center expansion, $155 million for tractor and trailer purchases, and $45 million for technology and other assets. The carrier nearly achieved its target in the second quarter, posting a 70% operating ratio boosted by real estate transactions executives described as non-recurring. CFO Adam Satterfield indicated that excluding those gains, the company demonstrated strong operational performance, with direct operating costs running 200-250 basis points better than the comparable 2022 quarter.