AGB 2022.8 - Old Dominion Freight Line (ODFL)

Secular Winner in a Cyclical Industry

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Old Dominion Freight Lines

“There are three major elements of capacity with an LTL: doors at our service centers, our equipment and our people. Doors can be the most limiting form of capacity in the short term, which is why we try to stay several years ahead of our anticipated growth curve. We have invested $1.7 billion in our service center network over the past 10 years, which has allowed us to expand our door count by over 50%.” - Chief Executive Officer, Greg Gantt, on the Q2 2021 earnings call.

Old Dominion is the 2nd largest LTL (less than truckload) carrier in North America based on 2021 revenues. The company was founded in 1934 as a one truck operation servicing a route between Richmond and Norfolk, Virginia. Since then, Old Dominion has grown to over 10k tractors and 41k trailers and 251 service centers in all 6 major regions of the U.S. As of 2021, the company commands 10% of the LTL market with the highest o…