Old Dominion Freight Line (ODFL) risk factors, FY2025 10-K

Risks Related to our Business and Operations

1. 01If we are unable to successfully execute our growth strategy, and develop, market and consistently deliver high-quality services that meet customer expectations, our business and future results of operations may suffer
2. 02limited supply and increased costs of new equipment may adversely affect our profitability and cash flows
3. 03Various economic factors such as inflationary pressures or downturns in the domestic economy could adversely impact our profitability and cash flows
4. 04Changes in our relationships with significant customers, including the loss or reduction in business from one or more of them, could have an adverse impact on our business
5. 05Insurance and claims expenses could significantly reduce our profitability
6. 06Reductions in the available supply or increases in the cost of equipment and parts may adversely impact our profitability and cash flows
7. 07Higher costs for or limited availability of suitable real estate may adversely affect our business operations
8. 08Our growth may be limited by the availability and cost of third-party transportation used to supplement our workforce and equipment needs
9. 09We may be adversely impacted by fluctuations in the availability and price of diesel fuel
10. 10Our results of operations may be affected by seasonal factors, harsh weather conditions and disasters
11. 11We have significant ongoing cash requirements that could limit our growth and affect our profitability if we are unable to obtain sufficient capital
12. 12A decrease in the demand and value of used equipment may impact our results of operations
13. 13We may be unable to successfully consummate and integrate acquisitions
14. 14an inability to recognize projected cost savings and economies of scale
15. 15We are subject to various risks arising from our international business operations and relationships, which could adversely affect our business
16. 16Anti-terrorism measures and terrorist events may disrupt our business

Risks Related to our Industry

1. 17We operate in a rapidly evolving and highly competitive industry, and our business will suffer if we are unable to adequately address potential downward pricing pressures and other factors that may adversely affect our operations and profitability
2. 18our existing or future competitors may adopt emerging or additional technologies that improve their operating effectiveness, which could negatively affect our ability to remain competitive83% rewritten
3. 19Changes in international trade policies, including with respect to tariffs, may continue to adversely impact our customers, our industry and our businessNew

Risks Related to Labor Matters

1. 20If our employees were to unionize, our operating costs would increase and our ability to compete would be impaired
2. 21an election and bargaining process could divert management’s time and attention from our overall objectives and impose significant expenses
3. 22If we are unable to retain our key employees, or if we do not continue to effectively execute our succession plan, our business, results of operations and financial position could be adversely affected

Risks Related to Cybersecurity and Technology Matters

1. 23Our information technology systems are subject to cyber and other risks, some of which are beyond our control, which could have a material adverse effect on our business, results of operations and financial position
2. 24If we do not adapt to new technologies implemented by our competitors in the LTL and transportation industry, our business could suffer
3. 25Any disruption in the operational and technical services provided to us by third parties could adversely affect our business and subject us to liability

Risks Related to Legal and Regulatory Matters

1. 26The FMCSA’s Compliance, Safety, Accountability initiative (“CSA”) could adversely impact our ability to hire qualified drivers, meet our growth projections and maintain our customer relationships, each of which could adversely impact our results of operations
2. 27The FMCSA’s CSA is an enforcement and compliance program designed to monitor and improve commercial motor vehicle safety by measuring the safety record of both the motor carrier and the driver. These measurements are scored and used by the FMCSA to identify potential safety risks and to direct enforcement action28% rewritten
3. 28We operate in a highly regulated industry, and increased costs of compliance with, or liability for violation of, existing or future regulations could have a material adverse effect on our business
4. 29We are subject to various environmental laws and regulations, and costs of compliance with, liabilities under, or violations of, existing or future environmental laws or regulations could adversely affect our business
5. 30We may be adversely affected by legal, regulatory, or market responses to climate change concerns
6. 31The engines in our newer tractors are subject to emissions-control regulations, and ongoing regulatory uncertainty regarding zero-emission vehicle mandates could substantially increase operating expenses and materially adversely impact our businessNew
7. 32Varied stakeholder expectations relating to evolving sustainability considerations and related reporting obligations expose us to potential liabilities, increased costs, reputational harm, and other adverse effects on our business89% rewritten
8. 33Healthcare and other mandated benefits-related coverage may increase our costs for employee benefits and reduce our future profitability
9. 34We are subject to the risks of legal proceedings and claims, governmental inquiries, notices and investigations which could adversely affect our business
10. 35We are subject to legislative, regulatory, and legal developments involving taxes

Risks Related to Owning our Common Stock

1. 36The Congdon family controls a large portion of our outstanding common stock
2. 37There can be no assurance of our ability to declare and pay cash dividends in future periods
3. 38The amount and frequency of our stock repurchases may fluctuate
4. 39The market value of our common stock has been and may in the future be volatile, and could be substantially affected by various factors
5. 40other factors described in this “Risk Factors” section
6. 41Our articles of incorporation, our bylaws and Virginia law contain provisions that could discourage, delay or prevent a change in our control or our management