North America Transportation: Barclays LTL Benchmarking, 1Q26

Research evidence excerpt

North America Transportation: Barclays LTL Benchmarking, 1Q26

Barclays | North America Transportation

CE: Barclays Bank PLC and/or an affiliate is a market-maker in equity securities issued by Old Dominion Freight Line, Inc..

J: Barclays Bank PLC and/or an affiliate is a liquidity provider and/or trades regularly in the securities by Old Dominion Freight Line, Inc. and/or in any

related derivatives.

Valuation Methodology: We value ODFL shares at $210 based on an EV multiple of 21.0x on our 2027 EBITDA estimate of $2.0bn averaged with a P/E

multiple of 35.0x on our 2027 EPS estimate of $6.00.

Risks which May Impede the Achievement of the Barclays Research Valuation and Price Target: Investing in transportation companies can be

risky. In addition to macroeconomic risks, the companies' earnings can be exposed to risk from changing geopolitical conditions, changing fuel prices,

labor disputes, weather disruptions and operational challenges, among other things. Risks specific to Old Dominion: Future industry capacity growth

could limit Old Dominion's ability to pass along cost inflation via price increases, including potential future fuel price increases. Further, improvement

in peer service could reduce Old Dominion's ability to charge above market pricing. A shortage in available drivers could limit Old Dominion's ability

to fully utilize the company's tractor fleet, potentially negatively impacting earnings. Changes to government safety and driver hours of service

regulations could materially impact Old Dominion's future productivity and revenue generation potential. Formal organization of labor could increase

labor cost and reduce operational flexibility, reducing operating margins. Old Dominion's service superiority could drive market share shift, increasing