Group 1 - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, with a focus on banks, telecommunications, logistics, and hotels [1] - The popularity of insurance companies in the Philippines has influenced investment strategies, leading to diversification beyond traditional savings in banks and properties [1] - The investment approach has evolved from focusing solely on blue-chip companies to a more diversified portfolio across various industries and market capitalizations [1] Group 2 - The entry into the US market occurred in 2020, following a period of learning and analysis through platforms like Seeking Alpha [1] - The investor has holdings in US banks, hotels, shipping, and logistics companies, indicating a strategic approach to portfolio diversification [1] - The comparative analysis between the US and Philippine markets has been a key aspect of the investment strategy, enhancing market awareness and decision-making [1]

Core Viewpoint - The article discusses the significant market disruption anticipated due to advancements in artificial intelligence, likening it to the Industrial Revolution [1]. Group 1 - The article emphasizes the transformative potential of artificial intelligence in various sectors, suggesting that it will lead to substantial changes in market dynamics [1]. - It highlights the importance of staying informed about these developments for investors seeking opportunities in the evolving landscape [1]. Group 2 - The article mentions that the author holds long positions in several companies, indicating a personal investment interest in the market trends discussed [1]. - It notes that the insights provided are based on the author's own opinions and experiences, rather than external compensation [1].

Core Viewpoint - The August update from Old Dominion Freight Line indicates a continuation of negative trends in freight demand, but the company's long-term value proposition remains intact due to its pricing discipline and operational efficiency [2][3]. Financial Performance - Revenue per day decreased by 4.8% year over year, with LTL tons per day down 9.2%, driven by an 8.2% drop in shipments per day and a 1.2% decline in weight per shipment [5][6]. - In Q2, tons per day were down 7.7% and shipments per day slipped 6.7%, indicating a worsening freight environment [6]. - Q2 revenue fell 6.1% year over year, and earnings per share declined 14.2% [7]. Operational Metrics - The operating ratio increased to 74.6% from 71.9% a year ago due to lower volumes [8]. - Despite challenges, Old Dominion maintained a 99% on-time service level and a cargo claims ratio of just 0.1% [8]. Pricing Strategy - LTL revenue per hundredweight increased by 4.5% in the quarter to date, and 4.7% excluding fuel surcharges, showcasing the company's ability to protect pricing even in a slowing freight market [9]. Future Outlook - Old Dominion is positioned to benefit from a recovery in freight demand, with plans for $450 million in capital spending this year to enhance its operational capabilities [12]. - The company has returned $543 million to shareholders in the first half of 2025, indicating strong cash flow and commitment to reinvestment [12]. Competitive Position - Old Dominion's strategy of maintaining operational efficiency and pricing discipline during downturns allows it to gain market share, distinguishing it from weaker competitors [13].

Group 1 - Old Dominion Freight Line (NASDAQ: ODFL) is positioned to recover from the current cyclical bottom due to a likely reversal in the interest rate cycle [1] - An expected pickup in industrial activity is anticipated to support volumes for the company [1] - Pricing remains strong, indicating a favorable environment for the company's operations [1]

Core Insights - Old Dominion Freight Line, Inc. (ODFL) reported a decline in its less-than-truckload (LTL) segment performance for August 2025, indicating ongoing challenges in the domestic economy [1][3]. Financial Performance - ODFL's revenue per day decreased by 4.8% year over year in August 2025, driven by a 9.2% drop in LTL tons per day [2][6]. - The decline in LTL tons per day was attributed to an 8.2% reduction in LTL shipments per day and a 1.2% decrease in weight per shipment [2][6]. - Despite the volume decline, LTL revenue per hundredweight increased by 4.5%, and when excluding fuel surcharges, it rose by 4.7% year over year [2][6]. Management Commentary - The CEO of Old Dominion highlighted that the revenue results reflect the softness in the domestic economy, but the improvement in revenue per hundredweight showcases the company's commitment to superior service [3]. - The company remains confident in its ability to capture profitable market share in the long term while enhancing shareholder value [3]. Market Position - ODFL currently holds a Zacks Rank of 4 (Sell), with its shares declining by 18.4% over the past six months, compared to an 11.3% decline in the transportation-truck industry [4].

Core Viewpoint - Old Dominion Freight Line (ODFL) has experienced a significant stock decline of approximately 35% from its 52-week high, despite maintaining a strong balance sheet and reliable dividend growth [1][2]. Financial Performance - In the second quarter of 2025, Old Dominion reported a 6% year-over-year revenue decline and a 14% decrease in earnings per share, attributed to reduced freight volumes leading to higher fixed costs [4]. - The operating ratio increased to 74.6%, up from 71.9% in the same quarter last year, indicating rising operational expenses relative to revenue [4]. Pricing Power and Service Quality - Despite the revenue drop, Old Dominion managed to increase revenue per hundredweight (excluding fuel surcharges) by over 5%, showcasing its ability to protect pricing power [5]. - The company maintained elite service levels, achieving 99% on-time deliveries and an industry-best cargo claims ratio of just 0.1% [5]. Dividend Strategy - The board declared a quarterly dividend of $0.28 per share, reflecting a 7.7% increase from the previous year, with a current yield of approximately 0.7% [7]. - In the first half of 2025, Old Dominion generated around $622 million in operating cash flow, with $119 million allocated to dividends, allowing for reinvestment and buybacks [7]. Shareholder Returns and Capital Expenditure - Old Dominion returned about $543 million to shareholders in the first six months of 2025, with $425 million through share repurchases [8]. - The company committed approximately $450 million in capital spending for the year, focusing on real estate, service-center expansion, and acquiring tractors and trailers [8]. Strategic Positioning - Old Dominion's balanced approach of returning cash to shareholders while investing in network expansion positions it well for future freight demand recovery [9]. - The company’s disciplined capital allocation and low debt levels contribute to its resilience and competitive advantage in the trucking industry [10]. Long-term Outlook - Despite potential prolonged freight cycles and valuation pressures, Old Dominion continues to invest in growth while competitors may pull back, allowing it to gain market share [11]. - The current stock price, approximately one-third below its recent high, presents a buying opportunity for long-term investors seeking quality and value in an S&P 500 dividend stock [11].

Group 1 - The article promotes a research service focused on various income-generating investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting its extensive research capabilities and positive user testimonials [1] - It mentions that there are 438 testimonials, with most being rated 5 stars, indicating high customer satisfaction and trust in the service [1] Group 2 - The article includes a disclosure from the analyst stating a beneficial long position in several companies, which may influence the analysis presented [2] - It clarifies that the opinions expressed are those of the author and not influenced by compensation from any mentioned companies, ensuring transparency in the analysis [2] Group 3 - The article contains a disclaimer from Seeking Alpha, emphasizing that past performance does not guarantee future results and that no specific investment advice is being provided [3] - It notes that the views expressed may not reflect those of Seeking Alpha as a whole, indicating a diversity of opinions among its analysts [3]

Group 1 - The article highlights Old Dominion Freight Line (ODFL) as a highly efficient less-than-truckload carrier in the U.S. market [1] - The author expresses a beneficial long position in ODFL shares, indicating confidence in the company's growth potential [1] Group 2 - The article is part of a broader discussion on undervalued dividend growers, suggesting a focus on income-generating investments [1]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed financial statements, reflecting declines in Q2 and H1 2025 revenue, net income, and EPS due to a soft economy and decreased LTL volumes [Condensed Balance Sheets](index=4&type=section&id=Condensed%20Balance%20Sheets) Provides a snapshot of the company's assets, liabilities, and shareholders' equity as of June 30, 2025, and December 31, 2024 Condensed Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------------------- | :------------ | :---------------- | :----- | :------- | | Cash and cash equivalents | $24,057 | $108,676 | $(84,619) | (77.9)% | | Total current assets | $698,143 | $720,683 | $(22,540) | (3.1)% | | Net property and equipment | $4,590,436 | $4,505,431 | $85,005 | 1.9% | | Total assets | $5,551,096 | $5,491,395 | $59,701 | 1.1% | | Total current liabilities | $506,863 | $540,529 | $(33,666) | (6.2)% | | Long-term debt | $149,992 | $39,987 | $110,005 | 275.1% | | Total liabilities | $1,320,465 | $1,246,807 | $73,658 | 5.9% | | Total shareholders' equity | $4,230,631 | $4,244,588 | $(13,957) | (0.3)% | - Long-term debt significantly increased by **$110.0 million**, or **275.1%**, from December 31, 2024, to June 30, 2025, primarily due to net borrowings under the credit agreement[14](index=14&type=chunk)[40](index=40&type=chunk)[72](index=72&type=chunk) [Condensed Statements of Operations](index=6&type=section&id=Condensed%20Statements%20of%20Operations) Details the company's financial performance, including revenue, operating expenses, net income, and EPS for Q2 and the first six months of 2025 and 2024 Condensed Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :-------------------------- | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Revenue from operations | $1,407,724 | $1,498,697 | (6.1)% | $2,782,582 | $2,958,770 | (6.0)% | | Total operating expenses | $1,049,829 | $1,077,006 | (2.5)% | $2,086,632 | $2,150,653 | (3.0)% | | Operating income | $357,895 | $421,691 | (15.1)% | $695,950 | $808,117 | (13.9)% | | Net income | $268,626 | $322,045 | (16.6)% | $523,286 | $614,349 | (14.8)% | | Diluted earnings per share | $1.27 | $1.48 | (14.2)% | $2.46 | $2.82 | (12.8)% | | Operating ratio | 74.6% | 71.9% | 2.7 ppt | 75.0% | 72.7% | 2.3 ppt | | Dividends declared per share | $0.28 | $0.26 | 7.7% | $0.56 | $0.52 | 7.7% | - The operating ratio increased to **74.6%** for Q2 2025 (from **71.9%** in Q2 2024) and to **75.0%** for the first six months of 2025 (from **72.7%** in the same period of 2024), indicating a decrease in profitability[18](index=18&type=chunk)[61](index=61&type=chunk) [Condensed Statements of Changes in Shareholders' Equity](index=7&type=section&id=Condensed%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Outlines changes in shareholders' equity, including net income, share repurchases, and cash dividends, for the six months ended June 30, 2025, and 2024 Changes in Shareholders' Equity (Six Months Ended June 30, 2025 vs. 2024, in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Balance as of December 31 | $4,244,588 | $4,257,811 | | Net income | $523,286 | $614,349 | | Share repurchases, including transaction costs | $(419,299) | $(602,851) | | Cash dividends declared | $(118,497) | $(112,557) | | Total Shareholders' Equity (June 30) | $4,230,631 | $4,111,899 | - Share repurchases decreased to **$419.3 million** for the first six months of 2025, compared to **$602.9 million** in the same period of 2024[20](index=20&type=chunk)[72](index=72&type=chunk) - Cash dividends declared increased to **$0.56 per share** for the first six months of 2025, up from **$0.52 per share** in the same period of 2024[18](index=18&type=chunk)[20](index=20&type=chunk)[80](index=80&type=chunk) [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Condensed Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | Change | | :----------------------------------- | :--------- | :--------- | :------- | | Net cash provided by operating activities | $622,366 | $811,748 | $(189,382) | | Net cash used in investing activities | $(268,151) | $(382,809) | $114,658 | | Net cash used in financing activities | $(438,834) | $(788,434) | $349,600 | | Decrease in cash and cash equivalents | $(84,619) | $(359,495) | $274,876 | | Cash and cash equivalents at end of period | $24,057 | $74,304 | $(50,247) | - Net cash provided by operating activities decreased by **$189.4 million**, or **23.3%**, for the first six months of 2025, primarily due to lower net income and changes in working capital[22](index=22&type=chunk)[71](index=71&type=chunk) - Net cash used in investing activities decreased by **$114.7 million**, or **30.0%**, mainly due to a reduction in capital expenditures for 2025 compared to 2024[22](index=22&type=chunk)[72](index=72&type=chunk) - Net cash used in financing activities decreased by **$349.6 million**, or **44.3%**, driven by lower share repurchases and increased net borrowings under the credit agreement[22](index=22&type=chunk)[72](index=72&type=chunk) [Notes to the Condensed Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements) Provides detailed information on accounting policies, EPS, long-term debt, commitments, fair value, and segment operations, including updates on stock repurchases and credit capacity [Note 1. Significant Accounting Policies](index=9&type=section&id=Note%201.%20Significant%20Accounting%20Policies) Outlines the company's core accounting principles and operational structure as a major North American LTL motor carrier - Old Dominion Freight Line, Inc. operates as one of the largest North American **less-than-truckload (LTL) motor carriers**, providing regional, inter-regional, and national LTL services, along with value-added services like container drayage and truckload brokerage[25](index=25&type=chunk)[54](index=54&type=chunk) Revenue from Operations (in thousands) | Service Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | LTL services | $1,395,112 | $1,484,967 | $2,755,951 | $2,931,700 | | Other services | $12,612 | $13,730 | $26,631 | $27,070 | | **Total revenue** | **$1,407,724** | **$1,498,697** | **$2,782,582** | **$2,958,770** | - The 2021 Repurchase Program was completed in May 2024, and the new 2023 Repurchase Program, authorizing up to **$3.0 billion**, began thereafter with **$1.85 billion** remaining authorized at June 30, 2025[30](index=30&type=chunk)[33](index=33&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - New accounting pronouncements (ASU 2023-09 and ASU 2024-03/2025-01) will require additional disclosures but are **not expected to impact financial condition, results of operations, or cash flows**[34](index=34&type=chunk)[35](index=35&type=chunk) [Note 2. Earnings Per Share](index=10&type=section&id=Note%202.%20Earnings%20Per%20Share) Details the calculation of basic and diluted earnings per share, reflecting the impact of share repurchases on weighted average shares outstanding Weighted Average Shares Outstanding (in thousands) | Share Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Weighted average shares - basic | 211,083 | 216,369 | 211,739 | 216,981 | | Dilutive effect of share-based awards | 1,081 | 1,172 | 1,082 | 1,193 | | Weighted average shares - diluted | 212,164 | 217,541 | 212,821 | 218,174 | - Basic and diluted weighted average shares outstanding **decreased year-over-year** for both the three and six-month periods ended June 30, 2025, reflecting the impact of share repurchases[18](index=18&type=chunk)[39](index=39&type=chunk) [Note 3. Long-Term Debt](index=11&type=section&id=Note%203.%20Long-Term%20Debt) Provides details on the company's long-term debt composition, including senior notes and credit agreement borrowings, and recent changes in borrowing capacity Long-Term Debt Composition (in thousands) | Debt Type | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Senior notes | $39,992 | $59,987 | | Credit agreement borrowings | $130,000 | — | | **Total long-term debt** | **$169,992** | **$59,987** | | Less: Current maturities | $(20,000) | $(20,000) | | **Total maturities due after one year** | **$149,992** | **$39,987** | - The company exercised an accordion feature on May 23, 2025, increasing its Credit Agreement borrowing capacity by **$150.0 million** to an aggregate of **$400.0 million**, with **$231.8 million** available at June 30, 2025[43](index=43&type=chunk)[46](index=46&type=chunk)[84](index=84&type=chunk)[87](index=87&type=chunk) - The Series B Notes bear interest at **3.10%** per annum and mature on **May 4, 2027**, with remaining **$40.0 million** to be paid in two equal annual installments[42](index=42&type=chunk)[83](index=83&type=chunk) [Note 4. Commitments and Contingencies](index=13&type=section&id=Note%204.%20Commitments%20and%20Contingencies) Addresses the company's involvement in legal proceedings and claims, assessing their potential financial impact - The company is involved in various legal proceedings and claims but **does not believe their resolution will have a material adverse effect** on its financial position, results of operations, or cash flows[48](index=48&type=chunk) [Note 5. Fair Value Measurements](index=13&type=section&id=Note%205.%20Fair%20Value%20Measurements) Explains the methodologies used to determine the fair value of the company's long-term debt instruments Fair Value of Long-Term Debt (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Carrying value of total long-term debt | $170,000 | $60,000 | | Estimated fair value of total long-term debt | $168,400 | $56,500 | - The fair value of Credit Agreement borrowings **approximates carrying value** due to variable interest rates, while Series B Notes fair value is determined using **discounted cash flow analysis (Level 2 hierarchy)**[49](index=49&type=chunk) [Note 6. Segment Information](index=13&type=section&id=Note%206.%20Segment%20Information) Clarifies the company's operational structure as a single reportable segment and how the chief operating decision maker utilizes financial information - The company operates as a **single operating and reportable segment**, providing LTL services across North America[50](index=50&type=chunk) - The President and CEO, as the chief operating decision maker, reviews company-wide financial information and uses **Net Income** to make capital allocation decisions, prioritizing **capital expenditures for growth**, followed by **share repurchases, dividends, and acquisitions**[51](index=51&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes financial performance, liquidity, and capital resources, highlighting economic impact on revenue and profitability, operating cost changes, and capital allocation strategies [Overview](index=15&type=section&id=Overview) Introduces the company's business model as a leading LTL motor carrier and its key operational and financial objectives - The company is a **major North American LTL motor carrier**, with **over 98% of revenue from LTL shipments**, closely tied to industrial production and the U.S. domestic economy[54](index=54&type=chunk) - Primary revenue focus is to **increase density** (shipment and tonnage growth) to maximize asset utilization and labor productivity, alongside a **yield-management philosophy** to offset cost inflation and support investments[56](index=56&type=chunk) - Key metrics monitored include **LTL revenue per hundredweight** (influenced by fuel surcharges, weight per shipment, length of haul), **LTL weight per shipment**, **average length of haul**, and **LTL revenue per shipment**[55](index=55&type=chunk)[57](index=57&type=chunk) - The **operating ratio** (total operating expenses divided by revenue) is used to gauge overall success in managing costs and for industry comparisons[58](index=58&type=chunk) [Results of Operations](index=17&type=section&id=Results%20of%20Operations) Analyzes the company's financial and operating performance for Q2 and the first six months of 2025 compared to the prior year, detailing revenue, expenses, and key LTL metrics Key Financial and Operating Metrics (Q2 and 6 Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | % Change | 6M 2025 | 6M 2024 | % Change | | :------------------------------------ | :------ | :------ | :------- | :------ | :------ | :------- | | Revenue (in thousands) | $1,407,724 | $1,498,697 | (6.1)% | $2,782,582 | $2,958,770 | (6.0)% | | Operating ratio | 74.6% | 71.9% | 2.7 ppt | 75.0% | 72.7% | 2.3 ppt | | Net income (in thousands) | $268,626 | $322,045 | (16.6)% | $523,286 | $614,349 | (14.8)% | | Diluted earnings per share | $1.27 | $1.48 | (14.2)% | $2.46 | $2.82 | (12.8)% | | LTL tons per day | 33,178 | 36,560 | (9.3)% | 33,157 | 35,970 | (7.8)% | | LTL shipments per day | 44,907 | 48,444 | (7.3)% | 44,738 | 47,687 | (6.2)% | | LTL revenue per hundredweight | $32.84 | $31.77 | 3.4% | $32.76 | $31.87 | 2.8% | | LTL revenue per hundredweight (excl. fuel surcharges) | N/A | N/A | 5.3% | N/A | N/A | 4.7% | | Average length of haul (miles) | 912 | 918 | (0.7)% | 914 | 919 | (0.5)% | - Revenue **decreased** due to lower LTL volumes (tonnage per day down **9.3%** in Q2 2025), reflecting continued softness in the domestic economy[61](index=61&type=chunk)[62](index=62&type=chunk) - LTL revenue per hundredweight **increased by 3.4%** in Q2 2025 (**5.3%** excluding fuel surcharges), driven by the company's yield management strategy to offset cost inflation[63](index=63&type=chunk) - Salaries, wages, and benefits **decreased** due to a **4.8% reduction** in average active full-time employees, balancing the workforce with current shipping trends, but productive labor costs as a percent of revenue **increased** due to decreased network density[65](index=65&type=chunk)[66](index=66&type=chunk) - Operating supplies and expenses **decreased** due to lower diesel fuel costs (average cost per gallon down **10.9%** in Q2 2025) and reduced maintenance and repair costs from fleet improvements[68](index=68&type=chunk) - Depreciation and amortization costs **increased by 7.2%** in Q2 2025, primarily due to assets acquired through 2024 and 2025 capital expenditure programs, with further increases expected[69](index=69&type=chunk) - For July 2025, **revenue per day decreased 4.5%**, **LTL tons per day decreased 8.3%**, while **LTL revenue per hundredweight increased 4.2% (4.6% excluding fuel surcharges)** compared to July 2024[64](index=64&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's sources of liquidity, capital expenditure plans, dividend policy, and compliance with financial covenants - Primary liquidity sources include **cash flows from operations**, **existing cash**, and **available borrowings** under the Credit Agreement and Note Agreement[73](index=73&type=chunk) Net Capital Expenditures for Property and Equipment (in thousands) | Category | Six Months Ended June 30, 2025 | Year Ended December 31, 2024 | Year Ended December 31, 2023 | | :---------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Land and structures | $120,613 | $373,416 | $291,070 | | Tractors | $104,949 | $218,682 | $203,417 | | Trailers | $20,784 | $103,919 | $181,534 | | Technology | $8,283 | $28,037 | $44,358 | | Other equipment and assets | $20,684 | $47,264 | $36,930 | | Less: Proceeds from sales | $(7,062) | $(20,124) | $(48,637) | | **Total** | **$268,251** | **$751,194** | **$708,672** | - Estimated capital expenditures for 2025 are approximately **$450 million**, allocated to service center facilities (**$210 million**), tractors and trailers (**$190 million**), and technology/other assets (**$50 million**)[76](index=76&type=chunk) - The company intends to pay a quarterly cash dividend, with the 2025 dividend declared at **$0.28 per share**, an increase from **$0.26 per share** in 2024[80](index=80&type=chunk)[81](index=81&type=chunk) - The Credit Agreement and Note Agreement contain financial covenants, including a **maximum debt to total capital ratio** and a **minimum fixed charge coverage ratio**, with the company **in compliance** as of June 30, 2025[47](index=47&type=chunk)[88](index=88&type=chunk) [Critical Accounting Policies](index=24&type=section&id=Critical%20Accounting%20Policies) States that the company continues to apply the same critical accounting policies as outlined in its previous annual report - The company applied the **same critical accounting policies** as described in its Annual Report on Form 10-K for the year ended December 31, 2024[91](index=91&type=chunk) [Seasonality](index=24&type=section&id=Seasonality) Explains how the company's tonnage levels, revenue mix, and operating margins are affected by seasonal trends, particularly during winter months - The company's tonnage levels and revenue mix are **subject to seasonal trends**, with **lower revenue and operating margins** typically in the first and fourth quarters due to reduced shipments during winter months[92](index=92&type=chunk) [Environmental Regulation](index=24&type=section&id=Environmental%20Regulation) Addresses the company's compliance with environmental laws and regulations and the expected financial impact of future compliance costs - The company is subject to various federal, state, and local environmental laws and regulations but **does not believe the cost of future compliance will have a material adverse effect** on its operations or financial condition for fiscal year 2025[93](index=93&type=chunk) [Forward-Looking Information](index=24&type=section&id=Forward-Looking%20Information) Highlights that the report contains forward-looking statements subject to risks and uncertainties, advising caution against undue reliance - The report contains **forward-looking statements subject to risks and uncertainties**, including those detailed in the Annual Report on Form 10-K, such as economic downturns, changes in customer relationships, and increased operating costs[94](index=94&type=chunk)[95](index=95&type=chunk) - The company cautions readers **not to place undue reliance** on forward-looking statements, as **actual results may differ materially** from expectations, and undertakes no obligation to update them[97](index=97&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes to the company's market risk exposures have occurred since the most recent fiscal year-end - **No material changes** to market risk exposures have occurred since the fiscal year ended December 31, 2024[98](index=98&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were **effective** as of June 30, 2025[99](index=99&type=chunk) - There were **no material changes** in internal control over financial reporting during the last fiscal quarter[100](index=100&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings but does not expect a material adverse effect on its financial condition, with no significant environmental sanctions disclosed - The company **does not believe that the resolution of current legal proceedings and claims will have a material adverse effect** on its financial position, results of operations, or cash flows[103](index=103&type=chunk) - **No environmental legal proceedings** with potential monetary sanctions of **$1.0 million or more** were disclosed as of June 30, 2025[104](index=104&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors identified in the Annual Report on Form 10-K for the year ended December 31, 2024 - **No material changes** to the risk factors identified in the Annual Report on Form 10-K for the year ended December 31, 2024[106](index=106&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 1,362,457 shares in Q2 2025 at an average of $157.98 per share, with $1.85 billion remaining under the 2023 Repurchase Program Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs | | :--- | :--- | :--- | :--- | | April 1-30, 2025 | 524,230 | $153.22 | $1,981,442,081 | | May 1-31, 2025 | 466,063 | $161.03 | $1,906,723,150 | | June 1-30, 2025 | 372,164 | $160.86 | $1,847,200,093 | | **Total** | **1,362,457** | **$157.98** | | - As of June 30, 2025, **$1.85 billion** remained authorized under the 2023 Repurchase Program, which has no expiration date[109](index=109&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by Board members or Section 16 officers in Q2 2025 - **No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements** were adopted or terminated by Board members or Section 16 officers during the three months ended June 30, 2025[110](index=110&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the report, including credit agreement amendments, stock incentive plans, and certifications [Exhibit Index](index=31&type=section&id=Exhibit%20Index) Provides an index of key documents filed as exhibits, such as credit agreement amendments and stock incentive plans - Key exhibits include the **Second Amendment to Third Amended and Restated Credit Agreement** (May 23, 2025), **Old Dominion Freight Line, Inc. 2025 Stock Incentive Plan**, and related award agreements[114](index=114&type=chunk) [Signatures](index=32&type=section&id=Signatures) The report was signed on August 6, 2025, by the Executive Vice President and CFO, and the Vice President - Accounting and Finance - The report was signed on **August 6, 2025**, by **Adam N. Satterfield (EVP and CFO)** and **Clayton G. Brinker (VP - Accounting and Finance)**[118](index=118&type=chunk)

Core Viewpoint - A group of Wall Street analysts has identified several undervalued stocks in the transportation sector, particularly in trucking, presenting potential investment opportunities for investors [2][3]. Group 1: Saia Inc. (NASDAQ: SAIA) - Saia Inc. is highlighted as having the deepest discount relative to its 52-week high, with a current price of $299.08 and a 12-month price forecast of $347.16, indicating a potential upside of 16.08% [3][5]. - The stock's significant gap from its 52-week high suggests limited downside risk, as further declines would require unforeseen negative events [3][4]. - Analysts believe that current trade tariffs may enhance domestic production and consumption, making Saia stock an attractive investment at its current discount [5]. Group 2: Old Dominion Freight Line Inc. (NASDAQ: ODFL) - Old Dominion's stock has seen a decline of 15.4% following a slight earnings miss, reporting $1.27 EPS against an estimate of $1.29 [7][8]. - Despite the recent sell-off, analysts project a recovery, with expectations of $1.71 EPS for Q2 2026, providing a fundamental basis for a potential rebound [8][10]. - The stock currently trades at 62% of its 52-week high, with a consensus price target of $167.62, suggesting a potential upside of 13.37% [6][9]. Group 3: XPO Logistics Inc. (NYSE: XPO) - XPO Logistics has experienced a 10% decline recently, trading at 74% of its 52-week high, which has attracted buyers looking for value [11][12]. - The stock has a current price of $120.40, with a 12-month price forecast of $138.00, indicating a potential upside of 14.62% [11]. - Analysts note that XPO's premium valuation, with a P/E ratio of 41.3, reflects investor confidence in its ability to outperform peers, particularly due to its exposure to Canadian and European markets [13][14][15].