Financial Data and Key Metrics Changes - Old Dominion's revenue for Q3 2025 was $1.41 billion, a 4.3% decrease from Q3 2024, primarily due to a 9% decrease in LTL tons per day, partially offset by a 4.7% increase in LTL revenue per hundredweight [6][12] - The operating ratio increased by 160 basis points to 74.3% due to the deleveraging effect from decreased revenue [12][14] - Cash flow from operations totaled $437.5 million for Q3 and $1.1 billion for the first nine months of 2025 [15] Business Line Data and Key Metrics Changes - LTL tons per day decreased by 9%, with a sequential decrease of 2.9% compared to Q2 2025 [12] - LTL shipments per day decreased by 1.6% sequentially [12] - Direct costs as a percentage of revenue remained flat compared to Q3 2024 due to improved yields and operational efficiencies [14] Market Data and Key Metrics Changes - October month-to-date revenue per day is down approximately 6.5%-7% compared to October 2024, with a decrease of 11.6% in LTL tons per day [12][20] - The company expects a sequential increase in operating ratio of about 250 to 350 basis points for Q4 2025, depending on revenue recovery [20] Company Strategy and Development Direction - The company remains focused on delivering superior service at a fair price, investing in service centers, equipment, technologies, and workforce [7][10] - Old Dominion aims to maintain its market share and is confident in its ability to win profitable market share and increase shareholder value over the long term [10][63] Management's Comments on Operating Environment and Future Outlook - Management noted continued softness in the domestic economy and emphasized the importance of controlling costs and maintaining service quality [6][8] - The company is prepared for a potential market recovery and believes it is well-positioned to capitalize on future growth opportunities [38][63] Other Important Information - Old Dominion was named the number one national LTL provider for the 16th consecutive year, outperforming competitors in 23 out of 28 service and value-related attributes [9][10] - The effective tax rate for Q3 2025 was 24.8%, with expectations to remain the same for Q4 2025 [15][16] Q&A Session Summary Question: What is the outlook for demand in October? - Management indicated that tonnage is underperforming seasonality, with expectations of a sequential increase in operating ratio due to revenue trends [19][20] Question: How are salaries and wages impacting operating ratio? - Salaries, wages, and benefits decreased as a percentage of revenue, partly due to a 6% reduction in headcount compared to the previous year [24][25] Question: What is the current capacity position? - The company is operating with excess capacity above the target of 20%-25%, currently estimated at over 30% [30][31] Question: What are the dynamics of market share and pricing? - Old Dominion has maintained a consistent revenue market share of approximately 11.8% over the past three years, despite a challenging macro environment [42][43] Question: How is the company managing pricing in a competitive environment? - The company continues to implement general rate increases and maintains pricing discipline, with a 5% yield increase in October [56][58]