Financial Data and Key Metrics Changes - Old Dominion's revenue totaled $1.41 billion for Q2 2025, reflecting a 6.1% decrease from the prior year, driven by a 9.3% decrease in LTL tons per day, partially offset by a 3.4% increase in LTL revenue per hundredweight [13][7] - The operating ratio increased by 270 basis points to 74.6% for Q2 2025, primarily due to the deleveraging effect of decreased revenue on operating expenses [16][11] - Cash flow from operations was $285.9 million for Q2 and $622.4 million for the first half of 2025, with capital expenditures of $187.2 million and $275.3 million for the same periods [18] Business Line Data and Key Metrics Changes - LTL tons per day decreased by 9.3%, while LTL shipments per day increased by 0.8% sequentially [13] - Monthly sequential changes in LTL tons per day showed a decrease of 3.7% in April, an increase of 0.5% in May, and a decrease of 0.6% in June [14] Market Data and Key Metrics Changes - Current month-to-date revenue per day for July is down 5.1% compared to July 2024, with an 8.5% decrease in LTL tons per day [15] - The company expects to see a slight improvement in revenue performance in July compared to Q2, with cautious optimism for the latter half of the quarter [46] Company Strategy and Development Direction - The company remains focused on delivering superior service and maintaining market share during economic downturns, with ongoing investments in network and technology to prepare for future demand increases [8][10] - Old Dominion aims to leverage its unique culture and commitment to service excellence to capture market share as demand improves [12][30] Management's Comments on Operating Environment and Future Outlook - Management noted continued softness in the domestic economy but expressed confidence in the company's ability to produce profitable revenue growth and drive shareholder value in the long term [7][12] - The management team highlighted the importance of maintaining discipline in pricing and service quality to navigate the current economic challenges [10][51] Other Important Information - The effective tax rate for 2025 was 24.8%, with expectations to remain the same for Q3 [18] - The company has been actively managing costs, with a focus on controlling variable costs despite increased overhead expenses [17][78] Q&A Session Summary Question: Thoughts on operating ratio progression from Q2 to Q3 - Management expects an increase in operating ratio by 80 to 120 basis points due to flat revenue and increased costs in salary, wages, and benefits [21][22] Question: Market share commentary amidst positive ATA shipment index - Management believes their market share remains consistent, focusing on maintaining share during economic weakness while increasing yields [29][30] Question: Pressure on operating supplies and expenses - Management noted good performance in repairs and maintenance but anticipates pressures from fuel costs and fringe benefits in Q3 [34][38] Question: Pricing outlook for Q3 - Management expects yield ex-fuel to increase by 4% to 4.5% in Q3, maintaining discipline in pricing despite competitive pressures [51][52] Question: Competitive environment and market share - Management acknowledged competition but emphasized their strong service offering and ability to maintain market share during downturns [58][60] Question: Impact of prolonged soft demand on strategy - Management remains committed to their strategy, focusing on cost management and service quality while waiting for demand recovery [75][78]

All right. So, friends, if you don't mind, I want to go back to the quarter. Um, big metric for you is your operating ratio.It's an efficiency metric. So, the lower the better. It increased quite significantly year-over-year. Last year it was 8.33%. This year 87.8%.What does that signify about the less than truckload business. Well, I think it's a little bit about the SCIA story specifically. Uh, last year we uh were in the midst of an organic expansion.We added 21 facilities and you know that those are inv ...