Financial Data and Key Metrics Changes - Old Dominion's revenue for Q1 2025 was $1.37 billion, reflecting a 5.8% decrease from the prior year, driven by a 6.3% decrease in LTL tons per day, partially offset by a 2.2% increase in LTL revenue per hundredweight [20][22] - The operating ratio increased by 190 basis points to 75.4% due to revenue decline impacting operating expenses, contributing to a 130 basis point increase in overhead costs as a percentage of revenue [23][24] - Cash flow from operations totaled $336.5 million, with capital expenditures at $88.1 million, and $201.1 million utilized for share repurchase [28] Business Line Data and Key Metrics Changes - The company experienced a 5% decline in LTL shipments per day, but improved platform shipments per hour and P&D shipments per hour [10][20] - The monthly sequential changes in LTL tons per day showed a decrease of 3.8% in January, an increase of 1.9% in February, and an increase of 4.8% in March [21] Market Data and Key Metrics Changes - The company maintained a market share of approximately 12% to 13% during the downturn, indicating resilience in a challenging environment [45] - The company noted that retail accounts for about 25% to 30% of its business, with expectations for continued growth in this segment due to the shift towards e-commerce [62] Company Strategy and Development Direction - The company remains focused on executing its long-term strategic plan, emphasizing operational efficiency and cost control to protect its operating ratio [9][12] - Capital expenditures for 2025 are expected to total approximately $450 million, a reduction of $125 million from the initial plan, reflecting a cautious approach amid economic uncertainty [25][26] - The company believes that investing through the economic cycle is crucial for long-term market share gains [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism based on customer feedback and improving macroeconomic indicators, although uncertainty remains regarding the overall economic recovery [13][14] - The management team highlighted the importance of maintaining superior service and disciplined yield management to support long-term growth [11][18] Other Important Information - The effective tax rate for Q1 2025 was 24.8%, a decrease from 25.6% in Q1 2024, with expectations to remain the same for Q2 2025 [28] Q&A Session Summary Question: Can you provide insights on seasonality and the potential impact of ongoing economic conditions? - Management indicated that the typical sequential increase in margins from Q1 to Q2 is based on revenue growth, which is uncertain given current economic conditions [34][36] Question: What is the breakdown of April's revenue per day and any changes in pricing environment? - Management noted that April's revenue per day is impacted by the timing of holidays, with weight per shipment dropping slightly, but they remain committed to their long-term yield management strategy [40][44] Question: How does the company view the impact of retail customers and competition in the LTL market? - Management sees retail as a significant opportunity, especially with the growth of e-commerce, and believes they can leverage their superior service to capture market share [62][65] Question: What are the expectations for capital expenditures and their relation to macroeconomic conditions? - Management clarified that the reduction in capital expenditures is a strategic decision to navigate economic uncertainty while still preparing for future growth [25][52] Question: How does the company plan to maintain pricing power amid competitive pressures? - Management emphasized their consistent approach to yield management and the importance of demonstrating value to customers to justify price increases [80][104]

Financial Data and Key Metrics Changes - Old Dominion's revenue for Q1 2025 was $1.37 billion, a decrease of 5.8% year-over-year, attributed to a 6.3% decline in LTL tons per day, partially offset by a 2.2% increase in LTL revenue per hundredweight [16][18] - The operating ratio increased by 190 basis points to 75.4% due to revenue decline impacting operating expenses [18] - Cash flow from operations totaled $336.5 million, with capital expenditures at $88.1 million and share repurchase program utilizing $201.1 million [21] Business Line Data and Key Metrics Changes - LTL tons per day decreased by 6.3%, with a sequential decrease of 3.5% compared to Q4 2024 [16] - Platform shipments per hour and PND shipments per hour improved despite a 5% decline in LTL shipments per day [7][8] - Employee benefit costs increased to 38.2% of salaries and wages from 35.6% in Q1 2024 [20] Market Data and Key Metrics Changes - The company experienced a 5% decline in LTL shipments per day, but saw signs of improved demand in February and March, aligning with normal seasonality [10][16] - The company maintained a market share of 12% to 13% during the downturn [37] Company Strategy and Development Direction - The company remains focused on maximizing operating efficiencies and reducing discretionary spending to protect the operating ratio [7] - Long-term growth strategy includes balancing operating density and yield management, with a commitment to investing through economic cycles [19][20] - The company plans to defer certain capital projects and reduce new equipment purchases, expecting capital expenditures to total approximately $450 million in 2025, down from initial plans [20] Management's Comments on Operating Environment and Future Outlook - Management noted continued softness in the domestic economy but expressed cautious optimism based on customer feedback and improving macroeconomic data [9][10] - The company is focused on controlling factors within its control, such as executing its long-term strategic plan and maintaining high service levels [12][13] - Management acknowledged uncertainty in the economy but remains committed to long-term profitable growth and market share expansion [13][19] Other Important Information - The effective tax rate for Q1 2025 was 24.8%, down from 25.6% in Q1 2024, with expectations to remain the same for Q2 2025 [21] - The company achieved 99% on-time service performance and a cargo claims ratio below 0.1% [8] Q&A Session Summary Question: Can you provide insights on seasonality and potential impacts of ongoing economic conditions? - Management indicated that typical seasonality shows a 300 to 350 basis point sequential increase from Q1 to Q2, but current expectations are for a more muted increase due to economic uncertainty [27][28] Question: What is the breakdown of April's revenue performance? - Management refrained from providing detailed breakdowns due to the impact of the Good Friday holiday but noted a drop in weight per shipment and anticipated revenue per hundredweight to be in the 5% to 5.5% range for the quarter [34][36] Question: How does the company view the impact of retail customers on LTL? - Management stated that retail accounts for 25% to 30% of their business and sees opportunities for growth as e-commerce expands, emphasizing their superior service as a competitive advantage [51][54] Question: What are the expectations regarding pricing and competitive dynamics? - Management expressed confidence in maintaining pricing power and successfully achieving yield increases, despite competitive pressures [63][64] Question: How does the company plan to address potential changes in the NFC? - Management believes that changes in the NFC will not materially impact yields, as they focus on understanding costs and pricing appropriately [84]