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]

Financial Data and Key Metrics Changes - Companywide revenue for Q1 2025 was $2 billion, down 3% year over year but up 2% sequentially from Q4 2024 [17] - Adjusted EBITDA was $278 million, down 3% year over year [20] - Adjusted diluted EPS was $0.73, exceeding expectations [5] - Net income grew by 3% to $69 million, representing diluted EPS of $0.58 [21] Business Line Data and Key Metrics Changes - LTL segment revenue was down 4% year over year and up 1% sequentially, with adjusted EBITDA for LTL at $250 million, down 2% [17][20] - Yield excluding fuel grew by 6.9% year over year, marking an acceleration from the prior quarter [10] - The damage claims ratio was 0.3%, a record low for the company [7][69] Market Data and Key Metrics Changes - Total shipments per day in the LTL segment were down 5.8% year over year, with tonnage per day down 7.5% [24] - In Europe, revenue increased by 2% year over year on a constant currency basis, with adjusted EBITDA growing by 19% sequentially [27] Company Strategy and Development Direction - The company is focused on maintaining high returns through investments in network capacity and technology, including proprietary AI applications [15][14] - The goal is to achieve 30% of revenue from local accounts, currently at low to mid-twenty percent [75] - The company aims for margin improvement despite a challenging freight market, with expectations of 150 basis points of improvement for the full year [36][46] Management's Comments on Operating Environment and Future Outlook - Management noted a fluid environment with challenges in predicting macroeconomic conditions, but remains optimistic about margin improvement [35] - The company expects to manage costs effectively and maintain productivity even if tonnage declines [41] - There is cautious sentiment among customers regarding demand in the back half of the year, but the company is positioned to capture market share when conditions improve [80] Other Important Information - The company has authorized a share repurchase of up to $750 million, indicating a commitment to returning capital to shareholders [23] - The net debt leverage ratio improved to 2.5 times trailing twelve months adjusted EBITDA [22] Q&A Session Summary Question: Update on full year guidance and second quarter expectations - Management expects to deliver 150 basis points of margin improvement despite negative tonnage, driven by strong yield performance and effective cost management [35][36] Question: Clarification on volume dynamics and potential share loss - Management estimates a 15% to 16% decline in overall industry volumes since pre-COVID, attributing it to softer industrial demand rather than significant share loss [48][49] Question: Pricing environment and competitive threats - The company continues to see a constructive pricing environment, with renewals up mid to high single digits [90] - Management does not view threats from UPS or Amazon as material, citing differences in service offerings and market focus [92][95]

Financial Data and Key Metrics Changes - Consolidated revenue decreased by 7% year-over-year to $967 million, with non-GAAP operating income from continuing operations at $17 million compared to $43 million in the prior year [22] - Adjusted earnings per share were $0.51, down from $1.34 in Q1 2024 [22] - The Asset Based segment saw a $27 million decrease in operating income, while the Asset Light segment's non-GAAP operating loss improved by $4 million year-over-year [22] Business Line Data and Key Metrics Changes - Asset Based business revenue was $646 million, a daily decrease of 3%, with an operating ratio of 95.9%, an increase of 390 basis points year-over-year [23] - Daily shipments in the Asset Based segment were flat year-over-year, while weight per shipment decreased by 4%, leading to a 4% decrease in tons per day [23] - Asset Light segment revenue was $356 million, a daily decrease of 9%, with shipments per day down 4% [28] Market Data and Key Metrics Changes - In April 2025, the Asset Based business achieved a 4% year-over-year increase in daily shipments, despite a 3% decrease in weight per shipment [26] - The pricing environment remains rational, with a 4.9% average increase on contract renewals during the quarter [25][51] - The company anticipates a non-GAAP operating loss for the Asset Light segment of between $1 million and $2 million for Q2 2025 [30] Company Strategy and Development Direction - The company is focused on driving profitable growth, advancing premium service for customers, and optimizing efficiency [11] - Investments in technology and operational efficiency are expected to enhance service levels and reduce costs [89] - The company is adapting to changes in trade policies and tariffs, aiming to support customers in navigating these challenges [5][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value despite challenges in the freight environment [10] - The leadership team highlighted a disciplined approach to pricing and operational efficiency to outpace rising costs [25][66] - Management noted that customer relationships remain strong, with 80% of revenue coming from long-term customers [67] Other Important Information - The company has a capital expenditure guidance of $225 million to $275 million for 2025, focusing on maintenance and strategic investments [30] - Approximately $350 million in available liquidity is reported, indicating a strong balance sheet [31] Q&A Session Summary Question: Near term setup and profitability outlook - Management expects normal seasonality to drive revenue increases and continues to target cost reductions aligned with business levels [34][36] Question: Tonnage and revenue per hundredweight trends - Management noted a 1% sequential increase in tonnage but a 1% decrease in revenue per hundredweight, attributing this to a mix of easier-to-handle shipments [38][66] Question: Pricing environment and competitive landscape - Management indicated that the pricing environment remains rational, with no significant pressure from competitors to lower prices [51][52] Question: Retail exposure and inbound traffic from China - The company has around 10% exposure to the retail sector, with varying impacts from inbound traffic from China [78] Question: Strategies in a stagflation environment - Management emphasized operational efficiencies and strategic investments to navigate inflationary pressures while maintaining service levels [88][91]