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 [11][12] - The operating ratio increased by 270 basis points to 74.6% for 2025, influenced by revenue decline and a 160 basis point increase in overhead costs as a percentage of revenue [13][14] - 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 [15][16] Business Line Data and Key Metrics Changes - LTL tons per day decreased by 9.3%, while LTL revenue per hundredweight increased by 3.4% [11] - 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 [12] 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 [12] - The company expects to see a slight improvement in July compared to Q2, with a cautious optimism for the latter half of the quarter [42][44] 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, technology, and employee development [6][10] - The strategy emphasizes individual account level profitability and disciplined pricing to offset cost inflation [8][9] - The company aims to be the largest market share winner over the next decade, positioning itself to respond effectively to demand improvements [10] 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 [5][10] - The management team highlighted the importance of maintaining service excellence and managing costs effectively during uncertain demand periods [9][77] - There is optimism regarding potential economic recovery, with expectations that macro factors will stabilize and create opportunities for growth [30][52] Other Important Information - The effective tax rate for 2025 was 24.8%, slightly up from 24.5% in 2024, with expectations to remain the same for Q3 [16] - The company utilized $223.5 million for share repurchase during Q2 2025 [16] Q&A Session Summary Question: Thoughts on operating ratio progression from Q2 to Q3 - The company expects an increase in operating ratio by 80 to 120 basis points due to flat revenue and increased costs in salary, wages, and benefits [19][20] Question: Market share commentary and competitive positioning - Management believes their market share remains consistent despite economic weakness, focusing on maintaining share and increasing yields [28][30] Question: Pressure on operating supplies and expenses - The company experienced good performance in managing repairs and maintenance costs, but anticipates pressure from fuel costs and employee benefits in Q3 [32][36] Question: Pricing outlook for Q3 - The yield ex-fuel is expected to increase by 4% to 4.5%, reflecting consistent pricing discipline in the market [48][49] Question: Competitive environment and market share - Management noted that while competition exists, their service quality and reliability remain unmatched, particularly in high-service segments [56][61] Question: Long-term outlook and incremental margins - The company expects to achieve 35% to 40% incremental margins when demand improves, with a focus on maintaining a sub-70% operating ratio in the long term [100][101]

Financial Data and Key Metrics Changes - The first quarter revenue reached $787.6 million, an increase of 4.3% compared to the same quarter last year [5][11] - The operating ratio for the first quarter was 91.1%, deteriorating by 670 basis points from 84.4% in the previous year [9][16] - Diluted earnings per share were $1.86, down from $3.38 in the first quarter of the previous year [17] Business Line Data and Key Metrics Changes - Tonnage increased by 11%, driven by a 2.9% increase in shipments and a 7.8% increase in average weight per shipment [12] - Revenue per shipment, excluding fuel surcharge, increased by 2.3% to $300.76 compared to $293.96 in the first quarter of the previous year [11] - Yield excluding fuel surcharge declined by 5.1%, while yield including fuel surcharge decreased by 5.8% [11] Market Data and Key Metrics Changes - Newer markets contributed significantly to growth, with the majority of shipment growth coming from facilities opened in the last three years [18] - Legacy facilities experienced a slight decline in shipments from February to March, contrasting with the expected seasonal increase [6][7] Company Strategy and Development Direction - The company plans to focus on execution and leveraging investments made in the network over the past few years [5] - Management emphasized the importance of maintaining service levels and optimizing pricing and mix to adapt to the current macroeconomic environment [10][19] Management Comments on Operating Environment and Future Outlook - Management noted that customers are cautious and adopting a wait-and-see approach due to the uncertain macro environment [8][19] - Despite challenges, management remains confident in the long-term growth opportunities and the value proposition of the company [19] Other Important Information - The company opened 21 new terminals in the past year, which are expected to enhance service offerings and operational efficiencies over time [18] - Adverse weather conditions in the first quarter led to significant operational disruptions, impacting key markets such as Atlanta, Dallas, and Houston [8][16] Q&A Session Summary Question: What is the current pricing environment? - Management indicated that while there is pressure on yield metrics due to weight per shipment, they remain focused on pricing and believe the environment is consistent with past experiences [22][25] Question: What are the drivers affecting revenue per shipment? - The majority of growth is coming from newer markets, which have different pricing dynamics compared to legacy markets, affecting overall revenue per shipment [27][28] Question: How does the company plan to manage costs in a slower demand backdrop? - Management is actively looking at cost actions and network optimization to align resources with available freight [41][42] Question: What is the visibility on volume and customer sentiment? - Management noted that customer sentiment is cautious, with a wait-and-see approach impacting volume forecasts [46][48] Question: What are the year-over-year trends in legacy terminals? - Shipments in legacy markets were down year-over-year, reflecting broader macroeconomic trends [53] Question: How does the company interpret realized pricing versus contractual renewals? - Management clarified that while contractual renewals show strong metrics, actual realization may differ due to customer options and market conditions [65]