Shares of Old Dominion Freight Line (ODFL) plummeted 6.05% in pre-market trading on Wednesday following the release of its disappointing second-quarter 2025 financial results. The less-than-truckload (LTL) carrier reported earnings and revenue that fell short of analyst expectations, reflecting the ongoing challenges in the freight industry and broader economic headwinds.

Old Dominion reported earnings per share of $1.27, down 14.2% from $1.48 in the same quarter last year and below the analyst consensus estimate of $1.29. Revenue for the quarter declined 6.1% year-over-year to $1.41 billion, missing the expected $1.42 billion. The company's performance was significantly impacted by a 9.3% decrease in LTL tons per day, driven by lower shipments and reduced weight per shipment.

The disappointing results were attributed to a soft domestic economy and a prolonged freight recession, which has entered its third year. Old Dominion's operating ratio increased by 270 basis points to 74.6%, reflecting pressure on profitability due to revenue decline and increased operating costs. Despite these challenges, the company managed to increase its LTL revenue per hundredweight by 5.3%, excluding fuel surcharges, partially offsetting the impact of lower volumes. Looking ahead, Old Dominion remains committed to its long-term strategic plan, with expected capital expenditures of $450 million for 2025, including $210 million allocated for real estate and service center expansion.