Old Dominion Freight Line (ODFL) shares tumbled 5.56% in pre-market trading on Wednesday following the release of its second-quarter earnings report, which fell short of analysts' expectations. The less-than-truckload (LTL) carrier reported a significant decline in both revenue and earnings per share, reflecting the challenges posed by a soft domestic economy.

For the second quarter of 2025, Old Dominion reported earnings per diluted share of $1.27, down 14.2% from $1.48 in the same period last year and below the analyst consensus estimate of $1.29. The company's revenue also disappointed, coming in at $1.41 billion, a 6.1% decrease from the previous year and slightly below the expected $1.42 billion. The decline in revenue was primarily attributed to a 9.3% decrease in LTL tons per day, driven by lower shipments and reduced weight per shipment.

Despite the challenging economic environment, Old Dominion maintained its focus on yield management, reporting a 5.3% increase in LTL revenue per hundredweight, excluding fuel surcharges. However, this was not enough to offset the impact of lower volumes and increased operating costs. The company's operating ratio increased by 270 basis points to 74.6%, reflecting the pressure on profitability. Looking ahead, Old Dominion expects capital expenditures for 2025 to total approximately $450 million, with $210 million allocated for real estate and service center expansion, signaling its commitment to long-term growth despite near-term headwinds.