Old Dominion Freight Line (ODFL) shares tumbled 5.56% in pre-market trading on Wednesday following the release of its second-quarter 2025 financial results. The company reported earnings and revenue that fell short of analyst expectations, reflecting challenges in the freight industry and broader economic headwinds.
The less-than-truckload (LTL) carrier posted 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 net income also fell to $268.63 million.
Old Dominion attributed the disappointing results to a soft domestic economy impacting demand for its services. The company reported a 9.3% decrease in LTL tons per day due to lower shipments and reduced weight per shipment. Despite these challenges, Old Dominion managed to increase its LTL revenue per hundredweight by 5.3%, excluding fuel surcharges, which helped to partially offset the impact of cost inflation. However, the operating ratio increased by 270 basis points to 74.6%, influenced by the revenue decline and increased overhead and direct operating costs.
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. The company remains focused on yield management and enhancing its value proposition despite the current economic challenges. Marty Freeman, President and CEO, emphasized the company's commitment to maintaining market share and superior service quality, positioning Old Dominion to capitalize on future demand improvements.
The pre-market plunge reflects investor concerns about the company's ability to navigate the challenging freight market environment and the potential for continued pressure on earnings in the coming quarters. As the market opens, traders will be closely watching Old Dominion's stock performance and any further commentary from management regarding the outlook for the remainder of the year.
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