Old Dominion Freight Line, Inc.

Revenue and Earnings Decline: Old Dominion reported a revenue of $1.37 billion for Q1 2025, reflecting a 5.8% decrease year-over-year (YOY) and a decline in LTL (Less Than Truckload) tons per day of 6.3%. This downside is attributed to continued softness in the domestic economy, though revenue per hundredweight did increase by 2.2%.

Operating Ratio and Cost Management: The operating ratio increased by 190 basis points to 75.4%, exhibiting deleveraging due to reduced revenue impacting fixed costs. The management emphasized ongoing efforts to control expenses, particularly with overhead costs rising, and a commitment to maintaining efficient operations despite the difficult environment.

Investment Strategy: Old Dominion continues to invest heavily in capital expenditures, totaling $1.5 billion over the last two fiscal years, focusing on network enhancements despite some deferrals of projects to future periods. The company plans to reduce CapEx by $125 million for 2025 to adjust to ongoing economic uncertainties, expecting total capital expenditures around $450 million.