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August 15, 2025 • 4 min read
Old Dominion Freight Line (ODFL), one of North America's largest Less-Than-Truckload (LTL) carriers, is a critical player in the logistics network, specializing in moving freight that doesn't require a full truck. In its latest quarterly report filed with the SEC, the company provides a detailed look at its performance through mid-2025. Let's dive into the numbers to see how the freight giant is navigating the current economic landscape.
The headline story from Old Dominion's second quarter is a slowdown in business, which the company attributes to "continued softness in the domestic economy."
Revenue for the second quarter of 2025 came in at $1.41 billion, a 6.1% decrease from the $1.50 billion reported in the same period last year. This trend holds for the first half of the year, with revenue down 6.0%.
The dip in revenue is a direct result of lower shipping volumes. Key operating metrics tell the story:
These figures indicate that customers were shipping less freight, a common sign of broader economic cooling. However, a key bright spot was the company's pricing discipline. LTL revenue per hundredweight, a measure of pricing, actually increased by 3.4%. Excluding the effect of lower fuel surcharges, this metric was up an impressive 5.3%, showcasing ODFL's ability to command strong pricing for its highly-regarded service, even in a weaker market.
With revenue down, the focus shifts to profitability. How did Old Dominion manage its costs? The company's operating ratio—a key industry metric calculated by dividing operating expenses by revenue (lower is better)—rose to 74.6% from 71.9% a year ago. This means a larger portion of every dollar earned was spent on operations, a deleveraging effect caused by the lower revenue base.
This ultimately led to a 16.6% decline in net income, which landed at $268.6 million for the quarter. To better visualize how the company's revenue translates into profit, the following flow diagram breaks down the major income and expense categories for the second quarter of 2025.
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As the diagram shows, "Salaries, wages and benefits" remains the largest expense category at $672 million, followed by "Operating supplies and expenses" at $142 million.
Despite the near-term headwinds, Old Dominion's financial strategy reveals a company with a firm eye on the long-term. While it has prudently scaled back capital spending—investing $268 million in the first half of 2025 compared to $383 million in 2024—it continues to pour money into its network of service centers and its fleet.
At the same time, the company has been aggressively returning capital to its shareholders. In the second quarter alone, Old Dominion:
This continues a substantial shareholder return program. The company has a $3.0 billion share repurchase program in place, with $1.85 billion still authorized as of June 30, 2025. This strong commitment to buybacks signals management’s confidence in the company's intrinsic value and future prospects.
Old Dominion's latest filing paints a picture of a premier operator skillfully managing a cyclical downturn. While lower freight volumes have impacted revenue and profitability, the company’s strong pricing power and reputation for service (boasting 99% on-time delivery and a 0.1% cargo claims ratio) provide a significant competitive advantage.
The company's continued investment in its business, combined with a robust shareholder return policy, underscores a balanced approach to navigating the present while building for the future. An early look at July 2025 shows revenue per day down 4.5%, suggesting the soft market conditions are persisting. For now, Old Dominion appears well-positioned to weather the economic bumps and emerge stronger when demand inevitably picks up again.
Last updated: August 15, 2025