Old Dominion misses quarterly estimates as freight slump drags on (updated)

Old Dominion Freight Line

30/07/2025 17:48

Adds CEO comments in paragraphs 4, 7 and analyst comment in paragraph 9

By Abhinav Parmar

July 30 (Reuters) - Old Dominion Freight Line ODFL.O reported second-quarter revenue and profit below Wall Street estimates on Wednesday, as demand for its freight services remained muted against a tough macroeconomic backdrop.

Shares of the Thomasville, North Carolina-based less-than-truckload (LTL) carrier, which caters to companies in the retail, manufacturing, automotive and healthcare sectors, were down about 9% in afternoon trading.

The U.S. trucking industry has now endured three years of a freight recession, as it continues to struggle with prolonged low freight volumes and persistent overcapacity, both of which have pushed rates lower.

"Old Dominion continues to manage through a difficult operating environment that has persisted for longer than anticipated," CEO Marty Freeman said, adding that demand for the company's services still remains impacted by a "challenging economy".

Its total revenue fell 6.1% year-over-year to $1.41 billion in the quarter, while profit per share dropped about 14% to $1.27.

Analysts on average had expected revenue of $1.42 billion and a profit of $1.29 per share, according to data compiled by LSEG.

The company attributed the revenue decline primarily to a drop in shipment volumes and lighter average weights despite higher pricing on the freight it moved.

"The decrease in revenue had a deleveraging effect on many of our operating expenses," CEO Marty Freeman said in a statement.

The company's operating ratio, a key metric indicating operating expenses as a percentage of revenue, rose to 74.6% from 71.9% a year earlier, but improved form the first quarter. A higher ratio reflects an increase in costs, suggesting lower profitability.

"The company continues to control costs through this downturn, particularly given the softer June top-line results," Stephens analyst Daniel Imbro said.

 (Reporting by Abhinav Parmar in Bengaluru; Editing by Pooja Desai and Maju Samuel)

 ((Abhinav.Parmar@thomsonreuters.com;))