Old Dominion Freight Line, Inc ( ODFL ). shares plunged Wednesday after it reported weaker-than-expected second-quarter earnings. Economic softness weighed on freight volumes and revenue.

The company posted earnings of $1.27 per share, down 14.2% from $1.48 in the year-ago period and below the Street estimate of $1.30. Revenue fell 6.1% to $1.41 billion, missing expectations of $1.43 billion.

Net income for the quarter declined to $268.6 million, compared with $322 million in the second quarter of 2024. Operating income dropped 15.1% to $357.9 million, and the company’s operating ratio was 74.6%, up from 71.9% a year ago.

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CEO Marty Freeman said the results reflect “ongoing softness in the domestic economy,” but noted that Old Dominion maintained strong service levels with 99% on-time performance and a cargo claims ratio of just 0.1%.

The revenue decline was primarily due to a 9.3% year-over-year decrease in LTL (less-than-truckload) tons per day, driven by a 7.3% drop in daily shipments and a 2.1% decrease in weight per shipment.

LTL revenue per hundredweight, excluding fuel surcharges, rose 5.3% as the company maintained its disciplined pricing approach.

Despite the revenue drop, Old Dominion continued to generate strong operating cash flow, totaling $285.9 million for the quarter and $622.4 million for the first half of 2025.

Capital expenditures were $187.2 million in the quarter and $275.3 million year-to-date, with full-year spending expected to reach $450 million.

The company also returned capital to shareholders, repurchasing $424.6 million in stock and paying $118.5 million in dividends during the first half of the year.

Mr. Freeman concluded, “Old Dominion continues to manage through a difficult operating environment that has persisted for longer than anticipated. Although demand for our services continues to be impacted by a challenging economy, we remain confident that we are well-positioned for the long term.“

Price Action: ODFL shares are trading lower by 10.1% to $145.80 at Wednesday’s last check.

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