Old Dominion Freight Line Q2 Earnings: Revenue Down 6.1%, EPS Falls 14.2% YoY

Old Dominion Freight Line reported Q2 EPS of $1.27, a 14.2% YoY decline, and revenue of $1.41 billion, a 6.1% YoY drop. The operating ratio deteriorated to 74.6%, up from 71.9% last year, indicating higher relative costs. The company's revenue and EPS missed estimates, and its results signal ongoing headwinds in the freight sector and a challenging near-term operating environment.

Old Dominion Freight Line (ODFL) reported its second-quarter (Q2) 2025 earnings on July 2, 2025, with a notable decline in both earnings per share (EPS) and revenue compared to the same period last year. The company's EPS fell to $1.27, a 14.2% year-over-year (YoY) decrease, while revenue dropped to $1.41 billion, a 6.1% YoY drop [1].

The operating ratio, a key metric for the freight sector, deteriorated to 74.6% from 71.9% last year, indicating higher relative costs [1]. This trend reflects the ongoing headwinds in the freight sector and a challenging near-term operating environment.

Old Dominion's Q2 results signal a tough quarter, with revenue and EPS both missing Wall Street estimates. The company's President and Chief Executive Officer, Marty Freeman, attributed the results to the ongoing softness in the domestic economy and the challenging macroeconomic backdrop [1].

Analysts have responded to the earnings report by slashing their price targets. Stephens & Co. analyst Daniel Imbro, for instance, lowered the price target from $186 to $174, while Raymond James analyst Patrick Tyler Brown reduced it from $180 to $165 [2].

XPO Inc., a competitor in the less-than-truckload (LTL) sector, reported a relatively stable performance in Q2 2025, with revenue essentially unchanged from the prior year and a focus on service driving above-market pricing growth [3]. This contrast highlights the differing fortunes of Old Dominion and its competitors.

In conclusion, while Old Dominion's Q2 results were disappointing, they reflect broader challenges in the freight sector. The company's ability to navigate these headwinds and return to growth will be crucial for investors to consider.

References:
[1] https://finance.yahoo.com/news/old-dominion-freight-line-nasdaq-114606334.html
[2] https://www.benzinga.com/analyst-stock-ratings/price-target/25/07/46769136/old-dominion-freight-line-analysts-slash-their-forecasts-after-downbeat-q2-earnings
[3] https://www.ttnews.com/articles/xpo-earnings-q2-2025