[Management View]
Old Dominion's management emphasized a disciplined approach to pricing and strategic investments in network capacity, technology, and workforce. Despite weaker short-term profitability, these investments are aimed at positioning the company for long-term demand recovery.

[Outlook]
Management conveyed cautious optimism about improving volume trends relative to easier future comparisons but refrained from forecasting a near-term demand inflection due to ongoing economic uncertainty. They expect continued investment in capital expenditures, approaching $2 billion over the three-year downturn, to provide leverage as demand recovers.

[Financial Performance]
- Total revenue decreased by 6.1% YoY to $1.41 billion.
- LTL tons per day fell 9.3%, while LTL revenue per hundredweight rose 3.4%.
- Operating ratio deteriorated by 270 basis points to 74.6%.
- Employee benefit costs increased to 39.5% of salaries and wages from 37.2% in the prior year.
- Cash flow from operations was $25.9 million for Q2 and $622.4 million for the first six months of 2025.
- Share repurchases and dividends totaled $59 million in Q2 and $118.5 million for the first six months of 2025.

[Q&A Highlights]
Question 1: How do you think about the normal progression from 2Q to 3Q on the operating ratio given the challenging environment?
Answer: The ten-year average is typically flat to up 50 basis points from 2Q to 3Q, based on sequential revenue growth of about 3%. However, given the current demand environment, we expect an increase in the operating ratio in the 80 to 120 basis point range due to continued pressure on salary, wages, and benefits, as well as overhead costs.

Question 2: Can you elaborate on the market share commentary in light of the ATA's shipment index turning positive recently?
Answer: The best data we get is from transport topics, which shows a consistent trend in our market share. We aim to maintain market share during economic weakness while increasing yields. We expect to outperform the market from a tonnage growth standpoint once the economy improves.

Question 3: Why do you expect pressure on operating supplies and expenses in 3Q after seeing improvement in 2Q?
Answer: We continue to see good performance in repairs and maintenance, but we expect some pressure from higher fuel costs and wage increases. Additionally, we anticipate continued pressure on miscellaneous expenses due to fleet adjustments.

Question 4: Given the easy comps, what are your thoughts on the latter half of this quarter?
Answer: We expect trends to improve year-over-year, with July already showing a slight improvement. However, we remain cautiously optimistic and will monitor performance as the quarter progresses.

Question 5: How do you view pricing and competition in the current environment?
Answer: We expect yield ex fuel to be up in the 4% to 4.5% range in 3Q. We continue to win business and maintain pricing discipline, which is crucial for long-term operating ratio improvement.

Question 6: Are you seeing better offerings from peers making any encroachment on your business?
Answer: We compete with all national and regional carriers. Our service product, including on-time performance and claims-free service, continues to add value for our customers, which is why we are confident in our long-term market share opportunities.

Question 7: What is your view on the competitive environment and market share dynamics?
Answer: We believe our market share remains consistent. The industry has seen choppiness since Yellow closed, but we continue to execute our plan and manage costs effectively.

Question 8: How do you view the duration of the current downturn and its impact on your strategy?
Answer: Despite the prolonged downturn, we remain focused on managing costs and maintaining service quality. We believe our model will benefit significantly once the demand environment improves.

Question 9: Can you provide more color on customer conversations and industry trends?
Answer: Customers are cautious due to economic uncertainty, but we are seeing some optimism with recent tax and trade developments. We expect industrial-related revenue, which is 55-60% of our total, to improve as these uncertainties resolve.

Question 10: What is your perspective on the potential impact of transcontinental railroads on the LTL industry?
Answer: We do not expect any material impact on the LTL industry from transcontinental railroads. The changes in the rail industry are unlikely to filter down to our business levels.

[Sentiment Analysis]
Analysts' tone was cautiously optimistic, focusing on the company's strategic investments and cost management. Management maintained a disciplined and confident tone, emphasizing long-term positioning despite short-term challenges.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|-------------------------------|---------|---------|
| Total Revenue | $1.41B | $1.50B |
| LTL Tons per Day | -9.3% | N/A |
| LTL Revenue per Hundredweight | +3.4% | N/A |
| Operating Ratio | 74.6% | 71.9% |
| Employee Benefit Costs | 39.5% | 37.2% |
| Cash Flow from Operations | $25.9M | N/A |
| Share Repurchases & Dividends | $59M | N/A |

[Risks and Concerns]
- Decline in LTL tons per day impacting operating leverage.
- Increased overhead and employee benefit costs.
- Economic uncertainty affecting demand recovery.
- Potential continued pressure on miscellaneous expenses due to fleet adjustments.

[Final Takeaway]
Old Dominion is navigating a challenging economic environment with a disciplined approach to pricing and strategic investments in network capacity, technology, and workforce. While short-term profitability is under pressure, these investments are aimed at positioning the company for long-term demand recovery. Management remains cautiously optimistic about improving volume trends but refrains from forecasting a near-term demand inflection due to ongoing economic uncertainty. The company's focus on maintaining service quality and managing costs effectively is expected to provide leverage as demand eventually recovers.