Old Dominion Freight Line, Inc.

Good morning and welcome to the Old Dominion Freight Line third quarter 2025 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Jack Atkins. Please go ahead.

Thank you, Jason, and good morning, everyone. Welcome to the third quarter 2025 conference call for Old Dominion Freight Line. Today's call is being recorded and will be available for replay beginning today through November 5th, 2025 by dialing 1-877-344-7529, access code 1478106. The replay of the webcast may also be accessed for 30 days at the company's website. This conference call may contain forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995, including statements, among others, regarding Old Dominion's expected financial and operating performance. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words believes, anticipates, plans, expects, and similar expressions are intended to identify forward-looking statements. You are hereby cautioned that these statements may be affected by the important factors among others set forth in Old Dominion's filings with the Securities and Exchange Commission and in this morning's news release, and consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. The company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. As a final note before we begin, We welcome your questions today, but ask in fairness to all that you limit yourself to just one question at a time before returning to the queue. At this time for opening remarks, I'd like to turn the call over to Marty Freeman, our president and chief executive officer. Marty, please go ahead, sir.

Good morning and welcome to our third quarter conference call. With me on the call today is Adam Satterfield, our CFO. And after some brief remarks, we will be glad to take your questions. Old Dominion's third quarter financial results reflect continued softness in the domestic economy. Our revenue declined 4.3% compared to the third quarter of 2024 due primarily to a 9% decrease in our LTL tons per day, which was partially offset by ongoing improvement in our yields. We continued to operate efficiently during the quarter and were able to manage our direct variable cost as a result. The deleveraging effect from the decrease in revenue, however, drove an increase in our overhead expenses that resulted in the increase in our operating ratio to a 74.3. As we navigate through the continues to be a challenging micro environment, we remain focused on what we can control. I'm proud of how our team continues to execute the core elements of our long-term strategic plan as we work to ensure that Old Dominion is the best position carrier in our industry to respond to an inflection in the operating environment when it does materialize. As we have said many times before, our long-term strategic plan includes an ongoing focus on delivering superior service at a fair price. The other key elements of our strategy include investing in new service centers, equipment, technologies, and most importantly, our people. Our past financial results have proved that investing in Our sales through the economic cycle can pay dividends over the long term. An example of how this is happening is we've been able to control our direct variable costs this year despite the lack of network density associated with the decrease in our volumes. In fact, our direct variable costs are relatively consistent as a percent of revenue to when we produced company record operating results back in 2022. While there are many factors influencing these costs, we have implemented new workforce planning and dockyard management tools, as well as P&D and line haul route optimization software, which have helped drive improvements in our productivity, even as we have faced headwinds from lower density. Importantly, we have done this while maintaining the highest standard of service for our customers, and I'm pleased to report that once again provided our customers with 99% on-time service and a cargo claims ratio of 0.1% during the third quarter. That said, we also know that providing our customers with superior service more than simply picking up and delivering the freight on time and without damages. MassDL and company measures 28 different service and value-related attributes during its annual survey of shipper and logistic professionals. We were honored earlier this month to be named the number one national LTL provider for the 16th consecutive year. In addition, Old Dominion maintained a sizable advantage against our competition, and we finished first in 23 of the 28 categories evaluated by MASTEO. I would like to congratulate the OD family of employees on this accomplishment. Every member of the OD family is incredibly proud of this recognition. and we also remain highly motivated to continue providing our customers with best-in-class service every single day. We know that consistency of our service creates value for our customers. It also differentiates us from the competition. Our customers know that they can count on us to help keep promises through the ups and downs of the economic cycle, which means they can keep their commitments to their own customers. Importantly, our consistent service also supports our disciplined approach to yield management. Over the years, we have built a unique culture centered on core elements of our strategic plan, the cornerstone of which is providing our customers superior service at a fair price. This has created an unmatched value proposition for our customers and allowed us to win more market share over the past decade than any other LTL carrier. We will continue to focus on delivering best-in-class service to our customers while also operating efficiently and maintaining our disciplined approach to managing our yields. As a result, we are confident in the ability to win profitable market share and increase shareholder value over the long term. Again, thank you for joining us this morning, and now Adam will discuss our third quarter in greater detail.