Saia, Inc. (SAIA) Earnings & Analysis

Latest quarter

Saia reported third-quarter revenue of $982.5 million, up 17.0% from $839.6 million a year earlier and above the $973.8 million consensus. Adjusted earnings per share of $3.41 also exceeded the $3.31 consensus.

Saia’s filing attributed revenue growth primarily to higher fuel surcharge revenue, heavier less-than-truckload shipments and pricing actions. LTL tonnage rose 8.9%, while revenue per shipment excluding fuel surcharge increased 5.8%, according to the filing.

Operating margin fell to 12.4% from 14.1% a year earlier. The filing said the prior-year quarter included a real estate gain and an impairment loss; excluding those items, the operating ratio was flat year over year. Saia also reported higher compensation, fuel and purchased transportation expenses.

Diluted earnings per share rose to $3.41 from $3.22 a year earlier. Saia generated $111.7 million in quarterly free cash flow, compared with $107.3 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CFO Matt Batteh said shipments per day were up about 2% year over year in October through the call date, while tonnage was up about 10%. He said October was trending seasonally and expected normal shipment seasonality through the fourth quarter.

On pricing, Batteh said revenue per shipment excluding fuel rose 5.8% year over year in the third quarter. He noted that heavier shipments typically reduce yield: yield excluding fuel fell 2.2% year over year, even as it rose 1.5% sequentially. Asked about pricing, Batteh said Saia expected to continue driving sequential improvement.

CEO Fritz Holzgrefe said the REV initiative had improved transit times in more than 2,000 lanes and that lanes with faster transit times were experiencing increased volume. Asked about the shipment mix, he said heavier freight takes more trailer space and is harder to handle, but customers across different shipment weights could value on-time, damage-free service.

Batteh said operating income at terminals opened in 2023 and 2024 rose 22% year over year. Asked about those facilities, Holzgrefe said they remained below the company average but expected continued improvement as customer relationships and the markets matured.

On costs, Batteh said purchased truck and rail transportation represented 15.7% of line-haul miles, up from 12% a year earlier. He expected cost inflation to continue, including pressure from health insurance and benefits. Holzgrefe said most of the foundational network build-out was behind Saia and that capital spending was moderating relative to the recent investment cycle. He also said the board had authorized up to $250 million in share repurchases, subject to market conditions and other investment priorities.

Guidance

Saia now expects full-year FY2026 net capital expenditures of approximately $350.0 million, subject to ongoing evaluation of market conditions. Its previous guidance was $350 million to $400 million.