• Revenue: $787.6 million, a 4.3% increase from the first quarter of 2024.
• Operating Ratio: 91.1%, deteriorated by 670 basis points from 84.4% in the first quarter of 2024.
• Diluted Earnings Per Share: $1.86, compared to $3.38 in the first quarter of 2024.
• Tonnage: Increased by 11.0%.
• Shipment Increase: 2.9% increase in shipments.
• Average Weight Per Shipment: Increased by 7.8%.
• Salaries, Wages, and Benefits: Increased by 13.9% due to headcount growth and wage increases.
• Purchase Transportation Expense: Increased by 14%, accounting for 7.6% of total revenue.
• Depreciation Expense: $59 million, a 20.9% increase year-over-year.
• Cost Per Shipment: Increased by 9.4% year-over-year.
• Tax Rate: 24%, compared to 23.7% in the first quarter of 2024.

• Warning! GuruFocus has detected 5 Warning Signs with SAIA.

Release Date: April 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Saia Inc (NASDAQ:SAIA) achieved first quarter records in revenue, tonnage, and shipments despite having one less workday compared to the previous year.
• Revenue increased by 4.3% year-over-year to $787.6 million, marking a record for any first quarter in the company's history.
• Contractual renewals averaged 6.1% in the quarter, reflecting strong customer belief in Saia Inc (NASDAQ:SAIA)'s high-quality service.
• The company saw significant growth in newer markets, with facilities opened since 2022 contributing to shipment growth.
• Saia Inc (NASDAQ:SAIA) remains focused on long-term opportunities, enhancing service offerings, and expanding its national network to provide better customer solutions.

Negative Points

• The operating ratio deteriorated to 91.1% from 84.4% a year ago, impacted by weather disruptions and sub-seasonal trends.
• First quarter diluted earnings per share decreased to $1.86 from $3.38 in the same quarter last year.
• Legacy facilities experienced a decline in shipments, contributing to a challenging operating environment.
• The uncertain macroeconomic environment led to cautious customer behavior, impacting shipment volumes.
• Total operating expenses increased by 12.6%, driven by higher salaries, wages, benefits, and depreciation expenses.

Q & A Highlights

Q: Can you provide an overview of the current pricing environment and how Saia is approaching pricing strategies? A: Matthew Batteh, Executive Vice President and CFO, explained that the company remains focused on pricing strategies similar to past approaches. Despite a looser capacity environment, Saia continues to prioritize pricing discipline, acknowledging that customers have more options and may challenge rate increases. The company is committed to maintaining its pricing focus while navigating the current market dynamics.

Q: How is Saia managing the cost structure in light of sub-seasonal trends and macroeconomic uncertainties? A: Frederick Holzgrefe, President and CEO, emphasized that Saia is actively adjusting its cost structure to align with current market conditions. The company is implementing network planning initiatives and optimizing operations to better serve customers while managing costs. Saia is focused on maintaining long-term opportunities and ensuring the cost structure matches available freight.

Q: What is the impact of new market openings on Saia's financial performance, and how are these markets expected to evolve? A: Holzgrefe noted that new markets opened in the past three years are contributing to shipment growth but are currently operating at breakeven. These markets are part of a long-term investment strategy, and as they mature, Saia expects to build density and improve operational efficiencies, ultimately driving long-term value.

Q: How does Saia view the potential for pricing competition in the LTL industry given the current capacity environment? A: Batteh stated that while customers have more options, the LTL industry remains inflationary, and Saia expects pricing to remain stable. The company believes that the fundamentals of the business support continued pricing discipline, and it does not anticipate a significant negative shift in pricing trends.

Q: What are Saia's expectations for the operating ratio (OR) moving forward, and how does the company plan to improve it? A: Holzgrefe indicated that while the current OR is not where the company wants it to be, Saia is focused on improving service and cost management. The company aims to achieve a better OR by leveraging its national network and optimizing operations, with the expectation of gradual improvement as market conditions stabilize.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.