Saia Q4 Earnings Call Highlights

Saia (NASDAQ:SAIA) executives said the less-than-truckload carrier delivered record quarterly and annual revenue in 2025 as its first full year operating a fully national network expanded customer opportunities, though fourth-quarter profitability was pressured by higher self-insurance costs and inflationary expense trends.

Fourth-quarter results: record revenue, higher costs

Saia reported fourth-quarter revenue of $790 million, up 0.1% year over year and the highest quarterly revenue in company history, according to Chief Financial Officer Matt Batteh. Despite the revenue record, the company’s operating ratio rose to 91.9% from 87.1% a year earlier as operating expenses increased 5.6% while revenue was essentially flat.

Diluted earnings per share were $1.77, down from $2.84 in the fourth quarter of 2024. Batteh said the company’s fourth-quarter tax rate was 22.7%, compared with 23% in the prior-year quarter.

Management highlighted that results were affected late in the quarter by adverse claim development tied to accidents from prior years. Chief Executive Officer Fritz Holzgrefe said reserve increases related to a few cases totaled about $4.7 million, contributing to sequential deterioration in the operating ratio versus third-quarter adjusted results. Batteh said claims and insurance expense increased 12.3% year over year, driven primarily by that adverse development, and emphasized that litigation and settlement values have continued to rise.

Volume and yield: muted demand and mixed headwinds

Holzgrefe said fourth-quarter volumes reflected “muted” industry demand. Shipments per day declined 0.5% year over year, and tonnage per day fell 1.5%. Batteh attributed the tonnage decline to the shipment decrease and a 1% drop in average weight per shipment, while length of haul edged down 0.1% to 897 miles.

Revenue per shipment excluding fuel surcharge decreased 0.5% to $297.57. Yield excluding fuel surcharge increased 0.5%, and yield including fuel rose 1.6%. Fuel surcharge revenue increased 6.1% and represented 15% of total revenue, up from 14.1% a year earlier.

Holzgrefe pointed to “mixed headwinds” including slightly lower weight per shipment and length of haul, and said Southern California remained a notable drag. The company said volume in that region was down about 18% year over year in the quarter, resulting in an estimated $4 million revenue reduction. Even so, Holzgrefe said the expanded footprint was driving growth with customers in legacy and newer markets, and management noted revenue per shipment excluding fuel improved 1.1% sequentially from the third quarter.

Pricing: GRI acceptance and contractual renewals

Management said pricing discipline remained a priority as costs rise. Holzgrefe said Saia implemented its general rate increase (GRI) on Oct. 1 and saw typical post-GRI volume shifts, but added that customer acceptance trends were “slightly above historic levels.” He said contractual renewals averaged 4.9% of the book of business contracted during the quarter, and the company saw a 6.6% contractual renewal increase in January 2026.

In the Q&A, Batteh said Saia typically retains 80%–85% of GRI-related business, and that the company is seeing flow-through “just in excess of 90%” for the relevant segment. Executives also said they were not observing a change in competitive behavior, describing the pricing environment as rational, while emphasizing Saia’s intent to “price ahead of inflation” given what they called a capital-intensive, inflationary business.

Cost trends: wages, health care, depreciation, and insourcing miles

On expenses, Batteh said salaries, wages, and benefits rose 6.1% year over year, driven by higher employee-related costs including a company-wide wage increase of about 3% effective Oct. 1, as well as higher self-insurance-related costs. He said headcount declined 5.1% year over year, and excluding linehaul drivers, headcount was down 6.4%.

Depreciation and amortization totaled $62.9 million in the quarter, up 16.4% year over year, reflecting ongoing investment in equipment, real estate, and technology. Batteh said cost per shipment increased 6.1% year over year, largely due to self-insurance-related costs and depreciation, adding that group health insurance accounted for more than 30% of the year-over-year cost-per-shipment increase.

Management also discussed continued progress insourcing miles. Purchased transportation expense decreased 0.8% year over year and was 7.3% of revenue. Truck and rail purchased transportation miles were 12% of total linehauls in the quarter, down from 13.1% a year earlier. For the full year, purchased transportation as a percent of miles was 12.1%, compared with over 18% in 2021, Batteh said.

Full-year 2025: record revenue and network expansion updates

For full-year 2025, Saia posted record revenue, up 0.8% from 2024. Operating income was $352.2 million. Batteh said that excluding one-time real estate transactions, operating income was $337.7 million. The operating ratio deteriorated by 410 basis points to 89.1%, while the adjusted operating ratio was 89.6%.

The company ended the year with just under $20 million in cash and $63 million drawn on its revolving credit facility, for approximately $164 million in total debt—down from $200 million at the end of 2024.

Executives highlighted service and safety metrics as the national network matures:

• Preventable accident frequency down 21% year over year in 2025, with internal miles up 2.4%.
• Lost-time injuries down 10% year over year.
• Cargo claims ratio of 0.47% in the fourth quarter and about 0.5% for the full year, both cited as company records.

Holzgrefe said more than $2 billion of capital investments over the last three years enabled the rapid footprint expansion, and he characterized the company as still in the early stages of monetizing the national network opportunity. Batteh said “ramping terminals” (open since 2022) were profitable for the year, and the 21 terminals opened during 2024 are maturing; the company estimated those terminals increased revenue market share by roughly 80 basis points in 2025. Executives said ramping terminals weighed on the company’s operating ratio but contributed incremental operating income.

Looking ahead, management said it expects to drive incremental improvement in 2026 even if the macro environment remains soft. In the Q&A, executives discussed potential full-year operating ratio improvement of 100–200 basis points depending on macro conditions, and said the company has broad excess capacity of about 20%–25%. They also said new markets generally have more capacity than legacy markets, and reiterated a long-term target of operating ratios in the low 80s and into the 70s, citing parts of the network already operating in the upper 70s.

On capital allocation, management said the company expects to be free-cash-flow generative and will balance potential shareholder returns with future investment opportunities, including real estate needs as it contemplates additional facilities beyond the current footprint.

About Saia (NASDAQ:SAIA)

Saia, Inc is a publicly traded transportation company specializing in less-than-truckload (LTL) freight services across North America. Headquartered in Johns Creek, Georgia, the company focuses on the efficient movement of time-sensitive freight for a diverse customer base that spans retail, manufacturing, automotive, and healthcare industries. By leveraging a network of terminals and service centers, Saia provides tailored solutions designed to optimize supply chain performance.

The company’s core offerings include regional, interregional, and national LTL shipping, supported by volumetric LTL and port intermodal services.