Matthew Milask

Matthew Milask, on behalf of Bruce Chan, inquired about the progress of commercial synergy efforts within the Omni Logistics segment and asked for an update on the ongoing strategic review, including any changes in market interest or the M&A environment.

Answer

President, CEO & Director Shawn Stewart stated that the new Chief Commercial Officer has the team focused on synergy selling across all products, which is beginning to show results. Regarding the strategic review, CFO Jamie Pierson noted that there is significant interest in the company's collection of assets and reiterated the belief that the value of the combined entity is greater than the sum of its parts.

Matthew Milask, on behalf of Bruce Chan at Stifel, asked how recent governance changes, including new board members and leadership transitions, might be influencing the company's strategic priorities.

Answer

CEO Malcolm Wilson highlighted that the board has been refreshed with highly experienced industry veterans from companies like 3M, Honeywell, and P&G, who will be a great asset to the new CEO. He stated that it is too early to outline specific strategic shifts, as the new leadership and board will need time to acclimate and develop plans, likely to be unveiled as part of the 2026 planning process.

Matthew Milask of Stifel, on for Bruce Chan, asked if Saia could scale back its capital expenditures further if market trends deteriorate. He also inquired about the overall state of LTL industry capacity and the level of excess capacity within Saia's own network.

Answer

Executive Matthew Batteh explained that most equipment spending is complete, and while they evaluate real estate projects critically, they remain opportunistic to secure strategic properties. President and CEO Fritz Holzgrefe estimated that Saia has about 25-30% excess capacity on average across its network, which is a long-term investment not meant to be filled immediately. He believes there is a fair amount of capacity across the industry, but that competitors remain disciplined on pricing due to the inflationary environment.

Matthew Milask asked about the growing B2C mix within the Package and Courier (P&C) segment and whether the company is seeing increased price competition in that market.

Answer

Executive Alain Bedard confirmed that the B2C portion of the P&C business is growing as B2B slows, which creates a headwind to density. He acknowledged that pricing is very aggressive due to significant investments from competitors. He also noted that the elimination of the carbon tax in Canada is lowering fuel costs but also fuel surcharges, creating another headwind for the P&C segment given its density.