Operating Revenue

+4.4% (Q1 2025: $787.6M vs Q1 2024: $754.8M)

Modest revenue growth is seen in Q1 2025 driven by continued shipment volume increases and pricing efforts, albeit at a lower rate compared to previous periods (FY 2024 saw an 11.4% jump). However, external challenges—such as macroeconomic uncertainty and adverse weather—limited more robust gains. " " "

Operating Income

~40% decline (Q1 2025: $70.2M vs Q1 2024: $117.9M)

A significant decline in operating income reflects severe margin compression. Although revenue grew modestly, increased operating expenses—including a 40.5% drop in operating income tied to higher labor costs, increased depreciation from network expansion, and additional facility expenses—greatly eroded profitability relative to the previous period. " " "

Net Income

~45% decline (Q1 2025: $49.8M vs Q1 2024: $90.7M)

Net income plunged sharply due to falling operating margins and cost pressures. While Q1 2024 benefitted from operational efficiencies and higher revenues, Q1 2025’s performance was hampered by higher expenses linked to weather disruptions and increased interest expense from elevated debt levels, culminating in a 45% decrease in profitability. " " "

Basic & Diluted EPS

Declined to $1.86 in Q1 2025 (down from ~$3.40 in Q1 2024)

EPS suffered similarly to net income, as the reduced profitability from a 40% fall in operating income and subsequent 45% drop in net income directly compressed earnings per share. The modest growth in revenue was insufficient to counterbalance the higher operational and interest costs compared to Q1 2024. " "

Operating Ratio

FY 2025

80 to 100 basis points improvement " "

no current guidance

no current guidance

Capital Expenditures

FY 2025

~$700 million "

no current guidance

no current guidance

EPS Impact

FY 2025

Approximately $1 impact "

no current guidance

no current guidance

Shipment Growth

FY 2025

6.5% growth "

no current guidance

no current guidance

Tonnage Growth

FY 2025

13.5% growth "

no current guidance

no current guidance

Revenue Assumptions

Q2 2025

no prior guidance

No specific guidance provided; modeling assumptions continue, with shipments down ~2% and tonnage up ~5% "

no prior guidance

Pricing Environment

Q2 2025

no prior guidance

Stable pricing environment, although not expected to be as strong as in prior years "

no prior guidance

Operating Ratio

Q2 2025

no prior guidance

No specific guidance for Q2 2025; noted that Q1 2025’s ratio was 91.1% versus 84.4% in Q1 2024 " "

no prior guidance

Macroeconomic Environment

Q2 2025

no prior guidance

Expected to remain muted or consistent with past trends "

no prior guidance

Seasonality

Q2 2025

no prior guidance

No evidence of typical seasonal trends returning to normal levels " "

no prior guidance

Contractual Renewals

Q2 2025

no prior guidance

Averaged 6.1% in Q1 2025, reflecting customer confidence though full realization may be affected by options and mix changes " "

no prior guidance

National Network Expansion

Across Q2–Q4 2024, executives consistently emphasized achieving a national footprint, expanding direct service across 48 contiguous states, and leveraging the network for long‐term competitive positioning. " " " " "

In Q1 2025, management reiterated the strategic importance of a national network to offer consistent service and capture new business opportunities—even as new facilities contributed to near breakeven operations. " " "

Consistent emphasis on expansion as a long‐term differentiator; the narrative continues with a steady focus on geographic breadth despite short‐term operational challenges.

New Terminal Investments

Q2–Q4 2024 discussions highlighted record terminal openings (e.g., 21 new facilities, additional relocations) and investments viewed as long‐term, even though they initially pressured margins and required significant onboarding and training. " " " " "

Q1 2025 commentary noted the same 21 new terminals opened in 2024 operating around breakeven, with management stressing these investments as “brand‑building exercises” critical for long‑term operational efficiency and market reach. " "

Persistent theme of heavy capital expenditures that drag near‑term margins but are positioned as strategic long‑term investments.

Pricing Strategy and Mix Optimization

In Q2–Q4 2024, executives discussed a focus on revenue per shipment, contractual renewals (7.9%–8.4%), and adjusting for freight mix changes. They emphasized mix optimization, selective pricing, and improvements from network expansion to capture better pricing returns. " " " " " "

In Q1 2025, management detailed mix optimization challenges with heavier, costlier freight and noted contractual renewals averaging 6.1%. They reported a 2.3% improvement in revenue per shipment despite a challenging freight mix. " " "

Steady focus on optimizing pricing despite freight mix challenges. The approach remains proactive though recent commentary shows a more cautious sentiment due to new market dynamics.

Operational Efficiency and Margin Compression

Q2–Q4 2024 calls mentioned deteriorating operating ratios (e.g., from 80 to 87.1%), rising costs in salaries, depreciation, and claims, and the operational challenges of integrating new facilities—all contributing to margin compression. " " "

Q1 2025 discussions noted a significant rise in operating expenses (e.g. 12.6% increase in expenses, 9.4% higher cost per shipment) and a deterioration in the operating ratio, driven by increased linehaul costs, higher wage expenses, and elevated depreciation. " " " "

Ongoing challenge with rising cost pressures that compress margins. Management is pursuing cost structure adjustments and efficiency improvements, though near‑term margins remain under pressure.

Legacy vs New/Ramping Market Growth

Q2 2024 provided detailed comparisons where legacy facilities operated at around 82 OR while new facilities (opened in recent years) experienced higher operating ratios. Q3 2024 noted expansion into new geographies such as the Great Plains, while Q4 2024 focused on network expansion without in‑depth legacy versus new market data. " " "

In Q1 2025, legacy markets were reported as down year‑over‑year, partly due to seasonal and weather disruptions, whereas growth was primarily driven by ramping (new) markets that are still less profitable but show sequential improvement. " " " "

Mixed performance: Legacy markets are showing stability but under pressure, while new markets continue to drive growth despite lower profitability. The sentiment is cautious with attention to long‑term maturation.

Freight Mix Shifts toward Lower‑Margin Segments

Throughout Q2–Q4 2024, there was consistent commentary on freight mix shifts—tracking heavier shipments that drive higher revenue per shipment but lower yield, with a margin headwind of 150–200 basis points and mix adjustments needed to address retail and national account freight. " " " " " "

Q1 2025 observations revealed that while shipments were heavier, the associated handling and line‐haul costs eroded margins (with yield declining by 5.1%), particularly as new markets with different freight characteristics came online. " " " "

Persistent issue: The freight mix continues to be a challenge across periods. The company remains focused on mix optimization, though the dynamics remain similar with ongoing margin trade-offs.

Macroeconomic Headwinds and Industrial Demand Softness

In Q2–Q4 2024, the macro environment was described as tepid with industrial demand softness, where customers were cautious and seasonal upticks failed to materialize, affecting shipment volumes (especially in industrial sectors). " " "

Q1 2025 commentary indicated that the uncertain macroeconomic backdrop continued to impact customer behavior. Shipments improved only modestly, and industrial demand remained soft, contributing to a cautious near‑term outlook. " " " "

Consistently challenging: Macroeconomic headwinds and softness in industrial demand have persisted, with management maintaining a long‑term stance despite near‑term caution from customers.

Service Level Challenges and Customer Retention Risks

Q2–Q4 2024 discussions stressed the challenges of maintaining consistent service amid rapid expansion. Emphasis was placed on extensive training and robust onboarding programs to uphold service metrics, with focus on customer retention via strong contractual renewals (7.9%–8.4%) and stable service levels. " " "

In Q1 2025, executives highlighted service level challenges in ramping markets, noting the critical need to maintain high service standards given the cautious environment. Renewals averaging 6.1% underscored both the value and risk in retaining customers amid rapid expansion. " " "

Consistent concern: Rapid expansion continues to strain service levels. While customer retention remains a priority with proactive training and service initiatives, the risk profile remains noticeably elevated.

Employee Engagement and Workforce Expansion

Across Q2–Q4 2024, Saia reported robust workforce expansion (up to 19.1% growth and nearly 10% increases) alongside strong employee engagement initiatives, emphasizing onboarding and training programs to reinforce the company culture as the network expanded. " " " "

Q1 2025 noted an 8% year‑over‑year increase in headcount—primarily driven by new facilities—and highlighted rising employee costs (13.9% increase in wages), reflecting ongoing challenges of managing a larger workforce while preserving productivity and culture. " "

Steady expansion with persistent investment in training and engagement. The narrative remains positive about long‑term cultural benefits, although rising wage and onboarding costs pose short‑term operational challenges.

Emerging Operational Risks (Claims, Insurance Expenses, Underestimated Startup Costs)

In Q2–Q4 2024, Saia consistently reported rising claims and insurance expenses (increases ranging from 6.9% to 16.6% year‑over‑year) alongside startup cost challenges associated with new terminal openings—including underestimated expenses in some markets—which weighed on near‑term results. " " " " "

Q1 2025 data showed claims and insurance expenses increased substantially (up 23.4% year‑over‑year) with startup costs from new terminals remaining a headwind. These rising costs were linked to increased claims activity, additional wage expenses, and significant depreciation from heavy equipment investments. " " "

Ongoing risk factor: The operational risks tied to new facility startups continue to pressure margins, with claims and insurance costs rising. Management acknowledges these as part of the long‑term investment strategy despite short‑term impacts.