SAIA — Saia, Inc.

Saia, Inc. Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $806.2 million, a record for Q1, up 2.4% year-over-year.
• Diluted EPS: $1.86, flat compared to Q1 2025.
• Operating Ratio: Increased to 91.7% from 91.1% year-over-year.
• Cargo Claims Ratio: 0.5%, marking the sixth consecutive quarter below 0.6%.
• Revenue per Shipment (excluding fuel): Decreased 1.2% to $297.11, attributed to lower weight per shipment and shorter length of haul.
• Fuel Surcharge Revenue: Increased by 12.3%, accounting for 16.5% of total revenue.
• Tonnage: Decreased 2.1% year-over-year, primarily due to a 3.1% decrease in average weight per shipment.
• Cost per Shipment: Increased by 2% year-over-year, driven by rising health insurance and claims costs.

2. Strategic Updates and Business Highlights

• Saia is focused on enhancing operational efficiency and integrating new terminals into its national network.
• The company achieved significant improvements in safety metrics, with record miles between preventable accidents and the highest first-quarter hours between lost time injuries since 2020.
• Investments in optimization technology and network expansion are yielding positive results, with productivity improving by over 2.5% compared to Q1 2025.
• Contractual renewals were strong at 6.7% for the quarter, indicating a positive pricing environment.

3. Forward Guidance and Outlook

• Management anticipates a sequential improvement in operating ratio by 400 to 450 basis points from Q1 to Q2, driven by seasonal demand and operational improvements.
• The company remains optimistic about the second half of 2026, with customer sentiment improving and potential for increased volumes.
• Saia plans to continue leveraging its national network to enhance service offerings and pricing power.

4. Bad News, Challenges, or Points of Concern

• Weather disruptions negatively impacted operational results, particularly in Texas and the Mid-South regions.
• A rapid 30% increase in diesel prices in March created a short-term profitability headwind, resulting in a $3.5 million margin impact.
• Employee-related costs, particularly health insurance, are rising, contributing to increased operational expenses.
• Despite positive trends, there is caution regarding the macroeconomic environment and its potential impact on demand and profitability.

5. Notable Q&A Insights

• Management noted that while demand signals are improving, they remain cautious and prefer to see consistent results before fully committing to optimistic forecasts.
• The company is experiencing growth in both legacy and new terminals, with the latter still outperforming.
• There is an expectation for improved yield and revenue per shipment in the back half of Q2, as the company laps challenging conditions from the previous year.
• Saia is focused on maintaining service quality and leveraging its investments to ensure that any increase in demand is met efficiently, while also ensuring appropriate compensation for its services.

Overall, Saia's Q1 2026 results reflect a mix of operational improvements and challenges, with a cautiously optimistic outlook for the coming quarters.