Saia Inc ((SAIA)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Saia Inc. Earnings Call Reflects Resilience Amid Economic Challenges
The recent earnings call for Saia Inc. painted a picture of a company striving to enhance operational efficiency and expand its network, even as it contends with a challenging economic landscape. The sentiment during the call was cautiously optimistic, with a focus on cost control and network expansion as key strategies for navigating the current market conditions. Despite flat revenue and increased operating expenses, the company remains committed to improving its operational metrics.
Expansion and Network Optimization
The company’s expansion and network optimization efforts are showing promising results. Saia Inc. reported that its ramping markets improved their operating ratio by over 100 basis points compared to the second quarter, now operating at a sub-95 OR. This strategy is yielding tangible benefits, with over 70% of volume growth occurring in 1- and 2-day lanes, indicating a successful penetration into these markets.
Continued Focus on Cost Control
Saia Inc. continues to emphasize cost control, achieving a sequential improvement in adjusted cost per shipment by 0.7% from the second quarter. This improvement comes despite facing headwinds from increased insurance-related costs, showcasing the company’s commitment to maintaining operational efficiency.
Record Low Cargo Claims Ratio
The company achieved a cargo claims ratio of 0.54%, marking the fourth consecutive quarter of maintaining a sub-0.6 ratio, setting a new company record. This achievement underscores Saia’s dedication to quality service and operational excellence.
Revenue Stagnation
Revenue for the third quarter was relatively flat compared to the previous year, decreasing by 0.3% to $839.6 million. This stagnation reflects the challenging macroeconomic environment that Saia Inc. is currently navigating.
Increased Operating Expenses
Saia Inc. reported an increase in its adjusted operating ratio to 87.6% from 85.1% a year ago, driven by increased operating expenses and a slight decrease in revenue. This highlights the financial pressures the company faces amid rising costs.
Volume Decline
The company experienced a decline in shipments per workday by 1.9% compared to the third quarter of 2024, with tonnage per workday also decreasing by 1.5%. This decline indicates the challenges in maintaining volume amid economic headwinds.
Insurance and Depreciation Costs
Saia Inc. faced a significant increase in accident claims and insurance expenses, which rose by 22.5% year-over-year. Additionally, depreciation expenses increased by 17.2% due to ongoing investments, reflecting the cost pressures from maintaining and expanding operations.
Forward-Looking Guidance
Looking ahead, Saia Inc. remains focused on network optimization and expansion into newer markets, having opened 39 new terminals since 2022. The company expects these efforts to continue driving growth and operational efficiencies. Despite the flat revenue in the third quarter of 2025, Saia achieved a sequential improvement in its adjusted operating ratio and reduced adjusted cost per shipment, indicating potential for future growth.
In summary, Saia Inc.’s earnings call highlighted a company that is resilient in the face of economic challenges, focusing on operational efficiency and network expansion. While revenue remains flat and costs have increased, the company’s strategic initiatives in cost control and market expansion are showing promise for future growth.