Saia, Inc. Reports 4.3% Revenue Growth but Declines in Profitability in Q1 2025

Saia, Inc. reported its financial results for the first quarter of 2025, revealing a consolidated operating revenue of $787.6 million, a 4.3% increase from $754.8 million in the same period last year. However, the company experienced a significant decline in profitability, with net income falling to $49.8 million, or $1.86 per diluted share, compared to $90.7 million, or $3.38 per diluted share, in the first quarter of 2024. The decrease in profitability was attributed to lower-than-expected revenues, adverse weather conditions, and increased labor and depreciation expenses associated with ongoing network expansion.

Operating expenses rose to $717.4 million, up from $636.9 million in the prior year, driven by higher salaries, wages, and employee benefits, which increased by 13.9% to $389.3 million. The operating ratio, which measures operating expenses as a percentage of operating revenue, deteriorated to 91.1% from 84.4% in the previous year. The company noted that LTL (less-than-truckload) shipments per workday increased by 4.6%, while LTL revenue per shipment, excluding fuel surcharges, rose by 2.3% to $300.76.

In terms of operational developments, Saia's LTL tonnage increased by 11% to 1.5 million tons, and LTL shipments grew by 2.9% to 2.2 million shipments. The company has been focusing on expanding its terminal network, with a notable increase in headcount by 8% due to new terminal openings. The company also implemented a 7.9% general rate increase for approximately 25% of its operating revenue, which is expected to support revenue growth moving forward.

Looking ahead, Saia's management expressed cautious optimism, noting that the company's performance is closely tied to broader economic conditions and competitive pricing pressures. The company plans to continue its initiatives to enhance customer service, optimize pricing, and expand its geographic footprint. However, they acknowledged the potential impact of external factors such as inflation, labor availability, and changes in trade policies on their operations and financial performance. The company anticipates capital expenditures of approximately $650 million for 2025, focusing on equipment, technology, and real estate investments to support growth initiatives.