Saia, Inc. Reports Decline in Q2 Revenue and Profitability Amid Rising Operating Expenses

Saia, Inc. reported its financial results for the second quarter and the first half of 2025, revealing a slight decline in operating revenue and profitability compared to the same period in 2024. The company generated operating revenue of $817.1 million for the second quarter, a decrease of 0.7% from $823.2 million in the prior year. For the first six months of 2025, operating revenue increased by 1.7% to $1.6 billion, up from $1.58 billion in the same period last year. However, net income fell to $71.4 million, or $2.67 per diluted share, down from $102.5 million, or $3.83 per diluted share, in the second quarter of 2024. The decline in profitability was attributed to increased operating expenses, particularly in labor and depreciation.

Operating expenses for the second quarter of 2025 totaled $717.7 million, up from $685.7 million in the same quarter of 2024. The operating ratio, which measures operating expenses as a percentage of revenue, worsened to 87.8% from 83.3% year-over-year. Salaries, wages, and employee benefits rose by 5% to $391 million, driven by a 4.1% wage increase implemented in July 2024 and increased insurance costs. Additionally, depreciation and amortization expenses increased significantly due to ongoing investments in revenue equipment and technology, reflecting the company's expansion efforts.

Saia's operational metrics showed mixed results, with LTL (less-than-truckload) shipments declining by 2.8% to 2.3 million in the second quarter, while LTL tonnage increased by 1.1% to 1.6 million tons. The company reported an increase in LTL revenue per shipment, excluding fuel surcharges, which rose by 2.7% to $298.71, indicating successful pricing strategies despite volume declines. The company continues to focus on expanding its geographic footprint and enhancing customer service to support revenue growth.

In terms of financial position, Saia's total assets increased to $3.46 billion as of June 30, 2025, compared to $3.17 billion at the end of 2024. The company reported a working capital of $148.3 million, up from $118.2 million a year earlier. Cash and cash equivalents at the end of the second quarter stood at $18.8 million, a slight decrease from $19.5 million at the end of 2024. The company has also made significant capital investments, with net capital expenditures of $375.6 million in the first half of 2025, primarily for new equipment and technology.

Looking ahead, Saia's management remains cautious about the economic environment, which is closely tied to non-service sectors. The company plans to continue its initiatives to improve customer service and optimize pricing while managing costs effectively. Saia has implemented a general rate increase of 7.9% for a portion of its customer base, which it hopes will help mitigate the impact of rising operational costs. However, the company acknowledges that external factors such as inflation, labor availability, and changes in trade policy could significantly influence its future performance.