Earning Date, Transcript Summary & Report

Record Revenue Achievement: First quarter records for revenue, tonnage, and shipments were achieved, with revenue of $787.6 million, a 4.3% increase from the previous year.

Market Expansion Success: Growth was concentrated in newer markets, indicating strong customer acceptance and successful network expansion.

Strategic Focus Amid Challenges: Despite a challenging macro environment, the company remains focused on execution and leveraging past investments in their network.

Contractual Renewal Rates: Contractual renewals averaged 6.1%, reflecting customer confidence in the quality of service provided by Saia, Inc.

Tonnage and Shipment Growth: Tonnage increased by 11.0%, driven by a 2.9% increase in shipments and a 7.8% increase in average weight per shipment, showcasing operational efficiency.

Terminal Expansion and Workforce Growth: The company opened 21 new terminals, resulting in over 500 new employees, which supports future growth and service capabilities.

Revenue Per Shipment Increase: The increase in revenue per shipment, excluding fuel surcharge, by 2.3% to $376 demonstrates improved pricing strategies.

Customer Service Commitment: The company is committed to maintaining high service levels, which is crucial for customer satisfaction and retention.

Operating Ratio Decline: Operating ratio deteriorated to 91.1%, a decline of 670 basis points from 84.4% in Q1 2024, indicating increased operational inefficiencies.

Profitability Decline Due to Expenses: Revenue growth of 4.3% was overshadowed by a 12.6% increase in total operating expenses, leading to a significant decline in profitability.

Yield Decline Analysis: Yield excluding fuel surcharge declined by 5.1%, and yield including fuel surcharge decreased by 5.8%, reflecting challenges in maintaining pricing power amidst increased shipment weight.

Rising Labor Costs: Salaries, wages, and benefits increased by 13.9%, driven by headcount growth and wage increases, which may strain future profitability.

Rising Claims and Expenses: Claims and insurance expenses rose by 23.4% year-over-year, indicating potential issues with risk management and increased operational costs.

Depreciation Expense Increase: Depreciation expense increased by 20.9% due to ongoing investments, which may not yield immediate returns and could pressure cash flow.

Weather-Related Operational Disruptions: The impact of adverse weather events was more significant in 2025 compared to the previous year, leading to operational disruptions and closures in key markets.

Customer Caution Impacting Demand: Customer caution in the current macro environment is evident, with a wait-and-see approach affecting shipment volumes and overall demand.