Saia (SAIA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 4.3% year-over-year to $787.6 million, but operating income fell 40.5% to $70.2 million due to margin compression, harsh winter weather, and higher labor and depreciation expenses.

• Diluted EPS was $1.86, down from $3.38 in Q1 2024, with net income at $49.8 million versus $90.7 million a year ago.

• LTL shipments per workday increased 4.6% and tonnage per workday rose 12.7%, driven by new terminals opened in the past three years.

• Investments in network expansion and technology drove volume growth, with 21 new terminals opened in the past year and a footprint now covering all contiguous states.

• Over $2 billion invested since 2021, with $650 million planned for 2025 to support continued growth and customer experience enhancements.

Financial highlights

• Operating ratio deteriorated to 91.1% from 84.4% a year ago, reflecting higher costs and weather impacts.

• LTL revenue per shipment, excluding fuel surcharge, increased 2.3% year-over-year to $300.76.

• Adjusted EBITDA was $129.2 million, down 22.5% year-over-year.

• Net cash from operating activities was $109.1 million, up from $106.5 million a year ago.

• Net capital expenditures were $202.1 million in Q1 2025, with a full-year estimate of $650 million.

Outlook and guidance

• Management expects continued muted macro conditions and is planning around current shipment and revenue trends.

• No significant improvement in seasonality or demand is anticipated in the near term; cost actions are underway to align with demand.

• $650 million in capital investments planned for 2025 to support network and service expansion.

• Ongoing initiatives focus on customer service, pricing, network expansion, and cost control, but macroeconomic and trade policy uncertainties persist.

• A 7.9% general rate increase was implemented for about 25% of revenue in October 2024.