Saia Hits New Highs as Terminal Expansion Fuels Business Growth

Saia’s expanded terminal network delivers record revenue, tonnage

Less-than-truckload carrier Saia posted record revenue and tonnage in the third quarter as freight volumes continued to build across its expanded terminal network. The company said its next priority is improving operating performance at newer locations as they gain freight density and move further into their ramp-up periods.

Saia reported third-quarter earnings per share of $3.41, up 60 cents from the comparable period a year earlier and 11 cents above the consensus analyst estimate. The year-over-year comparison excludes a $14.5 million net impact from real estate gains and impairments in the prior-year period, which resulted in adjusted earnings per share of $2.81.

Revenue increased 17% year over year to $983 million, exceeding analysts’ expectations by approximately $15 million. Diesel prices were 48% higher than in the year-ago quarter, contributing to the revenue increase through fuel surcharges.

Net income totaled $91.5 million, up 6% from $86.3 million a year earlier. A $3.6 million reduction in net interest expense provided an estimated 10-cent-per-share benefit compared with the prior year.

Volume growth outpaced shipments

Saia’s tonnage rose 9% year over year to approximately 1.72 million tons. Shipments increased 1%, while pounds per shipment grew 8% to 1,465 pounds.

The company’s tonnage growth accelerated through the quarter. Volume was up 7.8% year over year in July, 8.7% in August and 10.3% in September. Saia said tonnage was up 10% year over year through the first part of October.

The results show that the carrier is moving more freight without a comparable increase in shipment count. For drivers and terminal operations, that can mean heavier individual shipments and a different mix of handling, dock and linehaul work than shipment counts alone would suggest.

Saia’s revenue per hundredweight, excluding fuel surcharges, declined 2% year over year. The company attributed some of the pressure to heavier shipments and a 1% reduction in average length of haul. Revenue per shipment excluding fuel, however, increased 6%.

Management said the company’s national expansion and improved service levels should support additional pricing. Saia implemented a 7.1% general rate increase on July 6, 120 basis points higher and three months earlier than the previous year’s increase. Contractual rate renewals averaged 10.8% during the quarter and were up 15.9% on a two-year-stacked basis.

Network expansion changes Saia’s operating footprint

Since 2022, Saia has opened 45 terminals and relocated or expanded more than 25 other facilities. Those investments increased the company’s operational door count by approximately 32% and its tractor and trailer capacity by more than 35%.

The network additions are intended to give Saia more direct coverage in markets that previously required longer linehaul moves or depended more heavily on connecting freight through other terminals. The company said its expanded network and service improvements have reduced transit times in more than 2,000 lanes through its Saia REV initiative.

Saia opened a terminal in Deer Park, New York, in October. The Long Island facility is designed to improve service in the greater New York metropolitan area, one of the country’s largest freight markets.

Management said terminals opened in 2023 and 2024 are continuing to mature. Operating income at those locations increased 22% year over year in the third quarter. The operating ratio at newer facilities improved by 40 basis points, although those terminals were still running at a low-90% operating ratio.

Across the company, Saia posted an operating ratio of 87.6%. That was flat year over year and 70 basis points worse than the second quarter. Saia typically sees a 150- to 200-basis-point seasonal deterioration from the second to the third quarter.

The year-over-year comparison also included the effect of two wage increases during the quarter. Saia had no wage increase in the third quarter of the prior year because its adjustment was implemented in October. This year’s increase took effect in July as usual.

Service and cost pressures remain in focus

Saia reported a company-record cargo claims ratio of 0.3%, an improvement of more than 40% from the same quarter a year earlier. Fewer claims can reduce rehandling and administrative costs while improving the experience for shippers and consignees.

Purchased transportation expense increased 220 basis points as a percentage of revenue. Rail and truck partners accounted for 15.7% of Saia’s total linehaul miles, while outside rate-per-mile inflation was limited to 4%. The company expects additional cost pressure from purchased transportation, though provider contracts are staggered.

Saia said it expects approximately 200 basis points of operating-ratio deterioration from the third to the fourth quarter, compared with a typical seasonal decline of 250 to 300 basis points. That would imply an operating ratio of about 89.6% for the fourth quarter.

The company also said it will continue using rail where it provides a cost advantage. That strategy affects the way freight is routed across the network and remains part of Saia’s effort to manage linehaul expenses as its terminal footprint expands.

Capital spending begins to moderate

Saia has spent heavily on terminals, equipment, technology and personnel during its expansion. Net capital expenditures totaled $1.05 billion in 2024 and $544 million in 2025. The company now expects full-year net capital expenditures of approximately $350 million, down from its previous guidance range of $350 million to $400 million.

Capital expenditures are expected to equal 13% to 14.5% of revenue next year, compared with a longer-term target range of 12% to 15%. Saia generated more than $240 million in free cash flow through the third quarter and ended the period with more than $100 million in net cash.

The carrier also authorized up to $250 million in share repurchases as major portions of its network investment begin to wind down.

Saia’s results provide one of the clearest public views into the less-than-truckload market, where relatively few carriers disclose detailed operating data. For the broader trucking industry, the quarter highlighted continued LTL volume growth, heavier shipments and the operational challenge of turning a rapidly expanded terminal network into consistently profitable capacity.