Saia’s Growing Terminal Network Fuels Record Revenue and Tonnage

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’s results showed strong demand for its services, although management said the next priority is improving the operating performance of newer facilities.

Saia reported third-quarter earnings per share of $3.41, up 60 cents from the same 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 reached $983 million, a 17% increase from the third quarter of 2025 and $15 million above analysts’ expectations. A $3.6 million year-over-year decline in net interest expense contributed approximately 10 cents to the earnings-per-share comparison.

Saia’s net profit totaled $91.5 million, up 6% from $86.3 million in the same quarter last year. The company generated more than $240 million in free cash flow through the first three quarters and ended the period with more than $100 million in net cash.

Volume growth outpaced shipment growth

Saia’s tonnage increased 8.9% year over year to 1.72 million tons from 1.58 million tons. Shipments rose 1%, while weight per shipment increased 8% to 1,465 pounds from 1,355 pounds.

The company’s tonnage growth accelerated during the quarter. Tonnage 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 increase in average shipment weight is important for drivers and terminal operations because heavier shipments can affect loading plans, trailer utilization and handling requirements even when shipment counts are relatively stable. Saia’s quarter-to-date tonnage per workday increased 8.3%, while weight per shipment rose 7.2%.

Revenue per shipment, excluding fuel surcharges, increased 6%. Revenue per hundredweight, or yield, declined 2% year over year, partly because of the heavier freight mix and a 1% decline in average length of haul. Saia also cited continued weakness in the Los Angeles market, where freight typically carries higher bills.

Network investment continues to reshape operations

Saia has added 45 terminals since 2022 and relocated or expanded more than 25 other facilities. The company now operates roughly 219 terminals, giving it a broader national footprint while still maintaining a smaller network than some competing national LTL carriers.

Those investments have increased Saia’s operational door count by approximately 32% and tractor and trailer capacity by more than 35%. Chief Executive Officer Fritz Holzgrefe said the network, combined with investments in technology and personnel, has improved service levels, reduced freight handling and strengthened the company’s national coverage.

For drivers, the expanding network means freight may move through more local and regional facilities instead of traveling as far through the linehaul system. Saia has also reduced transit times in more than 2,000 lanes through its network initiatives, according to the company.

Management said terminals opened in 2023 and 2024 recorded a 22% year-over-year increase in operating income during the quarter. The operating ratio at newer facilities improved by 40 basis points from the same period last year, although those locations are still operating at a low-90% ratio.

Across the company, Saia posted an 87.6% operating ratio, flat from a year earlier and 70 basis points worse than the second quarter. The company typically experiences 150 to 200 basis points of margin deterioration from the second to the third quarter. Saia said the year-over-year comparison also included the effect of two wage increases during the quarter.

Pricing and service improvements

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.

Company executives attributed pricing progress to improved service, broader market coverage and the ability to handle more customer needs through the expanded network. Saia’s cargo claims ratio improved to a company-record 0.3%, more than 40% better than a year earlier.

The carrier expects the fourth quarter to bring its usual seasonal margin pressure, but it is projecting approximately 200 basis points of operating-ratio deterioration from the third quarter. That would imply an operating ratio of about 89.6%, which would be 230 basis points better than the unadjusted fourth-quarter result in 2025.

Purchased transportation costs increased as a percentage of revenue, and rail and truck partners handled 15.7% of Saia’s linehaul miles during the quarter. The company said it limited outside rate-per-mile inflation to 4% and will continue using rail where it provides a cost advantage.

Capital spending begins to moderate

Saia lowered its expected full-year net capital spending to approximately $350 million, compared with its previous range of $350 million to $400 million. Net capital spending totaled $544 million in 2025 and $1.05 billion in 2024 as the carrier accelerated its terminal and equipment expansion.

The company expects capital expenditures to equal 13% to 14.5% of revenue next year, compared with a longer-term target range of 12% to 15%. Saia also authorized up to $250 million in share repurchases as its network investment begins to moderate.

Shares of Saia were up 3% at 2:51 p.m. EDT following the earnings release, while the S&P 500 was down 0.6%. As one of the few publicly traded national LTL carriers, Saia’s results offer a useful view of freight volumes, pricing and operating conditions in a segment where public data remains limited.