Less-than-truckload carrier Saia reported a headline earnings miss for the fourth quarter.
The Johns Creek, Georgia-based company reported fourth-quarter revenue of $790 million, which was $1 million higher year over year and $14 million better than the consensus estimate. Earnings per share of $1.77 came in 38% lower y/y and 14 cents light of consensus.
The company called out $4.7 million in incremental insurance costs tied to “unexpected adverse developments” related to prior accidents. Excluding the costs, the company’s fourth quarter EPS would have been in line with expectations at $1.91.
Click for full story – “Saia awaits payoff on $2B investment”
Saia’s (NASDAQ: SAIA) revenue per day was flat y/y as tonnage fell 1.5% and revenue per hundredweight (yield) increased 1.6% (0.5% higher excluding fuel surcharges).
The tonnage decline was due to a 0.5% decline in shipments and a 1% decline in weight per shipment. The quarter had a tough tonnage comp (plus-8.3% y/y in the year-ago period).
Yield had an easier comparison in the quarter (negative-2.3% in the 2024 fourth quarter). The 1% decline in weight per shipment was a modest tailwind to the yield metric. Revenue per shipment was down 0.5% y/y in the quarter, excluding fuel surcharges.
A 91.9% operating ratio (inverse of operating margin) was 480 basis points worse y/y and 430 bps worse than the third quarter. That was worse than management’s guidance, which called for 300 to 400 bps of sequential deterioration. The incremental insurance costs were a 60-bp drag.
Salaries, wages and benefits expenses (as a percentage of revenue) were 280 bps higher y/y. Depreciation and amortization was 110 bps higher. Growth in cost per shipment exceeded growth in revenue per shipment by 560 bps.
The carrier is still working to ramp volume and mitigate expenses at the roughly 40 service centers it has added since 2022.
“Our record level of capital investments over the past three years have transformed our network and given us the ability to solve problems for more customers,” said Saia CFO Matt Batteh, in a news release. “Having now completed our first full year with a national footprint, we are even more excited about the opportunity ahead of us.”
Click for full story – “Saia awaits payoff on $2B investment”
Net capex is expected to step down from $544 million in 2025 ($1.05 billion in 2024) to $350 million to $400 million in 2026.
Shares of SAIA were off 4.2% in pre-market trading on Tuesday.
Saia will host a call at 10:00 a.m. EST on Tuesday to discuss fourth-quarter results.
Freight Fraud Symposium
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
Future of Rail Symposium
Reshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Rock & Roll Hall of Fame • Cleveland, OH Register NowPast the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post Office • Chicago, IL Register NowReshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now