Inquired about the sequential acceleration of revenue per shipment ex-fuel, despite a year-over-year decrease, and how core/contract pricing contributes. Also asked about weight per shipment trends, especially with lapping Southern California issues and potential truckload spillover.

Matt explained that the year-over-year decrease was partly due to the Los Angeles region headwinds and winning in shorter-haul 1-2 day markets. He noted that weight per shipment and revenue per shipment improved sequentially each month in Q1. Fritz added that contractual renewals were 6.7% for the quarter, with March north of 7%. They expect improvement in yields in the back half of Q2 as they lap the SoCal market issues. “Part of that's our actions on contractual renewals. You heard for it to get the 6.7%. That was the highest number that we've seen in quite a while, and that was capped by a March number that was north of 7%.”

Asked if the strong Q2 outlook and April trends suggest the high end of the previously guided 100-200 bps full-year OR improvement range might become the low end, or if there's still uncertainty about H2 demand.

Fritz stated that customer sentiment is more positive for the second half, with Net Promoter Scores at an all-time high. He confirmed the 100-200 bps range is "certainly within range" but emphasized that macro factors and diesel costs still create uncertainty. He feels good about the Q2 outlook and believes H2 could be "pretty good." “I think the ranges that we've talked about earlier in the year, the $100 million to $200 million is certainly within range, but there's still a lot to go on.”

Inquired about the progression of operating ratios for newer facilities and how the demand improvement is split between legacy and new terminals, distinguishing between core demand and Saia's initiatives.

Matt stated that newer facilities (2023-2024 openings) are still above company average OR but improved margins by over 2 points year-over-year, though still in the upper 90s. Fritz highlighted that legacy facilities saw growth for the first time in several quarters, alongside faster growth in new facilities. This indicates customers are increasingly using Saia as a complete national solution, leveraging the expanded footprint. “We're now in a bigger part of the customer supply chain in these new facilities. We're doing a great job for those customers in the facilities. And now when you're in that -- a little bit of a synergy that's coming out of this, it simply says when you're a national player and you could do more for a customer, you're hacking a lot easier to do business with.”

SAIA

Saia (SAIA) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Industrials· Apr 30, 2026

Source: earnings call transcript

Executive summary

Saia Q1 FY26 — Record Revenue and Strong Q2 Margin Outlook

Saia delivered record Q1 FY26 revenue despite weather impacts and diesel cost surges, driven by strong volume acceleration in late March and April. The company projects significant sequential operating ratio improvement for Q2 FY26, leveraging network investments and operational efficiencies. Management highlighted improved service metrics and customer sentiment, anticipating continued momentum into the second half of the year.

Highlights

Revenue for Q1 FY26 was a record $806 million, a 2.4% improvement over prior year.
Shipment increase of 1% for the quarter, with April-to-date shipments up 5.5% and tonnage up 6.5%.
Contractual renewals were 6.7% for the quarter, with March north of 7%.
Operating ratio improvement projected at 400-450 bps from Q1 to Q2 FY26.
Cargo claims ratio of 0.5%, marking the sixth straight quarter below 0.6%.

Concerns

Rapid increase in diesel costs in March (30% increase in a few days) created a $3.5 million margin headwind due to timing differences in the surcharge program.
Revenue per shipment excluding fuel surcharge decreased 1.2% to $297.11 compared to Q1 FY25, largely due to lower weight per shipment and shorter length of haul.
Health insurance costs increased $7.9 million and workers' compensation costs increased $1.4 million, primarily due to escalating claims costs.
Operating ratio increased to 91.7% compared to 91.1% a year ago.

Guidance & targets

Category	Target	Timeline	Confidence
Operating Ratio Improvement	400-450 basis points sequential improvement high materiality	Q2 · FY26	High
Full-year Operating Ratio Improvement	100-200 basis points high materiality	FY26	Medium
Free Cash Flow	Positive medium materiality	FY26	High

SAIA operating KPIs by quarter

SAIA operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Cargo claims ratio	0.5% We achieved a cargo claims ratio of 0.5%, which is our sixth straight quarter of claims ratio below 0.6%, a record of consecutive quarters achieving this milestone. Source: earnings call transcript	0.3% Despite lower head count and increased shipments compared to prior year, we achieved a record cargo claims ratio of 0.3%, demonstrating our ability to deliver high-quality service across our now national footprint. Source: earnings call transcript	-0.2 pt
Average length of haul	890 miles Our average length of haul decreased 1.7% to 890 miles compared to 905 miles in the first quarter of 2025. Source: earnings call transcript	888 miles Length of haul decreased 0.6% to 888 miles compared to 893 miles in the second quarter of 2025. Source: earnings call transcript	-0.2%
Purchased transportation miles share	13.4% Truck and rail PT miles combined were 13.4% of our total linehaul miles in the quarter compared to 12.4% in the prior year. Source: earnings call transcript	15.4% Truck and rail PT miles represented 15.4% of total linehaul miles in the quarter, up from 12% in the prior year. Source: earnings call transcript	+2 pt
Facilities	214 And now that we've got 214 facilities in the national network, we feel like our value prop to our customer is better than it's ever been. Source: earnings call transcript	218 But importantly, at 218 terminals now, we're able to solve more problems for customers. Source: earnings call transcript	+1.9%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Risks & headwinds

Rapid Diesel Cost Increase Q1 FY26 (March)

30% increase in a few days in March, leading to a $3.5 million margin headwind.

Mitigation:Fuel surcharge program helps mitigate, but there's a timing lag as the table updates weekly while costs are incurred in real time.

Escalating Health Insurance and Workers' Compensation Costs Q1 FY26

Health insurance increased $7.9 million, workers' compensation increased $1.4 million.

Mitigation:Partially offset by headcount reductions and continued focus on safety and training.

Macroeconomic Uncertainty Ongoing, particularly for H2 FY26.

Not quantified, but noted as impacting demand.

Mitigation:Company's ability to adapt to change, deliver solutions, and disciplined cost management.

Lower Weight per Shipment and Shorter Length of Haul Q1 FY26

Revenue per shipment ex-fuel decreased 1.2% YoY to $297.11.

Mitigation:Targeted actions around mix management and improving shipper sentiment; expectation for improvement in H2 Q2 and H2 FY26 as market tightens and SoCal issues are lapped.

What to watch in Q2 FY26

Q2 Operating Ratio Improvement

Q2 FY26

Current Q1 FY26 OR of 91.7%

Target 400-450 basis points sequential improvement

Why it matters

This is a significant sequential improvement target, well above historical Q1-Q2 trends, and will indicate the strength of demand recovery and operational leverage.

This year, we think with what we've got going, the momentum we see, we think we can do about 400 to 450 basis points of improvement, which would be obviously a significant step-up from where we are.

Find out whether SAIA delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked for thoughts on margin progression from Q1 to Q2, specifically regarding volume, yield, and cost levers, in the context of improving underlying demand.

Fritz provided detailed monthly shipment and tonnage stats (Jan: shipments -2.1%, tonnage -7%; Feb: shipments +0.3%, tonnage -2.7%; March: shipments +4.3%, tonnage +2.8%; April YTD: shipments +5.5%, tonnage +6.5%). He then guided for a 400-450 basis point sequential OR improvement from Q1 to Q2, assuming normal seasonality for May and June.

“This year, we think with what we've got going, the momentum we see, we think we can do about 400 to 450 basis points of improvement, which would be obviously a significant step-up from where we are.”

asked by Jordan Alliger · answered by Frederick Holzgrefe

2 min read 5 chapters

Detailed narrative

Q1 Performance and Volume Trends

Saia reported record Q1 FY26 revenue of $806 million, a 2.4% increase year-over-year, despite weather impacts in January and February, particularly in Texas and the Mid-South. Volume acceleration in the second half of March, with shipments per day up 4.3% and tonnage per day up 2.8%, helped offset earlier weakness. April-to-date trends show continued strength, with shipments up 5.5% and tonnage up 6.5%.

Operational Efficiency and Safety

The company achieved a cargo claims ratio of 0.5%, marking the sixth consecutive quarter below 0.6%. Significant improvements were noted in safety metrics, with a first-quarter record for miles between preventable accidents and the highest Q1 level since 2020 for hours between lost time injuries.

Productivity improved by over 2.5% compared to Q1 FY25 and approximately 1% sequentially from Q4 FY25, driven by ongoing investments in network optimization technology.

Pricing and Mix Management

Contractual renewals averaged 6.7% for the quarter, with March renewals exceeding 7%, reflecting the company's value proposition. Revenue per shipment excluding fuel surcharge decreased 1.2% year-over-year due to lower weight per shipment and shorter length of haul, but improved sequentially each month of the quarter.

Management expects further improvement in yields and revenue per shipment in the latter half of Q2 and into the second half of the year as the market tightens.

Cost Headwinds and Management

A rapid 30% increase in diesel costs in March led to a $3.5 million margin headwind due to the timing lag of the fuel surcharge program. Health insurance costs increased by $7.9 million and workers' compensation costs by $1.4 million, driven by escalating claims.

Despite these, salaries, wages, and purchase transportation combined were down 1.2% on a per shipment basis, demonstrating effective cost control and network optimization.

Network Expansion and Investment Strategy

Since 2017, Saia has opened 70 facilities, investing approximately $1.8 billion in its network and fleet over the last 36 months, representing over 19% of total revenue during that period. This investment supports a national network strategy, enabling the company to offer a complete solution to customers and drive growth in both legacy and ramping markets.

Management believes they are in the early stages of realizing the full benefits of these investments, aiming for a sub-80 operating ratio long-term.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.