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    SAIA
    Earnings call· Mar 2026(Q1 FY26)

    SAIA Q1 FY26 earnings call SAIA

    Apr 30, 2026 Source

    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

    5

    • 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

    4

    • 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

    3
    CategoryTargetConfidence
    Operating Ratio Improvement
    400-450 basis points sequential improvement
    high materiality
    High
    Full-year Operating Ratio Improvement
    100-200 basis points
    high materiality
    Medium
    Free Cash Flow
    Positive
    medium materiality
    High

    Operational metrics

    39
    Revenue
    $806.2 millionup 2.4% YoY
    Q1 FY26

    Partially due to increased fuel surcharge revenue and a 1% increase in shipments per workday.

    Fuel Surcharge Revenue
    16.5%compared to 15.1% a year ago
    Q1 FY26

    Increased due to higher diesel costs.

    Revenue per shipment excluding fuel surcharge
    $297.11decreased 1.2% YoY
    Q1 FY26

    Improved sequentially throughout the quarter.

    Revenue per shipment including fuel
    increased 0.7%YoY
    Q1 FY26
    Yield excluding fuel
    increased 1.9%YoY
    Q1 FY26
    Yield including fuel surcharge
    increased 3.8%YoY
    Q1 FY26
    Salaries, wages and benefits
    increased $4 millionup 1% YoY
    Q1 FY26

    Partially offset by headcount reductions.

    Headcount
    6.3% lowercompared to Q1 FY25
    Q1 FY26 end

    Result of continued focus on operational efficiency and network cost management.

    Purchase transportation expense
    increased 7.5%YoY
    Q1 FY26

    Truck and rail PT miles combined were 13.4% of total linehaul miles, up from 12.4% in prior year.

    Fuel expense
    increased 3.6%YoY
    Q1 FY26

    National average price per gallon increased more than 30% from February to March, creating a $3.5 million margin headwind due to surcharge timing lag.

    Claims and insurance expense
    increased 6.3%YoY
    Q1 FY26

    Despite efforts in safety and training leading to a significant decrease in preventable accidents.

    Depreciation expense
    $62.2 millionup 5.3% YoY
    Q1 FY26
    Cost per shipment
    increased 2%YoY
    Q1 FY26

    Higher fuel costs also contributed.

    Salaries, wages and purchase transportation combined per shipment
    down 1.2%YoY
    Q1 FY26

    Result of actions around cost control and network optimization.

    Total operating expenses
    increased 3.1%YoY
    Q1 FY26
    Tax rate
    23.3%compared to 24% in Q1 FY25
    Q1 FY26
    Diluted earnings per share
    $1.86flat YoY
    Q1 FY26
    Cash on hand
    $39 million
    Q1 FY26 end
    Revolving credit facility drawn
    $12 million
    Q1 FY26 end
    Total debt outstanding
    $113 million
    Q1 FY26 end
    Cargo claims ratio
    0.5%
    Q1 FY26

    A record of consecutive quarters achieving this milestone.

    Miles between preventable accidents
    significant increase
    Q1 FY26

    Testament to ongoing commitment to safety, training, and technology.

    Hours between lost time injuries
    significant improvement
    Q1 FY26

    Testament to ongoing commitment to safety, training, and technology.

    Productivity
    improved more than 2.5%compared to Q1 FY25
    Q1 FY26

    Demonstrates the impact of ongoing investments in optimization technology.

    Contractual renewals
    6.7%
    Q1 FY26

    Reflects value proposition to customers.

    Shipment increase
    1%
    Q1 FY26

    Resulted from volume acceleration in the back half of March.

    Weight per shipment
    improved sequentially each monthstill down compared to prior year
    Q1 FY26
    Tonnage decrease
    2.1%YoY
    Q1 FY26
    Average length of haul
    890 milesdecreased 1.7% YoY
    Q1 FY26
    Investment in network and fleet
    $1.8 billion
    last 36 months

    Since 2017, 70 facilities have been opened.

    Shipments per day
    down 2.1%YoY
    January FY26

    Impacted by weather.

    Tonnage per day
    down 7%YoY
    January FY26

    Impacted by weather.

    Shipments per day
    up 0.3%YoY
    February FY26
    Tonnage per day
    down 2.7%YoY
    February FY26
    Shipments per day
    up 4.3%YoY
    March FY26

    Strong acceleration in the back half of the month.

    Tonnage per day
    up 2.8%YoY
    March FY26

    Strong acceleration in the back half of the month.

    Shipments per day
    up about 5.5%YoY
    April FY26 YTD

    As of call date.

    Tonnage per day
    up about 6.5%YoY
    April FY26 YTD

    As of call date.

    Newer facilities margin improvement
    over 2 pointsYoY
    Q1 FY26

    These facilities are still relatively immature and are a drag on overall company OR.

    Industry KPIs

    6
    MetricValueDetails
    Safety0.5%%
    Operating ratio91.7%%
    Revenue per load ex fueldecreased 1.2%%
    Fuel surcharge diesel price16.5%% of total revenue
    Intermodal truckload volumeup 1%%
    Labor productivity headcount6.3% lower%

    Risks & headwinds

    4
    Rapid Diesel Cost IncreaseQ1 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 CostsQ1 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 UncertaintyOngoing, 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 HaulQ1 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

    4

    Q2 Operating Ratio Improvement

    Q2 FY26
    CurrentQ1 FY26 OR of 91.7%
    Target400-450 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.

    Q&A highlights

    5

    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 read5 chapters

    Detailed Narrative

    01

    Q1 Performance and Volume Trends

    Saia reported record Q1 FY26 revenue of $806 million, a 2.4% increase year-over-year, despite weather impact🌐s 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%.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.