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    SAIA
    Earnings call· Jun 2026(Q2 FY26)

    SAIA Q2 FY26 earnings call SAIA

    Jul 30, 2026 Source

    Executive summary

    Saia, Inc. Q2 FY26 — Record Revenue and OR Improvement

    Saia delivered a strong second quarter, achieving record revenue and significant operating ratio improvement, driven by disciplined execution and strategic network investments. The company is leveraging its expanded national footprint and technology, including the new Saia REV initiative, to enhance customer experience and drive returns. While facing regional mix headwinds and elevated fuel costs, management expresses cautious optimism for an improving macro environment and continued progress towards long-term margin goals.

    Highlights

    5

    • Second quarter revenue of $956.5 million, a record for any quarter, increased by 17.1% year-over-year.

    • Operating income increased 26% year-over-year to $125 million.

    • Operating ratio improved to 86.9%, a 90 basis point improvement year-over-year and 480 basis points sequentially from Q1 FY26.

    • Shipments per workday increased by 4.4% year-over-year, a record for a second quarter.

    • Achieved a record cargo claims ratio of 0.3%, demonstrating high-quality service despite increased volumes.

    Concerns

    3

    • Los Angeles region business experienced a 2.5% year-over-year decrease in shipments per workday, contributing to mix headwinds.

    • Fuel costs remained elevated and continued to fluctuate meaningfully on a day-to-day basis.

    • Anticipate approximately 100 basis points of sequential operating ratio degradation from Q2 to Q3 FY26, though better than historical seasonality.

    Guidance & targets

    3
    CategoryTargetConfidence
    Q2 to Q3 Operating Ratio Sequential Degradation
    around 100 basis points
    high materiality
    Medium
    Full-Year Operating Ratio Improvement
    100 basis points of OR improvement
    high materiality
    Medium
    Q3 Shipment Seasonality
    normal shipment seasonality
    medium materiality
    Medium

    Operational metrics

    50
    Revenue
    $956.5M+17.1% YoY
    Q2 FY26

    Record revenue for any quarter in the company's history.

    Shipments per workday
    +4.4%YoY
    Q2 FY26

    Record shipments per workday for a second quarter.

    Tonnage per workday
    +8.4%YoY
    Q2 FY26
    Revenue per shipment excluding fuel surcharge
    $303.12+1.5% YoY
    Q2 FY26

    Reflecting continued execution on pricing and mix management initiatives.

    Revenue per shipment excluding fuel surcharge
    +4%vs April FY26
    June FY26

    Improvement throughout the quarter.

    Revenue per shipment excluding fuel surcharge
    +4%YoY
    June FY26

    Compared to June of last year.

    Revenue per shipment including fuel surcharge
    +12%YoY
    Q2 FY26
    Weight per shipment
    +3.9%YoY
    Q2 FY26

    Mix management efforts and improving freight backdrop contributed to the increase.

    Operating income
    $125M+26% YoY
    Q2 FY26
    Operating ratio sequential improvement
    480 bpsvs Q1 FY26
    Q2 FY26

    Far outpacing historical seasonality.

    Cargo claims ratio
    0.3%
    Q2 FY26

    Achieved despite lower headcount and increased shipments.

    Customer inquiry handling time improvement
    50%
    Q2 FY26

    Result of decentralizing customer service operations.

    Miles between preventable accidents improvement
    >45%YoY
    Q2 FY26

    Reflects investments in driver training and safety programs.

    Hours between lost time injuries improvement
    17%YoY
    Q2 FY26

    Reflects investments in driver training and safety programs.

    Contractual renewals
    10.7%
    Q2 FY26

    Reflecting continued focus on pricing discipline.

    General Rate Increase (GRI)
    7.1%
    July FY26

    Consistent with quality of service and expectation that pricing reflects value.

    Fuel surcharge as percentage of total revenue
    22.3%vs 14.6% Q2 FY25
    Q2 FY26
    Yield excluding fuel surcharge
    -2.2%
    Q2 FY26

    Also impacted by declining shipments in the Los Angeles region.

    Yield including fuel surcharge
    +7.9%YoY
    Q2 FY26
    Core yield excluding fuel surcharge
    +3%YoY
    Q2 FY26

    Adjusted for negative impacts to yield from mix headwinds.

    Terminals opened in 2023 and 2024 operating ratio
    low 90simproved nearly 300 bps YoY
    Q2 FY26

    Showing good progress but with room to mature.

    New terminals opened
    5
    Q2 FY26
    Length of haul
    888 miles-0.6% YoY
    Q2 FY26
    Salaries, wages and benefits expense
    $43.4M+11.1% YoY
    Q2 FY26
    Group insurance costs
    $7M
    Q2 FY26

    Reflecting inflationary claims costs.

    Workers' compensation costs
    $2.2M
    Q2 FY26

    Reflecting inflationary claims costs.

    Purchased transportation expense
    +47.3%YoY
    Q2 FY26

    Includes non-asset truckload volume and LTL purchased transportation miles.

    Truck and rail PT miles as percentage of total linehaul miles
    15.4%up from 12% prior year
    Q2 FY26

    Year-over-year increase largely driven by greater rail utilization.

    Fuel expense
    +49.6%YoY
    Q2 FY26

    Primarily due to a 50.3% increase in national average diesel prices.

    Company linehaul miles
    +3.2%YoY
    Q2 FY26
    Claims and insurance expense
    +6.9%YoY
    Q2 FY26

    Primarily driven by development of open cases and increased claim activity.

    Depreciation expense
    $64.2M+2.6% YoY
    Q2 FY26

    Primarily due to ongoing investments in revenue equipment, terminal network, and technology.

    Cost per shipment
    +10.9%YoY
    Q2 FY26
    Total operating expenses
    +15.8%YoY
    Q2 FY26
    Tax rate
    24.9%vs 25.3% Q2 FY25
    Q2 FY26
    Diluted earnings per share
    $3.51+31.5% YoY
    Q2 FY26
    Cash on hand
    $84M
    Q2 FY26

    At quarter end.

    Total debt outstanding
    $100M
    Q2 FY26

    At period end, after paying down revolver balance.

    Operational door count increase
    25%
    since 2022

    Result of real estate investments.

    Tractor and trailer counts increase
    20%
    since 2022

    Result of fleet investments.

    Linehaul drivers increase
    26%vs Q2 FY22
    Q2 FY26
    Shipments per day
    +5.6%
    April FY26
    Tonnage per day
    +6.9%
    April FY26
    Shipments per day
    +3.7%
    May FY26
    Tonnage per day
    +8.4%
    May FY26
    Shipments per day
    +3.9%
    June FY26
    Tonnage per day
    +9.9%
    June FY26
    Shipments per day
    +1%
    July FY26 month-to-date

    Tracking up, with a couple of days left in the month.

    Tonnage per day
    +7.5%
    July FY26 month-to-date

    Tracking up, with a couple of days left in the month.

    Purchased transportation cost per mile excluding fuel
    +3%YoY
    Q2 FY26

    Blended PT cost per mile.

    Industry KPIs

    7
    MetricValueDetails
    Safety0.3%%
    VolumeShipments per workday: +4.4% YoY; Tonnage per workday: +8.4% YoY%
    Operating ratio86.9%%
    Revenue per load ex fuel$303.12USD
    Fuel surcharge diesel price22.3%%
    Intermodal truckload volumeShipments per workday: +4.4% YoY%
    Labor productivity headcount-1%%

    Product announcements

    1
    ProductTypeDetails
    Saia REVlaunch

    Capital programs

    2
    Real estate investmentsunderway$1B
    Start: 2022

    Benefit: 33 terminals added, 25+ relocated/expanded, 25% increase in operational door count

    Deployed approximately $1 billion in real estate investments since 2022, adding 33 terminals to operations and relocating or expanding more than 25 others.

    Fleet investmentsunderway$1B
    Start: 2022

    Benefit: 20% increase in tractor and trailer counts

    Deployed $1 billion in expanding and enhancing the fleet since 2022, resulting in a 20% increase in tractor and trailer counts.

    Risks & headwinds

    5
    Los Angeles region business declineQ2 FY26

    down about 2.5% in shipments per workday year-over-year

    Mitigation: Management expects stabilization and growth from this region going forward, having lapped the prior year's declines.

    Elevated and fluctuating fuel costsQ2 FY26

    Fuel expense increased by 49.6% year-over-year, national average diesel prices up 50.3% year-over-year

    Mitigation: Company focuses on driving core price increases and uses fuel surcharge mechanisms to offset costs. Investments in fleet and fuel tanks help manage.

    Macroeconomic landscape dynamismnear-term

    External economic indicators suggest improving environment, but macro landscape continues to be dynamic.

    Mitigation: Focus on disciplined execution, network investments, and high-quality service to capture market share regardless of macro conditions.

    Shipment volatility from GRI implementationQ3 FY26

    July shipments tracking up about 1% month-to-date, lower than Q2 growth rates

    Mitigation: Management expects some business to return over time, as seen historically after GRI implementation. Focus on good acceptance rate on price.

    Tightening national driver labor marketongoing

    Driver population nationally is tightening up, average driver is older.

    Mitigation: Leveraging driver academy program, competitive advantage of LTL (drivers home daily), and strong company culture to recruit and retain drivers.

    What to watch in Q3 FY26

    5

    Q3 Operating Ratio

    Q3 FY26
    Current86.9% (Q2 FY26)
    Targetaround 100 bps sequential degradation (vs 150-200 bps historical)

    Why it matters

    Verifying management's ability to outperform historical seasonality in OR degradation will indicate effective cost management and operating leverage.

    Where we are now and assuming kind of fuel hanging in around where it is now, our quarterly shipments getting a seasonal typical performance, we think we can be around 100 basis points of sequential degradation.

    Q&A highlights

    6

    Can you provide July shipment and tonnage trends and how they relate to seasonality, and what that implies for Q3 operating ratio?

    July shipments per day are up 1% and tonnage per day up 7.5% month-to-date, noting some volatility due to the 7.1% GRI. Expect Q2 to Q3 OR degradation of around 100 basis points, which is better than the typical 150-200 basis points.

    “July month to date, obviously, we still got a couple of days left, but shipments are tracking up about 1%, tonnage, up about 7.5% on a per day basis.”

    asked by Jonathan Chappell · answered by Matthew Batteh

    2 min read5 chapters

    Detailed Narrative

    01

    Q2 Financial Highlights & Operating Performance

    Saia reported record second quarter revenue of $956.5 million, a 17.1% increase year-over-year, driven by a 4.4% rise in shipments per workday and effective pricing strategies. Operating income grew 26% to $125 million, leading to an operating ratio of 86.9%. This represents a 90 basis point improvement from Q2 FY25 and a significant 480 basis point sequential improvement from Q1 FY26, far exceeding historical seasonality. Diluted EPS increased 31.5% to $3.51.

    02

    Network Expansion & Investment Returns

    Since 2022, Saia has deployed approximately $1 billion in real estate, adding 33 terminals and relocating/expanding over 25 others, increasing its operational door count by 25%. An additional $1 billion was invested in fleet expansion, resulting in a 20% increase in tractor and trailer counts. These investments are now beginning to yield returns, as evidenced by strong Q2 results and improved free cash flow, positioning the company for continued organic growth and enhanced service capabilities across its national footprint.

    03

    Pricing Strategy & Customer Acceptance

    The company's pricing discipline is reflected in contractual renewals of 10.7% for the quarter and a 7.1% General Rate Increase (GRI) implemented in early July. Revenue per shipment, excluding fuel surcharge, increased 1.5% year-over-year, with June showing a 4% improvement from April. Management noted good customer acceptance of the GRI, indicating that customers value Saia's high-quality service and national network, even as rates are pushed higher. Core yield, adjusted for mix headwinds, was up about 3% year-over-year.

    04

    Labor Productivity & Headcount Management

    Saia continues to focus on maximizing workforce efficiency, with headcount decreasing 1% year-over-year (1.7% excluding linehaul drivers). Despite this, linehaul drivers increased 26% since Q2 2022 to support the expanding network. The company manages labor costs through productivity improvements, leveraging technology to enhance network efficiency and offset wage increases. The driver academy program is highlighted as a key component for recruiting and retaining talent in a competitive labor market.

    05

    Saia REV Initiative & Customer Experience

    Saia launched 'Saia REV,' a company-wide initiative focused on rapid, expanded, and visible service. This includes over 2,000 transit time improvements, automated guaranteed 10 AM delivery service, and dynamic real-time shipment tracking with predictive insights. This initiative underscores Saia's commitment to improving the customer experience and leveraging its technology and network to provide differentiated solutions, further solidifying its value proposition in the market.

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