Given contractual renewals at 10.7% and GRI at 7.1%, will the 4% June revenue per shipment growth (ex-fuel) accelerate and converge with headline pricing numbers in future quarters?

Management expects continued improvement, noting that mix headwinds are easing, particularly as the Los Angeles region business stabilizes. The expanded network and ability to solve more customer problems should drive higher pricing over time, supported by strong service execution. “But our good view and what we've been working on is that continued improvement. Like we said, once we started to get past this mix headwind and mix abating a bit late through the quarter where we're seeing numbers that are more consistent with what we're accustomed to on our side.”

Can you detail fuel's contribution to Q2 results and its impact on OR, especially given the 8% stock drop and comparison to peers' margin guidance?

Fuel surcharge is a component of base rates, and the company focuses on core pricing increases. The Q2 OR outperformance was despite fuel fluctuations. The 100bps Q2-Q3 OR degradation guidance is better than historical trends, but includes two wage increases. Management emphasizes creating value for customers and shareholders, not daily trading activity. “But we're focused on driving core price, again, to reiterate that when you get more on the base revenue per [ billion, ] you get more on fuel because that's just a component of the base rate ex fuel.”

With tonnage inflecting and mix headwinds easing, why aren't incremental margins higher? Are new terminals still ramping up and requiring density fill-in?

Terminals opened in 2023 and 2024 are operating in the low 90s OR and improved 300 basis points, but still have room to mature. The company views the network's value as being in its early innings, with significant opportunity to generate additional returns as facilities mature and sales teams drive density. “Yes. I mean the 2023 and 2024 openings improved about 300 basis points. They're operating in the low 90s. That's great progress. We're pleased with that, but they've got room to go.”

SAIA

Saia (SAIA) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Jul 30, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Q2 to Q3 Operating Ratio Sequential Degradation	around 100 basis points high materiality	Q3 · FY26	Medium
Full-Year Operating Ratio Improvement	100 basis points of OR improvement high materiality	FY26	Medium
Q3 Shipment Seasonality	normal shipment seasonality medium materiality	Q3 · FY26	Medium

SAIA operating KPIs by quarter

SAIA operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	This call 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.

Product announcements

Product	Type	Timeline	Details
Saia REV	launch	—

Capital programs

Real estate investments underway $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 investments underway $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

Los Angeles region business decline Q2 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 costs Q2 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 dynamism near-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 implementation Q3 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 market ongoing

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

Q3 Operating Ratio

Q3 FY26

Current 86.9% (Q2 FY26)

Target around 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.

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

Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

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