Saia, Inc. Q1 FY2026 earnings call

Faced weather impact, but teams were well positioned to meet seasonal demands. Service metrics improved with a cargo claims ratio of 0.5% for sixth consecutive quarters below 0.6. Safety improved with record miles between preventable accidents and highest hours between lost time injuries since 2020. Productivity improved with touches strongest since Q3 2024. Revenue per shipment excluding fuel ramped throughout the quarter with 6.7% contractual renewals.

Revenue for the quarter was $806 million, a record for the first quarter and a 2.4% improvement over prior year. Tonnage decreased 2.1% compared to the prior year, attributable to a 3.1% decrease in our average weight per shipment. Our average length of haul decreased 1.7% to 890 miles compared to 905 miles in the first quarter of 2025. Yield excluding fuel increased by 1.9% while yield increased by 3.8% including fuel surcharge compared to the first quarter of 2025.

Expect Q2 to have about 400 - 450 basis points improvement sequentially from Q1. Assume normal seasonality in May and June, can hit that, and outperform if environment improves dramatically. Full-year OR improvement guide from February is 100 to 200 basis points with high end assuming volume tailwinds.

Weather impacted operational results. Rapid rise in diesel costs in March created ~$3.5 million margin headwind due to timing difference in fuel surcharge updates. Macro-economic environment uncertainty affects customer demand. Los Angeles region still faces headwinds.

Q: Jordan Alliger from Goldman Sachs asked about margin progression as we go Q1 to Q2 and specific levers.

A: Matt responded with monthly shipments and tonnage stats, and expectation of 400 - 450 basis points improvement in Q2.

Q: Ken Hoekster from Bank of America inquired about revenue per shipment down 1.2% and weight per shipment.

A: Matt unpacked year-over-year LA region headwinds, winning one- and two-day lane markets, and 6.7% contractual renewals.

Q: Jonathan Chappelle from Evercore ISI asked about 2Q guide and demand in back half.

A: Fritz and Matt talked about positive customer sentiment, Q2 guide within range, and second half could be good.

Q: Tom Wiedewitz from UBS asked about weight per shipment and seasonality.

A: Explained weight per shipment increased throughout Q1, April increase, and typical seasonality step-ups in March - April, April - May, May - June.

Q: Scott Group from Wolf Research asked about yield and rep for shipment improving.

A: Said start to see improvement in back half of Q2, and fuel plays a factor.

Q: Ravi Shankar from Morgan Stanley asked about end markets and tech.

A: Feedback across all markets, and continued investment in core optimization tools with AI potential.

Q: Eric Morgan from Barclays asked about truckload market and tonnage improvement.

A: Reliability of network shining, and freight moving through modes.

Q: Chris Weatherby from Wells Fargo asked about density of new network and OR guide.

A: New facilities improve margins by over two points year over year, and OR guide reflective of growth.

Q: Stephanie Moore from Jefferies asked about financial torque and free cash flow.

A: Excited about incremental margin improvement, plan to be free cash flow positive, and market inflection could escalate plans.

Q: Jason Seidel with TD Cowen asked about pricing capture.

A: Relatively steady, with ability to do more for customers helping capture.

Q: Ricka Harnane from Deutsche Bank asked about purchase transportation management and OR improvement.

A: Manage PT holistically, salary, wages, and purchase transportation per shipment down, and can improve OR by at least 50 BIPs this year.

Q: Brian Austin Beck from J.P. Morgan asked about capacity and handling volume inflection.

A: Can handle short-term volume variation with PT management and expect to be compensated for investment in strong backdrop.