Saia Inc. (SAIA, Financial) has reported first-quarter revenue of $787.6 million, falling short of analysts' expectations, which were pegged at $811.53 million. The company's performance was impacted by an unpredictable macroeconomic climate and unexpected harsh winter weather, particularly in the southern U.S., which disrupted operations in key regions.
Despite these challenges, Saia noted a positive increase in its less-than-truckload (LTL) shipments per workday, which grew by 4.6%. Additionally, LTL tonnage per workday saw a notable increase of 12.7%, largely driven by the success of terminals that have been operational for the past three years.
The shortfall in revenue, alongside higher labor and depreciation costs linked to the company's network expansion, contributed to a decline in operating income for the quarter. However, Saia remains optimistic about its nationwide terminal network, which has allowed the company to maintain robust customer service levels despite the quarter's challenges.
Looking ahead, Saia is committed to focusing on customer support and service as it navigates the remainder of 2025. The company's efforts are geared towards capitalizing on its expanded network capabilities to bolster future performance.
SAIA Key Business Developments
Release Date: February 03, 2025
- Revenue: $789 million for Q4 2024, a 5% increase from the previous year's Q4.
- Operating Ratio: 87.1% for Q4 2024, deteriorated by 210 basis points from 85% in Q4 2023.
- Diluted Earnings Per Share (EPS): $2.84 for Q4 2024, compared to $3.33 in Q4 2023.
- Full Year Revenue: $3.2 billion for 2024.
- Full Year Operating Income: $482.2 million for 2024.
- Full Year Diluted EPS: $13.51 for 2024, compared to $13.26 in 2023.
- Shipments Per Workday: Increased by 4.5% in Q4 2024.
- Revenue Per Shipment (Excluding Fuel Surcharge): Increased by 1.3% to $299.7 in Q4 2024.
- Weight Per Shipment: Increased by 3.7% in Q4 2024.
- Fuel Surcharge Revenue: Decreased by 12.5% in Q4 2024.
- Salaries, Wages, and Benefits: Increased by 8.7% in Q4 2024.
- Purchased Transportation Expense: Decreased by 11.1% in Q4 2024.
- Fuel Expense: Decreased by 2.9% in Q4 2024.
- Claims and Insurance Expense: Increased by 16.6% in Q4 2024.
- Depreciation Expense: $54.1 million in Q4 2024, an 18.3% increase year-over-year.
- Total Expenses: Increased by 7.7% in Q4 2024.
- Capital Expenditures: Over $1 billion in 2024.
- Cash on Hand: Just shy of $20 million at the end of 2024.
- Total Debt Outstanding: Approximately $200 million at the end of 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Saia Inc (SAIA, Financial) achieved a record revenue of $3.2 billion for the full year 2024, marking a significant milestone in its 100th year of operation.
- The company opened 21 new terminals in 2024, expanding its national footprint and enabling direct service across the 48 contiguous states.
- Saia Inc (SAIA) onboarded over 1,300 new team members, enhancing its workforce to support growth and maintain high service standards.
- Fourth quarter revenue increased by 5% year-over-year to $789 million, setting a record for any fourth quarter in the company's history.
- The company successfully completed the upsize and extension of its revolving credit facility, providing financial flexibility for future capital expenditures.
Negative Points
- The operating ratio deteriorated to 87.1% in the fourth quarter, compared to 85% a year ago, indicating increased operational costs.
- Yield, excluding fuel surcharge, declined by 2.3% in the fourth quarter, reflecting challenges in pricing and mix optimization.
- Claims and insurance expenses increased by 16.6% year-over-year, driven by higher claims activity and unfavorable development of open cases.
- Depreciation expenses rose by 18.3% year-over-year due to ongoing investments in revenue equipment, real estate, and technology.
- Diluted earnings per share decreased to $2.84 in the fourth quarter, down from $3.33 in the same period last year, highlighting pressure on profitability.
