Oct 29, 2026 earnings call — Record revenue and network expansion
Saia reported record third-quarter revenue of $982.5 million, up 17% year-over-year.
Revenue $1.0B (est $1.0B) · EPS $3.41 (est $3.30)
Key quotes
"Since the beginning of 2022, we've added 45 terminals and relocated or expanded more than 25 others."
"Revenue per shipment, excluding fuel surcharge, increased 5.8% year-over-year and 2.7% sequentially from the second quarter."
"In June, we introduced our REV initiative, which marked another step toward improving the customer experience through faster transit times, expanded capabilities, and greater shipment visibility."
Analyst Q&A 13
Volumes, yields, and Q4 operating ratio
Q (Scott Group · Wolfe): Analyst asked for a tonnage update for recent months and color on Q4 operating ratio (OR). He also asked about pricing and yield trends for Q4.
A: Management gave month-by-month tonnage and shipment growth for July–September and October-to-date. They said October is tracking seasonally and they expect sequential OR improvement of about 200 basis points in Q4 and they are driving pricing via a July GRI and pricing mix work.
"we feel like we can keep that in the 200 basis points or so range, which would represent OR improvement year-over-year of over 200 basis points." — Matt Batteh (CFO)
New terminals density and performance
Q (Jordan Alliger · Goldman Sachs): Analyst asked how density is building in new terminals and whether excess capacity there is diminishing versus prior periods.
A: Management said they closely track new facility performance and have been pleased with improvement year-over-year but ramping terminals remain below company average. They expect continued acceleration as markets mature and density builds, and they see growing profitability but acknowledge more runway.
"Although they improved year-over-year, they are still below the company average in total." — Fritz Holzgrefe (CEO)
Pricing gap vs peers and renewals
Q (Stephanie Moore · Jefferies): Analyst asked how much pricing improvement is driven by Saia's actions versus a supportive market, and what behind-the-scenes work is happening on renewals.
A: Management said their internal focus is on service improvements that support pricing, citing better claims performance, new terminals, faster transit lanes and improved customer experience. They view the market as positive but stressed customers are demanding; these service gains support continued pricing opportunities.
"If you look at our claims number that we highlighted, 40% improvement year-over-year." — Fritz Holzgrefe (CEO)
Mix optimization and long-term margins
Q (Chris Wetherbee · Wells Fargo): Analyst asked about weight per shipment mix progress across new vs legacy terminals and what incremental margins could look like longer term in a positive tonnage environment.
A: Management emphasized there is no single ideal shipment type and the goal is to find customers who value reliable, damage-free service across many shipment profiles. They said continued pricing and OR improvement should drive better incremental margins, and this work is the path toward reaching below 80 OR over time.
"I think this is all the path to that sort of sub 80 OR." — Fritz Holzgrefe (CEO)
CapEx, density and customer focus
Q (Ken Hoexter · BofA): Analyst asked whether CapEx now shifts to filling density after expanding the Northeast and how to think about future CapEx cadence and customer mix (SMB vs national).
A: Management said they invested in leadership and teams in new facilities and now see improving incrementals and returns as density grows, similar to the Northeast buildout. They said continued profitability will generate cash flow to fund investments and shareholder returns, and they are pursuing customers across the national network where service is valued.
"As we continue to drive profitability in the business, we're going to generate cash flow." — Fritz Holzgrefe (CEO)
Q4 OR assumptions, seasonality, fuel
Q (Richa Harnain · Deutsche Bank): Analyst asked what assumptions management used for November/December seasonality, tonnage trajectory, and embedded fuel in the Q4 outlook; also asked about headcount versus excess capacity.
A: Management said the guide assumes normal seasonality with shipments slowing into November and December, and fuel embedded roughly at an October average. On headcount they said excluding line haul and new terminals headcount is down, but they expect strategic adds only as the volume environment dictates.
"On a fuel side, the guide embeds fuel that's sort of on an October average, is how I'd frame that." — Matt Batteh (CFO)
Cost inflation and purchased transportation
Q (Tom Wadewitz · UBS): Analyst asked about like-for-like inflation (wages, health, incentive comp) and whether inflation eases next year; also asked about purchased transportation (PT) exposure and contract timing.
A: Management said cost inflation should continue, especially in health and wages, and they will pursue efficiency and optimization to mitigate it. They said purchased transportation is used strategically (not spot), rail comprises about 40% of PT miles, and they may insource lanes where PT costs become uneconomic.
"I would expect cost inflation to continue." — Matt Batteh (CFO)
Performance gap: ramping vs legacy terminals
Q (Brian Ossenbeck · JPMorgan): Analyst asked how the performance gap between legacy and ramping terminals has changed over the year and how it might evolve in Q4, and asked about a persistent West Coast mix headwind.
A: Management said ramping facilities improved about 40 basis points year-over-year and are operating in the low 90s while building density and continuing to improve. They noted LA region remains down low single digits and is a revenue-per-shipment headwind, but ramping terminals also enable more business wins across the network.
"Year-over-year, those newer or ramping facilities, they improved 40 basis points year-over-year." — Matt Batteh (CFO)
Revenue per shipment vs tonnage and margins
Q (David Vernon · Bernstein): Analyst asked whether heavier freight is priced to cover extra handling costs and whether any transitory items blocked margin leverage from tonnage in the quarter.
A: Management said heavier shipments usually pay more but can add handling complexity and costs, so finding the right mix and density with customers matters for incremental margins. They noted some cost headwinds in the quarter and expect better leverage into Q4 and next year if pricing and mix continue improving.
"All else equal on a heavier weighted shipment, you get paid more for it." — Matt Batteh (CFO)
Service improvements and 2027 CapEx view
Q (Eric Morgan · Barclays): Analyst asked where further service improvement opportunities remain after recent claims and insurance gains and asked for early thoughts on 2027 CapEx and balance sheet/debt strategy after announcing buyback.
A: Management pointed to REV, faster transit times, improved customer service in the field and a higher Net Promoter Score as drivers of better service and continued opportunities to lower claims. They said preliminary CapEx planning ranges around 13%-14.5% of revenue for 2027, longer-term 12%-15%, and the balance sheet currently has very little debt to retain flexibility.
"probably 13%-14.5% of revenue type number is fair." — Matt Batteh (CFO)
Buyback and board addition rationale
Q (Bascome Majors · Stephens): Analyst asked how long management discussed the buyback and adding a new board member and what drove the timing of both moves; also asked whether buybacks will be opportunistic or formulaic.
A: Management said capital allocation has been an ongoing board-level conversation tied to past organic expansion and industry events, and the buyback follows returning the balance sheet to flexibility after prior investments. They said buybacks will be opportunistic and disciplined while preserving flexibility for strategic investments.
"Since then, it has been about how do we get the industry or get our balance sheet back to where it has plenty of flexibility, high quality balance sheet." — Fritz Holzgrefe (CEO)
TL rate increases and LTL pricing impact
Q (Ravi Shanker · Morgan Stanley): Analyst asked whether the recent truckload rate increases should translate to more LTL pricing traction given TL is tightening again.
A: Management said the TL market dynamics make the LTL space a focused competitive environment among LTL carriers and that the LTL sector remains inflationary across inputs. They believe this structural backdrop is positive for LTL and Saia is well positioned to benefit as freight and pricing improve.
"I think that that makes this a competitive LTL environment." — Fritz Holzgrefe (CEO)
Customer receptiveness to price increases
Q (Ari Rosa · Citi): Analyst asked if customers are more receptive now to pricing actions and whether that receptiveness is specific to Saia's service improvements or due to broad industry capacity tightness.
A: Management said customers are more receptive when Saia can demonstrate tangible service value—faster transit lanes, better claims performance and field-based customer service—which enables stronger pricing conversations. They also noted broader capacity tightness supports pricing, but stressed the importance of incumbency and solving customer problems to retain business.
"So the discussions, while always challenging and back and forth, is all about the value that we're providing and the ability to provide service to them like for like with everyone else that's national." — Matt Batteh (CFO)