Less-than-truckload carrier Saia continued to see outsized volume growth in the third quarter as it leveraged an expanded terminal network. The period delivered record revenue and tonnage for the company, with its focus now centered on improving operating results at the new locations.
Saia’s (NASDAQ: SAIA) reported third-quarter earnings per share of $3.41 on Thursday before the market opened. The result was 60 cents higher y/y and 11 cents better than the consensus estimate. A $3.6-million decline in net interest expense was a 10-cent y/y tailwind.
(The comparison to the 2025 third quarter excludes a $14.5-million net impact from real estate gains and impairments, resulting in adjusted EPS of $2.81.)
Revenue of $983 million was 17% higher y/y and $15 million better than analysts’ expectations. (Diesel prices were 48% higher y/y in the quarter.)
Tonnage was up 9% y/y as shipments increased 1% and weight per shipment grew 8%. On a y/y comparison, tonnage increased 7.8% in July, 8.7% in August and 10.3% in September. Tonnage is up 10% y/y so far in October.
Since 2022, the company has opened 45 new terminals and relocated or expanded another 25. While its 219-terminal network is still smaller than other national carriers, management said the company is finally “on equal footing.”
September marked the ninth straight month of expansion for the U.S. manufacturing complex, which is a significant source of LTL freight. Also, Saia REV has reduced transit times in over 2,000 lanes, providing an additional source for “outsized volume growth.”
Table: Saia’s key performance indicators
Revenue per hundredweight (yield) was 2% lower y/y, excluding fuel surcharges. However, higher shipment weights and a 1% decline in length of haul were headwinds for the metric.
Revenue per shipment (ex-fuel) was up 6% y/y even with continued weakness in the Los Angeles market, which carries higher freight bills. The company’s national expansion and improved service give it confidence that it can push pricing and close the gap to peers.
“Frankly, the service levels that we’ve been providing … support that,” said President and CEO Fritz Holzgrefe on a Thursday call with analysts.
Saia implemented a 7.1% general rate increase on July 6, which was 120 bps higher and three months earlier than last year’s rate hike. It said the GRI is performing well and that it continues to “see great results from that.”
Contractual rate renewals averaged 10.8% in the quarter, up 15.9% on a two-year-stacked comp.
The company logged an 87.6% operating ratio (inverse of operating margin), which was flat y/y and just 70 bps worse than the second quarter. It normally sees 150 to 200 bps of margin degradation from the second to third quarter.
The y/y comparison had the added headwind of two wage increases in the quarter. There was no pay bump in the 2025 third quarter as the increase wasn’t installed until October, while this year’s increase occurred as normal in July. Also, the new terminals are operating at a low-90% OR, but 40 bps better y/y.
It normally sees 250 to 300 bps of margin deterioration from the third to the fourth quarter, but is calling for just 200 bps of degradation this year, implying an 89.6% OR (230 bps better than the 2025 fourth-quarter unadjusted OR).
It said it will continue to lean on the cost advantage that the railroads provide.
Purchased transportation expense (as a percentage of revenue) increased 220 bps y/y. Saia’s rail and truck partners accounted for 15.7% of total linehaul miles during the quarter, but the company was able to manage outside rate-per-mile inflation to just 4%. It expects further cost inflation on purchased transportation, but noted that contracts with providers are staggered.
Saia announced a $250-million share repurchase program on Thursday. It has done most of the heavy lifting on the growth capex front. It expects capex to total 13% to 14.5% of revenue next year, with 12% to 15% the longer-term target.
Full-year net capex is now expected to total $350 million this year, down from the prior guidance range of $350 million to $400 million. Net capex was $544 million in 2025 and $1.05 billion in 2024.
It generated over $240 million in free cash flow through the third quarter and ended the period with over $100 million in net cash.
Shares of SAIA were up 3% at 2:51 p.m. EDT on Thursday compared to the S&P 500, which was down 0.6%.
Why it matters? Saia is one of a few publicly traded LTL carriers. Its quarterly results provide insight into a subsegment of trucking where few public datasets exist.
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