Saia Accelerated Revenue Growth as Freight Demand Rebounded
The trucking company improved its operating ratio 90 basis points to 86.9%.
Saia Inc. (SAIA), the less-than-truckload carrier, reported record second-quarter revenue as stronger shipments and heavier loads accelerated growth from the prior two quarters.
Revenue rose 17.1% from a year earlier to $956.5 million, compared with growth of 2.4% in the first quarter and 0.1% in the fourth quarter of 2024. Revenue increased 18.6% sequentially.
Diluted earnings increased 31.5% to $3.51 a share, rebounding from $1.86 in the first quarter. Operating income rose 26.0% to $125.2 million after declining 4.8% in the prior quarter, and the operating ratio improved 480 basis points sequentially from 91.7%.
Freight volumes drove the turn. Shipments increased 4.4%, accelerating from 1.0% growth in the first quarter, and tonnage rose 8.4% after declining 2.1%. Tonnage outpaced shipments as pounds per shipment increased 3.9%.
The heavier freight mix weighed on yield per unit of weight. Revenue per hundredweight excluding fuel declined 2.2% to $20.94, reversing the first quarter's 1.9% increase. Revenue per shipment excluding fuel rose 1.5% to $303.12 after falling 1.2% in the prior quarter.
Including fuel surcharges, revenue per hundredweight increased 7.9% and revenue per shipment rose 12.0%. Service performance also strengthened, with the cargo-claims ratio falling to a company-record 0.3% from 0.5% in the first quarter.
Saia reiterated its 2024 net-capital-expenditure forecast of about $350 million to $400 million. First-half net capital expenditures fell to $158.0 million from $375.6 million a year earlier.
The company ended June with $84.0 million of cash and $100.1 million of debt, compared with $18.8 million of cash and $309.1 million of debt a year earlier. Debt also declined from $112.8 million at the end of March, giving Saia a leaner balance sheet as it maintained its expansion spending plan.