0000950170-25-098789
SEC filingRevenue down 0.7% YoY, operating ratio worsened to 87.8% due to higher labor and depreciation from network expansion.
Consolidated operating revenue for Q2 2025 decreased 0.7% to $817.1M from $823.2M in Q2 2024. Operating income fell 27.8% to $99.4M from $137.6M, resulting in an operating ratio of 87.8% compared to 83.3% a year ago. Net income was $71.4M ($2.67 per diluted share) versus $102.5M ($3.83 per share) in the prior-year quarter. The decline was driven by lower revenues and increased labor and depreciation expenses tied to network expansion.
Revenue was impacted by a 2.8% decrease in LTL shipments per workday, partially offset by a 2.7% increase in revenue per shipment excluding fuel surcharge to $298.71, reflecting favorable business mix and pricing actions. Fuel surcharge revenue as a percentage of revenue decreased to 14.6% from 15.4% due to lower diesel costs.
On the expense side, salaries, wages and benefits rose 5.0% to $391.0M, primarily from a 4.1% wage increase in July 2024 and an $8.1M increase in group insurance costs. Purchased transportation declined 5.5% to $57.7M, benefiting from lower miles and cost per mile. Depreciation and amortization increased 19.1% to $62.5M due to ongoing investments in equipment and terminals. Claims and insurance expenses added $4.0M in additional costs.
Saia operates as a single LTL freight segment, generating over 97% of revenue from LTL shipments across the contiguous U.S. During Q2 2025, LTL tonnage increased 1.1% to 1.576 million tons, while shipments declined 2.8% to 2.261 million. The shift to heavier shipments led to a 4.0% increase in pounds per shipment to 1,394. Length of haul increased slightly to 893 miles. The segment's operating margin contracted 450 bps year-over-year, reflecting the cost headwinds from network expansion and wage inflation.
Management's outlook remains cautious, citing sensitivity to general economic conditions and trade policy changes, including recent tariffs that have decreased demand. The company continues its network expansion (15 new facilities opened since Q2 2024) and pricing initiatives, including a 7.9% general rate increase implemented in October 2024. For full-year 2025, capital expenditures are expected to be $600M–$650M, with $84.0M committed as of June 30. The company aims to match costs to volume levels and improve productivity to offset wage pressures. No specific revenue or earnings guidance is provided, but the focus remains on building density and optimizing mix to support profitability.
As of June 30, 2025, Saia reported total assets of $3.46 billion, up from $3.17 billion at December 31, 2024. Cash and cash equivalents stood at $18.8 million, relatively flat versus the prior year-end of $19.5 million. Total debt increased to $309.1 million from $200.3 million, primarily driven by borrowings under the revolving credit facility. The company maintained availability of $356.6 million under its $600 million unsecured revolving credit facility. Net property and equipment grew to $2.81 billion from $2.56 billion, reflecting continued capital investment. Stockholders' equity reached $2.44 billion, up from $2.31 billion at year-end 2024.
The Notes to Financial Statements disclose no specific purchase commitments or contractual obligations beyond the debt maturities and operating lease liabilities. The company has a $350 million uncommitted Private Shelf Agreement; $100 million in senior notes were issued under this agreement at a 6.09% interest rate, maturing May 2029. Debt covenants require a consolidated net lease adjusted leverage ratio of less than 3.50 to 1.00, with which the company was in compliance. Principal maturities of long-term debt total $309.1 million, with $307.0 million due in 2029.
No share repurchases were reported during the period. Capital expenditures totaled $377.5 million for the first six months of 2025, a significant decrease from $681.9 million in the same period of 2024. Financing activities included net borrowings of $113.0 million under the revolving credit facility ($746.0 million borrowed, $633.0 million repaid). No dividends were declared or paid.
Saia operates as a single reportable segment organized around its transportation services. Over 97% of revenue is derived from less-than-truckload (LTL) shipments across the contiguous United States. No geographic or segment-level operating income or margin is disclosed. Revenue for Q2 2025 was $817.1 million, down 0.7% from $823.2 million in Q2 2024. Net income for Q2 2025 was $71.4 million, compared to $102.5 million in the prior year quarter.
Saia's operating cash flow (CFO) of $279.8M comfortably exceeded net income of $121.2M, yielding a CFO/net income ratio of 2.3x. This is supported by $121.6M in depreciation & amortization and $17.5M in deferred taxes. Working capital was a slight use of cash ($6.3M net), largely due to a $27.9M increase in accounts receivable, partly offset by payables and other items.
Capital expenditures of $377.5M were 1.35x CFO, indicating aggressive reinvestment. Proceeds from asset disposals were minimal ($2.0M). The heavy capex caused net cash used in investing to exceed CFO by $104.2M, requiring external financing.
Saia did not repurchase shares or pay dividends. Financing activities provided $103.5M, primarily from net revolver borrowings of $113.0M (borrowings $746M less repayments $633M), partially offset by finance lease repayments and tax withholding on stock options.
Cash decreased by $0.6M to end at $18.8M. The company relied on debt to fund the capex gap, suggesting a growth phase with strong operating cash generation but negative free cash flow due to investment.