0001193125-26-197324
SEC filingRevenue rose 2.4% on higher fuel surcharges, but operating income fell 4.8% as cost inflation pressured margins.
In the first quarter of 2026, Saia reported consolidated operating revenue of $806.2 million, a 2.4% increase from $787.6 million in the prior-year quarter. The top-line growth was driven primarily by higher fuel surcharge revenue, which rose to 16.5% of operating revenue from 15.1% due to higher diesel prices. LTL shipments per workday increased 1.0% to 2.2 million, but LTL tonnage declined 2.1% to 1.5 million tons, reflecting lower weight per shipment (down 3.1% to 1,380 pounds) and a shorter length of haul (down 1.7% to 890 miles). LTL revenue per shipment excluding fuel surcharge fell 1.2% to $297.11, as these mix changes offset pricing actions.
Operating income decreased 4.8% to $66.8 million (from $70.2 million), and the operating ratio worsened 60 basis points to 91.7%. The margin compression reflected higher self-insurance costs (group health +$7.9 million; workers’ comp +$1.4 million), increased purchased transportation expense (+$4.5 million on more miles and higher cost per mile), higher fuel and operating expenses (+$6.8 million), and additional depreciation (+$3.1 million) from ongoing capital investments. Diluted EPS held flat at $1.86 as a lower effective tax rate (23.3% vs. 24.0%) and reduced interest expense partly offset the operating decline.
Saia operates as a single integrated LTL segment, with approximately 97% of revenue from LTL services. The key operating metrics reflect a strategic emphasis on pricing and mix over pure volume growth: while total shipments rose 1.0%, tonnage fell, and revenue per shipment excluding fuel surcharge declined. Fuel surcharge revenue provided a meaningful tailwind—up 170 bps as a percentage of revenue—but did not fully offset the cost inflation. The company continues to target profitable density and geographic expansion, with a 5.9% general rate increase implemented in October 2025 for about 25% of customers. Competitive dynamics and customer turnover remain risks to retaining rate gains.
Management’s outlook is cautious, noting dependency on the broader economy, inflation, labor availability, fuel prices, and tariff volatility. The company expects 2026 net capital expenditures of $350–$400 million, down sharply from $544.1 million in 2025, reflecting a pause in the heavy real estate and equipment investment cycle. As of March 31, 2026, $141.3 million of the remaining capital budget was already committed. Operational priorities include building density, expanding the terminal network, matching resources to volume levels, and controlling costs. A 3.0% salary and wage increase for non-executive employees took effect October 2025, with management expecting partial offset from productivity gains. The company had $551.6 million of availability on its $600 million revolving credit facility, providing ample near-term liquidity.
Total debt decreased significantly to $112.8M at March 31, 2026 from $164.0M at December 31, 2025, primarily due to net repayments on the revolving credit facility. The revolving credit facility had $12.0M outstanding and $551.6M availability, providing ample liquidity. The private shelf notes of $100.0M remain outstanding.
No material purchase commitments are disclosed in the notes. The company is subject to routine legal proceedings but does not expect material adverse effects.
No share repurchases or dividends were disclosed in the notes. Capital expenditures are not detailed in the notes; however, the cash flow statement shows $66.1M in property and equipment acquisitions for the quarter (not in notes). Debt reduction was the primary capital allocation action.
The company operates a single reportable segment: transportation services. Approximately 97% of revenue is from LTL shipments. No geographic breakdown is provided in the notes.