Business Context and Reporting Period
Company: Saia, Inc. (SAIA)
Filing Type: Form 10-Q (Quarterly Report)
Reporting Period: Quarter and six months ended June 30, 2026
Business Overview: Saia provides national less-than-truckload (LTL) transportation services, accounting for approximately 97% of revenue. The company also offers brokered truckload, expedited transportation, and logistics services across North America.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Operating Revenue | $956.5 million | $817.1 million | $1,762.7 million | $1,604.7 million |
| Operating Income | $125.2 million | $99.4 million | $192.0 million | $169.6 million |
| Net Income | $94.3 million | $71.4 million | $144.1 million | $121.2 million |
| Diluted EPS | $3.51 | $2.67 | $5.37 | $4.53 |
| Operating Ratio | 86.9% | 87.8% | N/A | N/A |
| Cash from Operations (YTD) | $291.2 million (vs. $279.8 million YTD 2025) | |||
| Capital Expenditures (YTD) | $158.0 million (vs. $384.0 million YTD 2025) | |||
| Total Debt | $100.1 million (as of June 30, 2026) | |||
| Cash and Equivalents | $84.0 million (as of June 30, 2026) |
Material Changes vs. Prior Period
- Revenue Growth: Q2 2026 revenue increased 17.1% year-over-year, driven by higher fuel surcharge revenue (due to rising diesel prices), a 4.4% increase in LTL shipments, and a 1.5% increase in LTL revenue per shipment (excluding fuel).
- Profitability: Operating income rose 26.0% to $125.2 million. The operating ratio improved to 86.9% from 87.8% in the prior year quarter.
- Expense Increases:
- Compensation: Salaries, wages, and benefits increased 11.1% due to volume growth, a 3% company-wide wage increase implemented in October 2025, and a $7.0 million rise in group health insurance costs.
- Purchased Transportation: Increased 47.3% to $85.0 million as the company managed headcount for flexibility and faced higher cost-per-mile rates.
- Fuel: Fuel, operating expenses, and supplies rose 20.0% primarily due to higher diesel costs.
- Capital Expenditures: Net cash used in investing activities decreased significantly to $158.0 million (YTD) from $384.0 million (YTD 2025), reflecting a reduction in revenue equipment acquisitions.
- Debt Reduction: Total debt decreased from $164.0 million at year-end 2025 to $100.1 million at June 30, 2026, following repayments on the revolving credit facility.
Guidance, Outlook, and Risks
- Outlook: Management expects 2026 net capital expenditures to range between $350 million and $400 million. The company plans to continue matching resources to volume levels and executing pricing initiatives.
- Pricing Actions: Saia implemented a 7.1% general rate increase on July 6, 2026, and a 5.9% increase on October 1, 2025, affecting approximately 25% of operating revenue. A 3% market-competitive wage increase was implemented on July 1, 2026.
- Liquidity: The company maintains a $600 million revolving credit facility with $564.0 million available as of June 30, 2026. It also holds $100.0 million in senior notes under a Private Shelf Agreement maturing in 2029.
- Risks:
- Insurance and Litigation: Increased severity of automobile liability claims and potential inability to obtain adequate insurance coverage at reasonable rates.
- Operational Costs: Volatility in diesel fuel prices, labor availability, and inflationary pressures on compensation and benefits.
- Economic Factors: Correlation with non-service sectors of the economy and potential impacts from tariffs and trade policy changes.
Investor Verification Checklist
- Fuel Surcharge Impact: Verify the sustainability of the 22.3% fuel surcharge contribution to revenue and its correlation with current diesel price trends.
- Healthcare Costs: Assess the trajectory of group health insurance claims, which drove a $7.0 million expense increase in Q2.
- Capital Expenditure Plan: Confirm the execution of the remaining $192 million to $242 million of the 2026 capital budget, specifically regarding revenue equipment and technology.
- Debt Covenant Compliance: Monitor the consolidated net lease adjusted leverage ratio to ensure it remains below the 3.50:1.00 threshold required by credit facilities.
- Insurance Market Access: Review updates on the company's ability to secure adequate automobile liability coverage given industry-wide tightening.