Group 1 - The P/E ratio is a tool for long-term shareholders to evaluate a company's market performance against historical earnings and industry data [4] - Saia Inc. has a P/E ratio of 27.14, which is higher than the aggregate P/E ratio of 24.69 in the Ground Transportation industry, suggesting that shareholders may expect better performance from Saia Inc. compared to its peers [5] - A higher P/E ratio could indicate that the stock is overvalued, while a lower P/E might suggest undervaluation or weak growth prospects [7] Group 2 - The P/E ratio should be used cautiously as it is only one of many metrics for evaluating a company's financial health [7] - Investors should consider other financial ratios, industry trends, and qualitative factors alongside the P/E ratio for a comprehensive analysis [7]

Core Viewpoint - Saia, Inc. is set to release its quarterly financial results on October 30, 2025, before the market opens, followed by a conference call to discuss the results [1]. Company Information - Saia, Inc. is a leading transportation provider specializing in less-than-truckload (LTL), non-asset truckload, expedited, and logistics services [3]. - The company operates 213 terminals across the United States, providing national service [3]. Conference Call Details - The conference call will take place at 10:00 a.m. Eastern Time on October 30, 2025, and can be accessed by dialing 1-833-890-5317 [2]. - A live webcast of the call will be available on the company's website, and a replay will be accessible for two hours after the call until November 30, 2025 [2].

Group 1: TimesSquare Capital Management Overview - TimesSquare Capital Management released its "U.S. Mid Cap Growth Strategy" second-quarter 2025 investor letter, reporting a fund return of 13.13% (gross) and 12.91% (net), compared to the Russell Midcap® Growth Index's return of 18.20% [1] - The second quarter saw equities recording double-digit returns as global economic activity measures improved [1] Group 2: Saia, Inc. Performance - Saia, Inc. (NASDAQ:SAIA) reported a one-month return of 0.75% and a 52-week decline of 32.06%, with a closing stock price of $294.65 and a market capitalization of $7.848 billion as of September 29, 2025 [2] - The company experienced disappointing revenues and earnings, with increased volumes in recently acquired markets that lacked attractive profitability, while legacy markets showed flat growth [3] - Saia, Inc. announced revenue of $817 million for the second quarter of 2025, reflecting a 0.7% decrease compared to the same quarter last year [4] Group 3: Hedge Fund Interest and Strategy Reevaluation - Saia, Inc. was held by 41 hedge fund portfolios at the end of the second quarter, an increase from 35 in the previous quarter [4] - TimesSquare Capital is reconsidering Saia's position in its investment strategy due to a 22% decline in shares and concerns over macroeconomic uncertainty affecting future volumes [3]

Core Viewpoint - Saia, Inc. has received mixed analyst ratings following its second-quarter results, which showed both positive and negative trends in performance [2][3]. Financial Performance - The company reported a year-over-year revenue increase per shipment of 2.7%, excluding fuel charges [2]. - Overall revenue declined by 0.7% year-over-year to $817 million, attributed to a 2.8% decline in shipments per workday [3]. - New terminals opened in the last three years experienced a 4% sequential improvement in shipments [2]. Analyst Ratings - Analysts have mixed opinions on the stock; Stephens raised the price target from $274 to $300, while Bank of America lowered it from $353 to $347 [3]. Institutional Confidence - There are 41 hedge funds with ownership stakes in Saia, indicating strong institutional confidence [4]. - The stock has an upside potential of 10.81%, suggesting modest income for potential investors [4]. Company Background - Saia, Inc. is a transportation company specializing in less-than-truckload (LTL) shipments, founded in 1924 and headquartered in Georgia [5].

Core Insights - Several LTL (Less Than Truckload) firms are experiencing volume declines in August 2025 compared to the previous year, indicating a sluggish freight environment influenced by consumer hesitancy and mixed demand levels [3][4]. Group 1: Volume and Revenue Changes - Old Dominion Freight Line, XPO, and Saia reported year-over-year declines in tonnage, while ArcBest noted a 2% increase in its asset-based operating segment [8]. - Old Dominion experienced a 4.7% increase in billed revenue per hundredweight, reflecting the ongoing softness in the domestic economy [9]. - ArcBest reported a 1% increase in revenue per day, indicating some resilience amid the overall decline in volumes [9]. Group 2: Economic Factors and Company Strategies - Companies cited macroeconomic pressures such as continued softness in manufacturing and housing activity as reasons for the decline in weight per shipment [5]. - Old Dominion emphasized its long-term positioning to win freight despite current economic challenges [5]. - ArcBest is expected to benefit from approximately $25 million in net proceeds from real estate sales in Q3, which may help improve its margins [4]. Group 3: Shipment and Weight Trends - Shipments per day declined across most carriers, with Saia being the exception, posting a slight 0.1% increase in weight per shipment year-over-year [8]. - The decline in weight per shipment was attributed to reliance on outside freight haulers as hiring increases in new markets [5].

Core Viewpoint - A group of Wall Street analysts has identified several undervalued stocks in the transportation sector, particularly in trucking, presenting potential investment opportunities for investors [2][3]. Group 1: Saia Inc. (NASDAQ: SAIA) - Saia Inc. is highlighted as having the deepest discount relative to its 52-week high, with a current price of $299.08 and a 12-month price forecast of $347.16, indicating a potential upside of 16.08% [3][5]. - The stock's significant gap from its 52-week high suggests limited downside risk, as further declines would require unforeseen negative events [3][4]. - Analysts believe that current trade tariffs may enhance domestic production and consumption, making Saia stock an attractive investment at its current discount [5]. Group 2: Old Dominion Freight Line Inc. (NASDAQ: ODFL) - Old Dominion's stock has seen a decline of 15.4% following a slight earnings miss, reporting $1.27 EPS against an estimate of $1.29 [7][8]. - Despite the recent sell-off, analysts project a recovery, with expectations of $1.71 EPS for Q2 2026, providing a fundamental basis for a potential rebound [8][10]. - The stock currently trades at 62% of its 52-week high, with a consensus price target of $167.62, suggesting a potential upside of 13.37% [6][9]. Group 3: XPO Logistics Inc. (NYSE: XPO) - XPO Logistics has experienced a 10% decline recently, trading at 74% of its 52-week high, which has attracted buyers looking for value [11][12]. - The stock has a current price of $120.40, with a 12-month price forecast of $138.00, indicating a potential upside of 14.62% [11]. - Analysts note that XPO's premium valuation, with a P/E ratio of 41.3, reflects investor confidence in its ability to outperform peers, particularly due to its exposure to Canadian and European markets [13][14][15].

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential [1] - The popularity of insurance companies in the Philippines since 2014 indicates a shift in investment strategies among local investors [1] - The diversification of investment portfolios across various industries and market capitalizations is becoming a common practice among investors [1] Investment Trends - There is a notable trend of investors moving from traditional savings in banks and properties to stock market investments for better returns [1] - The entry into the US market by investors from the Philippines reflects a growing interest in international investment opportunities [1] - The use of analytical platforms like Seeking Alpha is aiding investors in making informed decisions by comparing different market analyses [1] Sector Focus - Key sectors of interest include banking, telecommunications, logistics, and hospitality, which are attracting significant investment [1] - The logistics and shipping industries are particularly highlighted as areas of growth and investment potential in both the ASEAN and US markets [1]

Core Insights - Saia reported Q2 2025 results with GAAP revenue of $817.1 million and EPS of $2.67, both exceeding Wall Street expectations but showing declines from the previous year [1][5] - Profitability is under pressure due to rising costs, with operating income down 27.8% year-over-year [5][6] - The company is focused on network expansion and service quality, which are critical for long-term profitability despite short-term margin challenges [4][10] Financial Performance - Q2 2025 GAAP EPS was $2.67, surpassing the estimate of $2.39, but down 30.2% from $3.83 in Q2 2024 [2] - GAAP revenue of $817.1 million exceeded estimates by $9.5 million but decreased 0.7% from $823.2 million in Q2 2024 [2][5] - Operating income fell to $99.4 million from $137.6 million a year earlier, reflecting a 27.8% decline [2][5] - Net income decreased by 30.3% year-over-year to $71.4 million [2] Cost Structure and Efficiency - Salaries, wages, and benefits increased by 5.0% to $390.975 million year-over-year, driven by headcount growth and wage increases [6] - Depreciation expenses rose by 20.9% due to investments in real estate and equipment [6] - The operating ratio increased to 87.8%, indicating higher costs relative to revenue [7] Network Expansion and Service Quality - Saia is expanding its geographic footprint through terminal acquisitions and organic openings, focusing on service quality and operational efficiency [3][4] - New terminals have increased shipping volume but have not yet reached profitability levels of legacy markets [7] - The claims ratio improved to 0.5%, reflecting better cargo damage and loss management [8] Future Outlook - Management provided a cautious outlook without formal revenue or earnings guidance for the second half of 2025, emphasizing cost control and customer service [9][10] - Capital expenditures for 2025 are projected to be between $600 million and $650 million [9] - Key indicators to watch include utilization rates at new facilities and improvements in operating ratios [10]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Saia, Inc, including balance sheets, statements of operations, and cash flows [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Assets | $3,457,726 | $3,166,857 | | Total Current Assets | $451,150 | $435,769 | | Net Property and Equipment | $2,811,601 | $2,556,935 | | Total Liabilities | $1,021,204 | $855,586 | | Total Current Liabilities | $302,809 | $278,360 | | Total Stockholders' Equity | $2,436,522 | $2,311,271 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | Metric (in thousands, except per share data) | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | $817,115 | $823,244 | $1,604,690 | $1,578,019 | | Operating Income | $99,399 | $137,593 | $169,567 | $255,505 | | Net Income | $71,391 | $102,519 | $121,201 | $193,214 | | Basic Earnings Per Share | $2.67 | $3.84 | $4.53 | $7.24 | | Diluted Earnings Per Share | $2.67 | $3.83 | $4.53 | $7.21 | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) | Metric (in thousands) | Balance at Dec 31, 2024 | Balance at Jun 30, 2025 | | :--- | :--- | :--- | | Common Stock | $27 | $27 | | Additional Paid-in-Capital | $295,106 | $300,593 | | Deferred Compensation Trust | $(7,981) | $(9,418) | | Retained Earnings | $2,024,119 | $2,145,320 | | Total Stockholders' Equity | $2,311,271 | $2,436,522 | - Net income contributed **$49.8 million in Q1 2025** and **$71.4 million in Q2 2025** to retained earnings[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity (in thousands) | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $279,815 | $237,242 | | Net cash used in investing activities | $(383,967) | $(676,277) | | Net cash provided by financing activities | $103,516 | $153,989 | | Net Decrease in Cash and Cash Equivalents | $(636) | $(285,046) | | Cash and Cash Equivalents, end of period | $18,837 | $11,169 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides essential context for the financial statements, covering accounting policies, EPS, contingencies, and debt arrangements [(1) Summary of Significant Accounting Policies](index=7&type=section&id=%281%29%20Summary%20of%20Significant%20Accounting%20Policies) - Saia, Inc provides national less-than-truckload (LTL) services, with **over 97% of revenue from LTL shipments** across the contiguous U.S, and also offers non-asset truckload, expedited transportation, and logistics services[21](index=21&type=chunk) - Revenue from transportation services is recognized over the transit time of the shipment, based on transit status at the end of each reporting period[23](index=23&type=chunk) - During Q2 2024, the estimated useful lives of certain trailers and dollies were extended from 14 to 20 years, increasing income from continuing operations by approximately **$2.9 million** for the six months ended June 30, 2025[26](index=26&type=chunk) - The Company operates as a single reportable segment focused on transportation services[27](index=27&type=chunk) [(2) Computation of Earnings Per Share](index=9&type=section&id=%282%29%20Computation%20of%20Earnings%20Per%20Share) | Metric (in thousands, except per share amounts) | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $71,391 | $102,519 | $121,201 | $193,214 | | Weighted average common shares outstanding – basic | 26,739 | 26,691 | 26,730 | 26,682 | | Dilutive effect of share-based awards | 46 | 111 | 52 | 116 | | Basic Earnings Per Share | $2.67 | $3.84 | $4.53 | $7.24 | | Diluted Earnings Per Share | $2.67 | $3.83 | $4.53 | $7.21 | - There were **13,937 and 11,917 anti-dilutive share-based awards** for the quarter and six months ended June 30, 2025, respectively, compared to none in the prior year periods[30](index=30&type=chunk) [(3) Commitments and Contingencies](index=9&type=section&id=%283%29%20Commitments%20and%20Contingencies) - The Company is involved in legal proceedings in the ordinary course of business, with management believing adequate provisions have been made for probable and estimable losses, though outcomes could materially affect results in a given period[31](index=31&type=chunk) [(4) Fair Value of Financial Instruments](index=9&type=section&id=%284%29%20Fair%20Value%20of%20Financial%20Instruments) - The carrying amounts of cash, receivables, payables, and short-term debt approximated fair value due to their short maturity[32](index=32&type=chunk) | Metric (in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Estimated Fair Value of Total Debt | $309.8 | $200.5 | | Carrying Value of Total Debt | $309.1 | $200.3 | [(5) Debt and Financing Arrangements](index=9&type=section&id=%285%29%20Debt%20and%20Financing%20Arrangements) | Debt Type (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Credit Arrangements | $307,000 | $194,000 | | Finance Leases | $2,091 | $6,294 | | Total Debt | $309,091 | $200,294 | | Less: Current Portion | $1,967 | $5,313 | | Long-term Debt, less current portion | $307,124 | $194,981 | - The Revolving Credit Facility was amended on December 9, 2024, increasing commitments to **$600 million**, expanding the accordion feature to **$300 million**, and extending the maturity to December 9, 2029[34](index=34&type=chunk) - As of June 30, 2025, the Company had **$207.0 million in outstanding borrowings** and **$36.4 million in outstanding letters of credit** under the Revolving Credit Facility, with **$356.6 million in availability**[35](index=35&type=chunk) - The Company entered into a **$350 million uncommitted Private Shelf Agreement** on November 9, 2023, and issued **$100 million in senior promissory notes** on May 1, 2024, bearing **6.09% interest** and maturing May 1, 2029[36](index=36&type=chunk)[37](index=37&type=chunk) - The Company was in compliance with all debt covenants under both the Revolving Credit Facility and the Shelf Agreement at June 30, 2025[39](index=39&type=chunk) | Year | Principal Maturities of Long-Term Debt (in thousands) | | :--- | :--- | | 2025 | $1,138 | | 2026 | $991 | | 2027 | — | | 2028 | — | | 2029 | $307,000 | | Thereafter | — | | Total | $309,129 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=12&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's analysis of financial performance, condition, liquidity, and capital resources for the period [Executive Overview](index=13&type=section&id=Executive%20Overview) - The Company's business is highly correlated to non-service sectors of the general economy[47](index=47&type=chunk) - The core strategy is to improve profitability by increasing revenue per shipment and volumes through building density, geographic expansion, and terminal growth[47](index=47&type=chunk) - Key focus areas include improving safety, cost effectiveness, asset utilization, and investing in technology for customer experience and operational efficiencies[47](index=47&type=chunk) [Second Quarter Overview](index=13&type=section&id=Second%20Quarter%20Overview) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | $817.1 million | $823.2 million | (0.7)% | | LTL Shipments per workday | Down 2.8% | - | - | | LTL Revenue per shipment (excl. fuel surcharge) | $298.71 | $290.72 | 2.7% | | Consolidated Operating Income | $99.4 million | $137.6 million | (27.8)% | | Diluted Earnings Per Share | $2.67 | $3.83 | (30.3)% | | Operating Ratio | 87.8% | 83.3% | 4.5 ppt | - Net cash provided by operating activities for the first six months of 2025 increased to **$279.8 million** from **$237.2 million** in the same period last year[49](index=49&type=chunk) [General](index=14&type=section&id=General) - Saia is a transportation company providing national less-than-truckload (LTL) services, with **over 97% of revenue from LTL shipments**, and also offers non-asset truckload, expedited transportation, and logistics services[52](index=52&type=chunk) - Key factors affecting operating results include shipment volumes, service pricing (revenue per shipment/hundredweight), cost structure management (salaries, purchased transportation, claims, fuel, maintenance), and matching operating costs to volume levels[53](index=53&type=chunk) [Results of Operations](index=14&type=section&id=Results%20of%20Operations) Operating revenue and income declined in Q2 2025 due to lower LTL shipments and increased operating expenses from network expansion and higher claims [Revenue and volume](index=15&type=section&id=Revenue%20and%20volume) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Revenue | $817.1 million | $823.2 million | (0.7)% | | LTL Shipments | 2.3 million | 2.327 million | (2.8)% | | LTL Tonnage | 1.6 million | 1.559 million | 1.1% | | LTL Revenue per shipment (excl. fuel surcharge) | $298.71 | $290.72 | 2.7% | - For the six months ended June 30, 2025, operating revenues were **$1.6 billion**, up **1.7%** from the prior year, driven by business mix changes and pricing actions[58](index=58&type=chunk) - Fuel surcharge revenue as a percentage of operating revenue decreased to **14.6% in Q2 2025** (from 15.4% in Q2 2024) and to **14.8% for the six months** (from 15.5%), primarily due to lower average diesel fuel costs[57](index=57&type=chunk)[58](index=58&type=chunk) - Saia implemented a **7.9% general rate increase** on October 21, 2024, affecting approximately **25% of operating revenue**[56](index=56&type=chunk) [Operating expenses and margin](index=15&type=section&id=Operating%20expenses%20and%20margin) | Operating Expense (in thousands) | Q2 2025 | Q2 2024 | Change ($) | | :--- | :--- | :--- | :--- | | Salaries, wages and employees' benefits | $390,975 | $372,240 | $18,735 | | Purchased transportation | $57,699 | $61,047 | $(3,348) | | Fuel, operating expenses and supplies | $161,634 | $160,877 | $757 | | Claims and insurance | $22,826 | $18,828 | $3,998 | | Depreciation and amortization | $62,546 | $52,536 | $10,010 | - Consolidated operating income for Q2 2025 was **$99.4 million**, down from $137.6 million in Q2 2024, resulting in an operating ratio of **87.8%** (vs 83.3% in Q2 2024)[59](index=59&type=chunk) - The increase in salaries, wages, and benefits was driven by a **4.1% wage increase** in July 2024 and an **$8.1 million increase** in group insurance costs due to elevated claims activity[60](index=60&type=chunk) - For the six months ended June 30, 2025, consolidated operating income decreased **33.6% to $169.6 million**, primarily due to lower-than-expected revenues and increased labor and depreciation expenses from network expansion[61](index=61&type=chunk) - Six-month increases in expenses include **$66.3 million in salaries, wages and benefits** (due to wage increase and headcount for new terminals), **$11.1 million in fuel, operating expenses and supplies** (facility, vehicle maintenance, IT costs), and **$8.1 million in claims and insurance**[62](index=62&type=chunk)[63](index=63&type=chunk) [Other](index=17&type=section&id=Other) - Interest expense increased for both the quarter and six months ended June 30, 2025, due to higher average balances under credit arrangements[64](index=64&type=chunk) - Interest income decreased due to lower average interest-bearing deposit balances[64](index=64&type=chunk) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Effective Tax Rate | 25.3% | 24.4% | 24.8% | 24.1% | | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $71.4 million | $102.5 million | $121.2 million | $193.2 million | | Diluted EPS | $2.67 | $3.83 | $4.53 | $7.21 | [Outlook](index=17&type=section&id=Outlook) - The Company's outlook is highly dependent on general economic conditions, competitive pricing pressures, and the success of internal improvement initiatives[67](index=67&type=chunk) - Planned revenue initiatives include building density, targeted marketing, geographic and terminal expansion, and pricing/mix management[68](index=68&type=chunk) - The strategic objective is to build market share through customer service, operating efficiencies, and expansion, with plans to match resources to shifting volume levels if the economy softens[68](index=68&type=chunk) - A market competitive salary and wage increase of approximately **4.1%** was implemented in July 2024 for all non-executive employees, with anticipated partial offset from productivity gains[69](index=69&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=19&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) | Metric (in millions) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Working Capital | $148.3 | $118.2 | - Working capital increased due to a **$17.7 million increase in income tax receivable** (from reduced pre-tax income) and a **$25.0 million decrease in current liabilities** (mainly accounts payable, partially offset by claims and insurance accruals)[73](index=73&type=chunk) | Cash Flow Activity (in thousands) | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | | Net Cash flows provided by operating activities | $279,815 | $237,242 | | Net Cash used in investing activities | $(383,967) | $(676,277) | | Net Cash provided by financing activities | $103,516 | $153,989 | | Net Decrease in Cash and Cash Equivalents | $(636) | $(285,046) | | Cash and Cash Equivalents, end of period | $18,837 | $11,169 | - The decrease in net cash used in investing activities by **$292.3 million** was primarily due to the acquisition of terminals from Yellow Corporation in January 2024[73](index=73&type=chunk) - Net cash provided by financing activities decreased due to higher borrowings in the first six months of 2024 to fund capital expenditures[73](index=73&type=chunk) - Anticipated net capital expenditures for 2025 are approximately **$600 million to $650 million**, with **$375.6 million** spent in the first six months and **$84.0 million** committed as of June 30, 2025[75](index=75&type=chunk) - The Revolving Credit Facility was amended to increase commitments to **$600 million** and extend maturity to December 9, 2029. As of June 30, 2025, **$207.0 million was outstanding**, with **$356.6 million available**[76](index=76&type=chunk)[79](index=79&type=chunk) - The Private Shelf Agreement allows for up to **$350 million** in senior notes, with **$100 million issued** on May 1, 2024, bearing **6.09% interest** and maturing May 1, 2029[80](index=80&type=chunk)[81](index=81&type=chunk) | Contractual Obligation (in millions) | Amount at June 30, 2025 | | :--- | :--- | | Operating Leases | $150.2 | | Finance Leases | $2.1 | | Purchase Obligations | $84.2 | | Revolving Credit Facility (outstanding) | $207.0 | | Shelf Agreement (outstanding) | $100.0 | | Letters of Credit | $36.4 | | Surety Bonds | $59.1 | [Critical Accounting Policies and Estimates](index=21&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - There have been no significant changes to the application of critical accounting policies and estimates since the Annual Report on Form 10-K for the year ended December 31, 2024[88](index=88&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=23&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the Company's exposure to market risks from interest rates and diesel fuel prices - The Company is exposed to market risks from interest rates and diesel fuel prices, mitigated by an established fuel surcharge program[89](index=89&type=chunk) | Debt Type | 2025 (millions) | 2026 (millions) | 2027 (millions) | 2028 (millions) | 2029 (millions) | Total (millions) | Fair Value (millions) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Fixed rate debt | $1.1 | $1.0 | $— | $— | $100.0 | $102.1 | $102.8 | | Average interest rate | 4.3% | 3.5% | — | — | 6.1% | 6.0% | | | Variable rate debt | $— | $— | $— | $— | $207.0 | $207.0 | $207.0 | | Average interest rate | — | — | — | — | 5.7% | 5.7% | | [Item 4. Controls and Procedures](index=23&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures as of June 30, 2025 - The CEO and CFO concluded that the Company's disclosure controls and procedures were **effective** as of June 30, 2025[93](index=93&type=chunk) - There were **no material changes** in internal control over financial reporting during the period covered by this report[94](index=94&type=chunk) - Disclosure Controls are designed to ensure timely recording, processing, summarizing, and reporting of information required under the Exchange Act[96](index=96&type=chunk) - Management acknowledges that control systems provide only **reasonable, not absolute, assurance** and have inherent limitations, including potential for errors, fraud, or management override[97](index=97&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=25&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 3 of the condensed consolidated financial statements for a description of legal proceedings - For a description of legal proceedings, refer to Note 3 'Commitments and Contingencies' in the accompanying unaudited condensed consolidated financial statements[99](index=99&type=chunk) [Item 1A. Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the Company's Annual Report for a comprehensive list of risk factors - Readers should carefully consider the risk factors discussed in Part I, Item 1A 'Risk Factors' of the Company's Annual Report on Form 10-K for the year ended December 31, 2024[100](index=100&type=chunk) - A new risk factor replaces a previous one, detailing how changes in **U.S. trade policy and tariffs** may continue to adversely impact customers, the industry, and the business, potentially decreasing demand for services or increasing costs[101](index=101&type=chunk)[102](index=102&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=25&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details shares purchased by the Saia, Inc Executive Capital Accumulation Plan during Q2 2025 | Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (or Unit) | | :--- | :--- | :--- | | April 1, 2025 through April 30, 2025 | 1,300 | $241.44 | | May 1, 2025 through May 31, 2025 | — | $— | | June 1, 2025 through June 30, 2025 | 950 | $264.62 | | Total | 2,250 | | - The Saia, Inc Executive Capital Accumulation Plan made open market purchases of shares[105](index=105&type=chunk) - The Plan sold **1,076 shares** at an average price of **$254.53** during May 2025[106](index=106&type=chunk) [Item 5. Other Information](index=27&type=section&id=Item%205.%20Other%20Information) This section states no directors or Section 16 officers adopted or terminated Rule 10b5-1(c) trading arrangements - During the three months ended June 30, 2025, none of the Company's directors or Section 16 officers adopted or terminated any Rule 10b5-1(c) trading arrangements[107](index=107&type=chunk) [Item 6. Exhibits](index=28&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q - Exhibits include the Second Amended and Restated Certificate of Incorporation, Amended and Restated By-laws, and certifications from the Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2)[108](index=108&type=chunk) - Financial information for the quarter ended June 30, 2025, is provided in **iXBRL format** (Exhibit 101), including condensed consolidated financial statements and notes[108](index=108&type=chunk) [Signature](index=29&type=section&id=Signature) This section contains the signature of the authorized representative of Saia, Inc, certifying the filing of the report - The report was duly signed on behalf of Saia, Inc by Matthew J Batteh, Executive Vice President and Chief Financial Officer, on July 25, 2025[110](index=110&type=chunk)[112](index=112&type=chunk)

Financial Data and Key Metrics Changes - The second quarter revenue decreased year over year by 0.7% to $817.1 million, with operating ratio at 87.8% compared to 83.3% in the same quarter last year [5][14][18] - Revenue per shipment excluding fuel surcharge increased by 2.7% to $298.71, while including fuel surcharge it increased by 1.8% to $351.36 [14][18] - Total operating expenses increased by 4.7% year over year, with salaries, wages, and benefits rising by 5% due to inflationary pressures [15][18] Business Line Data and Key Metrics Changes - Overall shipments for workdays were down 2.8% year over year, with tonnage only up 0.4% from the first quarter [6][8] - Newer terminals (opened less than three years) saw a 4% sequential improvement in shipments per workday compared to the first quarter [7] - Legacy facilities (open longer than three years) experienced a 2% sequential increase in shipments compared to the first quarter, but down 3.5% year over year [7] Market Data and Key Metrics Changes - The company noted muted volume trends due to the macroeconomic landscape, with overall shipment trends reflecting cautious customer approaches [6][8] - The Los Angeles region showed softer trends, impacting overall performance [9][52] Company Strategy and Development Direction - The company is focused on optimizing variable costs and improving network efficiency while maintaining a customer-centric approach [5][10] - There is an emphasis on getting closer to customers and providing unique solutions, which is part of the long-term strategy [21][22] - The company plans to continue investing in network expansion and technology to enhance operational efficiency [17][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to the dynamic environment, despite the lack of typical volume increases in the second quarter [20] - The focus remains on controllable factors, with a commitment to maintaining high service levels and managing costs effectively [10][20] - Future growth is anticipated as the company continues to mature its facilities and optimize its network [11][106] Other Important Information - The company plans to spend approximately $600 million to $650 million in capital expenditures this year, focusing on network expansion and technology investments [17][99] - The cargo claims ratio was reported at 0.5, indicating effective management of claims [10] Q&A Session Summary Question: Outlook on volumes and pricing for Q3 - Management indicated that tonnage comparisons will become tougher due to new terminal openings last year, but they expect to maintain pricing discipline [26][27] Question: Labor reductions and wage increases - Management clarified that wage increases typically occur in the second half of the year, and headcount adjustments are made to align with volume levels [35][36] Question: Industry capacity and pricing recovery - Management believes that LTL capacity is shrinking over time, and they are well-positioned to leverage their investments in the upcoming market recovery [44][46] Question: Volume trends in July - July tonnage is trending flat, with shipments per day down about 2.25%, reflecting ongoing cautiousness in the market [51][52] Question: Contractual renewals and competitive pricing - The 5.1% renewal rate is lower than previous periods, but management emphasized that the pricing environment remains rational and focused on service quality [58][60] Question: Cost management and operating leverage - Management noted that while some cost actions are tactical, they are also building long-term structural gains through network optimization [67][70] Question: Pricing environment and legacy freight - Management is optimistic about pricing opportunities as they continue to optimize their network and improve service levels [73][75]