Saia (NASDAQ:SAIA) reported record second-quarter revenue as higher shipment volumes, improved pricing and mix management, and continued network investments supported earnings growth and a better operating ratio.
Revenue for the second quarter of 2026 rose 17.1% year over year to a record $956.5 million. Operating income increased 26% to $125 million, while the operating ratio improved to 86.9% from 87.8% in the prior-year quarter. Diluted earnings per share rose 31.5% to $3.51.
Volume, Pricing and Mix Trends
Shipments per workday increased 4.4% in the second quarter, while tonnage per workday increased 8.4%. Weight per shipment rose 3.9% year over year and improved 4.9% sequentially from the first quarter, extending a monthly improvement trend that had continued for seven consecutive months exiting the quarter.
Revenue per shipment, excluding fuel surcharge, increased 1.5% to $303.12. Saia said pricing and mix management contributed to the result, despite continued headwinds from lower shipment activity in its Los Angeles region, historically one of its highest-revenue-per-shipment markets. Shipments per workday in that region were down about 2.5% year over year during the quarter.
Chief Financial Officer Matthew Batteh said revenue per shipment excluding fuel surcharge improved during the quarter, with June up about 4% from April and from June 2025. Contractual renewals increased 10.7% in June and for the full quarter. The company implemented a 7.1% general rate increase in early July.
Saia attributed a 2.2% decline in yield excluding fuel surcharge primarily to the higher weight per shipment. Adjusting for the weight increase, a 0.6% decline in length of haul, and Los Angeles-region mix effects, Batteh said core yield excluding fuel surcharge rose about 3% from a year earlier.
In July, shipments per workday were tracking up about 1% and tonnage per workday was up about 7.5%, with several days remaining in the month. Batteh said the July rate increase contributed to some shipment volatility, which the company has historically seen following such actions.
Costs, Operating Ratio and Outlook
Total operating expenses increased 15.8% from the prior-year quarter, below the 17.1% revenue increase. Salaries, wages and benefits increased 11.1%, driven by higher employee hours, increased compensation associated with operating performance, and an October 2025 company-wide wage increase. Headcount at quarter-end was down 1% year over year, while headcount excluding line-haul drivers declined 1.7%.
Purchase transportation expense increased 47.3% year over year and represented 8.9% of revenue, compared with 7.1% a year earlier. The increase reflected higher freight volumes, more use of rail, disciplined headcount management, and higher diesel costs included in transportation rates. Fuel expense rose 49.6%, largely due to a 50.3% increase in national average diesel prices, while company line-haul miles increased 3.2%.
For the third quarter, management expects approximately 100 basis points of sequential operating-ratio deterioration, assuming fuel prices remain near current levels and shipment trends follow normal seasonality. Batteh said that would be better than Saia’s historical seasonal pattern of a 150- to 200-basis-point deterioration from the second to third quarter. He noted that the company’s third-quarter comparison includes two wage increases, including one implemented July 1.
For the full year, Batteh said Saia still believes it can achieve about 100 basis points of operating-ratio improvement, though the outcome will depend on demand trends during the second half.
Network Expansion and Service Initiatives
Saia opened five new terminals during the second quarter. Terminals opened in 2023 and 2024 operated in the low-90s operating-ratio range and improved by nearly 300 basis points from the prior-year quarter, according to Batteh. Management said those facilities still have room to mature as the company adds customer density and expands business in newer markets.
Since 2022, Saia has deployed about $1 billion in real estate investments, adding 33 terminals and relocating or expanding more than 25 others. Those investments increased operational door count by roughly 25%. The company also invested about $1 billion in its fleet since 2022, increasing tractor and trailer counts by 20%.
Holzgrefe said the company ended the second quarter with 26% more line-haul drivers than at the end of the second quarter of 2022, while maintaining disciplined staffing levels. He said Saia’s Driver Academy and ability to offer drivers home-daily work support recruiting and retention efforts.
The company also introduced its Saia REV initiative, short for Rapid, Expanded, and Visible. The program includes more than 2,000 transit-time improvements, automated guaranteed 10 a.m. delivery service, and expanded real-time shipment tracking, updated estimated arrival times, and predictive shipment information.
Service metrics improved during the quarter, according to management. Saia recorded a cargo claims ratio of 0.3%, while average customer inquiry handling time improved 50% one year after customer service operations were decentralized. Miles between preventable accidents improved by more than 45% year over year, and hours between lost-time injuries improved 17%.
Saia ended the quarter with $84 million in cash and $100 million in total debt after paying down its revolver balance. Holzgrefe said the company expects continuing operating cash flow improvement to support additional investments in its network.
About Saia (NASDAQ:SAIA)
Saia, Inc is a publicly traded transportation company specializing in less-than-truckload (LTL) freight services across North America. Headquartered in Johns Creek, Georgia, the company focuses on the efficient movement of time-sensitive freight for a diverse customer base that spans retail, manufacturing, automotive, and healthcare industries. By leveraging a network of terminals and service centers, Saia provides tailored solutions designed to optimize supply chain performance.
The company’s core offerings include regional, interregional, and national LTL shipping, supported by volumetric LTL and port intermodal services.
