First look: Saia’s Q4 earnings

3 weeks ago 14

Less-than-truckload bearer Saia reported a header net miss for the 4th quarter.

The Johns Creek, Georgia-based institution reported fourth-quarter gross of $790 million, which was $1 cardinal higher twelvemonth implicit twelvemonth and $14 cardinal amended than the statement estimate. Earnings per stock of $1.77 came successful 38% little y/y and 14 cents airy of consensus.

The institution called retired $4.7 cardinal successful incremental security costs tied to “unexpected adverse developments” related to anterior accidents. Excluding the costs, the company’s 4th fourth EPS would person been successful enactment with expectations astatine $1.91.

Saia’s (NASDAQ: SAIA) revenue per time was level y/y arsenic tonnage fell 1.5% and gross per hundredweight (yield) accrued 1.6% (0.5% higher excluding substance surcharges).

The tonnage diminution was owed to a 0.5% diminution successful shipments and a 1% diminution successful value per shipment. The 4th had a pugnacious tonnage comp (plus-8.3% y/y successful the year-ago period).

Yield had an easier examination successful the play (negative-2.3% successful the 2024 4th quarter). The 1% diminution successful value per shipment was a humble tailwind for the output metric. Revenue per shipment was down 0.5% y/y successful the quarter, excluding substance surcharges.

A 91.9% operating ratio (inverse of operating margin) was 480 ground points worse y/y and 430 bps worse than the 3rd quarter. That was worse than management’s guidance, which called for 300 to 400 bps of sequential deterioration. The incremental security costs were a 60-bp drag.

Salaries, wages and benefits expenses (as a percent of revenue) were 280 bps higher y/y. Depreciation and amortization was 110 bps higher. Growth successful outgo per shipment exceeded maturation successful gross per shipment by 560 bps.

The bearer is inactive moving to ramp measurement and mitigate expenses astatine the astir 40 work centers it has added since 2022.

“Our grounds level of superior investments implicit the past 3 years person transformed our web and fixed america the quality to lick problems for much customers,” said Saia CFO Matt Batteh, successful a quality release. “Having present completed our archetypal afloat twelvemonth with a nationalist footprint, we are adjacent much excited astir the accidental up of us.”

Net capex is expected to measurement down from $544 cardinal successful 2025 ($1.05 cardinal successful 2024) to $350 cardinal to $400 cardinal successful 2026.

Shares of SAIA were disconnected 4.2% successful pre-market trading connected Tuesday.

Saia volition big a telephone astatine 10:00 a.m. EST connected Tuesday to sermon fourth-quarter results.

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