SAIA's Q3 Net Income Dips Amid Rising Costs, Revenue Stagnates

TL;DR

**SAIA's profit slide is a red flag; rising costs are eating into earnings, making it a hold until they show better expense control.**

AI Summary

SAIA Inc. reported a decline in net income for both the third quarter and the nine months ended September 30, 2025, despite a slight increase in operating revenue for the nine-month period. Third-quarter net income decreased by 6.9% to $86.3 million from $92.7 million in Q3 2024, with diluted EPS falling to $3.22 from $3.46. For the nine months, net income dropped significantly by 27.4% to $207.5 million from $286.0 million in the prior year, and diluted EPS decreased to $7.75 from $10.68. Operating revenue for the nine months increased marginally by 1.0% to $2.44 billion, while third-quarter operating revenue saw a slight dip of 0.3% to $839.6 million. Key business changes include an amendment to the Revolving Credit Facility on December 9, 2024, increasing commitments by $300 million to $600 million and extending the maturity date. The company also extended the estimated useful lives of certain trailers and dollies, which increased net income by approximately $2.2 million for the nine months ended September 30, 2025. Risks include increased operating expenses, with salaries, wages, and employee benefits rising by $69.2 million for the nine months, and interest expense more than doubling to $13.5 million from $5.95 million in the prior year.

Why It Matters

SAIA's declining net income and EPS, despite stable revenue, signals potential margin compression for investors. The significant increase in operating expenses, particularly salaries and interest, could erode profitability if not managed effectively, impacting shareholder returns. For employees, the rise in wages and benefits is a positive, but the overall financial performance could influence future compensation and job security. Customers might see continued investment in services, as evidenced by increased property and equipment, but rising costs could eventually translate to higher shipping rates. In the broader market, SAIA's performance reflects the challenges in the LTL sector, including labor costs and interest rate pressures, potentially affecting competitor strategies and overall industry valuations.

Risk Assessment

Risk Level: medium — The risk level is medium due to a significant decline in net income for both the quarter and nine months, with Q3 2025 net income down 6.9% to $86.3 million and nine-month net income down 27.4% to $207.5 million. This is coupled with a substantial increase in interest expense, which more than doubled to $13.5 million for the nine months ended September 30, 2025, compared to $5.95 million in the prior year, indicating higher borrowing costs.

Analyst Insight

Investors should closely monitor SAIA's operating expense management and interest rate exposure. Consider holding existing positions but deferring new investments until there's clear evidence of improved profitability and cost control, especially given the significant increase in interest expense and salaries.

Financial Highlights

debt To Equity

N/A

revenue

$2.44B

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$207.5M

eps

$7.75

gross Margin

N/A

cash Position

N/A

revenue Growth

+1.0%

Revenue Breakdown

Key Numbers

• $86.3M — Q3 2025 Net Income (Down 6.9% from Q3 2024's $92.7M)
• $207.5M — Nine-Month 2025 Net Income (Down 27.4% from nine-month 2024's $286.0M)
• $3.22 — Q3 2025 Diluted EPS (Down from Q3 2024's $3.46)
• $7.75 — Nine-Month 2025 Diluted EPS (Down from nine-month 2024's $10.68)
• $2.44B — Nine-Month 2025 Operating Revenue (Up 1.0% from nine-month 2024's $2.42B)
• $13.5M — Nine-Month 2025 Interest Expense (More than doubled from nine-month 2024's $5.95M)
• $600M — Revolving Credit Facility Commitment (Increased by $300M on December 9, 2024)
• $2.2M — Increase in Net Income (Resulting from extended useful lives of trailers and dollies for nine months ended September 30, 2025)

Key Players & Entities

• SAIA Inc. (company) — registrant
• Bloomberg (company) — publisher
• SEC (regulator) — filing authority
• $86.3 million (dollar_amount) — Q3 2025 net income
• $92.7 million (dollar_amount) — Q3 2024 net income
• $207.5 million (dollar_amount) — nine-month 2025 net income
• $286.0 million (dollar_amount) — nine-month 2024 net income
• $2.44 billion (dollar_amount) — nine-month 2025 operating revenue
• $13.5 million (dollar_amount) — nine-month 2025 interest expense
• $5.95 million (dollar_amount) — nine-month 2024 interest expense

FAQ

Risk Factors

• Increased Operating Expenses [high — operational]: Salaries, wages, and employee benefits rose by $69.2 million for the nine months ended September 30, 2025, impacting profitability. This increase in labor costs is a significant operational challenge.
• Rising Interest Expense [medium — financial]: Interest expense more than doubled to $13.5 million for the nine months ended September 30, 2025, from $5.95 million in the prior year. This is likely due to increased debt or higher interest rates, putting pressure on net income.
• Trailer and Dolly Useful Life Extension [low — operational]: The company extended the estimated useful lives of certain trailers and dollies, which artificially increased net income by approximately $2.2 million for the nine months ended September 30, 2025. This accounting change masks underlying profitability pressures.
• Credit Facility Amendment [medium — financial]: On December 9, 2024, the Revolving Credit Facility was amended to increase commitments by $300 million to $600 million and extend the maturity date. While providing liquidity, this indicates potential future financing needs or strategic investments.

Industry Context

The less-than-truckload (LTL) sector is characterized by its fragmented nature and reliance on efficient logistics networks. Companies compete on transit times, pricing, and service reliability. Recent trends include consolidation and increasing demand for expedited and specialized services, alongside pressures from rising labor and fuel costs.

Regulatory Implications

SAIA operates within the transportation industry, subject to regulations concerning safety, emissions, and labor practices. Changes in environmental regulations or labor laws could increase operating costs or require capital expenditures. The company's financial reporting is governed by SEC rules, requiring accurate disclosure of accounting policies and financial performance.

What Investors Should Do

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Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period for which financial results show a decline in net income and EPS despite slight revenue growth, with significant increases in operating and interest expenses.
• 2025-09-30: Third quarter ended September 30, 2025 — Period for which net income and EPS decreased compared to the prior year, with a slight dip in operating revenue.
• 2024-12-09: Revolving Credit Facility Amendment — Commitments increased by $300 million to $600 million, and maturity date extended, impacting the company's financial flexibility and debt structure.

Glossary

Less-Than-Truckload (LTL)

A shipping service for smaller freight shipments that do not require a full truckload. Multiple LTL shipments are consolidated onto one truck. (SAIA's primary revenue source, accounting for approximately 97% of its revenue.)

Bill of Lading (BOL)

A legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. (Forms the basis of a legally-enforceable contract for transportation services, triggering revenue recognition.)

Diluted Earnings Per Share (EPS)

A calculation of a company's profit available to each outstanding share of common stock, assuming all convertible securities and stock options were exercised. (Key profitability metric for investors; SAIA's diluted EPS declined in Q3 and year-to-date 2025.)

Revolving Credit Facility

A type of credit line that allows a company to borrow, repay, and re-borrow funds up to a certain limit over a specified period. (SAIA amended its facility, increasing borrowing capacity to $600 million, indicating potential financing needs or strategic flexibility.)

Year-Over-Year Comparison

Compared to the prior year, SAIA Inc. reported a decline in net income and diluted EPS for both the third quarter and the nine months ended September 30, 2025. While nine-month operating revenue saw a marginal increase of 1.0% to $2.44 billion, Q3 revenue experienced a slight dip of 0.3%. Key concerns include a substantial rise in operating expenses, particularly salaries and benefits ($69.2M increase), and a more than doubling of interest expense to $13.5 million, which significantly impacted profitability. New risks or changes include an amendment to the revolving credit facility, increasing capacity to $600 million, and an accounting change extending asset useful lives, which boosted net income by $2.2 million.

Filing Documents

• saia-20250930.htm (10-Q) — 1720KB
• saia-ex31_1.htm (EX-31.1) — 13KB
• saia-ex31_2.htm (EX-31.2) — 13KB
• saia-ex32_1.htm (EX-32.1) — 8KB
• saia-ex32_2.htm (EX-32.2) — 8KB
• 0001193125-25-258666.txt ( ) — 5075KB
• saia-20250930.xsd (EX-101.SCH) — 541KB
• saia-20250930_htm.xml (XML) — 729KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1:

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 3 Condensed Consolidated Statements of Operations for the quarters and nine months ended September 30, 2025 and 2024 4 Condensed Consolidated Statements of Stockholders' Equity for the quarters and nine months ended September 30, 2025 and 2024 5 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 7 Notes to Condensed Consolidated Financial Statements 8 ITEM 2:

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 ITEM 3:

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 21 ITEM 4:

Controls and Procedures

Controls and Procedures 22

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1:

Legal Proceedings

Legal Proceedings 23 ITEM 1A:

Risk Factors

Risk Factors 23 ITEM 2: Unregistered Sales of Equity Securities and Use of Proceeds 23 ITEM 5: Other Information 24 ITEM 6: Exhibits 25 Signature 26 2

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

Financ ial Statements

Item 1. Financ ial Statements Saia, Inc. and Subsidiaries Condensed Consolida ted Balance Sheets (unaudited) September 30, 2025 December 31, 2024 Assets (in thousands, except share and per share data) Current Assets: Cash and cash equivalents $ 35,500 $ 19,473 Accounts receivable, net 365,343 322,991 Prepaid expenses 34,830 35,497 Income tax receivable 48,796 44,107 Other current assets 12,525 13,701 Total current assets 496,994 435,769 Property and Equipment, at cost 4,181,930 3,790,069 Less: accumulated depreciation and amortization 1,368,123 1,233,134 Net property and equipment 2,813,807 2,556,935 Operating Lease Right-of-Use Assets 138,845 126,828 Goodwill and Identifiable Intangibles, net 15,802 16,442 Other Noncurrent Assets 35,512 30,883 Total assets $ 3,500,960 $ 3,166,857 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 112,534 $ 114,560 Wages, vacation and employees' benefits 72,318 49,953 Claims and insurance accruals 45,437 43,126 Other current liabilities 37,415 38,036 Current portion of long-term debt 1,199 5,313 Current portion of operating lease liability 27,001 27,372 Total current liabilities 295,904 278,360 Other Liabilities: Long-term debt, less current portion 218,000 194,981 Operating lease liability, less current portion 102,175 96,798 Deferred income taxes 287,123 219,062 Claims, insurance and other 71,731 66,385 Total other liabilities 679,029 577,226 Commitments and Contingencies (Note 3) Stockholders' Equity: Preferred stock, $ 0.001 par value, 50,000 shares authorized, none issued and outstanding - - Common stock, $ 0.001 par value, 100,000,000 shares authorized, 26,642,641 and 26,598,512 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 27 27 Additional paid-in-capital 30

Business

Business The Company provides national less-than-truckload (LTL) services through a single integrated organization. While approximately 97 percent of its revenue has been derived from transporting LTL shipments across the contiguous United States, the Company also offers customers a wide range of other value-added services, including non-asset truckload, expedited transportation and logistics services across North America. The Company's customer base is diversified across numerous industries. Revenue Recognition The Company's revenues are derived primarily from the transportation of freight as it satisfies performance obligations that arise from contracts with its customers. The Company's performance obligations arise when it receives a bill of lading (BOL) to transport a customer's commodities at negotiated prices contained in either a transportation services agreement or a publicly disclosed tariff rate. Once a BOL is received and accepted, a legally-enforceable contract is formed whereby the parties are committed to perform and the rights of the parties, shipping terms and conditions, and payment terms have been identified. Each shipment represents a distinct service that is a separately identified performance obligation. The typical transit time to complete a shipment is from one to five days . Billing for transportation services normally occurs after completion of the service and payment is generally due within 30 days after the invoice date. The Company recognizes revenue related to the Company's LTL, non-asset truckload and expedited transportation services over the transit time of the shipment as it moves from origin to destination based on the transit status at the end of each reporting period. Key estimates included in the recognition and measurement of revenue and related accounts receivable are as follows: Revenue associated with shipments in transit is recognized ratably over the transit time; and Adjustments to revenue for billing adjustm

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This Management's Discussion and Analysis should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and our 2024 audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Those consolidated financial statements include additional information about our significant accounting policies, practices and the transactions that underlie our financial results. Cautionary Note Regarding Forward-Looking Statements The Se