Saia Reports Q3 Revenue Growth Amid Network Expansion
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Saia Inc. reported Oct. 25 that it was able to post record-high third-quarter revenue amid an ongoing effort to expand its operational footprint.
The Johns Creek, Ga.-based less-than-truckload carrier posted net income of $92.7 million, or $3.46 a diluted share, for the three months ending Sept. 30. That was a slight step down compared with $98.2 million, $3.67, during the same time the previous year. Total revenue increased 8.6% to $842.1 million from $775.1 million.
Saia ranks No. 18 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 6 on the less-than-truckload list.
“While the underlying macrotrends remain tepid in our view, our year-over-year results in the third quarter continue to reflect the growth experienced since last summer,” Saia President Fritz Holzgrefe said during a call with investors. “Our third-quarter revenue of $842 million increased from last year’s third quarter by 8.6% and is a record for any third quarter in our company’s history.”
Saia highlighted in its earnings report that LTL shipments per workday increased 8.5%. That rise was paired with revenue per shipment increasing 0.9%. The report also pointed out that LTL tonnage per workday increased 7.7%, while LTL revenue per hundredweight increased 1.7%. Saia leadership noted the freight backdrop remained muted with mixed headwinds.
“While weight per shipments stabilized into the third quarter, we continue to see some mixed headwinds from the softer industrial background and the growth in retail business since last year’s industry disruption,” Holzgrefe said. “We remain intently focused on mixed management and pricing initiatives, as seen in our contractual renewals, which remain strong at 7.9%.”
Saia continued its strategy to expand its operational footprint during the quarter. The company noted that it opened 11 new terminals and relocated one during the quarter.
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“Each new opening represents its own unique challenges, especially those in new geographies,” Holzgrefe said. “Most of the terminals open in the quarter were in the Great Plains, a new geography for Saia, and these locations enable us to extend our addressable market and provide direct service to customers in this area of the country.”
Saia noted that these locations enable it to provide direct service in and out of areas that have historically been serviced through partner carriers. It’s now able to provide direct service to all of the contiguous 48 states.
We're expanding our network with the opening of a new terminal in Akron, OH! This location strengthens our ability to offer reliable & flexible shipping solutions in the area. Our team is ready to meet your logistics needs. Learn more: https://t.co/oRUI1IvMW9 #saialtlfreight pic.twitter.com/WeQZ8Psevi — SaiaLTLFreight (@Saia_Inc) October 23, 2024
“I’m pleased with our ability to demonstrate our customer-first approach to both new and existing customers in our recently opened terminals and across our network,” Holzgrefe said. “Every new terminal opening is an opportunity to better position ourselves to provide additional value to our customers. While opening 11 new terminals in a quarter is a large undertaking, these investments are critical to creating long-term value for both our customers and shareholders.”
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