- Top carriers hold steady on CapEx plans
May 13, 2026
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter.
Larger carriers tended to keep their full-year capital expenditure forecasts the same when reporting their Q1 results this year, suggesting some stability in trucking markets.
That’s a switch from last year when J.B. Hunt Transport Services, Old Dominion Freight Line, Schneider National and Saia used Q1 earnings to tweak forecasts they made months earlier in 2025.
“We believe it is important to invest throughout the economic cycle to ensure that we always have the capacity for new growth opportunities,” Adam Satterfield, Old Dominion Freight Line’s EVP and CFO, told Trucking Dive in an email.
“As a result, our forecasted capital expenditures generally remain consistent throughout a fiscal year once our annual plan is established,” he said.
Among the largest carriers, Knight-Swift Transportation Holdings bucked the trend, revising its initial 2026 guidance downward by $25 million to a range of $600 million to $650 million.
Top carriers mostly keep CapEx forecasts the same
2026 spending forecasts as reported at the start of the year compared to Q1 2026 results.
A disruptive environment with fuel prices, tariffs, federal regulations limiting the driver supply, insurance costs and other factors has challenged margins and even carriers’ ability to operate.
The disruption follows a multiyear freight recession amid some glimmers of hope, such as spot rates staying elevated, industrial sentiment remaining in expansion territory and carriers such as Knight-Swift projecting higher bid increases.
“I think liquidity and capital preservation is going to be key in this unstable environment that we have today, this very volatile environment,” Anthony Sasso, president of TD Equipment Finance, said in an April interview with Trucking Dive.
Larger carriers’ CapEx can cover vast areas from real estate to technology as well as tractors and trailers. Several LTLs upped spending in recent years to take advantage of Yellow Corp.’s bankruptcy and related auctions of equipment and property.
Sasso said that recently, some smaller players have refinanced, and in some cases, sale-leasebacks of equipment have been another tool that companies are utilizing.
“We're seeing companies continue with the replacement cycles,” he said. “If there's been a cutback, we're seeing it more on the new acquisition side versus the replacement cycle.”
Analytics and forecasting firm FTR Transportation Intelligence noted in a recent report how North American Class 8 orders have been maintaining strength, suggesting “that momentum is being driven by improving freight volumes, higher asset utilization, and firmer rate expectations.”
Story Continues
Market leaders Daimler Truck North America and Paccar estimated Class 8 retail sales to be in the range of 250,000 to 290,000 or 230,000 to 270,000, respectively.
“The market is strengthening as driver and fleet capacity becomes limited and customers begin to realize higher freight rates,” Paccar CEO Preston Feight said on an earnings call April 28. “This is somewhat moderated by fuel and other operating cost volatility.”
Freight volumes are still barely budging upward, but tightening capacity meant an abrupt surge in prices in Q1, which rose 21.8% year over year, according to the U.S. Bank National Spend Index.
For Old Dominion, Satterfield said the carrier maintains a long-term focus with its capital expenditure program, which has included approximately $2 billion over the past three years despite persistent softness in the domestic economy.
Any change to its annual plan typically results from an update in forecasted tonnage and shipment levels, he noted.
Recommended Reading
Top trucking trends to watch in 2026
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- ARCB vs. SAIA: Which Stock Is the Better Value Option?
May 5, 2026
Investors looking for stocks in the Transportation - Truck sector might want to consider either ArcBest (ARCB) or Saia (SAIA). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
ArcBest has a Zacks Rank of #2 (Buy), while Saia has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ARCB likely has seen a stronger improvement to its earnings outlook than SAIA has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ARCB currently has a forward P/E ratio of 21.88, while SAIA has a forward P/E of 36.22. We also note that ARCB has a PEG ratio of 0.63. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SAIA currently has a PEG ratio of 1.97.
Another notable valuation metric for ARCB is its P/B ratio of 2. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SAIA has a P/B of 4.11.
These are just a few of the metrics contributing to ARCB's Value grade of B and SAIA's Value grade of D.
ARCB sticks out from SAIA in both our Zacks Rank and Style Scores models, so value investors will likely feel that ARCB is the better option right now.
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ArcBest Corporation (ARCB) : Free Stock Analysis Report
Saia, Inc. (SAIA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- ARCB vs. SAIA: Which Stock Is the Better Value Option?
May 5, 2026 · zacks.com
Investors looking for stocks in the Transportation - Truck sector might want to consider either ArcBest (ARCB) or Saia (SAIA). But which of these two stocks is more attractive to value investors?
- 3 Unpopular Stocks We Think Twice About
May 4, 2026
When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.
Saia (SAIA)
Consensus Price Target: $440.95 (-0.2% implied return)
Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ:SAIA) is a provider of freight transportation solutions.
Why Are We Cautious About SAIA?
Disappointing tons shipped over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases Low free cash flow margin of -0.2% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders Eroding returns on capital suggest its historical profit centers are aging
Saia’s stock price of $441.62 implies a valuation ratio of 36.8x forward P/E. If you’re considering SAIA for your portfolio, see our FREE research report to learn more.
Morgan Stanley (MS)
Consensus Price Target: $200.19 (5.5% implied return)
Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley (NYSE:MS) is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.
Why Does MS Give Us Pause?
Annual sales growth of 6.1% over the last five years lagged behind its financials peers as its large revenue base made it difficult to generate incremental demand Earnings per share lagged its peers over the last five years as they only grew by 7.3% annually Sizable asset base leads to capital growth challenges as its 5.1% annual tangible book value per share increases over the last five years fell short of other financials companies
At $189.82 per share, Morgan Stanley trades at 16.1x forward P/E. Check out our free in-depth research report to learn more about why MS doesn’t pass our bar.
Hilltop Holdings (HTH)
Consensus Price Target: $39.67 (4.2% implied return)
Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings (NYSE:HTH) is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.
Story Continues
Why Should You Sell HTH?
Net interest income trends were unexciting over the last five years as its 1.3% annual growth was below the typical banking firm Overall productivity is expected to decrease over the next year as Wall Street thinks its efficiency ratio will degrade by 29.9 percentage points Sales were less profitable over the last five years as its earnings per share fell by 14.8% annually, worse than its revenue declines
Hilltop Holdings is trading at $38.08 per share, or 1x forward P/B. Read our free research report to see why you should think twice about including HTH in your portfolio, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
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- Saia: I Won't Touch It Unless The Road To Fair Valuation Gets Cleared
May 4, 2026 · seekingalpha.com
Saia, Inc. demonstrates resilience in the LTL market, posting Q1 2026 revenue growth and benefiting from market undercapacity. Despite robust liquidity and strong pricing power, SAIA faces margin pressure from inflation and elevated oil prices, with operating margin down to 8.3%. Valuation appears stretched: SAIA trades at 46.35x P/E and is considered fully priced, limiting upside potential and supporting a hold rating.
- How Investors May Respond To Saia (SAIA) Record Q1 Revenue And Flat Earnings Amid Network Expansion
May 4, 2026
In late April 2026, Saia, Inc. reported first-quarter 2026 results showing record revenue of US$806.23 million and essentially flat net income of US$49.87 million, as earnings per share held steady at US$1.86 while the company continued expanding its less-than-truckload network. Management highlighted improving shipment trends, record service and safety metrics, and early efficiency gains from new terminals and technology investments, suggesting its ongoing network buildout and operational focus are starting to translate into tangible performance improvements despite fuel and insurance cost pressures. Next, we’ll examine how Saia’s record quarterly revenue and improving efficiency metrics affect its pre-existing investment narrative and long-term thesis.
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Saia Investment Narrative Recap
To own Saia, you need to believe that its expanding less than truckload network and technology investments can convert modest revenue gains into healthier margins over time. The latest quarter’s record US$806.23 million revenue but flat US$1.86 EPS suggests the near term catalyst remains operating ratio improvement, while persistent cost pressures and elevated capital spending still look like the biggest swing factors. This news modestly supports the efficiency story but does not remove those risks.
The recent opening of the 74 door York, Pennsylvania terminal ties directly into that thesis by adding Northeast density that can support shipment growth and service quality. With management pointing to a 1 percent shipment increase and better dock productivity in the quarter, York looks like another test of whether Saia’s heavy capital program can translate into real operating leverage rather than just higher fixed costs.
Yet beneath the record revenue, investors should also be aware of the rising cost and capital intensity risk that could...
Read the full narrative on Saia (it's free!)
Saia's narrative projects $3.9 billion revenue and $432.3 million earnings by 2029. This requires 6.7% yearly revenue growth and a $177.3 million earnings increase from $255.0 million today.
Uncover how Saia's forecasts yield a $395.40 fair value, a 10% downside to its current price.
Exploring Other PerspectivesSAIA 1-Year Stock Price Chart
While the latest quarter hints at improving efficiency, the most cautious analysts still assume Saia reaches only about US$3.9 billion revenue and US$415.9 million earnings by 2029, reminding you that views on its capital intensity and long term margins can differ sharply and may shift again as this new data is absorbed.
Story Continues
Explore 5 other fair value estimates on Saia - why the stock might be worth as much as $395.40!
The Verdict Is Yours
Don't just follow the ticker - dig into the data and build a conviction that's truly your own.
A great starting point for your Saia research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision. Our free Saia research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Saia's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SAIA.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- 2 Mid-Cap Stocks with Competitive Advantages and 1 We Brush Off
May 2, 2026
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations. However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are two mid-cap stocks with long growth runways and one best left ignored.
One Mid-Cap Stock to Sell:
Saia (SAIA)
Market Cap: $11.94 billion
Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ:SAIA) is a provider of freight transportation solutions.
Why Does SAIA Worry Us?
Underwhelming tons shipped over the past two years indicate demand is soft and that the company may need to revise its strategy Low free cash flow margin of -0.2% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders Eroding returns on capital suggest its historical profit centers are aging
At $449.04 per share, Saia trades at 34.2x forward P/E. Check out our free in-depth research report to learn more about why SAIA doesn’t pass our bar.
Two Mid-Cap Stocks to Watch:
Five Below (FIVE)
Market Cap: $13.02 billion
Often facilitating a treasure hunt shopping experience, Five Below (NASDAQ:FIVE) is an American discount retailer that sells a variety of products from mobile phone cases to candy to sports equipment for largely $5 or less.
Why Could FIVE Be a Winner?
Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth Comparable store sales rose by 4.8% on average over the past two years, demonstrating its ability to drive increased spending at existing locations Free cash flow margin jumped by 5.9 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Five Below’s stock price of $235.79 implies a valuation ratio of 27.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
ITT (ITT)
Market Cap: $19.16 billion
Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE:ITT) provides motion and fluid handling equipment for various industries
Why Will ITT Beat the Market?
Annual revenue growth of 9.7% over the last five years beat the sector average and underscores the unique value of its offerings Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 34.8% Free cash flow margin expanded by 17.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Story Continues
ITT is trading at $214.59 per share, or 27.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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- SAIA Q1 Deep Dive: Network Expansion and Operational Discipline Fuel Growth Amid Cost Pressures
May 2, 2026
Freight transportation and logistics provider Saia (NASDAQ:SAIA) reported Q1 CY2026 results beating Wall Street’s revenue expectations , with sales up 2.4% year on year to $806.2 million. Its non-GAAP profit of $1.86 per share was 2.5% above analysts’ consensus estimates.
Is now the time to buy SAIA? Find out in our full research report (it’s free).
Saia (SAIA) Q1 CY2026 Highlights:
Revenue: $806.2 million vs analyst estimates of $788.9 million (2.4% year-on-year growth, 2.2% beat) Adjusted EPS: $1.86 vs analyst estimates of $1.82 (2.5% beat) Adjusted EBITDA: $129 million vs analyst estimates of $130.8 million (16% margin, 1.4% miss) Operating Margin: 8.3%, in line with the same quarter last year Sales Volumes fell 2.1% year on year (11% in the same quarter last year) Market Capitalization: $11.94 billion
StockStory’s Take
Saia’s first quarter was marked by resilience in the face of weather-related disruptions and persistent cost inflation, with management attributing outperformance to ongoing investments in its national terminal network and operational efficiency. CEO Frederick Holzgrefe highlighted that the quarter’s results benefited from improved service metrics, including a record in miles between preventable accidents and lower cargo claims ratios. These achievements were underpinned by enhanced optimization technology and disciplined cost control, which offset volume softness in some regions and a rapid spike in diesel costs during March.
Looking ahead, Saia’s outlook centers on realizing further benefits from its expanded network and technology investments, while navigating ongoing macroeconomic uncertainty. Management signaled that shipment growth across both legacy and newly opened terminals is expected to continue, with the ramping markets outpacing legacy facilities. Holzgrefe noted, “We believe we’re still in the early stages of fully realizing the benefits of these investments, which we expect will generate substantial long-term value.” The company remains focused on cost management, pricing discipline, and leveraging its national presence to gain greater share of customer supply chains.
Key Insights from Management’s Remarks
Management attributed the quarter’s performance to operational improvements, customer service gains, and the early payback from network buildout, while citing fuel cost volatility as a key margin headwind.
Service reliability improvements: Saia achieved its sixth consecutive quarter with a cargo claims ratio below 0.6% and reported record miles between preventable accidents, reflecting investments in safety, training, and technology. Network expansion drives growth: The company saw shipment growth not only in newer, ramping terminals but also for the first time in several quarters in its legacy facilities. This reflects success in integrating its national footprint and becoming a more integral part of customer supply chains. Productivity and cost control: Despite a challenging environment, productivity improved more than 2.5% year-over-year, and headcount reductions contributed to a 1.2% decrease in salaries and wages per shipment versus last year, demonstrating effective cost management. Fuel price volatility impacts margins: A rapid 30% spike in diesel prices during March created a short-term margin headwind, as fuel surcharge programs lagged real-time cost increases. This volatility was described as a meaningful factor in profitability for the quarter. Technology investments support efficiency: Saia continued to invest in optimization tools and early-stage AI models for network planning and customer service, which management believes will drive further cost savings and service enhancements as adoption broadens.
Story Continues
Drivers of Future Performance
Saia’s outlook is shaped by anticipated gains from network maturity, ongoing pricing actions, and operational leverage, though management remains cautious on macroeconomic volatility.
Seasonal volume recovery anticipated: Management expects normal seasonality in May and June, with shipment and tonnage trends indicating momentum that could yield sequential margin improvement of 400 to 450 basis points from Q1 to Q2 if trends hold. Pricing and mix management: Ongoing efforts around contractual renewals and mix optimization are expected to drive yield improvements, especially as the company laps prior year headwinds in key regions and leverages its expanded service offering. Macroeconomic and cost headwinds: While customer sentiment is improving, management remains wary of persistent cost pressures, especially in health insurance and diesel, and notes that any unexpected macro slowdown or further fuel price spikes could temper margin progress.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of shipment and tonnage growth across both legacy and ramping terminals, (2) the impact of pricing renewals and mix management on realized yields, and (3) margin recovery as seasonal volumes build and cost headwinds from fuel and insurance are absorbed. Progress on technology-driven operational improvements and further network densification will also be critical to tracking Saia’s execution.
Saia currently trades at $449.04, up from $422.04 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
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- Saia Q1 Earnings Call Highlights
May 1, 2026
Saia logo
Key Points
Saia posted a Q1 revenue record of $806 million (up 2.4%) with diluted EPS of $1.86 flat year-over-year and an operating ratio of 91.7; management expects roughly 400–450 basis points of sequential operating-ratio improvement in Q2 as shipments strengthened in March and April. The company faced margin pressure from a rapid ~30% diesel spike in March that created about a $3.5 million headwind due to fuel-surcharge lag, alongside rising insurance and claims costs that lifted cost per shipment. Operationally Saia reported improvements—cargo claims ratio at 0.5% for the sixth consecutive quarter, better safety and productivity metrics, ongoing ramping of newer terminals within its 214-terminal network, and a plan to be free cash flow positive this year. Interested in Saia, Inc.? Here are five stocks we like better.
Forget Airlines—These Trucking Stocks Are Shifting Into High Gear
Saia (NASDAQ:SAIA) executives pointed to improving demand trends late in the first quarter, continued progress on service and safety metrics, and an expectation for meaningful sequential margin improvement in the second quarter, while also highlighting cost pressure tied to insurance-related claims and a sharp rise in diesel prices in March.
First-quarter results and operating backdrop
President and CEO Fritz Holzgrefe said the company entered 2026 focused on “serving our customers, enhancing operational efficiency, and integrating our newer terminals into our national network,” but noted that winter weather again affected results, particularly in “our core and profitable Texas and Mid-South regions.” Holzgrefe said seasonality improved in March, especially in the back half of the month, as customers increased usage of Saia’s national network.
→ Corning Beats Q1 Estimates but Drops 9% on Guidance Miss
3 Trucking Stocks Getting Big Analyst Upgrades Now
The company reported first-quarter revenue of $806 million, which Holzgrefe called a first-quarter record and a 2.4% increase from the prior year. He said shipment volumes accelerated late in March, helping offset weather impacts in January and February, and resulting in a 1% shipment increase for the quarter.
Executive Vice President and CFO Matthew Batteh reported revenue of $806.2 million and said the increase was driven in part by higher fuel surcharge revenue and a 1% increase in shipments per workday. Diluted earnings per share were $1.86, which Batteh said was flat year over year. The operating ratio increased to 91.7% from 91.1% a year earlier.
Service, safety, and productivity metrics
→ Did Qualcomm Just Put Apple in Check?
Story Continues
Why Goldman Sachs Suddenly Boosted These 3 Trucking Stocks
Holzgrefe emphasized operational execution and customer service metrics during the quarter. He said Saia’s cargo claims ratio was 0.5%, marking the sixth consecutive quarter below 0.6%, which he described as a record streak for that milestone.
He also highlighted safety performance, including what he called a “significant increase in miles between preventable accidents” and a “significant improvement in hours between lost time injuries.” Holzgrefe said miles between preventable accidents were a first-quarter record, while hours between lost time injuries reached the highest first-quarter level since 2020.
→ Is Oracle Undervalued as Cloud Growth Accelerates?
On productivity, Holzgrefe said “touches” improved more than 2.5% versus the first quarter of 2025 and about 1% sequentially from the fourth quarter, reaching the strongest performance since the third quarter of 2024. Batteh later tied improvements in per-shipment labor and purchase transportation costs to optimization, technology and cost management efforts, noting the network has added more than 20 terminals over that period.
Pricing, mix, and the diesel surge
Management described continued efforts on pricing and mix management, alongside shifting freight patterns. Holzgrefe said revenue per shipment excluding fuel increased throughout the quarter, supported partly by contractual renewals that averaged 6.7% in the first quarter. Batteh added that renewals were “the highest number that we’ve seen in quite a while,” including a March renewal number “north of seven.”
Despite that, Batteh said revenue per shipment excluding fuel surcharge decreased 1.2% year over year to $297.11, which he attributed “largely as a weight per shipment and shorter length of haul compared to the prior year.” He added that revenue per shipment excluding fuel increased throughout the quarter. Revenue per shipment including fuel increased 0.7% year over year.
Fuel surcharge revenue increased 12.3% and represented 16.5% of total revenue versus 15.1% a year earlier. Batteh said tonnage fell 2.1%, driven by a 3.1% decline in average weight per shipment, and average length of haul decreased 1.7% to 890 miles.
Both Holzgrefe and Batteh highlighted a sharp spike in diesel costs late in the quarter. Holzgrefe said the company was “negatively impacted in March by the 30% increase in diesel cost in a matter of a few days,” citing the lag in the fuel surcharge program, which is tied to weekly national averages. Batteh said the rapid rise in March created an approximately $3.5 million margin headwind because fuel costs were incurred immediately while the surcharge table updated the following week.
Costs: insurance inflation, purchase transportation shifts, and headcount reductions
On expenses, Batteh said salaries, wages and benefits rose $4 million, or 1%, driven primarily by a $7.9 million increase in health insurance costs and a $1.4 million increase in workers’ compensation costs, which he said were “primarily the result of escalating costs of claims.” Those increases were partially offset by a $5.1 million decline in salaries and wages combined, as headcount ended the quarter 6.3% lower than the first quarter of 2025 and 0.7% lower than the fourth quarter of 2025. Excluding linehaul drivers, headcount decreased 7.9% year over year, reflecting a focus on operational efficiency and network cost management.
Purchase transportation expense increased 7.5% year over year and was 8% of total revenue versus 7.6% a year earlier. Batteh said the increase in purchase transportation usage was “driven entirely by rail,” as Saia leveraged “the most cost-effective mode” while meeting customer service expectations.
Depreciation expense was $62.2 million, up 5.3% year over year, which Batteh attributed to investments in revenue equipment, real estate and technology. Claims and insurance expense increased 6.3%, driven by higher insurance premium costs and inflation in claims, though Batteh said preventable accidents declined versus the prior year due to safety and training efforts.
Cost per shipment increased 2% year over year, “largely due to increases in self-insurance related costs,” with health insurance accounting for more than half of the increase, according to Batteh. He said salaries, wages and purchase transportation combined were down 1.2% on a per-shipment basis due to cost controls and network optimization.
Outlook: Q2 margin expectations, network ramp, and free cash flow
In response to analyst questions about margin progression, Batteh provided monthly volume trends and early second-quarter indicators:
January: shipments per day down 2.1%; tonnage per day down 7% February: shipments per day up 0.3%; tonnage per day down 2.7% March: shipments per day up 4.3%; tonnage per day up 2.8% April to date: shipments up about 5.5%; tonnage up about 6.5%
Batteh said sequential operating ratio improvement from the first to second quarter is typically 250 to 300 basis points, but this year the company believes it can achieve “about 400-450 basis points of improvement,” assuming normal seasonality in May and June. Holzgrefe added that customers’ sentiment has become “more positive” and that they “see a better second half,” while noting management wants to see that translate into results and that macro uncertainty remains.
On network expansion and ramping terminals, Holzgrefe said Saia has opened 70 facilities since 2017, and more recently described the company as having a 214-terminal network. In the question-and-answer session, Batteh said a group of newer facilities improved their operating ratio by “over two points” year over year, though they remain “in the upper 90s” and still weigh on the consolidated result. Both executives said they were encouraged that the first quarter showed shipment growth in both legacy and ramping markets, with ramping facilities still growing faster, as expected.
Holzgrefe also addressed technology investment, describing continued work on optimization tools used in linehaul planning and city operations, which he characterized as “models or early-stage AI models” that have been in development for years, plus potential uses of AI in customer-facing tools like track-and-trace. He said the company is not ready to discuss “step function changes,” but will continue to invest in optimization.
On cash flow, Batteh said Saia has “long talked about our plan this year was to be free cash flow positive,” adding that much of the buildout is now complete, though there are still terminal opportunities. He said if the freight market continues to tighten, plans around free cash flow “could escalate further,” while acknowledging near-term uncertainty.
Saia ended the quarter with $39 million of cash, $12 million drawn on its revolving credit facility, and $113 million in total debt outstanding, according to Batteh.
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.
The article "Saia Q1 Earnings Call Highlights" was originally published by MarketBeat.
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- Saia, Inc. (SAIA) Q1 2026 Earnings Call Transcript
May 1, 2026 · seekingalpha.com
Saia, Inc. (SAIA) Q1 2026 Earnings Call Transcript
