Saia's Q4 2024 Earnings Call: Unpacking Contradictions in Operating Ratios, Pricing Strategies, and Customer Satisfaction

These are the key contradictions discussed in Saia's latest 2024Q4 earnings call, specifically including: Operating Ratio Improvement Expectations, Pricing Strategy, and Service Quality and Customer Satisfaction:



Revenue Growth and Market Expansion:
- Saia, Inc. reported record revenue of $3.2 billion for 2024, marking 5% growth year-over-year, with Q4 revenue increasing by $37.8 million to $789 million, a record for any fourth quarter.
- Growth was driven by 21 new terminal openings, increased investment in fleet with over 6,000 trailers, and strategic expansion into the national market, which now spans 214 terminals.

Operating Ratio and Cost Management:
- Saia's operating ratio deteriorated seasonally by 210 basis points in Q4, reaching 87.1%, compared to 85% in Q4 of the previous year.
- This was partly due to investments in equipment, real estate, and technology, and increased salaries and wages (8.7% growth in Q4). However, the company managed to mitigate costs by reducing fuel expenses and improving linehaul miles efficiency.

Weight and Volume Trends:
- Weight per shipment in Q4 increased by 3.7%, while length of haul rose by 0.3% to 898 miles.
- These trends were supported by strategic mix optimization efforts and increased weight per shipment from new customer introductions post-Yellow competitor exit.

Terminal Expansion and Capacity Investment:
- Saia opened 21 new terminals in 2024, which added 9,900 doors, expanding their national footprint and enhancing capacity. The company aims to further expand by opening 5 to 6 new facilities in 2025.
- These investments are part of a long-term strategy to improve operational efficiency, support customer growth, and leverage the national network in serving new markets.