Saia Inc's Q4 2024 Earnings: A Mixed Bag of Growth and Challenges

Saia Inc (NASDAQ: SAIA), a leading transportation company, reported its Q4 2024 earnings on February 3, 2025, offering a mix of positive and negative developments. The company's revenue rose by 5% year-over-year (YoY) to $789 million, while diluted earnings per share (EPS) declined by 14.4% to $2.84. Despite the revenue growth, the operating ratio deteriorated to 87.1% compared to 85% in the same period last year.

The company's strategic expansion, particularly the opening of 21 new terminals in 2024, has driven revenue growth. However, these new facilities have also been a drag on margins in the near term, as they are not yet operating at company average levels. The increased employee headcount and costs associated with new openings have contributed to the deterioration in the operating ratio.

Saia's President and CEO, Fritz Holzgrefe, highlighted the company's expansion efforts, stating, "We opened 21 new terminals, bringing our operations to a total of 214 terminals across 48 contiguous states." Despite the challenges, Saia remains committed to its long-term strategy and plans to invest over $700 million in capital expenditures in 2025, including additional relocations, upgrades, and openings of up to 5 to 6 facilities from its real estate investment pipeline.

Looking ahead, Saia anticipates net capital expenditures of over $700 million in 2025. The company's diluted EPS for the full year 2024 was $13.51, compared to $13.26 in 2023. Despite the near-term challenges, Saia's long-term growth prospects remain strong, driven by its strategic expansion and commitment to customer service and value differentiation.

In conclusion, Saia Inc's Q4 2024 earnings report highlights the company's growth potential, as well as the challenges it faces in the near term. The company's strategic expansion has driven revenue growth, but the new terminals have also been a drag on margins. Saia remains committed to its long-term strategy and plans to invest heavily in capital expenditures in 2025. As these new facilities reach higher levels of maturity, Saia expects to see continued improvement in its operating ratio throughout the year.