Financial Results Saia Announces Strong Q4 Performance
Saia, Inc. (Nasdaq: SAIA), a leading transportation provider specializing in national less-than-truckload (LTL), non-asset truckload, expedited, and logistics services, has released its financial results for the fourth quarter of 2024. The report highlights revenue growth, a slight decline in operating income, and a substantial increase in capital expenditures as the company continues to expand its service capabilities.
Financial Performance Overview
Fourth Quarter 2024 vs. Fourth Quarter 2023
Saia reported a revenue of $789.0 million for the fourth quarter of 2024, marking a 5.0% increase from the $751.4 million reported in the same quarter of 2023. Despite this growth, the company’s operating income declined by 9.9% to $101.5 million compared to $112.6 million in the fourth quarter of the prior year. The operating ratio, a key profitability measure, rose to 87.1% from 85.0%, indicating increased expenses relative to revenue.
Key operational metrics for the quarter showed positive trends. LTL shipments per workday increased by 4.5%, while LTL tonnage per workday saw an 8.3% rise. However, LTL revenue per hundredweight, excluding fuel surcharge revenue, decreased by 2.3%. LTL revenue per shipment, excluding fuel surcharge revenue, posted a modest increase of 1.3%.
Full Year 2024 vs. Full Year 2023
For the full year 2024, revenue stood at $3.2 billion, reflecting an 11.4% increase from the $2.87 billion recorded in 2023. Operating income also improved, rising by 4.7% to $482.2 million, compared to $460.4 million in the prior year. However, the operating ratio increased to 85.0% from 84.0%, suggesting some pressure on profitability.
LTL shipments per workday saw Financial an impressive 11.5% increase, while LTL tonnage per workday rose by 8.0%. LTL revenue per hundredweight, excluding fuel surcharge revenue, experienced a 4.3% increase, and LTL revenue per shipment, excluding fuel surcharge revenue, was up by 1.1%.
Strategic Expansion and Workforce Growth
Saia’s President and CEO, Fritz Holzgrefe, expressed satisfaction with the company’s achievements in 2024. The company opened 21 new terminals and relocated nine others, strengthening its service offerings in both new and existing markets. Saia closed the year with a total of 214 terminals, achieving a significant milestone in its centennial year and cementing its status as a leading national carrier.
The company also expanded its workforce significantly. Over 1,300 new team members joined Saia in 2024, bringing the total employee count to over 15,000. Holzgrefe emphasized the importance of operational excellence and expressed optimism about customer acceptance of the company’s expanding services.
Record-Level Capital Investments
Saia’s Executive Vice President and CFO, Matt Batteh, highlighted 2024 as a record year for capital expenditures, with over $1 billion Financial invested in various growth initiatives. The company allocated substantial resources to real estate acquisitions, fleet enhancements, technological advancements, and workforce development.
The investments reflect Saia’s commitment to its long-term growth strategy. With a national footprint of 214 terminals, the company believes its value proposition to customers is stronger than ever. The expansion efforts are expected to enhance operational efficiencies and solidify Saia’s market position.
Financial Position and Future Investments
As of December 31, 2024, Saia reported $19.5 million in cash on hand and total debt of $200.3 million. This marks a significant shift from the previous year, when the company had $296.2 million in cash on hand and total debt of $16.5 million.
Net capital expenditures for 2024 reached $1,040.9 million, a considerable increase from the $437.2 million reported in 2023. These expenditures included $235.7 million spent on acquiring properties as part of the Yellow Corporation auction process. Looking Financial ahead to 2025, Saia anticipates net capital expenditures exceeding $700 million, though actual spending will depend on market conditions and ongoing evaluations.
Saia’s strong financial performance and strategic expansion initiatives position the company for continued growth in 2025. With a robust national network, enhanced service offerings, and a dedicated workforce, the company aims to further improve operational efficiencies and customer satisfaction.
While challenges such as rising costs and competitive pressures remain, Saia’s investments in infrastructure, technology, and talent provide a solid foundation for future success. The company remains committed to its long-term growth strategy and looks forward to another year of strong performance and expansion in the LTL transportation sector.