Did Saia’s (SAIA) Expense Cuts and Rate Hike Mark a Turning Point for Profitability?

• On October 30, 2025, Saia, Inc. announced third quarter results with sales of US$839.64 million and net income of US$86.32 million, both slightly down from a year earlier, but highlighted a US$14.5 million net operating expense reduction tied to real estate transactions and an improved adjusted operating ratio.
• The company responded to an inflationary environment by implementing a 5.9% general rate increase in October, aiming to strengthen profitability despite ongoing top-line and margin pressures.
• We’ll explore how Saia’s expense reductions and recent rate hike adjust its investment narrative amidst ongoing profitability concerns.

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Saia Investment Narrative Recap

To invest in Saia, you need to believe that the expansion and maturation of its terminal network, combined with ongoing cost efficiencies, can eventually translate into improved top-line growth and margin recovery. The Q3 2025 results, with modest declines in revenue and earnings despite a significant US$14.5 million net operating expense reduction and a 5.9% rate hike, do little to materially change the near-term catalysts, with the major risk still being muted shipment growth and ongoing margin pressure.

Among recent updates, the executive change with Tarak Patel stepping in as CIO stands out. As Saia continues to emphasize operational efficiency and logistics technology, leadership transitions like this could shape its ability to extract value from planned network investments and automation initiatives.

On the other hand, investors should be aware that sustained cost inflation and subdued tonnage growth are still concerns that...

Read the full narrative on Saia (it's free!)

Saia's narrative projects $3.9 billion revenue and $456.7 million earnings by 2028. This requires 6.6% yearly revenue growth and a $166.6 million earnings increase from $290.1 million today.

Uncover how Saia's forecasts yield a $331.10 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community members estimate Saia’s fair value between US$71 and US$331 per share. While viewpoints vary widely, shipment growth uncertainty continues to weigh on expectations for future margin improvement.

Explore 4 other fair value estimates on Saia - why the stock might be worth as much as 17% more than the current price!

Build Your Own Saia Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Saia research is our analysis highlighting 2 key rewards 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.

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