[Management View]
Management emphasized ongoing network optimization and disciplined cost controls as key drivers of sequential profitability gains in Q2 2025. Despite a challenging demand landscape, Saia achieved positive tonnage growth through heavier weight per shipment and enhanced network maturity, particularly in newer terminals. Strategic investments in technology, facilities, and personnel are expected to support ongoing margin expansion initiatives.

[Outlook]
Saia plans to continue executing its long-term strategy, focusing on network optimization and cost management. The company expects full-year capital expenditures to range between $600 million and $650 million in 2025, supporting network, equipment, and personnel investments. Management remains optimistic about market share opportunities and positioning for an eventual market recovery.

[Financial Performance]
- Operating ratio improved sequentially by 330 basis points to 87.8% in Q2 2025.
- Revenue totaled $817.1 million, down 0.7% YoY.
- Tonnage rose 1.1% YoY, despite a 2.8% decline in shipments per day.
- Diluted earnings per share were $2.67, down from $3.83 YoY.

[Q&A Highlights]
Question 1: Ken Hoexter from Bank of America asked about volume trends and pricing outlook for Q3.
Answer: Matthew Petay explained that tougher comps are expected due to new terminal openings last year. Pricing remains a focus, with an expected OR degradation of around 100 basis points from Q2 to Q3.

Question 2: Rija Harnain from Deutsche Bank inquired about labor reductions and wage increases.
Answer: Fritz Holzgrefe clarified that wage increases typically occur in the second half of the year. Labor cuts were made to match hours with volume levels, optimizing the line haul network for cost savings.

Question 3: Jordan Alliger from Goldman Sachs asked about LTL capacity and pricing in a recovery.
Answer: Fritz Holzgrefe noted that LTL capacity has been shrinking, and Saia is well-positioned to leverage its network for growth. Matthew Petay emphasized the importance of drivers and equipment in capacity constraints.

Question 4: Chris Wetherbee from Wells Fargo sought insights into July tonnage and customer trends.
Answer: Matthew Petay provided monthly Q2 shipment and tonnage data, noting that July trends are flat. Fritz Holzgrefe highlighted regional variations, with some softness in the LA region.

Question 5: John Chappell from Evercore ISI asked about contractual renewals and competitive pricing.
Answer: Matthew Petay explained that 60-70% of business is under contract, with renewals reflecting customer confidence. Pricing remains rational, with opportunities for growth in new and existing markets.

Question 6: Ravi Shanker from Morgan Stanley questioned the balance between short-term cost actions and long-term gains.
Answer: Fritz Holzgrefe emphasized the variable nature of labor costs and the significance of optimizing the line haul network for sustainable cost advantages.

Question 7: Stephanie Moore from Jefferies inquired about pricing progress and network optimization.
Answer: Fritz Holzgrefe discussed ongoing pricing adjustments and network realignment efforts, highlighting direct line hauls and density plays for cost efficiency.

Question 8: Brian Ossenbeck from JPMorgan asked about NMFTA changes and their impact.
Answer: Matthew Petay confirmed Saia's commitment to implementing NMFTA changes, emphasizing the benefits of density-based pricing for the industry.

Question 9: Eric Morgan from Barclays sought clarity on mix management initiatives.
Answer: Matthew Petay attributed shipment trends to industrial production and market opportunities, with a focus on customer service and strategic investments.

Question 10: Tyler Brown from Raymond James asked about network balance and density gains.
Answer: Fritz Holzgrefe confirmed improvements in network balance, with ongoing opportunities to build scale and efficiency in new markets.

Question 11: Ari Rosa from Citigroup inquired about long-term prospects and revenue mix.
Answer: Fritz Holzgrefe expressed confidence in achieving sub-80% OR through strategic growth, while Matthew Petay clarified shifts in customer mix as part of seasonal trends.

Question 12: Daniel Imbro from Stephens asked about service metrics and wage increases.
Answer: Fritz Holzgrefe reported consistent service levels across new and legacy facilities, while Matthew Petay provided historical context for wage increase impacts.

Question 13: Bruce Chan from Stifel questioned PT outsourcing and customer service relocation.
Answer: Fritz Holzgrefe explained the strategic use of PT for cost optimization and noted cost savings from relocating customer service to field locations.

Question 14: Bascome Majors from Susquehanna asked about seasonal margin degradation.
Answer: Matthew Petay confirmed historical averages for Q4 margin degradation, with a focus on Q3 performance amid new facility impacts.

Question 15: Christopher Kuhn from Benchmark inquired about pricing in new markets.
Answer: Matthew Petay highlighted opportunities to align with market rates and expand customer relationships for long-term pricing gains.

Question 16: Tom Wadewitz from UBS asked about revenue trends and OR improvement.
Answer: Matthew Petay emphasized the role of mix in revenue trends, while Fritz Holzgrefe discussed methodical cost management and density building for OR gains.

Question 17: Jason Seidl from TD Cowen questioned tonnage trends and customer density.
Answer: Matthew Petay noted stable tonnage trends, with density gains driven by existing customer relationships and new business opportunities.

Question 18: Ken Hoexter from Bank of America sought clarification on OR guidance and volume trends.
Answer: Fritz Holzgrefe reiterated the target for OR degradation, considering potential wage increases and volume variables.

[Sentiment Analysis]
Analysts maintained a positive tone, acknowledging Saia's strategic focus on network optimization and cost management. Management conveyed confidence in long-term growth prospects and operational execution.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|-------------------------------|---------|---------|------------|
| Operating Ratio | 87.8% | 83.3% | +4.5% |
| Total Revenue ($ million) | 817.1 | 822.8 | -0.7% |
| Tonnage Growth | +1.1% | N/A | N/A |
| Revenue Per Shipment ($) | 298.71 | 297.02 | +2.7% |
| Fuel Surcharge Revenue (%) | 14.6% | 15.4% | -5.8% |
| Diluted EPS ($) | 2.67 | 3.83 | -30.3% |

[Risks and Concerns]
1. Macroeconomic uncertainties impacting volume trends and customer demand.
2. Competitive pricing pressures in the LTL industry.
3. Potential challenges in achieving cost efficiencies amid network expansion.

[Final Takeaway]
Saia's Q2 2025 performance highlights the company's strategic focus on network optimization and disciplined cost management. Despite a challenging demand environment, Saia achieved sequential profitability gains through enhanced network maturity and strategic investments. Management remains optimistic about long-term growth prospects, leveraging its national network to capture market share and drive operational efficiencies. While macroeconomic uncertainties and competitive pressures persist, Saia's commitment to customer service and cost optimization positions it well for future success.