Saia's May Tonnage Growth Accelerates on Softer Year-Ago Comparisons

Key Details Saia reported 8.4% year-over-year tonnage growth in May, up from 6.9% in April. The Georgia-based LTL carrier saw shipments increase 3.7% while weight per shipment climbed 4.5%, signaling stronger demand across its network. Why It Matters Higher shipment weights typically indicate an improving market, which drives revenue per shipment and margins higher. Saia's weight per shipment averaged 8% growth on a two-year stacked basis, a positive indicator for profitability moving forward. Margin Outlook Saia guided to 400-450 basis points of sequential operating margin improvement in Q2, which would result in an 87.5% operating ratio at midpoint. This marks the first year-over-year improvement in over two years, as new terminal locations begin operating profitably. Market Signals Manufacturing data supports the outlook, with the PMI registering 54 in May, the highest reading in four years. The new orders subindex hit 56.8, suggesting future LTL volume growth as industrial activity continues expanding. Prior-year comparisons remain favorable for the rest of 2024, positioning Saia for potential sustained growth.