Saia, Inc.

Good morning. My name is Drew, and I will be your conference operator today. At this time, I would like to welcome everyone to the second quarter 2025 SIA Inc. Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Matthew Pate, SIA's Executive Vice President and Chief Financial Officer. Please go ahead.

Matthew Pate Thank you, Drew. Good morning, everyone. Welcome to SIA's second quarter 2025 conference call. With me for today's call is SIA's President and Chief Executive Officer, Fritz Hilsgrief. Before we begin, you should know that during this call, we may make some forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all other statements that might be made on this call that are not historical facts are subject to a number of risks and uncertainties and actual results may differ materially. We refer you to our press release and our SEC filings for more information on the exact risk factors that could cause actual results to differ. I will now turn the call over to Fritz for some opening comments.

Good morning, and thank you for joining us to discuss SIA's second quarter results. Our second quarter operating ratio was 87.8% compared to our operating ratio of 83.3% in the second quarter of last year, and the results represent a 330 basis point improvement from the first quarter of this year. The sequential operating ratio improvement outperformed the historical average of 250 to 300 basis points, despite the lack of typical volume ramp that is usually seen throughout the second quarter. We operate our business with a focus on the customer and managing the things that are within our control. Our efforts to optimize our variable costs and improve our network efficiency contributed to this outperformance, and these results reflect our ongoing efforts to manage the business in the short term with an intense focus on executing our long-term strategy. I'm pleased with the team's ability to focus on the things that we can control during this quarter, taking care of the customer, mix management, core execution, and operational efficiency. Throughout the quarter, we were able to adjust our cost structure to align the volumes that trended below historical seasonality. We typically see significant monthly volume increases throughout the second quarter, and while June trended more in the line of historical seasonality, on a per-workday basis, tonnage for the quarter was only up 0.4% from the first quarter. Our second quarter revenue of $817 million decreased slightly from last year's second quarter by 0.7% due to continued muted volume trends as a result of the macroeconomic landscape. Overall, shipments per workday were down 2.8% year-over-year. Customer acceptance in our newer markets remained strong, which continues to demonstrate the value of our long-term strategy of getting closer to the customer and providing unique solutions to meet their needs. Terminals opened less than three years saw about a 4% sequential improvement in shipments per workday in the second quarter of 2025 compared to the first quarter. In aggregate, these facilities operated in the mid-90s in the second quarter, improving from break-even in the first quarter. And our legacy facilities are those open longer than three years. Shipments were up about 2% sequentially in the second quarter of 2025 compared to the first, and we're down about 3.5% compared to the second quarter of 2024. While we continue to see strong results in our newer markets, the overall shipment trends reflect a continued cautious approach from customers amidst an ever-changing economic landscape. That said, we remain pleased with the opportunities we're seeing with both new and existing customers, which is reinforced by the volume trends seen in our newer facilities. Revenue per shipment excluding fuel surcharge increased 2.7% compared to the second quarter of last year, while revenue per shipment including fuel surcharge increased 1.8% in the quarter. For the second quarter, we saw tons per workday increased 1.1% compared to the second quarter of 2024, weight per shipment increased 4%, and length of haul increased slightly compared to the second quarter of last year. However, both of these components of mix decreased sequentially from the first quarter, creating a revenue headwind of approximately $4.5 to $5.5 million compared to the first quarter. Our pricing and mix optimization initiatives remained an intense focus. Sequentially, our mix of business shifted to handling slightly more national and retail customers, which partially led to lower weight per shipment compared to the first quarter. Additionally, we saw muted trends out of our Los Angeles region, partially contributed to the shorter length of haul compared to the first quarter, which is a headwind to sequential revenue per shipment. Throughout the quarter, we were able to continue to provide unique solutions for our customers in both new and existing markets, which further validates our value proposition. Contractual renewals averaged 5.1% in the quarter, reflecting our customers' confidence in the high-quality service that we continue to provide. We remain steadfast in our approach to providing industry-leading service levels while also managing controllable costs and productivity. While we cannot control the external factors, our focus remains intently on what we can control and taking care of our customers is at the forefront. Customers value certainty and reliability in their supply chain. We believe that we're well positioned to provide that service in every market. This hyper focus on the customer remained on display in Q2 as we achieved a cargo claims ratio of 0.5% this quarter. From an operating expense standpoint, We drove a 4% sequential decrease in cost per shipment compared to the first quarter, despite headwinds as a result of investments in our fleet and network expansion. We continue to focus on adjusting our resources to the shifting volume levels and reduced headcount by about 4.2% from March to the end of June. We continue our focus on optimizing our maturing network as the 2024 network investments and related growth, while beneficial for the long term, created unique short-term challenges and inefficiencies in our network, particularly in the slower Q1 operating environment. We accelerated our network optimization efforts in Q1 and saw the benefit emerging in Q2 as we leveraged density in our larger network and our efforts to drive greater efficiencies began to materialize. These results reinforce our commitment to expand the geography and nationwide footprint, which increasingly allows us to compete on a more even playing field with peers. As we look forward, we'll continue to execute our long-term strategy and keep an eye on the macro environment, maintaining discipline around our cost structure and adapting the changing landscape across our network. I'll now turn the call over to Matt for more details from our second quarter results.