Saia, Inc.

Good day and welcome to the SIA Inc. Third Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. 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 Matt Batae, SIA's Executive Vice President and Chief Financial Officer. Please go ahead.

Thank you, Chloe. Good morning, everyone. Welcome to SIA's third quarter 2025 conference call. With me for today's call is SIA's President and Chief Executive Officer, Fritz Holzkreis. 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. Also, in the third quarter, we recorded $14.5 million in net operating expense reduction from a gain on real estate disposal and impairment of real estate. When we discuss adjusted operating expenses, adjusted cost per shipment, adjusted operating ratio, or adjusted diluted earnings per share in our comments, it refers to our adjusted results that exclude the gain from that sale and impairment on that property. See our press release announcing third quarter results for reconciliation of non-GAAP financial measures. That press release is available on the financial releases page of SAI's investor relations website. 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 third quarter results. We are very pleased to share that our results for the third quarter reflect our continued focus on customer service, network optimization, and cost control efforts. Our customer first focus remains paramount as we continue to mature in our newer markets. Although the economic backdrop continued to exhibit the trends seen throughout 2025, with customers awaiting a more certain environment We are pleased that our expanded footprint continued to provide opportunities to service customers in both our legacy and ramping markets. Our ramping markets, which are made up of the 39 terminals opened since the beginning of 2022, grew sequentially in improving their operating ratio by over 100 basis points compared to the second quarter and are now operating at a sub-95 OR. 17 of these terminals have just completed their first year of operations, making the overall improvement and performance even more impressive. Our nationwide footprint allows us to build deeper relationships with customers, and we're seeing the benefit of the investments made in our network over the past several years. Compared to the second quarter, we experienced revenue growth in both legacy and ramping markets. Customers value ease of doing business, and with our now national network, we are better positioned to provide solutions than we ever have been. Our third quarter revenue of $839.6 million was relatively flat compared to last year's third quarter, reflective of the macroeconomic landscape. While our third quarter operating ratio was 85.9, adjusting for the one-time real estate transactions, our adjusted operating ratio was 87.6. Adjusted operating ratio increased by 250 basis points compared to our operating ratio of 85.1 in the third quarter last year, but improved by 20 basis points compared to the second quarter of 2025, outperforming historical seasonality. The improvement from the second quarter was achieved primarily due to our focused cost control efforts resulting in a decrease in sequential adjusted cost per shipment despite headwinds from increases in self-insurance and related costs. Excluding the net impact of the real estate transactions, our adjusted cost per shipment improved sequentially from the second quarter by 70 basis points. The sequential improvement reflects our continued focus on operational execution and efficiency, while still maintaining our performance standards. For the quarter, our cargo claims ratio is 0.54%, which is our fourth straight quarter of sub 6.6 cargo claims ratio, a notable company record. Additionally, reflective of our expanded offering and continued service performance for customers, our contractual renewal rate for the quarter was 5.1%. Volumes for the quarter were in line with our expectations based on how the overall freight market has trended in 2025. Compared to the third quarter of 2024, shipments per workday decreased 1.9%, while sequentially shipments per workday improved 3.2%. We continue to experience outsized growth in our newer markets where our expanded footprint and service offering provides more opportunities as customers come to understand and see the value in our expanding service capabilities. Our ramping facilities saw a 4.2% sequential improvement in shipments per workday in the third quarter of 2025. And facilities opened prior to 2022, shipments increased 3% sequentially and decreased 4.8% compared to the third quarter of 2024. We're pleased to see both legacy and ramping facilities grow sequentially, reinforcing the value of a national network through our expanded service offering, despite a softer overall LTL freight market. In Q3, we saw continued benefits from our accelerated network optimization efforts that began in the first quarter of the year. Enabled by our ongoing investments in technology, these initiatives improved efficiency across our national footprint as handles, or the number of times a shipment is touched as it's routed through our network, continue to be lower than their first quarter peak. We expect our national footprint to continue to scale moving forward, aligning with our long-term strategy of getting closer to this customer, improving service levels, and providing solutions that meet customers' needs. We're already seeing the benefit of our investments in our results, and conversations with customers reinforce our value proposition. Optimization of mix remains an intense focus for us, and our ongoing efforts around pricing remains one of our biggest opportunities. As noted earlier, our expansion strategy is yielding tangible results as we get closer to customers and can provide more solutions to meet their needs. Sequentially, over 70% of our volume growth came in one- and two-day lanes across our network. with over two-thirds of that growth coming from customers that we already do business with. Growth in these lanes helped drive an increase in operating income and profitability compared to the second quarter. This growth, driven largely by our national account segment, demonstrates the impact our expansion and ability to grow with existing customers and build relationships with new customers. We implemented a GRI on October 1st at a rate of 5.9%. As a reminder, this increase will impact approximately 25% of our operating revenue and varies by mix of business and lane. Ensuring that we drive returns on our substantial network and service investments remains a focus, and this GRI is another step in the right direction in obtaining the compensation we expect from our customers for the service we provide in this inflationary business. I'll now turn the call over to Matt for more details from our third quarter results.