Saia, Inc.

Good day, and welcome to the SCI, Inc. fourth quarter 2025 earnings conference call. All participants will be in a 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 Bate, SIA's Executive Vice President, Chief Financial Officer. Please go ahead.

Thank you, Betsy. Good morning, everyone. Welcome to SIA's fourth quarter 2025 conference call. With me for today's call is SIA's President and Chief Executive Officer, Prince Holskrein. 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 filing for more information on the exact risk factors that could cause actual results to differ. Also, in the third quarter of 2025, we recorded $14.5 million in net operating expense impact 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 for the third quarter 2025 or full year 2025 in our comments, it refers to adjusted results that exclude the gain from that sale and impairment on that property. see our press release announcing fourth quarter results for a reconciliation of non-GAAP financial measures. That press release is available on the financial releases page of SIA's investor relations website as well. 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 fourth quarter and full year results. As we look back on 2025, I am proud of our team's resilience and focus. delivering strong execution for our customers even as volume patterns shifted day to day amid constant change. Having now completed our first full year of the national network, I'm more excited than ever before about the future of SCIA. Throughout the year, our now national footprint provided opportunities with both new and existing customers as our expanded reach enabled us to provide our industry-leading service in more markets. Having a national presence provides us with the opportunity to solve more problems for customers for more customers, which we believe has resulted in increased market share. Our record capital investments of more than $2 billion over the last three years have allowed us to rapidly expand our footprint in a short period of time, and I believe we're still in the early stages of capitalizing on the opportunity that a national network provides. Of course, our achievements would not be possible without a best-in-class team. While the demand environment remained dynamic throughout the year, our team responded to our customers' needs every day. Our core operations performed as we expected for the fourth quarter. However, reported results were impacted by self-insurance costs late in the quarter. Our fourth quarter operating ratio of 91.9% reflects these increased self-insurance costs. The sequential deterioration from third quarters adjusted operating ratio was impacted by unexpected adverse developments on a few cases arising from accidents that occurred in prior years, which required reserve increases in the period of approximately $4.7 million. As we well know, accident-related costs continue to rise due to increased litigation costs and settlement values, as well as general inflation, and can develop sometimes unexpectedly over several years. Regrettably, this unexpected need for reserve increases was related to the accidents that happened years ago. However, we continue to invest in industry-leading training and safety technology. We're seeing positive trends in our safety statistics. During 2025, despite having the largest fleet in company history and internal miles increasing by 2.4% year over year, we saw a 21% reduction in our preventable accident frequency and a 10% decline in lost time injuries, reflecting the benefits of these ongoing investments in safety. Focusing on the fourth quarter, volumes continue to reflect the muted demand environment the industry experienced throughout the year, Shipments per day were down 0.5% compared to the fourth quarter of 2024, while tons per day was down 1.5% compared to the same period last year. As is typical, we experienced some volume shifts in the weeks after the GRI, which was implemented on October 1st, and we remain extremely focused on ensuring that we are compensated appropriately for the quality and service that we provide to customers. When we analyze the results of the GRI closely, we're pleased to see customer acceptance trends slightly above historic levels. Similarly, contractual renewals remain strong in the quarter, averaging 4.9% of the book of business contracted in the quarter. We continue our efforts to ensure that we are fully compensated for quality and service we provide and have seen a 6.6% contractual renewal increase in the month of January 2026. Despite the volume decline, our fourth quarter revenue of $790 million is a record for any quarter in our company's history. Mixed headwinds continue to impact our results with slight decreases in weight per shipment and length of haul compared to the fourth quarter of 2024. Additionally, revenue per shipment excluding fuel surcharge decreased 0.5% compared to last year. As we've discussed in our prior quarters, the volume decline in our Southern California region continued, as volume in the region in the fourth quarter was down about 18% compared to the prior year. This region is typically our highest revenue per bill market, and the volume decline caused an estimated $4 million revenue reduction for the quarter. While the Southern California region continues to play a factor in our mixed dynamics, we're seeing growth with customers in both legacy and ramping markets, as our expanded footprint allows us to get closer to our customers and handle segments of their business that we may not have had access to prior to the network expansion. Reflecting our ability to provide industry-leading service of more geographies, we're able to drive revenue per shipment, excluding fuel surcharge, up 1.1% sequentially from the third quarter. Our nationwide network has now been fully operational for one year. giving us clear perspective on the impact of our generational opportunity to expand the network over a very short period of time. Over the past year, we strengthened relationships with existing customers while bringing our high-quality service to many new customers, contributing to what we believe is a record level of market share gain. These customer relationships will continue to develop, reflecting the long-term value of the strategic investments we've made over the past few years. With our network expansion, we're able to achieve cargo claims ratio of 0.47% in the fourth quarter, which is a company record for any quarter. Considering the size and scope of our national network with newer locations still in early stages of their life cycle and employing newer SCIA employees, this customer-centric metric is a testament to the culture instilled at each location in our organic expansion and our team's ability to perform at the highest level. This level of service reflects our team's consistent effort and attention to detail. Core strengths that have helped establish SIA is a leading national LTL carrier. I'll now turn the call over to Matt for more details from our fourth quarter results.