Saia (SAIA) Stock Forecast & Price Target

Saia has demonstrated a resilient performance, with its ramping facilities experiencing volume growth and margin increases of over 100 basis points sequentially in the third quarter of 2025, leading to a collective operating ratio (OR) below 95 for the first time. Furthermore, the company's ability to achieve over 4% growth on average through contract renewals, alongside a consolidated OR improvement of 20 basis points compared to the previous quarter, underscores its operational efficiency despite rising expenses. Saia's strategic repositioning and market share expansion within the competitive less-than-truckload sector, coupled with a favorable pricing environment, contribute to a positive outlook on its financial trajectory.

Saia's recent financial performance indicates a concerning trend, marked by a 0.1% year-over-year decline in revenue per hundredweight (CWT) excluding fuel, despite being the best annual comparison in a challenging year. The company's operating ratio (OR) has worsened by 250 basis points, revealing flat revenue against a structurally higher cost base, which is one of the most significant ratios among its non-union less-than-truckload (LTL) peers. Moreover, the decrease in tonnage and shipments by 1.5% and 1.9% year-over-year, alongside significant investments during a weak industrial freight backdrop, suggests constrained long-term profit margins and contributed to stock underperformance relative to the transportation sector.