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Here's What Key Metrics Tell Us About TFI International (TFII) Q2 Earnings
ZACKS· 2025-07-29 00:30
Core Insights - TFI International Inc. reported a revenue of $2.04 billion for the quarter ended June 2025, reflecting a 10% decrease year-over-year, and an EPS of $1.34, down from $1.71 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $2.05 billion by 0.77%, while the EPS exceeded the consensus estimate of $1.24 by 8.06% [1] Financial Performance Metrics - Adjusted Operating Ratio for Truckload was reported at 90.1%, better than the average estimate of 91% from three analysts [4] - Adjusted Operating Ratio for Less-Than-Truckload was 89.5%, compared to the average estimate of 91.6% [4] - Overall Adjusted Operating Ratio stood at 90.5%, against an average estimate of 91.1% [4] - Canadian LTL Tonnage was reported at 593.00 KTons, below the average estimate of 612.68 KTons [4] - U.S. LTL Tonnage was 842.00 KTons, slightly above the average estimate of 841.42 KTons [4] Revenue Breakdown - Revenue before fuel surcharge was $1.79 billion, matching the four-analyst average estimate, but representing an 8.5% year-over-year decline [4] - Fuel surcharge revenue was $243.62 million, below the average estimate of $263.28 million, marking a 19.7% decrease year-over-year [4] - Revenue from Logistics was $393.11 million, compared to the average estimate of $418.03 million, reflecting an 11.1% year-over-year decline [4] - Revenue from Less-Than-Truckload was $703.7 million, below the average estimate of $776.06 million, indicating an 11.4% year-over-year decrease [4] - Revenue from Truckload was $712.28 million, exceeding the average estimate of $665.74 million, but still showing a 3.4% decline year-over-year [4] Stock Performance - TFI International's shares returned +3.6% over the past month, while the Zacks S&P 500 composite increased by +4.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]
TFI International (TFII) - 2025 Q2 - Earnings Call Transcript
2025-07-28 22:02
Financial Data and Key Metrics Changes - The company reported total revenue before fuel surcharge of $1.8 billion for the second quarter, down from $2 billion a year earlier, reflecting a decrease of 10% [6] - Operating income was $170 million, representing a 9.5% margin, which is a slight improvement from 8.5% in the prior year [7] - Adjusted net income decreased to $112 million from $146 million year-over-year, with adjusted EPS at $1.34 compared to $1.71 previously [7][8] - Free cash flow was reported at $182 million, up 20% from $151 million in the second quarter of 2024, attributed to favorable working capital dynamics and lower CapEx [8][11] Business Segment Data and Key Metrics Changes - LTL segment revenue was $704 million, down 11% year-over-year, with operating income of $74 million compared to $110 million previously [8][9] - Truckload segment revenue was $712 million, down from $738 million a year earlier, with operating income of $71 million compared to $81 million [9][10] - Logistics segment revenue was $393 million, down from $442 million the prior year, with operating income of $38 million, representing a 9.6% operating margin [10][11] Market Data and Key Metrics Changes - The company noted a decline in trade volumes between the U.S. and Canada, particularly affecting the LTL segment, which is the most profitable for the company [22][23] - Industrial end market demand remains uncertain due to tariff-related issues, impacting the truckload segment [10][24] Company Strategy and Development Direction - The company is focused on maintaining strong free cash flow and returning capital to shareholders through share repurchases and dividends [5][6] - There is an emphasis on improving operational efficiencies and cost control, particularly through technology implementations like Optum [14][16] - The management is optimistic about potential improvements in the industrial freight market due to new U.S. government investment plans [38][40] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a potential recovery in the industrial sector, with expectations for improvement in late 2025 or early 2026 [40][41] - The company is currently guiding for an EPS range of $1.10 to $1.25 for the third quarter, assuming no significant changes in the operating environment [12][30] Other Important Information - The company repurchased $85 million worth of shares during the quarter and paid out $39 million in dividends, totaling $124 million returned to shareholders [11] - The funded debt to EBITDA ratio was reported at 2.4 times, indicating a strong balance sheet [11] Q&A Session Summary Question: Margin ceiling on LTL side - Management discussed the improvements made in margins despite difficult market conditions, highlighting the implementation of technology tools like Optum [14][15] Question: Impact of tariff environment on customers - Management noted a decline in LTL volumes due to reduced trade between the U.S. and Canada, with expectations for recovery once tariffs are settled [22][23] Question: Q3 guidance and margin assumptions - Management explained that the Q3 guidance reflects normal seasonal declines, with expectations for continued margin improvements [30][31] Question: Confidence in macro environment recovery - Management expressed optimism about potential recovery in the industrial freight market due to new government investment plans [38][40] Question: U.S. LTL pricing and service improvements - Management highlighted ongoing efforts to improve service quality and billing accuracy, which are expected to positively impact pricing in the future [51][52] Question: Sustainability of free cash flow - Management affirmed the sustainability of free cash flow levels, with potential for increases as the macro environment improves [106][113]
TFI International (TFII) - 2025 Q2 - Earnings Call Transcript
2025-07-28 22:00
Financial Data and Key Metrics Changes - The company reported total revenue before fuel surcharge of $1.8 billion, down from $2 billion a year earlier, reflecting a decrease of 10% [5] - Operating income was $170 million, representing a 9.5% margin, which is a slight increase from 8.5% in the prior year [6] - Adjusted net income decreased to $112 million from $146 million year-over-year, with adjusted EPS dropping from $1.71 to $1.34 [6] - Free cash flow was reported at $182 million, up 20% from $151 million in the second quarter of 2024 [6] Business Segment Data and Key Metrics Changes - LTL segment revenue was $704 million, down 11% year-over-year, with operating income of $74 million compared to $110 million previously [6][7] - Truckload segment revenue was $712 million, down from $738 million, with operating income decreasing from $81 million to $71 million [7] - Logistics segment revenue was $393 million, down from $442 million, with operating income of $38 million compared to $51 million in the prior year [9][10] Market Data and Key Metrics Changes - The LTL operating ratio was 89.5, compared to 86.2 in the second quarter of 2024, indicating a decline in efficiency [7] - Truckload operating ratio was reported at 90.1, slightly worse than 89.0 in the prior year [7] - The company noted a significant impact from tariff-related uncertainty affecting industrial end market demand, particularly in the U.S. [8][24] Company Strategy and Development Direction - The company emphasized a focus on improving operational efficiencies and cost control, particularly through technology implementations like Optum [14][18] - There is a strategic shift towards enhancing the sales force for small to mid-sized businesses, which has shown positive results in recent quarters [52][57] - The management indicated a commitment to share repurchases and maintaining a strong balance sheet, with $124 million returned to shareholders in the quarter [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, anticipating potential improvements in industrial freight due to new government investments [38][40] - The company expects EPS in the range of $1.10 to $1.25 for the third quarter, assuming no significant changes in the operating environment [11] - Management acknowledged that while service improvements are underway, it will take time to translate these into better pricing and yields [75][78] Other Important Information - The company has been actively repurchasing shares, with over 85 million worth repurchased during the quarter [10] - The funded debt to EBITDA ratio was reported at 2.4 times, indicating a strong balance sheet position [10] Q&A Session Summary Question: What is the margin ceiling achievable with further internal actions on the LTL side? - Management indicated that improvements in cost control and technology implementation could enhance margins, with a focus on reducing line haul miles outsourced to rail [12][14] Question: How are customers discussing the tariff environment? - Management noted that trade between the U.S. and Canada is down, impacting the LTL segment, but expects recovery once tariff issues are resolved [22][24] Question: Can you provide more color on Q3 guidance? - The guidance reflects historical seasonality, with expectations of normal sequential declines in margins across divisions [30] Question: What are the expectations for the industrial freight market? - Management expressed hope for recovery in the industrial sector due to new government investment plans, although concrete improvements have yet to be seen [40][42] Question: What is the outlook for M&A activity? - The focus for 2025 will be on share repurchases rather than acquisitions, with potential for larger transactions in 2026 [44][46] Question: What steps are being taken to improve service in the LTL business? - Management highlighted improvements in billing accuracy, cargo claims handling, and staffing to reduce missed pickups and enhance on-time delivery [119]
TFI International Announces 2025 Second Quarter Results
Globenewswire· 2025-07-28 20:05
Core Insights - TFI International Inc. reported strong margin performance across all business segments, resulting in solid free cash flow despite subdued market conditions [2][4][5] - The company emphasized its focus on quality of revenue and operational efficiencies, positioning itself to capitalize on future demand while making strategic investments for long-term profitability [2][4] - TFI International returned significant capital to shareholders through dividends and share repurchases, reflecting its commitment to long-term shareholder value [2][15] Financial Highlights - Total revenue for Q2 2025 was $2.04 billion, down 10% from $2.26 billion in Q2 2024; revenue before fuel surcharge was $1.79 billion, a decrease of 9% from $1.96 billion [3][4] - Adjusted EBITDA for Q2 2025 was $326.6 million, down 14% from $380.1 million in Q2 2024; operating income decreased to $170.2 million from $206.0 million [3][5][9] - Net income for Q2 2025 was $98.2 million, compared to $115.7 million in Q2 2024, with diluted EPS of $1.17 down from $1.36 [5][9] Segment Performance - Revenue before fuel surcharge decreased by 13% for Less-Than-Truckload, 6% for Truckload, and 12% for the Logistics segment compared to Q2 2024 [6][10] - Operating income decreased by 33% for Less-Than-Truckload, 13% for Truckload, and 25% for the Logistics segment in Q2 2025 [6][10] Cash Flow and Shareholder Returns - Net cash from operating activities was $246.7 million in Q2 2025, slightly down from $248.5 million in Q2 2024; free cash flow increased by 20% to $182.3 million from $151.4 million [5][29] - The company returned $123.7 million to shareholders in Q2 2025, including $38.8 million in dividends and $84.9 million in share repurchases, with a quarterly dividend of $0.45 per share, a 13% increase from the previous year [15][29] Six-Month Results - Total revenue for the first half of 2025 was $4.00 billion, down from $4.14 billion in the prior year; revenue before fuel surcharge decreased to $3.51 billion from $3.57 billion [7][9] - Operating income for the first half of 2025 was $284.8 million, down from $357.6 million in the prior year, attributed to lower volumes and a prior-year restructuring charge [8][9]
Ahead of TFI International (TFII) Q2 Earnings: Get Ready With Wall Street Estimates for Key Metrics
ZACKS· 2025-07-23 14:16
Core Viewpoint - TFI International Inc. (TFII) is expected to report a significant decline in quarterly earnings and revenues, with analysts forecasting earnings of $1.25 per share, a year-over-year decrease of 26.9%, and revenues of $2.06 billion, down 9.1% from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 3.6% lower over the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts expect 'Revenue before fuel surcharge' to be $1.79 billion, reflecting an 8.7% year-over-year decline [5]. - The 'Fuel surcharge' is anticipated to reach $263.28 million, indicating a decrease of 13.2% from the prior-year quarter [5]. - 'Revenue- Logistics' is projected at $418.03 million, down 5.5% year-over-year [5]. - 'Revenue- Less-Than-Truckload' is forecasted to be $776.06 million, showing a decline of 2.3% compared to the previous year [6]. Operating Ratios - The estimated 'Adjusted Operating Ratio - Truckload' is expected to be 91.0%, up from 88.7% in the same quarter last year [6]. - For 'Adjusted Operating Ratio - Less-Than-Truckload', the estimate is 91.6%, compared to 86.2% in the same quarter of the previous year [6]. - The collective assessment suggests an overall 'Adjusted Operating Ratio' of 91.1%, compared to 89.4% a year ago [7]. Canadian LTL Metrics - The 'Canadian LTL - Adjusted operating ratio' is projected at 75.0%, slightly down from 75.6% year-over-year [8]. - Analysts predict 'Canadian LTL - Revenue per hundredweight (excluding fuel)' to remain at $11.16, unchanged from the same quarter last year [8]. - 'Canadian LTL - Shipments' are expected to reach 575.12 thousand, down from 632.00 thousand in the previous year [9]. Stock Performance - TFI International shares have shown a return of -0.5% over the past month, contrasting with the Zacks S&P 500 composite's +5.9% change, indicating underperformance relative to the market [10].
Earnings Preview: TFI International Inc. (TFII) Q2 Earnings Expected to Decline
ZACKS· 2025-07-21 15:05
Core Viewpoint - TFI International Inc. (TFII) is anticipated to report a year-over-year decline in earnings and revenues for the quarter ended June 2025, which could significantly influence its stock price depending on the actual results compared to estimates [1][3]. Earnings Expectations - The consensus estimate for TFI International's quarterly earnings is $1.25 per share, reflecting a year-over-year decrease of 26.9% [3]. - Expected revenues for the quarter are $2.06 billion, down 9.1% from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 3.56%, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for TFI International is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.16% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [9][10]. - TFI International currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, TFI International was expected to post earnings of $0.95 per share but only achieved $0.76, resulting in a surprise of -20.00% [13]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [14]. Conclusion - TFI International does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of its earnings release [17].
TFI International to Release 2025 Second Quarter Results
Globenewswire· 2025-07-08 12:00
Core Points - TFI International Inc. will release its financial results for Q2 2025 on July 28, 2025, after market close [1] - A webcast will be hosted by the Chairman, President, and CEO Alain Bédard, along with CFO David Saperstein, to discuss the results on the same day at 5:00 PM Eastern Time [1][3] Company Overview - TFI International Inc. is a leader in the North American transportation and logistics industry, operating in the U.S., Canada, and Mexico through its subsidiaries [2] - The company focuses on creating shareholder value through strategic acquisitions and managing a growing network of wholly-owned subsidiaries [2] - TFI International provides financial and operational resources to its companies, enhancing their efficiency and business growth [2] Service Segments - TFI International operates in various segments including Less-Than-Truckload, Truckload, and Logistics [4]
The Gross Law Firm Notifies Shareholders of TFI International Inc.(TFII) of a Class Action Lawsuit and an Upcoming Deadline
Prnewswire· 2025-05-12 09:45
Core Viewpoint - TFI International Inc. is facing allegations of issuing materially false and misleading statements regarding its business operations, particularly concerning customer retention and revenue decline during the specified class period [1]. Group 1: Allegations and Impact - The complaint alleges that TFI International was losing small and medium business customers, leading to a decline in TForce revenue [1]. - The company is reportedly experiencing difficulties in managing its costs, which has negatively impacted the profitability of its largest business segment [1]. - As a result of these issues, the positive statements made by the defendants about the company's business and prospects were materially misleading and lacked a reasonable basis [1]. Group 2: Class Action Details - The class period for the allegations spans from April 26, 2024, to February 19, 2025, with a deadline for shareholders to register for the class action set for May 13, 2025 [2]. - Shareholders who register will be enrolled in a portfolio monitoring software to receive updates throughout the lifecycle of the case, with no cost or obligation to participate [2]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors affected by deceit and illegal business practices [3]. - The firm aims to ensure that companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions [3].
Lost Money on TFI International Inc. (TFII)? Join Class Action Suit Seeking Recovery – Contact The Gross Law Firm
GlobeNewswire News Room· 2025-05-07 16:32
Core Viewpoint - TFI International Inc. is facing a class action lawsuit due to allegations of issuing materially false and misleading statements regarding its business operations and financial health during the specified class period [3][4]. Summary by Relevant Sections Class Period and Allegations - The class period for the lawsuit is from April 26, 2024, to February 19, 2025 [3]. - Allegations include: 1. Loss of small and medium business customers [3]. 2. Decline in TForce revenue as a result [3]. 3. Difficulties in managing costs [3]. 4. Declining profitability in the largest business segment [3]. 5. Misleading positive statements about the company's business and prospects [3]. Next Steps for Shareholders - Shareholders are encouraged to register for the class action by May 13, 2025, to be eligible for potential recovery [4]. - Registration includes enrollment in a portfolio monitoring software for status updates throughout the case [4]. Law Firm Information - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investor rights against deceit and fraud [5]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements [5].
Investors who lost money on TFI International Inc. (TFII) should contact Levi & Korsinsky about pending Class Action - TFII
GlobeNewswire News Room· 2025-05-05 17:45
Core Viewpoint - TFI International Inc. is facing a class action securities lawsuit due to alleged securities fraud impacting investors between April 26, 2024, and February 19, 2025 [1][2] Group 1: Allegations of Fraud - The lawsuit claims that TFI International Inc. made false statements and concealed critical information regarding the loss of small and medium business customers [2] - It is alleged that the decline in TForce revenue was a direct result of losing these customers [2] - The company reportedly faced challenges in managing its costs, leading to a decline in profitability for its largest business segment [2] - Positive statements made by the defendants about the company's business operations and prospects were deemed materially misleading and lacked a reasonable basis [2] Group 2: Legal Process and Participation - Investors who suffered losses during the specified timeframe have until May 13, 2025, to request appointment as lead plaintiff [3] - Participation in the lawsuit does not require serving as a lead plaintiff, and class members may be entitled to compensation without any out-of-pocket costs [3] Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4] - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the United States [4]