Core Insights - TFI International's U.S. LTL operations showed slight improvement in the third quarter, with the operating ratio (OR) remaining at 92.2%, an improvement from 94% in the previous quarter [1] - However, key metrics such as revenue per hundredweight excluding fuel decreased by 3.33% year-over-year, and total tons declined by 6.27% [2] - The overall OR for TFI's total LTL operations, including Canadian operations, increased by 150 basis points to 88.8%, while the Canadian segment's OR deteriorated to 81.2% from 76.3% [3] Financial Performance - TFI's adjusted earnings per share fell to $1.20 from $1.59 a year earlier, with significant declines in operating income across individual segments [5] - The LTL group reported operating income of $77.7 million, down from $96 million in the same quarter last year [5] - Despite the challenges, TFI announced a 4% increase in its quarterly dividend to 47 cents per share, effective January [4] Management Commentary - CEO Alain Bedard expressed optimism regarding the U.S. LTL operations, citing the unchanged OR as a sign of new segment leadership navigating a challenging freight environment [4] - Bedard highlighted the importance of average weight per shipment, which rose by 3.85%, as a key performance metric [2]

Financial Performance - Total revenue for Q3 2025 was $1,968,671, a decrease of 9.9% compared to $2,184,583 in Q3 2024[4] - Net income for Q3 2025 was $84,689, down 32.8% from $125,871 in Q3 2024[6] - Operating income decreased to $153,314 in Q3 2025, a decline of 23.8% from $201,176 in Q3 2024[4] - The company reported a total comprehensive income of $62,667 for Q3 2025, compared to $150,418 in Q3 2024[6] - For the nine months ended September 30, 2025, total revenue was $5,970,679, a decrease of 6.0% from $6,319,943 in the same period of 2024[36] - Basic earnings per share for the nine months ended September 30, 2025, was $2.87, a decrease from $3.96 for the same period in 2024[84] Assets and Liabilities - Total assets as of September 30, 2025, were $7,112,158, a slight decrease from $7,165,826 as of December 31, 2024[2] - Total liabilities decreased to $4,473,524 as of September 30, 2025, compared to $4,492,551 as of December 31, 2024[2] - The company’s retained earnings as of September 30, 2025, were $1,763,754, down from $1,838,707 as of December 31, 2024[2] - The company reported a total liability of $4,473,524 as of September 30, 2025, down from $4,747,966 in the previous year, reflecting a decrease of 5.8%[36] - The total long-term debt as of September 30, 2025, is $2,313,366 thousand, slightly up from $2,309,428 thousand on December 31, 2024[67] Cash Flow - Net cash from operating activities for the nine months ended September 30, 2025, was $695.592 million, down 13.1% from $800.287 million in the same period of 2024[10] - Cash flows used in investing activities for the nine months ended September 30, 2025, amounted to $173.087 million, a significant decrease from $1.173 billion in the same period of 2024[10] - Cash and cash equivalents increased to $31,613 as of September 30, 2025, from zero as of December 31, 2024[2] - Cash and cash equivalents at the end of the period were $31.613 million, down from $55.218 million at the end of the same period in 2024[10] Expenses - Personnel expenses for Q3 2025 were $600,205, a decrease of 6.0% from $638,826 in Q3 2024[4] - The company incurred net finance costs of $41.585 million for the three months ended September 30, 2025, compared to $40.008 million in 2024, reflecting a 3.9% increase[10] - The total materials and services expenses for the nine months ended September 30, 2025 amounted to $2,947,559, a decrease from $3,138,831 in the same period of 2024[101] Taxation - Income tax expense for the three months ended September 30, 2025, was $27.04 million, compared to $35.30 million for the same period in 2024, reflecting a decrease of 23.4%[20] - The Group's total income tax expense for the nine months ended September 30, 2025, was $77.70 million, down from $109.61 million for the same period in 2024[20] Business Acquisitions - The company acquired three businesses in 2025, contributing $7.3 million in revenue and a net loss of $0.1 million since the acquisitions[42] - The company estimates that had the acquired businesses been included from January 1, 2025, they would have contributed approximately $22.1 million in revenue and $0.8 million in net income for the nine months ended September 30, 2025[43] Shareholder Activities - The company repurchased 2,291,295 common shares at a weighted average price of $90.98 per share, totaling $208.5 million during the nine months ended September 30, 2025[82] - The company repurchased 190,000 common shares between October 1, 2025, and October 30, 2025, at a total cost of $17.4 million[108] Other Financial Metrics - The company reported a gain on the sale of property and equipment of $(1.626) million for the three months ended September 30, 2025, compared to $(3.378) million in 2024[10] - The net change in non-cash operating working capital for the three months ended September 30, 2025, is $48,799 thousand, compared to $53,444 thousand for the same period in 2024[60]

Core Insights - TFI International Inc. reported a decrease in total revenue for Q3 2025, amounting to $1.97 billion, down from $2.18 billion in the same period last year, primarily due to reduced volumes from weaker end market demand [4][8] - The company generated over $570 million in free cash flow year-to-date, exceeding the previous year's nine-month figure, which enhances its ability to operate and invest strategically [2][4] - The Board of Directors approved a 4% increase in the quarterly dividend to $0.47 per share, reflecting a commitment to returning excess capital to shareholders [6][18] Financial Highlights - Total revenue for Q3 2025 was $1,968.7 million, compared to $2,184.6 million in Q3 2024, marking an 11% decrease [4][8] - Adjusted EBITDA for Q3 2025 was $305.4 million, down from $357.2 million in Q3 2024 [32] - Net income for Q3 2025 was $84.7 million, compared to $125.9 million in Q3 2024, with diluted EPS decreasing from $1.48 to $1.02 [5][10] Segment Performance - The Less-Than-Truckload segment saw a revenue decrease of 11%, Truckload decreased by 7%, and Logistics decreased by 14% compared to Q3 2024 [7] - Operating income decreased by 19% for Less-Than-Truckload, 25% for Truckload, and 36% for the Logistics segment [7] Cash Flow and Shareholder Returns - Net cash from operating activities for Q3 2025 was $255.4 million, down from $351.1 million in Q3 2024 [13] - The company returned $104.8 million to shareholders during the quarter, including $37.3 million in dividends and $67.4 million in share repurchases [15] Guidance - For Q4 2025, TFI International expects adjusted diluted EPS to be in the range of $0.80 to $0.90, influenced by lower deliveries in the Logistics segment and weak overall freight demand [16]

Core Points - TFI International Inc. will release its third quarter financial results on October 30, 2025, after market close [1] - A webcast to discuss these results is scheduled for October 31, 2025, at 10:00 a.m. ET, which is a change from the previously announced time of 8:30 a.m. ET [1] Company Overview - TFI International Inc. is a leader in the North American transportation and logistics industry, operating in the United States, Canada, and Mexico through its subsidiaries [2] - The company focuses on creating shareholder value by identifying strategic acquisitions and managing a growing network of wholly-owned operating subsidiaries [2] - TFI International provides financial and operational resources to its subsidiaries, enhancing their business efficiency [2] - The company services various segments, including Less-Than-Truckload, Truckload, and Logistics [4]

Core Points - TFI International Inc. will release its financial results for Q3 2025 on October 30, 2025, after market close [1] - A webcast to discuss the results will be hosted on October 31, 2025, at 8:30 AM 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 [2] - The company focuses on creating shareholder value through strategic acquisitions and managing a network of wholly-owned subsidiaries [2] - TFI International provides financial and operational resources to its subsidiaries to enhance their efficiency and business growth [2] Service Segments - TFI International operates in various segments including Less-Than-Truckload, Truckload, and Logistics [4]

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]

Core Viewpoint - TFI International Inc. reported quarterly earnings of $1.34 per share, exceeding the Zacks Consensus Estimate of $1.24 per share, but down from $1.71 per share a year ago, indicating a mixed performance in earnings despite a positive surprise this quarter [1][2]. Financial Performance - The company posted revenues of $2.04 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.77% and down from $2.26 billion year-over-year [2]. - Over the last four quarters, TFI International has surpassed consensus EPS estimates only once [2]. Stock Performance - TFI International shares have declined approximately 30.7% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3]. - The current consensus EPS estimate for the upcoming quarter is $1.44 on revenues of $2.14 billion, and for the current fiscal year, it is $4.79 on revenues of $8.21 billion [7]. Industry Outlook - The Transportation - Services industry, to which TFI International belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact TFI International's stock performance [5].

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]

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]

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]