First look: mixed signs of a turnaround at TFI’s U.S. LTL operations

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]