TFI’s Bedard sees a stronger 2026 after a weak 4Q

Core Viewpoint - TFI International's CEO Alain Bedard maintains a positive outlook for the company despite negative quarterly comparisons to 2024, projecting a strong future through 2026 [1] Financial Performance - The U.S. LTL operating ratio (OR) remained flat at 92.2% year-over-year and improved sequentially from 94% in the second quarter [2] - Total LTL operating income for TFI, combining Canadian and U.S. figures, was $78 million, up from $73.5 million in the second quarter but down from $96 million in the second quarter of 2024 [2] Market Outlook - Bedard expressed pessimism regarding the fourth quarter, anticipating a deterioration in OR by 200 to 300 basis points due to a slow volume environment and factors like the U.S. government shutdown [3] - The "Big Beautiful Bill" is expected to positively impact TFI's markets next year, with anticipated consumer tax refunds and investment in the U.S. industrial sector contributing to a better outlook for 2026 compared to 2025 [4] Operational Improvements - Bedard highlighted the management of the LTL group, noting efforts to control costs and improve service, with recent reports indicating increased customer satisfaction [5] - Areas for improvement include second and third-day service, with ongoing efforts to enhance these aspects to match peers [6] - The small to medium-sized business segment has been "fixed," addressing previous losses in 2024 [6]