TFI International Q2 Results: Analyst Adjusts Price Target to $107, Maintains Buy Recommendation.

TFI International's Q2 results exceeded estimates and consensus expectations due to strong margin improvements in the TForce division. The company does not anticipate significant sequential growth in the latter half of the year and has maintained a steady position despite various initiatives. Analyst Jason Seidl revised the price target from $115 to $107 while maintaining a Buy recommendation. The company's financial health is underscored by revenue growth of 18.6% and an EBITDA margin of 15.15%.

TFI International Inc. (NYSE: TFII) reported its second-quarter (Q2) 2025 financial results, which exceeded estimates and consensus expectations. The company's strong performance was driven by significant margin improvements in the TForce division. Despite various initiatives, TFI International does not anticipate significant sequential growth in the latter half of the year.

Key highlights of TFI International's Q2 2025 results include:

- Total Revenue Before Fuel Surcharge: $1.8 billion, down from $2 billion a year earlier.
- Operating Income: $170 million, representing a 9.5% margin.
- Adjusted Net Income: $112 million, compared to $146 million last year.
- Adjusted EPS: $1.34, down from $1.71.
- Net Cash from Operating Activities: $247 million, virtually flat with the prior year.
- Free Cash Flow: $182 million, up from $151 million in the second quarter of 2024.
- LTL Revenue Before Fuel Surcharge: $704 million, down 11% year over year.
- LTL Operating Income: $74 million, compared to $110 million in the prior year.
- LTL Operating Ratio: 89.5%, compared to 86.2% in the second quarter of 2024.
- Truckload Revenue Before Fuel Surcharge: $712 million, compared to $738 million a year earlier.
- Truckload Operating Income: $71 million, versus $81 million in the prior year.
- Truckload Operating Ratio: 90.1%, relative to 89% in the second quarter of 2024.
- Logistics Revenue Before Fuel Surcharge: $393 million, down from $442 million in the prior year.
- Logistics Operating Income: $38 million, compared to $51 million.
- Logistics Operating Margin: 9.6%, compared to 11.4% in the prior year second quarter.
- Funded Debt-to-EBITDA Ratio: 2.4 times.
- Share Repurchases: $85 million worth of shares repurchased during the quarter.
- Dividends Paid: $39 million, totaling $124 million of capital returned to shareholders.
- Third Quarter 2025 EPS Outlook: Expected range of $1.10 to $1.25.
- Net CapEx Expectation for Full Year: Approximately $200 million.

Analyst Jason Seidl revised the price target from $115 to $107 while maintaining a Buy recommendation. The company's financial health is underscored by revenue growth of 18.6% and an EBITDA margin of 15.15%.

The company's CEO, Alain Bedard, highlighted the use of technology tools like Optum to improve efficiencies and reduce costs, particularly in linehaul operations. The company also maintained a strong balance sheet and further strengthened it through a private placement bond offering.

Despite the challenges posed by cross-border tariffs and industrial truckload demand uncertainties, TFI International has shown resilience and continues to focus on operational efficiency and cost reduction. The company's outlook for the latter half of the year remains cautious, with an emphasis on maintaining strong cash generation and asset-light models.

References:
[1] https://finance.yahoo.com/news/tfi-international-inc-tfii-q2-070621237.html
[2] https://www.ttnews.com/articles/tfi-earnings-q2-2025