TFI International Reports Q2 Earnings: Margins and Free Cash Flow Show Improvement

TFI International's Q2 earnings show a turnaround in sequential metrics, with adjusted net income of $1.34 per share, a 6% gain in stock price, and improved EBITDA margins for LTL, truckload, and logistics segments. The company's free cash flow was $182 million, down sequentially but up from the same period last year. CEO Alain Bedard cites these numbers as evidence of the company's control over its U.S. LTL operations and a positive reversal in margins.

TFI International (TFII) reported its second-quarter earnings for 2025, revealing a mixed financial performance. The company achieved an adjusted earnings per share (EPS) of $1.34, surpassing the forecasted $1.23, marking an 8.94% surprise. However, revenue fell short at $2.04 billion compared to the expected $2.06 billion. Following the earnings release, TFI International’s stock declined by 3.57% in after-hours trading, closing at $93.58 [1].

Despite the revenue miss, TFI International's overall performance in Q2 2025 showed improvement in several key metrics. The company's adjusted net income was $112 million, down from $146 million last year, while adjusted EPS decreased from $1.71 to $1.34. The company's free cash flow increased by 20% year-over-year to $182 million. The company also reported a strong dividend track record, with payments maintained for 24 consecutive years and increases in the last three years [1].

TFI International's CEO, Alain Bedard, emphasized the company's focus on cash generation and operational improvements. He stated, "TFI is a cash cow," and highlighted the company's transition from an asset-heavy to a more asset-light model. Bedard also noted the tax benefits from new U.S. legislation, amounting to a $75 million cumulative benefit [1].

The company's outlook for the third quarter of 2025 projects EPS between $1.10 and $1.25, with a recovery in the industrial sector anticipated by late 2025 or early 2026. TFI International aims for approximately $200 million in capital expenditures for the full year [1].

However, the company faces challenges, including economic uncertainty affecting freight volumes and industrial demand, tariff-related uncertainties impacting end-market demand, and potential volatility in import activity and freight rates. The stock's current price is significantly below its 52-week high of $157.77, indicating potential volatility and investor caution [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-tfi-international-q2-2025-shows-eps-beat-amid-revenue-dip-93CH-4156250