What does TFI International do and what are its main business segments?

What is the market's earnings forecast for TFI International next quarter?

What were the key takeaways from TFI International’s earnings call?

What were the key takeaways from TFI International's earnings call?

What is TFI International's latest dividend and current dividend yield?

What is TFI International's gross profit margin?

What is the revenue and EPS growth rate for TFI International year over year?

Did TFI International beat or miss consensus estimates last quarter?

- **Revenue Resilience**: Despite 11% YoY decline, LTL USLTL operating ratio held steady at 92.2%, reflecting quality of revenue focus.
- **AI-Driven Efficiency**: $30-35/month per employee AI investments targeting cost reduction (e.g., claims ratio from 0.7% to industry-standard 0.2%).
- **Dividend Growth**: 4% dividend increase to $0.47/share, with $84 million in Q3 share buybacks.
- **2026 Outlook**: CEO forecasts 200-300bps OR improvement in flat volume, driven by service quality and AI. Risk of 30% truckload revenue exposure to US government shutdown.
- **Tariff Impact**: Truckload volumes constrained by 40% YoY decline in truck shipments, but potential LTL recovery if truckload capacity contracts.


**【CEO Summary Section】**
- **Revenue Performance**: Total revenue before fuel surcharge was $1.7 billion, down 11% year-over-year. Operating income was $153 million (8.9% margin), with free cash flow of $570 million year-to-date, up from 2024 levels.
- **Dividend & Share Repurchase**: Board approved a 4% dividend increase to $0.47 per share. $67 million in share repurchases during Q3, with an additional $17 million post-quarter.
- **Segment Highlights**: 
  - **LTL**: USLTL operating ratio (OR) improved to 92.2% (flat vs. 2024), driven by quality of revenue focus. Combined LTL OR was 88.8%, up sequentially.
  - **Truckload**: Revenue $684 million (down 5.5%), OR 92.3% (vs. 90.6% in 2024). Logistics segment revenue $368 million (down 13.6%), OR 92.3%.
- **2026 Outlook**: CEO optimistic on US freight recovery, citing potential AI-driven efficiency gains and capacity contraction. Capitalizing on 3-year freight recession, TFI expects to improve service and pricing in 2026.

**【CFO Financial Commentary】**
- **Q3 Financials**: Adjusted net income $99 million (down 26% YoY), adjusted EPS $1.20 (down 25%). Free cash flow $200 million (up sequentially, down 42% YoY).
- **Balance Sheet**: Funded debt-to-EBITDA 2.4x. Full-year net CapEx guidance revised to $100-175 million (from $200 million), reflecting lower volume needs.
- **Segment Margins**: 
  - **LTL**: Return on invested capital (ROIC) 11.9%.
  - **Truckload**: ROIC 11.9%.
  - **Logistics**: ROIC 14.6%.
- **Tariff Impact**: Truckload volumes constrained by steel tariffs, with 40% YoY decline in OEM truck shipments affecting logistics business.

**【Q&A Highlights】**
- **LTL Market Trends**: Volumes expected to deteriorate 200-300bps in Q4 due to slow start. Service improvements (e.g., on-time delivery up 340bps) positioning for 2026 recovery. AI investments to reduce costs and improve service (e.g., shunting automation, claims reduction).
- **AI & Technology**: $30-35/month per employee cost for AI tools, no material CapEx. Focus on sales efficiency, claims management, and yard automation.
- **2026 Capital Allocation**: Potential M&A if market improves, but prioritizing buybacks given TFI's undervaluation. 2026 CapEx expected to normalize at $300 million.
- **Tariff & Trade**: Uncertainty around USMCA deal affecting cross-border volumes. Tariffs driving truckload capacity contraction, potentially benefiting LTL in 2026.
- **Risk Factors**: Government shutdown impacting 30% of truckload revenue (Dept. of Defense). Logistics segment margin hit by 40% decline in truck shipments.


Tfi International (TFII) Q3 2025 Earnings Call Transcript

- **Strong Free Cash Flow**: $182 million Q2 (+20% YoY), with $130 million+ share buybacks YTD.
- **Margin Recovery**: LTL OR 89.5% (vs. 86.2% Q2 2024), targeting 94-95% H2 2025 via Optym, claims reduction.
- **Shareholder Returns**: $124 million returned Q2, prioritizing buybacks over M&A in 2025.
- **2026 Growth Catalysts**: U.S. tax reforms, Daseke integration, JHT recovery, and asset-light strategy.
- **Risk Management**: 2.4x debt/EBITDA, $200 million CapEx, and cautious Q3 guidance ($1.10-$1.25 EPS).

**【CEO Opening Remarks】**
- Q2 2025 revenue (pre-fuel) was $1.8 billion (-10% YoY), with operating income of $170 million (9.5% margin) vs. $146 million (7.3% margin) last year.
- Free cash flow of $182 million (+20% YoY) driven by working capital improvements and lower CapEx.
- $85 million in share buybacks and $39 million in dividends returned to shareholders.
- LTL segment operating ratio (OR) improved to 89.5% (vs. 86.2% Q2 2024), Truckload OR at 90.1%, Logistics margin at 9.6%.

**【CFO Financial Commentary】**
- Adjusted net income $112 million (-24% YoY), adjusted EPS $1.34 (-22% YoY) due to lower volumes.
- Q3 2025 EPS guidance $1.10-$1.25, reflecting seasonal trends and macro uncertainty.
- Full-year CapEx expected ~$200 million, with focus on maintaining balance sheet strength (2.4x debt/EBITDA).
- $192 million private placement bond issuance to refinance higher-cost debt, reducing interest expense.

**【Q&A Highlights】**
- **Margin Improvement**: LTL OR target 94-95% for H2 2025, driven by Optym software adoption, claims reduction (0.7% of revenue), and safety initiatives.
- **Tariff Impact**: U.S.-Canada LTL volumes down due to trade uncertainty, but expect normalization post-tariff resolution.
- **Free Cash Flow**: Target $700 million+ for 2025, with potential to reach $1 billion in a normalized environment via asset-light strategy.
- **M&A Strategy**: Prioritize share buybacks in 2025 (~$130 million YTD), with larger deals possible in 2026 as Daseke integration progresses.
- **Industrial Recovery**: Optimistic on 2026 recovery from U.S. tax reforms, with Daseke OR target 85% in a normalized market.
- **Logistics Outlook**: JHT division expected to recover in H2 2025, with long-term OE target $200-220 million.


TFI International Inc. (TFII) Q2 2025 Earnings Call Transcript

- **Revenue Resilience**: +6.2% YoY to $1.7 billion, despite industry-wide volume decline, with Daseke driving Truckload growth.
- **Free Cash Flow Strength**: $192 million Q1 FCF (+39% YoY), supporting $56 million share buybacks and conservative leverage (2.21x debt/EBITDA).
- **LTL Turnaround**: Leadership changes reduce missed pickups to 1.7%, with Q2 OR target 96-97% (vs. 99% Q1), focusing on small/medium accounts.
- **Truckload Rationalization**: Excess assets being trimmed to align with 10-15% YoY industrial volume decline, while rate per mile improves in Q2.
- **2025 Outlook**: Q2 EPS $1.25-$1.40, cautious macro guidance, with $200 million CapEx and no major M&A, prioritizing share buybacks.


**【CEO Summary Section】**
- **Revenue Growth**: Q1 2025 revenue before fuel surcharge was $1.7 billion, up 6.2% YoY, driven by the Daseke acquisition. However, operating income fell to $115 million (6.7% margin) from $152 million (9.4%) due to industry-wide volume decline.
- **Free Cash Flow**: Generated $192 million in Q1, up 39% YoY, supported by strong working capital management and reduced capital expenditures.
- **Segment Performance**: 
  - **LTL**: Revenue down 13% YoY to $679 million, operating margin 6.9% (vs. 10.6% YoY), with a focus on improving service quality and reducing churn.
  - **Truckload**: Revenue up 67% YoY to $666 million (due to Daseke), operating margin 7.4% (vs. 10.3% YoY), with excess assets being rationalized.
  - **Logistics**: Revenue down 13% YoY to $385 million, operating margin 8.1% (vs. 9.1% YoY), impacted by lower OEM truck production.
- **Outlook**: Q2 EPS guidance of $1.25-$1.40, reflecting cautious macro outlook and reduced CapEx to $200 million for 2025.

**【CFO Financial Commentary】**
- **Key Financials**: 
  - Adjusted net income: $56 million (down 39% YoY), EPS $0.76 (down 38% YoY).
  - Operating expenses: $1.6 billion, flat YoY despite 6.2% revenue growth, reflecting strong cost control.
  - Free cash flow: $192 million (up 39% YoY), driven by working capital improvements.
- **Balance Sheet**: Funded debt-to-EBITDA ratio of 2.21x, with $56 million share buybacks in Q1.
- **CapEx**: Reduced to $200 million for 2025 (from $300 million historical norm), aligning with lower volume environment.

**【Q&A Highlights】**
- **LTL Strategy**: Leadership changes in mid-February led to improved morale and focus on small/medium accounts, with missed pickup rate reduced to 1.7% (from 4% YoY). Q2 OR target: 96-97% (vs. 99% Q1).
- **Truckload Challenges**: Industrial sector volumes down 10-15% YoY due to tariff uncertainty, but rate per mile improving in Q2. Excess assets (trucks/trailers) being rationalized to reduce depreciation drag.
- **M&A Activity**: Minimal M&A in 2025, with focus on share buybacks (0.5 million shares repurchased in April). Spin-off of Truckload division remains on long-term agenda.
- **Free Cash Flow**: Expect 2025 FCF in $700-800 million range (similar to 2024), driven by stable earnings and working capital releases from lower fuel prices.


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