Disappointing Q1 for TFI International as US LTL drags down results

The fate of the trucking conglomerate has increasingly been tied to the operations of its U.S. LTL operations, which contains the legacy business of UPS Freight and operates as TForce Freight.

However, revenue in its truckload group excluding fuel was up sharply from a year ago as a result of acquisitions, increasing to $662.9 million from $397.7 million. Meanwhile, total LTL operations excluding fuel had revenue of $679.9 million, down from $783.5 million a year ago.

Various operating metrics for the U.S. LTL group were all negative. Revenue per hundredweight excluding fuel was down 7.23% from the corresponding quarter in 2024. Revenue per shipment excluding fuel dropped a little more than 4%. Adjusted operating ratio was down 630 basis points to 98.9% from 92.6%.

In earnings calls with analysts, CEO Alain Bedard has compared the U.S. LTL operations unfavorably to its Canadian operations. The Canadian LTL division had an OR of 80.2% in the quarter, an improvement from 80.9%. Revenue per shipment excluding fuel rose slightly, but revenue per hundredweight with or without fuel declined for the Canadian LTL operations. 

Truckload’s operating income rose to $48.8 million from $41.5 million, though that 17.5% increase paled compared to the more than 66% increase in revenue. Meanwhile, operating income in LTL was $47.1 million on revenue before fuel of $679 million. The corresponding numbers from a year ago were operating income of $85 million on $783.5 million in revenue.

In the company’s earnings release, Bedard did not focus on any operating metrics. “TFI International continues to navigate industrywide freight demand weakness by following long held core operating principles, including an overarching focus on robust free cash flow as evidenced by a 40% year-over-year increase during the first quarter,” he said.

He also said the company is on “strong financial footing” that enables TFI to “take a strategic approach to cyclicality, making targeted investments while our hardworking team drives operational excellence across the organization.” He touted the cash returned to shareholders via dividends or buybacks as well.

Bedard’s call with analysts is at 9 a.m. EDT Thursday. Unlike most CEOs in the logistics sector, Bedard is always the only company executive on the call.

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