TFI International has tried to get investors to take notice of its Truckload operations, which are substantial but smaller than its more better-known LTL segment. The third quarter results may be the catalyst that gets that recognition to occur.
Where the third quarter LTL segment at TFI (NYSE: TFII) saw its operating ratio rise compared to a year ago, the OR for Truckload strengthened. And it was the Truckload operations that led CEO Alain Bedard’s comments in the prepared statement released Thursday afternoon along with its earnings.
Bedard described Truckload as having a “remarkably strong” quarter. “Our Truckload performance is particularly gratifying, with double digit top line growth despite fewer trucks and operating income that nearly doubled,” Bedard said.
The overall impact of the higher LTL OR and the much improved truckload OR led to a company-wide OR of 89.5% compared to 91.2% from a year ago.
The Truckload segment had operating income of $100.2 million, up 13.3% from a year ago, while LTL’s operating income was $44.4 million, up 6.6%. A year ago, LTL’s operating income was $77.7 million while Truckload was $52.6 million.
TFI’s Logistics segment had operating income that surpassed LTL, coming in at $49.4 million.
Diluted EPS of $1.28, compared to $1.02 a year earlier, is expected to be surpassed in the fourth quarter, TFI said, projecting EPS for the three months to be between $1.30 to $1.40.
Several of the LTL metrics fell sharply, leading to the deterioration in adjusted OR. Revenue per hundred weight excluding fuel, the key yield figure, declined less than 1%. But revenue per shipment excluding fuel fell 22%.
The average weight per shipment was down 3.58%. TFI did see its total LTL shipments rise 4.62%.
With year-ago comparisons on revenue in Truckload impacted by the weak freight market of 2025, Truckload revenue rose 142.1%. But adjusted EBITDA in Truckload was up 24.7% and operating income rose more than 90%.
The Truckload segment was much smaller in size than a year ago, with the truck count down almost 12%. The number of owner operators also declined about 4.8%.
TFI International’s earnings call with analysts will be Friday at 9:30 am EDT.
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