TFI International Announces 2025 Second Quarter Results

Executive Summary

• TFI International Inc. reported second-quarter 2025 financial results, showing a decline in revenue and profitability compared to the same period in 2024, primarily driven by weaker end-market demand and reduced volumes.
• The company generated $182.3 million in free cash flow for the quarter, an increase of 20% from Q2 2024, while returning $123.7 million to shareholders via dividends and share repurchases.
• Operating income decreased across all major segments (Less-Than-Truckload, Truckload, and Logistics), with the Truckload segment seeing a revenue increase due to the acquisition of Daseke, while other segments faced headwinds from the transportation environment.

Key Details

• Q2 2025 Financial Highlights (Three Months Ended June 30, 2025):
  • Total Revenue: $2,037.6 million (down from $2,264.5 million in Q2 2024).
  • Revenue before fuel surcharge: $1,794.0 million (down from $1,961.1 million).
  • Operating Income: $170.2 million (down from $206.0 million).
  • Net Income: $98.2 million (down from $115.7 million).
  • Diluted EPS: $1.17 (down from $1.36).
  • Adjusted Net Income: $112.0 million (down from $145.6 million).
  • Adjusted Diluted EPS: $1.34 (down from $1.71).
  • Net Cash from Operating Activities: $246.7 million.
  • Free Cash Flow: $182.3 million (up 20% from $151.4 million in Q2 2024).
• Six-Month 2025 Results (Six Months Ended June 30, 2025):
  • Total Revenue: $4,002.0 million (down from $4,135.4 million).
  • Operating Income: $284.8 million (down from $357.6 million).
  • Net Income: $154.2 million (down from $208.5 million).
  • Adjusted Net Income: $176.3 million (down from $251.1 million).
• Segment Performance (Q2 2025 vs Q2 2024):
  • Less-Than-Truckload: Revenue decreased 13%; Operating income decreased 33%.
  • Truckload: Revenue decreased 6%; Operating income decreased 13%.
  • Logistics: Revenue decreased 12%; Operating income decreased 25%.
• Segment Performance (Six Months 2025 vs Six Months 2024):
  • Truckload: Revenue increased 18%, primarily due to the acquisition of Daseke.
  • Less-Than-Truckload: Revenue decreased 13%; Operating income decreased 38%.
  • Logistics: Revenue decreased 13%; Operating income decreased 24%.
• Cash Flow and Capital Allocation:
  • Net cash from investing activities increased by $801.3 million, attributed to lower spending on business combinations (as Daseke was acquired in Q2 2024) and reduced capital expenditures.
  • Net cash from financing activities increased by $91.1 million, driven by a CAD $300 million loan obtained at the end of Q2 2025, partially offset by $69.0 million in long-term debt repayments and $50.7 million in share repurchases.
  • Total capital returned to shareholders: $123.7 million ($38.8 million in dividends, $84.9 million in share repurchases).
• Dividend Declaration:
  • On June 16, 2025, the Board declared a quarterly dividend of $0.45 per common share (paid July 15, 2025), representing a 13% increase over the $0.40 dividend declared in Q2 2024.
• Non-IFRS Measures:
  • Adjusted EBITDA for Q2 2025 was $326.6 million (down from $380.1 million in Q2 2024).
  • Adjusted EBITDA for the first half of 2025 was $585.5 million (down from $648.5 million in the prior year period).

Notable Quotes

• “We delivered strong margin performance across all business segments which drove another quarter of solid free cash flow for TFI International,” said Alain Bédard, Chairman, President and Chief Executive Officer. “New segment leadership has sharpened our teams’ focus on our fundamental principles, including quality of revenue and operational efficiencies, enabling us to perform despite still-subdued market conditions. Combined with our strong balance sheet, this quarter’s results demonstrate we are well positioned to capitalize on future demand while continuing to make strategic investments to drive long-term profitability. I am pleased that during the quarter we were able to again return significant capital to shareholders through our consistent dividend and by actively repurchasing our shares, underscoring our dedication to delivering long-term shareholder value.”