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TFI International: Is the Shift From Rail to Road the Service Upgrade Customers Will Pay For?

TFI International recently communicated its third-quarter earnings, putting forth a mixed financial performance that captures both achievements and challenges within the current subdued freight environment. The company’s results underline diligent cost management and strategic priorities yet highlight areas impacted by lingering market softness. TFI International’s total revenue before fuel surcharge reduced to $1.7 billion from last year’s $1.9 billion, reflecting continued freight volume pressures. Correspondingly, their adjusted net income declined to $99 million from $134 million in the same quarter of 2024. Adjusted earnings per share stood at $1.20, marking a decrease from the previous $1.58. In terms of operating income, the company generated $153 million, reaching an operating margin of 8.9%. Notably, while the overall revenue declined, TFI International emphasized its focus on efficiency improvements, particularly in the U.S. Less-Than-Truckload (LTL) segment. Despite registering a revenue decrease, the U.S. LTL operations maintained their operating ratio (OR) at 92.