TFI International: Initiation of Coverage- Going Asset-Light In the U.S. To Potentially Supercharge Profits!

TFI International reported its financial results for the second quarter of 2025, displaying a mix of strengths and pressures affecting its operations. A key highlight is the company’s strong margin performance across all business segments despite ongoing economic challenges impacting freight volumes industry-wide. Total revenue before fuel surcharge declined to $1.8 billion from $2 billion the previous year, highlighting industrywide constraints. Notably, operating income stood at $170 million, aligning with a 9.5% margin, which reflects a slight improvement from 8.5% in the prior year period. However, adjusted net income and EPS both saw decreases, with the former coming in at $112 million, down from $146 million, and adjusted EPS falling to $1.34 from $1.71 previously. This reduction contrasts with robust free cash flow generation of $182 million, up 20% from $151 million last year, attributed to effective working capital management and lower capital expenditures.