Truckload Expansion Lifts TFI International’s Q3 Results
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TFI International reported higher revenue, driven primarily by acquisitions, for the third quarter of 2024.
The Montreal-based transportation and logistics company posted net income of $128 million, or $1.50 a diluted share, for the three months ending Sept. 30. That compared with $133.3 million, $1.54, during the same period last year. Total revenue increased 14.3% to $2.18 billion from $1.91 billion.
“Despite soft market conditions, TFI International performed well during [the] quarter, generating more than $350 million of net cash from operating activities and over $270 million of free cash flow,” said TFI President Alain Bédard. “While business conditions for U.S. LTL are challenging, our Logistics segment performed very well, and both our truckload and Canadian LTL operations have remained solid.”
The results missed Wall Street analysts’ expectations of $1.79 per share and quarterly revenue of $2.28 billion, according to Zacks Consensus Estimate.
TFI noted in the earnings report that the revenue increase was due primarily to contributions from acquisitions. This was partially offset by reduced volumes from continued weakness in the transportation environment and lower fuel surcharge revenue. The report also noted that net income included a $21.6 million increase in interest expense related to the Daseke acquisition financing.
“We were also able to reduce debt during the quarter, reducing our leverage ratio,” Bédard said. “In the current freight environment, our talented team remains focused on operational enhancements and tapping into the potential of recent acquisitions, while our overarching focus on free cash flow allows us to opportunistically invest during weaker cycles and return significant capital to shareholders while maintaining a strong balance sheet.”
The Less-Than-Truckload segment revenue decreased 7% to $770.8 million from $828.8 million during the same period last year. Operating income decreased 23.6% to $96 million from $125.6 million last year.
Truckload revenue increased 80% to $722.9 million from $401.5 million year over year. The report noted this growth was primarily from the Daseke acquisition. Operating income increased 44.1% to $72.2 million from $50.1 million.
Logistics segment revenue increased 2.5% to $426.5 million from $416.2 million from last year. Operating income increased 19.1% to $48.7 million from $40.9 million.
TFI ranks No. 4 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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