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TFI Highlights Strong Cash Flow While Posting Lower Revenue
Q4 Net Income, Revenue Decrease, but CEO Says Carrier Finished Year on 'Favorable Note' as It Readies for Market Improvement
Key Takeaways:
- TFI International reported Q4 revenue fell 7.8% to $1.91 billion and net income dropped to $71.7 million.
- The company said weaker results came as it improved its U.S. LTL operating ratio and generated free cash flow more than 25% higher than 2024.
- CEO Alain Bédard signaled continued capital deployment for growth and shareholder returns.
TFI International closed 2025 with lower revenue and earnings, reporting a 7.8% drop in fourth‑quarter revenue.
The Montreal-based transportation and logistics company on Feb. 17 said revenue slipped to $1.91 billion compared with $2.08 billion in the year-ago period. The carrier posted net income of $71.7 million, or 87 cents per diluted share, for the three months ending Dec. 31. That compared with $88.1 million, $1.03, in 2024.
CEO Alain Bédard told investors the quarter delivered “robust free cash flow,” crediting international initiatives and the company’s teams. He added that with freight markets showing only “modest signs of stabilization,” TFI is focused on preparing for a potential rebound and managing what it can control.
He added that another focus is producing strong free cash flow regardless of the cycle.
TFI noted in the earnings report that free cash flow increased 24.8% to $258.9 million from $207.5 million during Q4 2024. The full-year figure increased 8.3% to $832.3 million from $768.6 million. Bédard highlighted that this equaled more than $10 per share in 2025.
“During the fourth quarter, our board again raised our dividend,” Bédard said, noting that over the course of the year TFI bought back more than $225 million of common shares.
TD Cowen said LTL results exceeded guidance as shipments grew faster than expected during the quarter. However, the investment banking firm noted that management pointed to a weak industrial backdrop as a drag on growth, even as the company prioritized heavier industrial freight to lift revenue per shipment. Cowen also said management remained optimistic that truckload operations are positioned for a contract rate recovery.
“TFII rounded out a challenging ’25 with a Q4 beat, but guidance comes in below expectations for Q1,” Cowen analyst Jason Seidl wrote in the report. “U.S. LTL metrics appear encouraging in February, though a tough January and a weaker broader market should limit upside to 1Q. Large M&A likely off the table for TFII this year as it looks to turn around core operations.”
For the full year, TFI reported net income of $310.6 million, $3.72, on revenue of $7.88 billion, compared with net income of $422.5 million, $4.96, on revenue of $8.4 billion in 2024.
LTL segment revenue decreased 10.4% to $660.5 million from $737.3 million during the prior-year Q4. Operating income declined 12.5% to $61.5 million from $70.3 million the prior year. The segment was still able to achieve a return on invested capital of 12.2% as the company worked to improve its operating ratio.
“LTL … represents 39% of our segmented revenue before fuel surcharge,” Bédard said. “At $661 million, this was down 10% compared to a year earlier. However, we’re able to improve our adjusted OR slightly more than expected to 89.9%, relative to 90.3% in the year-ago period.”
Truckload segment revenue decreased 2.7% to $674.2 million from $693.2 million the prior year. Operating income decreased 19.3% to $48.2 million from $59.7 million. The segment continued to be impacted by broader economic pressures, but its return on invested capital still came in at 5.8%.
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“Next up is truckload, which was 40% of a segmented revenue before fuel surcharge at $674 million,” Bédard said. “While tariff and the general economic uncertainty still affect freight volumes and excess capacity has been an industrywide concern, we continue to seek growth opportunity that our network and our infrastructure are particularly well suited for. This includes both data center and the broader electric grid to markets.”
Logistics revenue decreased 12.7% to $358.1 million from $410.2 million, with operating income falling 27% to $31.3 million from $42.9 million. The segment results represented margins of 8.7% versus the 10.5% during the prior year quarter.
Bédard said the logistics unit accounted for 21% of segmented revenue and noted that, even with a slight sequential dip in revenue, the segment expanded its operating margin by 30 basis points from the third quarter. He added that logistics generated a return on invested capital of 11.8%.
TFI International ranks No. 4 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 39 on the TT Top 100 list of the largest logistics companies. It also comes in at No. 43 on the TT Top 50 global freight companies list.
