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TFI International (TSE:TFII)
TSX:TFII
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TFI International (TFII) AI Stock Analysis

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TSE:TFII

TFI International

(TSX:TFII)

Rating:63Neutral
Price Target:
TFI International's overall stock score of 63 reflects a mix of strengths and challenges. Strong financial performance and cash flow are key positives, but technical indicators suggest bearish momentum. Valuation is reasonable, and while the earnings call shows resilience, operational difficulties persist. Corporate events reinforce governance strength, but do not significantly alter the score.
Positive Factors
Operational Improvement
TForce is working to implement new billing software that has seen notable DSO improvements and other technology initiatives.
Share Repurchase
TFII continued to repurchase shares, buying back $85MM in 2Q.
Negative Factors
Earnings Performance
TFII reported 1Q25 adjusted EPS of $0.79 versus our estimate of $0.95 and the $0.92 consensus.
Market Challenges
Headwinds were present throughout the organization—too little density in LTL, Truckload end-markets highly-exposed to tariff uncertainty, Logistics up against acute cyclical pressures, and Parcel & Courrier back in long-term revenue contraction.

TFI International (TFII) vs. iShares MSCI Canada ETF (EWC)

TFI International Business Overview & Revenue Model

Company DescriptionTFI International Inc. provides transportation and logistics services in the United States, Canada, and Mexico. The company operates through Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics segments. The Package and Courier segment engages in the pickup, transport, and delivery of items. The LTL segment is involved in the pickup, consolidation, transportation, and delivery of smaller loads. The TL segment offers expedited transportation, flatbed, tank container, and dedicated services, as well as TL brokerage services. This segment carries full loads directly from the customer to the destination using a closed van or specialized equipment. The Logistics segment provides asset-light logistics services, including brokerage, freight forwarding, and transportation management, as well as small package parcel delivery. As of December 31, 2021, the company had 13,384 tractors, 50,091 trailers, and 9,428 independent contractors. The company was formerly known as TransForce Inc. and changed its name to TFI International Inc. in December 2016. TFI International Inc. is headquartered in Saint-Laurent, Canada.
How the Company Makes MoneyTFI International makes money by offering a variety of transportation and logistics services across North America. Its revenue model is primarily based on freight charges for moving goods through its network of trucks and intermodal services. The Package and Courier segment earns through parcel delivery services, often catering to e-commerce businesses. The Less-Than-Truckload and Truckload segments generate revenue by transporting goods that do not require a full truck's capacity or require full truckload services, respectively. The Logistics segment contributes by providing supply chain solutions, including freight brokerage and warehousing services. The company also benefits from strategic acquisitions and partnerships that expand its service offerings and geographic reach, enhancing its revenue potential.

TFI International Earnings Call Summary

Earnings Call Date:Jul 28, 2025
(Q2-2025)
|
% Change Since: 7.86%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong free cash flow and improved margins, along with successful cost management initiatives. However, the company faced revenue declines across multiple segments, decreased net income, and ongoing challenges in the industrial sector due to tariff uncertainties. Despite these challenges, TFI International remains optimistic about the future, with potential industrial sector recovery on the horizon.
Q2-2025 Updates
Positive Updates
Strong Free Cash Flow Performance
TFI International reported $182 million of free cash flow, a 20% increase from $151 million in the second quarter of 2024, driven by favorable working capital dynamics and moderately lower CapEx.
Improved Operating Margins
Operating income was $170 million, representing a 9.5% margin, up from 2.5% in the prior year period.
Share Buyback and Dividend Returns
The company repurchased $85 million worth of shares and paid $39 million in dividends, returning a total of $124 million to shareholders.
Successful Cost Management Initiatives
The implementation of Optym software and other cost control measures led to a reduction in missed pickups by over 50% and improved operational efficiencies.
Positive Outlook for Industrial Sector
The company anticipates a recovery in the U.S. industrial sector due to new governmental budget plans, potentially impacting business positively in late 2025 or early 2026.
Negative Updates
Revenue Decline
Total revenue before fuel surcharge decreased to $1.8 billion from $2 billion a year earlier.
Decreased Adjusted Net Income and EPS
Adjusted net income was $112 million compared to $146 million last year, and adjusted EPS was $1.34 compared to $1.71.
Challenges in LTL and Truckload Segments
LTL revenue before fuel surcharge was down 11% year-over-year, and Truckload revenue decreased from $738 million to $712 million, with operating income also declining.
Logistics Segment Weakness
Logistics revenue was $393 million, down from $442 million in the previous year, with operating income decreasing from $51 million to $38 million.
Uncertainty in Tariff Environment
Tariff-related uncertainties continue to impact U.S.-Canada trade and industrial end-market demand, affecting profitability.
Company Guidance
During the TFI International Second Quarter 2025 Earnings Call, Alain Bedard, the CEO, presented several key metrics reflecting the company's performance and guidance. The company reported total revenue before fuel surcharge of $1.8 billion, down from $2 billion the previous year, with an operating income of $170 million, representing a 9.5% margin, up from 2.5% the prior year. Adjusted net income was $112 million, down from $146 million, with an adjusted EPS of $1.34 compared to $1.71 last year. Free cash flow was $182 million, a 20% increase from $151 million in Q2 2024. Specific segments such as LTL and Truckload saw operating income declines, but LTL showed a 360 basis point sequential improvement. The company repurchased $85 million worth of shares and paid $39 million in dividends, returning $124 million to shareholders. Looking ahead, TFI anticipates an EPS range of $1.10 to $1.25 for Q3 2025, with a continued focus on maintaining a strong balance sheet and strategic cost reductions through technology and operational efficiencies.

TFI International Financial Statement Overview

Summary
TFI International demonstrates solid financial health with strong cash flow generation and steady revenue growth. Income statement shows good operational efficiency but faces net income pressures. The balance sheet indicates manageable leverage, though debt levels and equity trends require monitoring.
Income Statement
75
Positive
TFI International exhibits solid revenue growth with a TTM revenue of $8.49 billion, translating to a 1.12% increase from the previous annual period. The gross profit margin is a modest 5.91% in the TTM, while EBIT and EBITDA margins are reasonably healthy at 8.03% and 16.78%, respectively. However, the net profit margin has decreased slightly to 4.54%, indicating some pressure on net earnings.
Balance Sheet
68
Positive
The company's debt-to-equity ratio stands at 1.12, suggesting a moderate reliance on debt. The return on equity is 14.65%, which is strong but shows a decline from previous years. The equity ratio is 36.97%, indicating a balanced approach to leveraging assets, though the decrease in stockholders' equity raises some concerns about future financial flexibility.
Cash Flow
80
Positive
TFI International's cash flow position is robust, with a TTM free cash flow of $693.72 million, up by 4.55% from the previous year. The operating cash flow to net income ratio of 2.74 indicates a healthy conversion of earnings to cash. The free cash flow to net income ratio of 1.80 suggests strong cash generation relative to net income, providing financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.26B8.40B7.52B8.81B7.22B3.78B
Gross Profit1.15B1.25B1.27B1.43B1.04B541.88M
EBITDA1.26B1.29B1.19B2.05B1.72B963.52M
Net Income366.08M422.48M504.88M823.23M754.40M275.68M
Balance Sheet
Total Assets7.21B7.15B6.28B5.51B5.75B3.85B
Cash, Cash Equivalents and Short-Term Investments27.94M0.00335.56M147.12M19.29M4.30M
Total Debt3.02B2.98B2.34B1.73B2.04B1.23B
Total Liabilities4.53B4.47B3.69B3.04B3.53B2.06B
Stockholders Equity2.68B2.67B2.59B2.46B2.22B1.79B
Cash Flow
Free Cash Flow729.66M663.56M649.52M614.70M579.55M466.49M
Operating Cash Flow1.05B1.06B1.01B971.64M855.35M610.86M
Investing Cash Flow-300.04M-1.24B-797.33M223.42M-1.16B-378.48M
Financing Cash Flow-752.35M-164.44M-28.07M-1.07B322.30M-228.08M

TFI International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price133.86
Price Trends
50DMA
123.41
Positive
100DMA
119.29
Positive
200DMA
147.62
Negative
Market Momentum
MACD
1.70
Negative
RSI
61.64
Neutral
STOCH
75.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TFII, the sentiment is Positive. The current price of 133.86 is above the 20-day moving average (MA) of 124.07, above the 50-day MA of 123.41, and below the 200-day MA of 147.62, indicating a neutral trend. The MACD of 1.70 indicates Negative momentum. The RSI at 61.64 is Neutral, neither overbought nor oversold. The STOCH value of 75.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TFII.

TFI International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
C$1.20B11.959.99%6.04%5.52%-18.01%
73
Outperform
C$495.04M13.826.93%5.92%2.19%-48.80%
66
Neutral
€3.21B23.526.71%2.53%-1.64%-20.27%
63
Neutral
$10.51B20.9913.80%1.93%6.04%-20.31%
55
Neutral
C$3.60B19.5021.26%2.41%3.90%-57.75%
$1.67B14.349.90%4.10%
$1.15B11.2019.73%1.35%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TFII
TFI International
133.86
-66.81
-33.29%
TSE:MTL
Mullen Group
13.90
0.12
0.87%
TSE:SES
SECURE Waste Infrastructure
16.60
4.46
36.74%
TSE:WJX
Wajax Corporation
23.66
-0.59
-2.43%
RUSMF
Russel Metals
30.11
2.73
9.97%
CGJTF
Cargojet
74.03
-19.73
-21.04%

TFI International Corporate Events

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
TFI International Reports Q1 2025 Results Amid Market Challenges
Neutral
Apr 23, 2025

TFI International reported a decrease in operating income and net income for the first quarter of 2025 compared to the same period in the previous year, primarily due to weaker market demand. Despite these challenges, the company achieved a significant 40% increase in free cash flow, driven by strategic investments and operational excellence, while maintaining its commitment to shareholder returns through dividends and share repurchases.

Spark’s Take on TSE:TFII Stock

According to Spark, TipRanks’ AI Analyst, TSE:TFII is a Neutral.

TFI International’s overall stock score of 69 reflects its strong financial performance and reasonable valuation, offset by bearish technical indicators and a cautious outlook from the latest earnings call. The company’s solid cash flow generation and dividend increase are positives, but ongoing industry challenges and market uncertainties remain concerns.

To see Spark’s full report on TSE:TFII stock, click here.

Executive/Board ChangesShareholder Meetings
TFI International Announces Successful Election of Directors
Positive
Apr 23, 2025

TFI International Inc. announced the successful election of all proposed directors at its Annual Meeting of shareholders. The election results, with a majority of votes cast in favor, reflect strong shareholder support for the company’s leadership. This outcome reinforces TFI International’s stable governance and strategic direction in the transportation and logistics industry.

Spark’s Take on TSE:TFII Stock

According to Spark, TipRanks’ AI Analyst, TSE:TFII is a Neutral.

TFI International’s overall stock score of 69 reflects its strong financial performance and reasonable valuation, offset by bearish technical indicators and a cautious outlook from the latest earnings call. The company’s solid cash flow generation and dividend increase are positives, but ongoing industry challenges and market uncertainties remain concerns.

To see Spark’s full report on TSE:TFII stock, click here.

Financial Disclosures
TFI International to Announce Q1 2025 Financial Results
Neutral
Apr 3, 2025

TFI International announced it will release its first-quarter financial results for 2025 on April 23, 2025, after market close. The results will be discussed in a webcast on April 24, 2025, led by Chairman and CEO Alain Bédard. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor confidence.

Dividends
TFI International Declares Quarterly Dividend
Positive
Mar 17, 2025

TFI International announced a quarterly dividend of US $0.45 per common share, payable on April 15, 2025, to shareholders recorded by March 31, 2025. This decision reflects the company’s ongoing commitment to delivering shareholder value and underscores its strong financial position in the transportation and logistics sector.

Business Operations and Strategy
TFI International Retains Canadian Corporation Status
Neutral
Feb 24, 2025

TFI International Inc. announced it will retain its Canadian corporation status, reversing its previous plan to re-domicile to the United States. This decision was influenced by shareholder feedback, highlighting the company’s responsiveness to stakeholder concerns and its commitment to maintaining its current operational and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 27, 2025