TFI International Inc.

TFI reported adjusted diluted EPS of $1.85 in Q2 2026, up 38% year over year and above its outlook range of $1.50 to $1.60. Revenue before fuel surcharge was $1.9 billion, up 6% year over year, while operating income climbed nearly 30% to $220 million and consolidated margin improved to 11.6% from 9.5%. Free cash flow was more than $200 million, net cash from operating activity was $256 million versus $247 million a year ago, and funded debt-to-EBITDA ended June at 2.4 versus 2.5 at the start of the year. Segmentally, LTL revenue before fuel surcharge was $725 million, up 3%, with operating income up 17% to $86 million and adjusted OR at 88.5%; Truckload revenue before fuel surcharge was $761 million, up 7%, with operating income up 50% to $106 million and adjusted OR at 86.1%; Logistics revenue before fuel surcharge was $432 million, up 10%, with operating income up 32% to $50 million and margin at 11.5%. For Q3 2026, management guided to adjusted EPS of $1.70 to $1.80, Truckload OR improvement of 500 to 600 basis points year over year, Logistics OR improvement of 250 to 350 basis points year over year, and comparable OR in LTL. Full-year net CapEx, excluding real estate, remains expected at $225 million to $250 million.

Alain Bedard sounded upbeat and confident, framing the quarter as evidence that prior investments in operations and M&A are now paying off. He emphasized that all three segments grew operating income by double digits, that truckload pricing is being helped by supply constraints, and that the company is becoming more specialized and more efficient. He also stressed capital discipline, saying TFI is generating strong free cash flow and returning excess capital while continuing to strengthen the balance sheet.

David Saperstein focused on the financial mechanics behind the quarter: strong revenue-per-truck growth in truckload, lower depreciation, and tighter asset deployment are creating meaningful bottom-line leverage. He said U.S. truckload revenue per truck per week rose from 11.1% in April to 13.3% in May to 14.4% in June, and that depreciation was down $12.5 million in the quarter. On LTL, he said the segment had 'too much volume and not enough price,' noted the company had to use overtime and third-party carriers, and said the business is now using more surgical pricing tools and AI-driven analysis to fix lane-by-lane issues. He also said the incremental $10.5 million accident reserve was not recurring and tied it to quicker claims settlements.

Analysts focused on whether LTL margins can improve, how quickly pricing can be reset, and whether strength in truckload could spill into LTL. Management said LTL is still very soft and that the U.S. side has the biggest room for improvement, but they expect pricing actions and better commercial discipline to reduce excess volume and eventually improve margins. Questions also covered trucking market stickiness, with management arguing that current supply-driven conditions may be more durable than prior cycles, plus capital allocation and M&A; Bedard said TFI will keep evaluating acquisitions but will also consider buybacks and leverage reduction, especially since debt-to-EBITDA has already improved to 2.4. The company also discussed autonomous trucks, saying it is already testing the technology for line-haul and expects to begin with brokerage this year before potentially buying the technology next year.