TFI International (TFII) Q2 2025 earnings summary

Executive summary

• Achieved strong margin performance and best-in-class free cash flow conversion, with a robust balance sheet and strategic flexibility despite economic uncertainty and soft freight volumes.

• Diversified operations across LTL, TL, Logistics, and Package & Courier segments, supported by a decentralized management approach and 94 acquisitions since 2016.

• E-commerce and last-mile logistics continue to drive growth, with significant revenue from both B2B and B2C channels.

• Free cash flow rose 20% to $182.3M in Q2 2025, with $124M returned to shareholders via buybacks and dividends.

• Major acquisition of Daseke in April 2024 impacted TL segment metrics and invested capital.

Financial highlights

• Q2 2025 total revenue was $2.04B, down from $2.26B year-over-year, with operating income at $170.2M and adjusted net income at $112M.

• Adjusted EBITDA for Q2 2025 was $326.6M, with an adjusted EBITDA margin of 16.0%.

• Free cash flow for Q2 2025 was $182.3M, up from $151.4M, and net cash from operating activities was $247M, flat year-over-year.

• $6.7B in total FCF generated over 20 years; $2.4B returned to shareholders since 2017.

• Annual forward dividend yield of 2.0% based on a $0.45 dividend and $89.67 stock price.

Outlook and guidance

• Q3 2025 EPS guidance is $1.10 to $1.25, with net CapEx for the full year expected to be approximately $200M.

• Free cash flow for the year projected around $700M, with potential to reach $1B in a normalized environment.

• Management expects normal seasonal sequential declines in Q3 and targets LTL operating ratio at 94%-95% for the back half of the year.

• Maintains a strong acquisition pipeline in a fragmented industry, with disciplined M&A criteria focused on accretive deals.

• E-commerce and last-mile logistics expected to provide further organic and acquisition-driven growth.