TFI International (TFII) Q3 2024 earnings summary

Executive summary

• Revenue before fuel surcharge rose 17% year-over-year to $1.9 billion, driven by the Daseke acquisition in April 2024.

• Adjusted net income was $137 million, with adjusted EPS of $1.60, both up slightly from the prior year.

• Free cash flow increased 37% year-over-year to $273 million, supporting debt reduction and capital returns.

• North American leader in transport and logistics, diversified across LTL, TL, and Logistics, with a decentralized management approach.

• The company expects full-year 2024 performance to be largely similar to 2023 due to persistent challenging market conditions.

Financial highlights

• Operating income was $203 million, up from $201 million a year ago; operating margin declined to 10.7% from 12.3%.

• Cash from operating activities reached $351 million, up from $279 million in the prior year.

• Adjusted EBITDA for Q3 was $357.2 million, up from $302.5 million; TTM adjusted EBITDA was $1,326.6 million.

• Adjusted net income from continuing operations for TTM Q3 2024 was $534.5 million; adjusted diluted EPS was $6.25.

• Free cash flow for Q3 was $272.5 million, up from $198.3 million.

Outlook and guidance

• 2024 EPS is expected to be flat year-over-year, in the $6.18–$6.20 range, mirroring 2023.

• Free cash flow for 2024 is projected between $750 million and $800 million, with net CapEx of $300 million.

• CapEx is expected to ease in 2025 to around $250 million due to extended fleet life.

• Management targets breaking the 90 OR in U.S. LTL in 2025, with improvement expected in the second half.

• E-commerce and industry fragmentation support ongoing acquisition opportunities and organic growth.