TFI International (TFII) Q3 2024 earnings summary

Executive summary

• Revenue before fuel surcharge rose 17% year-over-year to $1.91 billion, driven by the Daseke acquisition despite industry-wide challenges.

• Adjusted net income was $137 million, up slightly from $136 million, with adjusted EPS at $1.60 versus $1.57 last year.

• Net cash from operating activities increased 26% to $351 million; free cash flow up 37% to $273 million.

• Quarterly dividend raised 13% to $0.45 per share, with share repurchase program renewed.

• North American leader in transport and logistics with diversified operations across LTL, TL, and Logistics segments.

Financial highlights

• Operating income was $203 million, up from $201 million, with an operating margin of 10.7% (down from 12.3%).

• Adjusted EBITDA for Q3 was $357.2 million, up from $302.5 million; adjusted EBITDA for TTM Q3 2024 was $1,326.6 million.

• Free cash flow for Q3 was $273 million, compared to $198 million in the prior year.

• Annual forward dividend yield of 1.3% based on a $0.45 dividend and $136.89 share price as of September 30, 2024.

• $2.1 billion returned to shareholders since 2017; $6.3 billion total FCF generated over 20 years.

Outlook and guidance

• 2024 performance is expected to mirror 2023 due to persistent weak market conditions.

• 2025 EPS could approach $8 if the environment normalizes, with Daseke contributing at least $0.50 per share.

• CapEx for 2024 is projected at $300 million, easing to $250 million in 2025 as fleet age extends.

• Free cash flow for 2024 is expected between $750–$800 million.

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