TFI International reported lower revenue and profit in the third quarter as weaker freight volumes continued to weigh on the company’s earnings.
TFI posted total revenue of $1.97 billion (all figures USD), down from $2.18 billion in the same period a year earlier. The company said the decline was driven by reduced shipment volumes tied to softer end-market demand.
Net income dropped to $84.7 million from $125.9 million a year earlier.
Revenue declined across all major business segments — LTL, truckload and logistics — and operating income also weakened, with the largest percentage decline in the logistics unit.
The company said it continues to prioritize service and cost discipline and noted ongoing strong free cash flow. Looking ahead, TFI expects freight conditions to remain subdued in the near term.
Call with analysts
On a conference call with analysts this morning, chairman and CEO Alain Bedard said he expects improving market conditions in the U.S. in 2026, despite a slow start to Q4.
“Going into 2026, we are starting to have a feeling that after three years of a very, very difficult freight recession, we believe finally all the effects of the Big Beautiful Bill and the fact the consumer will probably get some tax refund and investment will take place in the industrial sector in the U.S., we feel way, way better about 2026 than 2025,” Bedard said. “I think finally the sun is going to start coming up in 2026.”
But there are ongoing short-term challenges to first overcome. This includes the U.S. government shutdown, which has a big impact on TFI’s U.S. truckload business that serves the Department of Defense, and the downturn in the truck market (TFI moves finished trucks for Paccar and Freightliner).
Investing in AI
Since TFI International doesn’t control macro-economic conditions, Bedard said it has instead focused on cost controls and improving customer service. Those efforts are yielding results, he said.
TFI has improved the quality of its revenue by being more selective about the freight it hauls and is also making operational enhancements to improve customer service.
It is better managing its equipment downtime and has reduced a typical breakdown from 85 hours of shop time, down to about 45.
“That’s still too much, but it helps our cost. We don’t have to rent a truck for five to six days,” Bedard said of the improvement.
TFI has also improved its customer service in the U.S.; missed pickups have been slashed by 60% and rescheduled pickups by 34%. And it is also working to bring its U.S. claims costs down from 0.7% of revenue to a more palatable 0.2%, which is its norm in Canada.
“We have a team focused on that, day-in and day-out, trying to get that 0.7% down to a more normal level,” Bedard said.
Next year, the company will be leveraging AI to ensure it can be more efficient when the market turns.
“AI is something that’s going to change a lot,” Bedard said. “We are embracing AI big-time and will be investing in that. It’s a big focus of ours in 2026.”
Encouraged by potential Driver Inc. crackdown
Bedard also expressed optimism over efforts in both Canada and the U.S. to crack down on illegal operators. In the U.S. this takes the form of those using improperly obtained CDLs or unable to meet English language proficiency requirements, while in Canada he was referring to government promises earlier this week to stamp out the misclassification of truck drivers.
“We just saw a Driver Inc. [company] up for sale. We’re not going to buy a Driver Inc. company, but those guys are starting to feel, ‘Woah, things are changing in Canada,’” Bedard suggested, referring to the scheme in which company drivers are misclassified as independent contractors.
That, combined with sluggish Class 8 truck orders, indicate to Bedard that capacity will be tightening.
Still, Bedard feels Canadian freight will remain weak until a trade deal is reached with the U.S. In the meantime, while TFI’s acquisition strategy of late has been directed toward buybacks of its own shares, Bedard said it may be time to resume looking at potential acquisitions.
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