Titanium Transportation reported revenue growth in 2024, including in Q4, but reported a net loss as it faced ongoing tough market conditions and depressed rates.
The company saw substantial growth in its logistics segment, with revenue up 18.4% year over year to $61.5 million. Volumes in the logistics segment were up 25% y-o-y in Q4.
Total Q4 revenue was $113.8 million, compared to $112.8 million in Q4 2023. Truck transportation revenue, however, slid 10.3% to $54.9 million. Full-year 2024 revenue was up 11.3% to $460.2 million, with logistics revenue climbing 10.6% and truck transportation 11.6%.
CEO Ted Daniel said in an earnings release: “2024 was a year of disciplined execution as we navigated a prolonged downturn in the freight market while remaining focused on strengthening our balance sheet and positioning Titanium for long-term success.”
Looking ahead, he added: “As we enter 2025, the operating environment remains uncertain with impending tariffs and other ongoing market challenges. Titanium is well-positioned to navigate this uncertainty and capitalize on improving industry fundamentals.”
In a bid to pay down debt, Titanium closed non-core, underutilized operations in North Bay and Cornwall, Ont. The logistics segment showed reason for optimism; Titanium moved 25,000 more loads last year than in 2023 and has two new U.S.-based brokerages set to open this quarter in Texas and Virginia.
The decline in profitability stemmed from soft pricing and a weak freight environment, which coincided with costs related to its integration of U.S.-based Crane Transport, Daniel explained during a conference call with analysts.
Better year ahead?
But early in 2025, the company is seeing reason for optimism.
“As we start 2025, we are seeing renewed customer interest in a slowly improving rate environment,” Daniel said.
While the company projects the first half of 2025 to remain muted, it anticipates a stronger second half to the year.
“It seems like there is this sort of renewed demand,” Daniel said. “I’d say it’s pretty sure and steady. We’re busy, which is kind of a nice change. From a pricing perspective as well, we’re feeling we are actually finally getting some tightening in terms of the elasticity in the rate environment…What we’re seeing now is that rates are coming back to what makes a lot more sense.”
He added the company has also noticed a decrease in capacity, which should also drive improving rates. “It’s definitely feeling more bullish this year,” said Daniel. “In spite of the whole volatility with the tariffs coming in and out, the whole thing.”
What about those tariffs?
Even tariffs, so far, don’t appear to be upending the freight market, Daniel said. He noted Titanium is somewhat protected, as two-thirds of its business is domestic, and because it has both asset-light and asset-heavy operations on both sides of the border.
But customers, so far, appear to be riding it out and not rejuggling their supply chains.
“Customers are just dealing with the situation,” Daniel said of feedback he’s received from shippers. “The feedback we’re getting from most of our customers is, it’s business as usual. If they have to adjust their pricing a little bit, they’re going to adjust their pricing. It’s just going to be another increase to inputs.”
He added, “Freight will continue to move on trucks, but the directions may change. We are already established and equipped to execute responsibly and effectively in both segments [U.S. and Canada]. In other words, maybe a little less north-south and a little more movement east-west.”
U.S. vs Canada
Chief operating officer Marilyn Daniel noted there is more optimism within the trucking environment in the U.S. than in Canada, currently.
“There is some renewed confidence that the U.S. marketplace will thrive in the environment being created with the Trump administration,” she said. “And obviously, on our side, because of the balance of trade, we have a little bit more worry from our own [Canadian] population and customer base.”
However, there’s not a significant variance in how rates are faring. The good news, added Ted Daniel, is that spot market rates are improving on both sides of the border.
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