Q2 2026 TFI International Inc Earnings Call Transcript
Key Points
- TFI International Inc (TFII) reported stronger-than-expected quarterly results, with adjusted diluted EPS of $1.85, exceeding the forecasted range and up 38% year over year.
- All three business segments grew operating income by double digits, contributing to a nearly 30% increase in overall operating income.
- The company generated more than $200 million in free cash flow, supporting strategic capital allocation and shareholder returns, including $40 million in quarterly dividends.
- TFI International Inc (TFII) improved its balance sheet, with a funded debt-to-EBITDA ratio decreasing to 2.4 from 2.5 at the start of the year.
- The Truckload segment showed significant improvement, with operating income up 50% and an adjusted operating ratio improving by 400 basis points.
- The LTL segment is experiencing flat year-over-year margins due to soft market conditions and challenges in pricing.
- There is an excess volume issue in the LTL segment, particularly with 3PL blanket pricing, leading to higher costs and the need for pricing adjustments.
- The company faces challenges in the Canadian Truckload segment due to weak sectors like steel and forest products, impacted by trade issues with the US.
- TFI International Inc (TFII) had to increase accident reserves by $10.5 million in the quarter, which is not expected to recur but impacted financials.
- The US LTL segment requires significant improvements to reach its full potential, with ongoing efforts to address pricing and operational inefficiencies.
Good day, ladies and gentlemen. Thank you for standing by. Welcome to TFI International's second-quarter 2026 earnings call. At this time, all participant lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. Callers will be limited to 1 question and 1 follow-up. Again, that's 1 question and 1 follow-up so that we can get to as many callers as possible. Further instructions for entering the queue will be provided at that time.
Please be advised that this conference call may contain statements that are forward-looking in nature and are subject to a number of risks and uncertainties that could cause actual results to differ materially. I would also like to remind everyone that this conference call is being recorded on July 27, 2026.
Joining us on the call today are Alain Bedard, Chairman, President, and Chief Executive Officer; and David Saperstein, Chief Financial Officer.
I would like to turn the conference over to Mr. Alain Bedard. Thank you. Please go ahead.
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