TFI International Operating Income Drops to $96.6 Million
The transportation and logistics provider reported a first quarter net income of $43.3 million compared to $56.0 million in the prior year period.
TFI International Inc. (TFII), a North American provider of transportation and logistics services, reported a decline in profitability for the first quarter ended March 31, 2026. Operating income fell to $96.6 million from $114.6 million in the same quarter of the previous year.
Total revenue for the period was $1,949.1 million, down from $1,964.4 million in the first quarter of 2025. Revenue before fuel surcharges followed a similar trajectory, decreasing to $1,702.6 million from $1,714.5 million. Adjusted EBITDA declined to $241.4 million from $259.0 million.
Net income fell to $43.3 million from $56.0 million, resulting in diluted earnings per share of $0.53 compared to $0.66 a share in the prior year. On an adjusted basis, net income was $57.2 million compared to $64.2 million, with adjusted diluted earnings per share of $0.69 compared to $0.76 a share.
Cash flow from operations decreased to $121.5 million from $193.6 million. Free cash flow also declined to $123.7 million from $191.7 million. Despite these declines, the company's Board of Directors approved a quarterly dividend of $0.47, which represents a 4% increase over the prior year period.
Segment performance showed mixed results. The Truckload segment saw revenue before fuel surcharges rise to $672.8 million from $662.9 million, with an operating income of $55.8 million. The Logistics segment reported revenue before fuel surcharges of $388.3 million, nearly flat compared to $384.9 million in the prior year, and generated an operating income of $34.4 million. Conversely, the Less-Than-Truckload segment saw revenue before fuel surcharges drop to $656.3 million from $679.0 million, with operating income falling to $30.6 million.
Alain Bédard, Chairman, President and Chief Executive Officer, said the company exceeded its first quarter earnings outlook due to stronger revenue and higher profitability in Truckload and Logistics, despite adverse weather early in the quarter.
TFI International says it remains focused on an asset-light approach and enhancing efficiencies to capitalize on potential growth in domestic manufacturing, data centers, and the electric grid. The company also notes that its Logistics segment is structured to benefit from the expansion of domestic truck production and e-commerce.