The rumble of trucks across North American highways hasn’t translated to roaring profits for TFI International this quarter. The Montreal-based transportation giant reported a 14.3% decline in second-quarter profit on Monday, as persistent market weakness continues to challenge one of Canada’s largest trucking and logistics firms.
TFI posted net income of $162.4 million for the quarter ending June 30, down from $189.5 million during the same period last year. On a per-share basis, earnings fell to $1.92 from $2.19, reflecting broader pressures weighing on the transportation sector throughout 2025.
“We’re navigating through what remains a challenging freight environment,” said Alain Bédard, TFI International’s Chairman and CEO during yesterday’s earnings call. “While we’ve implemented significant operational efficiencies, the combination of lower freight volumes and continued pricing pressure has impacted our bottom line more than anticipated.”
Revenue also took a hit, dropping 5.7% to $1.87 billion compared to $1.98 billion in Q2 2024. The company’s less-than-truckload segment, which handles smaller shipments from multiple customers, saw the steepest decline with revenue falling 8.3% year-over-year.
Despite the downturn, TFI has maintained its aggressive acquisition strategy, completing three strategic purchases during the quarter. These moves align with the company’s long-term vision of consolidating smaller regional players to strengthen its North American footprint.
Industry analysts point to several factors behind TFI’s earnings slump. “We’re seeing the combined effects of softening consumer demand, inventory adjustments across retail sectors, and increased competition from smaller carriers willing to undercut rates,” said Marcus Thompson, transportation analyst at Wellington Financial Group. “TFI isn’t alone in facing these headwinds.”
The company’s operating ratio—a key efficiency metric where lower percentages indicate better performance—deteriorated to 90.2% from 88.5% a year earlier. This means TFI spent about 90 cents to generate each dollar of revenue, cutting into profit margins.
In a notable shift, TFI has accelerated its fleet modernization program, investing $73 million in new equipment during the quarter. Management believes these capital expenditures will yield long-term benefits through improved fuel efficiency and reduced maintenance costs.
“While we can’t control market conditions, we can control our operational excellence,” Bédard emphasized. “Our focus remains on disciplined cost management and strategic growth initiatives that position us for the eventual market recovery.”
The earnings report comes amid broader concerns about economic slowdown, with transportation companies often serving as early indicators of shifting economic conditions. Recent data from the CO24 Business sector analysis shows freight volumes across North America have declined for three consecutive quarters.
For investors, TFI maintained its quarterly dividend at $0.45 per share, signaling confidence in its long-term financial position despite short-term challenges. The company’s stock closed down 3.2% following the earnings announcement.
Looking ahead, TFI management provided cautious guidance for the remainder of 2025, projecting modest improvement in the fourth quarter as seasonal shipping patterns typically strengthen. However, they stopped short of predicting a full recovery before 2026.
As the transportation sector continues navigating these turbulent conditions, TFI’s performance will remain a closely watched barometer for both the Canadian logistics industry and broader economic health. The question now facing the trucking giant: can operational efficiencies and strategic acquisitions outpace persistent market headwinds?
