Latest news with #Bédard
Yahoo
12-08-2025
- Business
- Yahoo
TFI projects $75M savings from new US tax law
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. TFI International projects it will achieve $75 million in savings due to the U.S.' One Big Beautiful Bill Act tax package, the company said on a July 28 earnings call. The money would not be gained without the recent tax law, CFO David Saperstein told analysts. The projection is based on a cash tax benefit involving capital expenditures over a five-year period, with $40 million realized in the first two years. Additionally, company executives told investors they were optimistic the tax plan and administration's budget would help the trucking industry finally emerge from an approximately three-year freight recession. Saperstein said he expects the cash tax savings will spread throughout the economy to companies doing capital expenditures, and those companies represent TFI's customers. CEO Alain Bédard further called out investments in industrial sectors, housing and schools as potential drivers for the economy. 'We feel way better that we're finally going to get out of this freight recession,' Bédard said, while cautioning that market demand has continued to lag. Truck orders have been choppy in recent months, with some carriers lowering forecasts, such as Knight-Swift Transportation Holdings and Werner Enterprises. Schneider National, which reported its earnings later than those carriers, reported July 31 that its capital expenditure plan would remain the same. At the same time, tariff-related uncertainty continues to weigh on industrial end market demand, Bédard said. 'A lot of our customers are just waiting on the sideline' for clarity on the direction of the economy and when the uncertainty would end, he said. Meanwhile, TFI's profitable U.S.-Canada LTL traffic was down, the company reported on the call. For the segment as a whole, its operating income was $73.6 million for Q2, a 33% decrease from a year ago. Even though industrial sentiment has lagged in recent years, TFI purchased Daseke over a year ago, in part, because the company anticipated a turnaround in that sector, according to the company. 'We were maybe one year too early,' Bédard said. The company is working to integrate Daseke's operations and reduce its truckload operating ratio, and that turnaround could make significant gains in early 2026, according to Bédard. If the market helps, that could happen more quickly, he said. 'We're still doing really well, but we're down, right?' Bédard said, adding that once U.S. tariff issues involving Canada and Mexico are resolved, freight should return. Recommended Reading US imposes 35% tariff on Canada imports 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
02-05-2025
- Business
- Yahoo
TFI walks away from M&A deal due to tariff uncertainty
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. TFI International is avoiding 'anything of size' for mergers and acquisitions in 2025 due to tariff uncertainty, CEO Alain Bédard said during the company's Q1 earnings call on April 24. 'We had to walk away from a transaction that was a great transaction for both parties, the seller and us, and we had to walk away because of all this environment,' Bédard said. 'Because of all this uncertainty, we said, no, forget about it.' TFI was able to close two small deals during the quarter, Basin Transportation and Veilleux Transit, according to an earnings press release. But now, the carrier is focused on buying back its own stock and improving its U.S. LTL business. 'Our M&A in '25 … is going to be minimal,' Bédard said. The company also wants to turn things around with TForce Freight, which it acquired four years ago. The goal is to achieve a 90 or under operating ratio. The company's Canada LTL runs at an 80 operating ratio, Bédard said. Postponing M&A marks a change for TFI, which has been on an acquisition spree for quite some time. "In the last twelve months, 90 facilities were added from business acquisitions and terminal consolidation decreased the total number of facilities by 64," according to TFI's quarterly report. In April 2024, TFI acquired Daseke. The Canada-based freight conglomerate plans to spin off Daseke, but it has paused the move until it can acquire another major LTL carrier, according to a Q3 2024 earnings call. The company has also purchased several Yellow Corp. terminals in California, Kentucky and North Carolina. Other acquisitions in the past two years include JHT Holdings, Hercules Forwarding, Sharp Trucking Services and LJW Tank Lines. In 2021, TFI acquired UPS Freight, the parcel carrier's former freight business consisting of less-than-truckload and dedicated truckload services. The acquisition fueled TFI's creation of TForce Freight. Going forward, Bédard said 'another acquisition of size in the US' is still part of TFI's long-term plan. The company's free cash flow in the most recent quarter was more than $190 million, giving it leverage to invest in M&A when the time is right, Bédard added. Recommended Reading TFI scraps plan to redomicile to the US Sign in to access your portfolio
