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Yahoo
15 hours ago
- Business
- Yahoo
TFI International Inc (TFII) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Total Revenue Before Fuel Surcharge: $1.8 billion, down from $2 billion a year earlier. Operating Income: $170 million, representing a 9.5% margin. Adjusted Net Income: $112 million, compared to $146 million last year. Adjusted EPS: $1.34, down from $1.71. Net Cash from Operating Activities: $247 million, virtually flat with the prior year. Free Cash Flow: $182 million, up from $151 million in the second quarter of 2024. LTL Revenue Before Fuel Surcharge: $704 million, down 11% year over year. LTL Operating Income: $74 million, compared to $110 million in the prior year. LTL Operating Ratio: 89.5%, compared to 86.2% in the second quarter of 2024. Truckload Revenue Before Fuel Surcharge: $712 million, compared to $738 million a year earlier. Truckload Operating Income: $71 million, versus $81 million in the prior year. Truckload Operating Ratio: 90.1%, relative to 89% in the second quarter of 2024. Logistics Revenue Before Fuel Surcharge: $393 million, down from $442 million in the prior year. Logistics Operating Income: $38 million, compared to $51 million. Logistics Operating Margin: 9.6%, compared to 11.4% in the prior year second quarter. Funded Debt-to-EBITDA Ratio: 2.4 times. Share Repurchases: $85 million worth of shares repurchased during the quarter. Dividends Paid: $39 million, totaling $124 million of capital returned to shareholders. Third Quarter 2025 EPS Outlook: Expected range of $1.10 to $1.25. Net CapEx Expectation for Full Year: Approximately $200 million. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points TFI International Inc (NYSE:TFII) reported strong free cash flow of $182 million, significantly above the previous year's $151 million. The company maintained a strong balance sheet and further strengthened it through a private placement bond offering. TFI International Inc (NYSE:TFII) achieved a 9.5% operating margin, an improvement from the previous year's 2.5%. The company repurchased $85 million worth of shares and paid out $39 million in dividends, returning a total of $124 million to shareholders. TFI International Inc (NYSE:TFII) implemented technology tools like Optum to improve efficiencies and reduce costs, particularly in linehaul operations. Negative Points Total revenue before fuel surcharge decreased to $1.8 billion from $2 billion a year earlier. Adjusted net income fell to $112 million from $146 million in the previous year, with adjusted EPS dropping from $1.71 to $1.34. The LTL segment saw a decline in revenue and operating income, with an operating ratio increase from 86.2% to 89.5%. Truckload segment revenue and operating income also decreased, with tariff-related uncertainties affecting demand. Logistics segment revenue and operating income declined, with a decrease in operating margin from 11.4% to 9.6%. Q & A Highlights Q: Can you remind us what is the margin ceiling you can achieve with further internal actions before the cycle starts to help you out on the LTL side? A: Alain Bedard, CEO, explained that TFI is very cost-sensitive and has implemented tools like Optum for linehaul and P&D to reduce costs. They have reduced linehaul miles on the rail from over 30% to closer to 20% and aim to further decrease this. Improvements in claims and safety are also targeted, with new hires to enhance safety culture. AI is being explored to reduce labor intensity and costs. Q: Can you give us a little more color on the Q3 guidance, $1.10 to $1.25, and the margin assumptions there? A: David Saperstein, CFO, stated that the guidance is based on historical seasonality, with expected sequential declines in margins across divisions. The company aims to offset some of this with idiosyncratic opportunities. Q: Are you seeing any signs that the macro environment could start to improve in the front half of '26? A: Alain Bedard, CEO, expressed optimism that the new US budget could revive industrial investment, potentially ending the freight recession. However, concrete improvements have not yet been seen, and any recovery might be more evident in late '25 or early '26. Q: Can you talk about the sustainability of the free cash flow? A: Alain Bedard, CEO, emphasized TFI's strong cash generation, even in difficult macro conditions. The company aims to maintain this by focusing on asset-light models, particularly in the US, and expects free cash flow to potentially reach close to $1 billion in a normal environment. Q: Are there any plans for M&A in the LTL sector, given the improvements seen this quarter? A: Alain Bedard, CEO, stated that while M&A for LTL is not currently on the table, the company aims to prove control over TForce Freight first. If successful, they might consider larger transactions in 2026, but for now, they focus on buying back TFI shares. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
15 hours ago
- Business
- Yahoo
TFI International Inc (TFII) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Total Revenue Before Fuel Surcharge: $1.8 billion, down from $2 billion a year earlier. Operating Income: $170 million, representing a 9.5% margin. Adjusted Net Income: $112 million, compared to $146 million last year. Adjusted EPS: $1.34, down from $1.71. Net Cash from Operating Activities: $247 million, virtually flat with the prior year. Free Cash Flow: $182 million, up from $151 million in the second quarter of 2024. LTL Revenue Before Fuel Surcharge: $704 million, down 11% year over year. LTL Operating Income: $74 million, compared to $110 million in the prior year. LTL Operating Ratio: 89.5%, compared to 86.2% in the second quarter of 2024. Truckload Revenue Before Fuel Surcharge: $712 million, compared to $738 million a year earlier. Truckload Operating Income: $71 million, versus $81 million in the prior year. Truckload Operating Ratio: 90.1%, relative to 89% in the second quarter of 2024. Logistics Revenue Before Fuel Surcharge: $393 million, down from $442 million in the prior year. Logistics Operating Income: $38 million, compared to $51 million. Logistics Operating Margin: 9.6%, compared to 11.4% in the prior year second quarter. Funded Debt-to-EBITDA Ratio: 2.4 times. Share Repurchases: $85 million worth of shares repurchased during the quarter. Dividends Paid: $39 million, totaling $124 million of capital returned to shareholders. Third Quarter 2025 EPS Outlook: Expected range of $1.10 to $1.25. Net CapEx Expectation for Full Year: Approximately $200 million. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points TFI International Inc (NYSE:TFII) reported strong free cash flow of $182 million, significantly above the previous year's $151 million. The company maintained a strong balance sheet and further strengthened it through a private placement bond offering. TFI International Inc (NYSE:TFII) achieved a 9.5% operating margin, an improvement from the previous year's 2.5%. The company repurchased $85 million worth of shares and paid out $39 million in dividends, returning a total of $124 million to shareholders. TFI International Inc (NYSE:TFII) implemented technology tools like Optum to improve efficiencies and reduce costs, particularly in linehaul operations. Negative Points Total revenue before fuel surcharge decreased to $1.8 billion from $2 billion a year earlier. Adjusted net income fell to $112 million from $146 million in the previous year, with adjusted EPS dropping from $1.71 to $1.34. The LTL segment saw a decline in revenue and operating income, with an operating ratio increase from 86.2% to 89.5%. Truckload segment revenue and operating income also decreased, with tariff-related uncertainties affecting demand. Logistics segment revenue and operating income declined, with a decrease in operating margin from 11.4% to 9.6%. Q & A Highlights Q: Can you remind us what is the margin ceiling you can achieve with further internal actions before the cycle starts to help you out on the LTL side? A: Alain Bedard, CEO, explained that TFI is very cost-sensitive and has implemented tools like Optum for linehaul and P&D to reduce costs. They have reduced linehaul miles on the rail from over 30% to closer to 20% and aim to further decrease this. Improvements in claims and safety are also targeted, with new hires to enhance safety culture. AI is being explored to reduce labor intensity and costs. Q: Can you give us a little more color on the Q3 guidance, $1.10 to $1.25, and the margin assumptions there? A: David Saperstein, CFO, stated that the guidance is based on historical seasonality, with expected sequential declines in margins across divisions. The company aims to offset some of this with idiosyncratic opportunities. Q: Are you seeing any signs that the macro environment could start to improve in the front half of '26? A: Alain Bedard, CEO, expressed optimism that the new US budget could revive industrial investment, potentially ending the freight recession. However, concrete improvements have not yet been seen, and any recovery might be more evident in late '25 or early '26. Q: Can you talk about the sustainability of the free cash flow? A: Alain Bedard, CEO, emphasized TFI's strong cash generation, even in difficult macro conditions. The company aims to maintain this by focusing on asset-light models, particularly in the US, and expects free cash flow to potentially reach close to $1 billion in a normal environment. Q: Are there any plans for M&A in the LTL sector, given the improvements seen this quarter? A: Alain Bedard, CEO, stated that while M&A for LTL is not currently on the table, the company aims to prove control over TForce Freight first. If successful, they might consider larger transactions in 2026, but for now, they focus on buying back TFI shares. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
First look: Most metrics at TFI are down from 2Q 2024 but Bedard touts higher margin
The earnings report at diversified carrier TFI International (NYSE: TFII) beat Wall Street estimates on the bottom line, but virtually every operational metric in its key LTL division, including the U.S. operations that house the former UPS Freight acquisition, was lower compared to the second quarter of 2024. But in the first moments of the company's earning call with analysts, CEO Alain Bedard noted 'strong' free cash flow figures and 'solid margin performance.' He also cited sequential improvement in operating ratio at the LTL operations. And Wall Street liked what it heard, with post-close trading boosting TFI stock by about 6.25%. The operating ratio (OR) at U.S. LTL in the second quarter ballooned to 94% from 90.8% in the corresponding quarter of 2024. Revenue per hundredweight excluding fuel fell just under 2% to $331.18. In a prepared statement released with the earnings, TFI noted the one bright spot in the U.S. LTL operations, an increase in weight per shipment of just over 5%. But the rest of the countdown of various measures was all negative: a 10.1% drop in the number of shipments and a 5.5% decline in the total level of shipments as measured in tons. Canadian LTL, which has been the example that TFI management has said it wants to emulate in the U.S., suffered a worse decline in its OR, dropping 500 bps to 80.6%. Revenue per hundredweight excluding fuel was down 3.56%. The truckload operations at TFI suffered the same sort of weak quarter that has been showing up in other earnings reports from truckload carriers. Revenue before fuel was down about 3.4%, adjusted EBITDA was down a little more, but revenue per truck per week excluding fuel was down only a small amount. The adjusted OR in truckload declined 110 bps to 90.1%. TFI's overall adjusted net income of $1.34 per share was down from $1.71 in the corresponding quarter a year earlier. However, according to SeekingAlpha, it was still 11 cents better than forecasts. Total revenue of $1.8 billion was down 9.4% from a year earlier. It was also $20 million less than the Wall Street consensus, according to SeekingAlpha. By the close of trading Monday, TFI stock was down about 41.3% in the last 12 months before the post-market increase. , More articles by John Kingston Yet another broker liability case, this time in the Fifth Circuit, adds to the growing mix Ryder's used vehicle numbers show a bullish corner: tractor sales Five takeaways from the State of Freight for July: What earnings and the indices are saying about the market The post First look: Most metrics at TFI are down from 2Q 2024 but Bedard touts higher margin appeared first on FreightWaves.
Yahoo
4 days ago
- Business
- Yahoo
Saia's Q2 results were better than feared, stock up 13%
Less-than-truckload carrier Saia reported a significant step up in financial results during the second quarter, following a first-quarter miss that led to a 30% drop in shares on the day of the report. Tariff noise tanked demand in the first quarter, exacerbating incremental costs incurred by the company to open and operate new terminals. Saia (NASDAQ: SAIA) reported second-quarter earnings per share of $2.67 ahead of the market open on Friday. The result was 28 cents ahead of consensus and 81 cents better than the first quarter. (The EPS result was $1.16 lower year over year.) A combination of higher interest expense (net debt used to fund terminal acquisitions increased $125 million y/y) and a higher tax rate were a 10-cent drag on the quarter. The better-than-expected result pushed Saia's shares 12.9% higher in pre-market trading on Friday. The Johns Creek, Georgia-based carrier reported a slight y/y dip in revenue to $817 million, but the result was $9 million ahead of analysts' expectations. Tonnage increased 1.1% y/y but revenue per hundredweight, or yield, was down 2.1% y/y (1.2% lower excluding fuel surcharges). The tonnage increase resulted from a 2.8% decline in shipments, which was offset by a 4% increase in weight per shipment. Higher shipment weights were a drag on the yield metric in the period and were only partially offset by a 0.6% increase in length of haul. 'I was pleased with our team's ability to focus on what was within our control in the second quarter,' said Saia President and CEO Fritz Holzgrefe in a news release. 'Our continued emphasis on taking care of the customer in all of our markets, mix management, and managing costs to adjust to current volume trends demonstrated our ability to navigate a dynamic backdrop.' Saia reported an 87.8% operating ratio (inverse of operating margin), which was 450 basis points worse y/y, but 330 bps better than the first quarter. The result was also 120 bps better than management's guidance. Cost per shipment was up 7.7% but revenue per shipment increased just 1.8%. Saia will host a conference call at 10 a.m. EDT on Friday to discuss second-quarter results. More FreightWaves articles by Todd Maiden: Heartland Express books another loss in Q2 Knight-Swift's belt tightening offsets soft demand FedEx Freight gives shippers 'more time' to adjust to new LTL class rules The post Saia's Q2 results were better than feared, stock up 13% appeared first on FreightWaves. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
19-07-2025
- Business
- Yahoo
A. Duie Pyle to bolster Ohio service with new terminals
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. A transportation management system quirk is leading A. Duie Pyle to up its competitive offerings in Ohio. The West Chester, Pennsylvania-based LTL provider is aiming to aggressively expand its service in the Buckeye State after noticing how route planning software caused customers to go elsewhere, the company's LTL solutions COO, John Luciani, said in a June interview. A. Duie Pyle had been partnering with Dayton Freight Lines to provide two-day service in Ohio. Still, with more opportunities available for freight, the carrier is increasing density to support faster, overnight deliveries. The carrier's network currently includes a site near Cleveland in the city of Streetsboro, according to its website. Now, a leased terminal from ABF Freight in Columbus and a former Yellow Corp. terminal in Bowling Green, which was acquired by ADP, will both open July 21, Luciani said. Bowling Green improves service to Toledo. 'Our focus is going to be on those markets, back into our core area in the Northeast,' Luciani said. 'So Columbus to New Jersey. Columbus to metropolitan New York, which nobody is doing.' The carrier is also looking for a service center in Cincinnati to add to the mix, Luciani said. The company plans to secure that by the end of the year. 'We have plans once we get up and running to stretch the transit to get into New York City overnight from Columbus, Cincinnati and Toledo,' he said. 'We're going to be aggressive.' Recommended Reading A. Duie Pyle buys 2 more Yellow terminals for $4.5M
