Breaking Down TFI International Inc. (TFII) Financial Health: Key Insights for Investors

You're looking at TFI International Inc. (TFII) and trying to map the path forward, especially after a third quarter that showed the real pressure of a muted freight environment. The direct takeaway is this: the company is executing a textbook defensive strategy, prioritizing cash flow and shareholder returns over top-line growth right now. While total revenue for Q3 2025 came in at $1.97 billion, a near 10% year-over-year drop, the operational discipline is defintely the story. They managed to generate over $570 million in free cash flow year-to-date, which is a massive signal of financial health, and they used that strength to increase the quarterly dividend to $0.47 per share. This cash-rich resilience is why, despite the adjusted diluted EPS of $1.20 reflecting the market slowdown, analysts still have an average 12-month price target around $112.20; they see the company positioned to snap back aggressively when freight volumes recover. We need to look past the revenue dip and focus on how they're tightening the screws in Less-Than-Truckload (LTL) to understand the true opportunity here.

Revenue Analysis

The core takeaway for TFI International Inc. (TFII) in the 2025 fiscal year is a slight contraction in total revenue, reflecting the broader weakness in the North American freight market. Your trailing twelve months (TTM) revenue ending September 30, 2025, stood at approximately $8.05 billion, a year-over-year decline of about -2.91%. This dip isn't a surprise; it shows the challenging environment is finally catching up, even with TFII's disciplined operating model.

TFI International Inc.'s revenue streams are intentionally diversified across four primary segments, which is a key part of their risk mitigation strategy. The bulk of the company's income comes from its Truckload and Less-Than-Truckload (LTL) operations. For the year-to-date period ending Q2 2025, the Truckload segment was the largest contributor, followed by the U.S. LTL business. That diversification is defintely helping to stabilize the overall top line.

Here is the quick math on how the segments contributed to the revenue through the first half of 2025:

The most significant change in revenue streams is the divergence in segment performance, especially when looking at the nine-month period ending September 30, 2025, where total revenue was $5.97 billion. The Truckload segment actually saw a revenue increase of 9% relative to the prior year period, primarily due to strategic tuck-in acquisitions, like Daseke. But, the drag from the weak market is clear in the other segments.

The Less-Than-Truckload segment revenue dropped by 12%, and the Logistics segment revenue decreased by 13% over the same nine-month period. This shows that while acquisitions can provide a buffer and a clear growth path in one area, the core freight business is still subject to the cyclical downturn and reduced volumes. You need to watch the LTL and Logistics segments closely; their revenue decline indicates a persistent weakness in end-market demand, which is a common theme across the industry. This is the real story behind the numbers, as detailed in our full analysis on Breaking Down TFI International Inc. (TFII) Financial Health: Key Insights for Investors.

So, the action item for you is to monitor the Q4 2025 report for any signs of stabilization in the LTL and Logistics segments. If those segments continue to post double-digit revenue declines, the positive impact from the Truckload acquisitions will be completely offset, putting pressure on the overall 2026 outlook.

Profitability Metrics

You need to know if TFI International Inc. (TFII) is making money efficiently, especially in a soft freight market. The direct takeaway is that while top-line revenue is pressured, TFI's aggressive cost management is keeping its margins well above industry peers in key segments like Less-Than-Truckload (LTL), a sign of solid operational discipline. The company is a defintely a cash cow, but net income is down.

For the Trailing Twelve Months (TTM) ending September 30, 2025, TFI International Inc. has demonstrated a clear focus on margin preservation, even as the overall transportation environment remains challenging. Here's the quick math on the key profitability ratios for the TTM period:

• Gross Profit Margin: The TTM Gross Margin stands at approximately 20.17%, which is a strong indicator of pricing power and efficient cost of goods sold (COGS) management.
• Operating Margin: The TTM Operating Margin is 6.67%, reflecting the cost of running the business beyond the direct cost of service.
• Net Profit Margin: The TTM Net Profit Margin is 4.06%, showing what percentage of revenue is converted to profit after all expenses, taxes, and interest.

What this estimate hides is the sequential improvement in operational efficiency. For instance, in Q2 2025, the consolidated operating margin jumped to 9.5% from 2.5% in the prior year period, showing the immediate impact of management's focus on cost control.

Trends and Operational Efficiency

The trend in profitability over the last couple of years is a classic tale of a cyclical industry facing an economic slowdown, but TFI International Inc. is navigating it better than most. Net Income has been under pressure, dropping to $0.327 billion (TTM Sep 30, 2025) from $0.422 billion in the full year 2024. This 29.79% decline year-over-year in TTM net income is not a surprise, but it forces a deeper look into cost management.

TFI's operational efficiency is its core competitive advantage, driven by a decentralized, 'buy-fix-scale' model. The company's management is intensely focused on improving the Operating Ratio (OR) in its segments, which is the key metric in trucking (operating expenses as a percentage of revenue). The Less-Than-Truckload (LTL) segment, a high-margin business for TFI, saw its Operating Ratio improve sequentially by 360 basis points in Q2 2025, landing at 89.5%. This means for every dollar of LTL revenue, only $0.895 was spent on operating costs-a clear sign of a disciplined approach to cost control and pricing, even when volumes are down.

Peer Comparison and Risk Mapping

When you compare TFI International Inc.'s profitability ratios to broader industry averages, you see why it's considered an elite operator. The TTM Operating Margin of 6.67% is significantly higher than some direct competitors, like YRC Worldwide at 1.39%, though slightly below Universal Logistics Holdings at 7.48%.

To be fair, the industry-wide TTM Gross Margin average of 40.06% and Net Profit Margin of 18.05%, often quoted for the broader transportation sector, can be misleading because they include highly asset-light logistics and freight forwarding companies. TFI, with its significant LTL and Truckload assets, will naturally have a lower Gross Margin due to higher direct costs like fuel, maintenance, and driver wages.

The real opportunity here is in the segment-level performance. The company's lower capital intensity, with net capital expenditures as a percentage of total revenue at only 2.4%-far below the LTL peer average of 12.2%-translates directly into superior free cash flow conversion. This strong cash generation is what funds the strategic acquisitions and shareholder returns. For a deeper understanding of the company's long-term vision, you should review the Mission Statement, Vision, & Core Values of TFI International Inc. (TFII).

The risk is that while TFI has controlled its costs, a prolonged weak freight environment could continue to pressure the top line, making it harder to maintain these margins. Still, the company's focus on margin over volume is a clear sign of management prioritizing long-term profitability.

Next step: Check the upcoming Q4 2025 guidance for any signs of a late-year industrial sector recovery. (Finance: Track Q4 2025 guidance release date).

Debt vs. Equity Structure

You're looking at TFI International Inc. (TFII)'s balance sheet and wondering if their growth is on solid ground or built on too much borrowed money. The short answer is that TFI International Inc. is using debt aggressively-but within manageable limits-to fuel its acquisition strategy, a common move in the capital-intensive logistics sector.

As of late 2025, the company's capital structure shows a clear reliance on debt, but its financial covenants remain healthy. The total debt on TFI International Inc.'s balance sheet, as of June 2025, stood at approximately $3.02 Billion USD. [cite: 9, 12 in previous step] This debt is a mix of short-term and long-term obligations, with the bulk being long-term to finance its core assets and M&A activity.

The latest breakdown, as of March 31, 2025, shows the company's long-term debt at roughly $2.40 Billion USD, [cite: 6 in previous step] with current contractual obligations (a proxy for short-term debt and current liabilities) due in less than one year totaling about $361.76 Million USD. [cite: 6 in previous step] Here's the quick math on their leverage:

• Total Debt (June 2025): $3.02 Billion USD
• Shareholders' Equity (March 2025): $2.63 Billion USD [cite: 6 in previous step]

Debt-to-Equity Ratio: A Comparative View

The Debt-to-Equity (D/E) ratio is your key metric here; it tells you how much debt the company is using for every dollar of equity. TFI International Inc.'s trailing twelve-month (TTM) Debt-to-Equity ratio as of November 2025 is approximately 1.14. [cite: 7 in previous step] This means the company has about $1.14 in debt for every dollar of shareholder equity. To be fair, this is right in the sweet spot for a capital-intensive industry like trucking and logistics, where a ratio between 1.0 and 1.5 is often considered healthy for growth. Anything over 2.5 can start to look defintely risky.

Still, you need to compare this to peers. A pure-play competitor like Old Dominion Freight Line operates with a near-zero net debt position, which is a far more conservative approach. TFI International Inc.'s higher ratio signals a more aggressive, growth-by-acquisition strategy. This is a deliberate choice, prioritizing external funding for expansion over diluting shareholder value through new equity.

Recent Debt Activity and Financial Health

TFI International Inc. manages its debt through a mix of instruments, providing stability and staggered maturity dates. The company has an unsecured revolving credit facility and a term loan, both maturing in March 2027, plus unsecured senior notes that stretch out to October 2043. [cite: 6 in previous step] This long-dated maturity profile is smart, pushing major repayment risk far into the future.

The most crucial check is the company's ability to service this debt. As of June 30, 2025, TFI International Inc.'s funded debt-to-EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ratio was a comfortable 2.35. [cite: 10 in previous step] This is significantly below the maximum covenant of 3.5 set by its credit facility, [cite: 10 in previous step] giving them substantial breathing room to handle the current freight recession and any future acquisitions, like the one that drove up their average debt level in Q1 2025 (the Daseke acquisition). [cite: 6 in previous step] Their strategy is clear: use debt to buy growth, then let the acquired company's cash flow pay it down. You can see how this strategy fits into their overall plan by reading their Mission Statement, Vision, & Core Values of TFI International Inc. (TFII).

Next step: Check the cash flow statement to ensure operating cash flow is consistently covering the $361.76 Million in near-term obligations due by March 2026.

Liquidity and Solvency

You need to know if TFI International Inc. (TFII) has enough ready cash to cover its near-term bills, especially with a muted freight environment still impacting volumes. The short answer is yes, their liquidity position is solid, but not overly conservative. They are managing a tight, efficient balance sheet that prioritizes cash generation over hoarding cash.

Their key liquidity ratios for the 2025 fiscal year confirm this. The Current Ratio-which measures current assets against current liabilities-stands at a tight 1.06. This means TFI International Inc. has $1.06 in current assets for every $1.00 in current liabilities. The Quick Ratio (or acid-test ratio), which strips out less-liquid inventory, is nearly identical at 1.05.

• A ratio near 1.0 is healthy for a logistics company.
• It shows capital is working, not sitting idle.

Here's the quick math on their short-term buffer, based on Q3 2025 data. With total current liabilities at $1.009 billion, a 1.06 Current Ratio implies current assets are roughly $1.07 billion. This leaves a positive working capital (current assets minus current liabilities) of approximately $60.54 million. That's a thin margin, but it's defintely a positive one, indicating operational efficiency rather than a liquidity crunch.

The real strength of TFI International Inc. isn't in the static ratios, but in the dynamic cash flow. Their ability to generate cash from core operations remains robust, which is the ultimate measure of liquidity health.

This is a company that understands the value of a dollar and where it needs to be spent. You can see their full strategic priorities in their Mission Statement, Vision, & Core Values of TFI International Inc. (TFII).

Cash Flow Statement Overview: The Engine of Liquidity

TFI International Inc.'s cash flow statement for 2025 shows a clear focus on operational excellence and strategic capital allocation. The operating cash flow is the lifeblood, and it remains strong, even with market headwinds.

For the third quarter of 2025 alone, net cash flow from operating activities was $255.4 million. This is crucial because it shows the business is funding itself through its own performance. Furthermore, their year-to-date (nine months) free cash flow-the cash left over after capital expenditures-exceeded $570 million. That's a massive amount of discretionary cash flow to deploy.

The cash flow trends for Q3 2025 highlight their capital discipline:

The rise in net cash from investing activities, driven by lower capital expenditures (capex) and less spending on acquisitions, is a key near-term strength. They are being highly selective with their investments, which directly boosts their liquidity and free cash flow. This is a sign of a seasoned management team preserving capital during an uncertain cycle. The liquidity is not a concern; the strength is in the cash flow, which provides the flexibility to continue their strategic acquisitions or weather any unexpected downturns.

Valuation Analysis

You want to know if TFI International Inc. (TFII) is a buy, and the quick answer is that its valuation multiples suggest it's trading at a slight premium, but the stock's recent 42.05% drop over the last 12 months has created a compelling entry point for value-focused investors. The market is pricing in a significant slowdown, but the underlying business health remains solid.

When we look at the core valuation metrics for the 2025 fiscal year, TFI International Inc. (TFII) is not a screaming bargain, but it's defintely not wildly overvalued either. The trailing Price-to-Earnings (P/E) ratio-which compares the current stock price to the company's earnings per share over the past 12 months-is at 20.74. That's higher than the average for many industrial companies, which tells you the market still expects growth. But, the forward P/E drops to 16.96, a clear sign that analysts are forecasting better earnings ahead.

The Enterprise Value-to-EBITDA (EV/EBITDA) ratio, which is a better measure for capital-intensive logistics firms because it accounts for debt and non-cash expenses, stands at 9.42. This is right in line with the industry median, suggesting a fair, not cheap, valuation. The Price-to-Book (P/B) ratio is 2.52, indicating the stock is trading at more than twice the value of its net assets, which is typical for a company with strong brand equity and a history of profitable acquisitions.

The stock price trend tells the real story of investor sentiment. Over the 12 months leading up to November 2025, the stock price decreased by a significant 42.05%. The recent closing price of around $80.71 (as of November 20, 2025) is much closer to its 52-week low of $72.02 than its high of $155.12. This steep decline suggests the market has already factored in the weaker freight volumes and economic uncertainty we've seen through the first half of 2025.

On the income side, TFI International Inc. (TFII) offers a respectable dividend yield of 2.12%, based on an annual dividend of $1.82 per share. More importantly, the dividend payout ratio is a healthy 46.77%. This low payout ratio means the company is only using a small portion of its earnings to pay shareholders, giving it plenty of room to both increase the dividend and fund its aggressive acquisition strategy. It's a very sustainable dividend.

Analyst consensus reflects this mixed picture: the overall view is cautiously optimistic, with recent recommendations in November 2025 including a mix of 'Buy,' 'Overweight,' and 'Hold' ratings. The consensus is that while the stock is not dirt cheap, the operational efficiency and strong balance sheet-like a funded debt-to-EBITDA ratio of 2.35 as of June 2025-make it a quality investment at this depressed price level. If you're looking to dig deeper into who is buying now and why, you should read Exploring TFI International Inc. (TFII) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking at TFI International Inc. (TFII) and seeing a strong cash flow story, but you need to map the near-term risks. Honestly, the biggest challenge for TFI International Inc. right now isn't an internal mess; it's the macroeconomic headwind-the soft freight market that's been dragging on for nearly two years now.

The core external risks stem from this weakened market demand, which has directly impacted volumes and revenue across all segments. For instance, in Q2 2025, total revenue before fuel surcharge dropped to $1.8 billion from $2.0 billion a year earlier, a clear signal of lower demand. Also, continued economic uncertainty and tariff-related issues are specifically hitting the industrial end markets, which affects the Truckload and cross-border Less-Than-Truckload (LTL) volumes.

• Soft freight volumes cut revenue.
• Economic uncertainty pressures pricing.
• Tariff risks complicate industrial demand.

Operationally, the management has been very clear: the US LTL segment remains a key focus area with persistent challenges. The company's Q1 2025 results showed the LTL segment revenue declined 14% year-over-year, with its operating ratio (OR)-a measure of operational efficiency-worsening to 93.1%. That's a high number; you want to see that below 90%. Plus, there are ongoing internal operational risks in claims and accident ratios that management has called out as needing defintely 100% improvement.

Here's the quick math on how the market softness hit their bottom line, even with strong cost control:

What this estimate hides is the resilience built into their model. TFI International Inc. is not just sitting still; their mitigation strategy is all about aggressive cost control and operational efficiency. They are executing a disciplined plan to reduce their truck and trailer fleet to balance capacity with the lower demand, and they've kept a tight leash on capital spending, projecting full-year net CapEx to be approximately $200 million.

The strategic move is to improve the US LTL performance by enhancing service levels, reducing claims costs, and investing in technology. Also, their diversified model helps-with 69.3% of revenue from the US and 30.7% from Canada, and a mix of LTL, Truckload, and Logistics segments, they have multiple levers to pull when one segment is weak. They are still doing smart, tuck-in acquisitions too, like Basin Transportation LLC and Veilleux Transit Inc. in 2025, which immediately boost earnings per share (EPS).

If you want to dig deeper into who is betting on this strategy, you should read Exploring TFI International Inc. (TFII) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking at TFI International Inc. (TFII) and wondering where the next leg of growth comes from, especially with the freight market being so soft. The direct takeaway is this: TFI is shifting its focus from a frenetic acquisition spree to a disciplined, internal efficiency drive, specifically in their U.S. Less-Than-Truckload (LTL) segment, which is the key to unlocking significant near-term margin expansion.

The company's strategic playbook for 2025 is less about chasing new logos and more about maximizing the assets they already own. CEO Alain Bédard has been clear that major mergers and acquisitions (M&A) are 'minimal' this year, partly due to tariff uncertainty, even walking away from a large deal in Q1 2025. This means the primary growth driver is now operational excellence, not deal-making. They did, however, complete two small 'tuck-in' acquisitions in the first quarter of 2025, like Basin Transportation and Veilleux Transit, which is their typical way of adding density.

Here are the core growth drivers and strategic initiatives TFI International Inc. is prioritizing:

• U.S. LTL Segment Turnaround: The biggest opportunity is fixing the U.S. LTL business (TForce Freight). The goal is to drive the operating ratio (OR)-a measure of operating expenses as a percentage of revenue-down to 90 or under. For context, their Canadian LTL unit already runs at a healthy OR of 80. Every point of improvement here translates directly into millions in profit.
• Shareholder Returns and Buybacks: The capital not spent on large M&A is being redirected. The strategy for 2025 includes prioritizing substantial share buybacks, which acts as a mechanism to return capital to you and other shareholders directly.
• Truckload Spinoff Preparation: The planned spinoff of the Truckload division, which includes the significant Daseke acquisition from 2024, is still on the table but delayed. Management wants to beef up the division first, eyeing substantial Truckload and LTL deals in 2025 and 2026 before the separation, which is a defintely long-term value creation play.

Looking at the numbers, the market is expecting modest top-line growth. Revenue is forecast to grow at an average of 3.5% per annum over the next three years. This is slower than the broader North American transportation industry forecast of 7.4%, but TFI International Inc. makes up for it with superior cash generation. For the first three quarters of the 2025 fiscal year, the company generated over $570 million in free cash flow (FCF) year-to-date, a testament to their capital efficiency.

TFI International Inc.'s competitive edge is not its size, but its structure. It operates an 'asset-light' model, which means it requires significantly less capital expenditure (CapEx) than its peers. Here's the quick math on CapEx efficiency:

What this estimate hides is the potential for a massive earnings surprise if they successfully execute the LTL turnaround. That 84.4% FCF conversion in LTL is already stellar, but a lower OR means the quality of those earnings improves dramatically. The company's diversified revenue stream-LTL at 41%, Truckload at 39%, and Logistics at 20% (YTD Q3 2025)-also provides a cushion against cyclical downturns in any single segment. To better understand who is betting on this strategy, you might want to read Exploring TFI International Inc. (TFII) Investor Profile: Who's Buying and Why?

The near-term action for you is to monitor the quarterly LTL operating ratio results. If that number starts trending reliably toward 90, the stock's 'Outperform' consensus rating and average analyst target price of $119.78 will look very achievable. That's the real leverage point.