TFI International Inc. (TFII): Business Model Canvas [Dec-2025 Updated]

You're looking past the noise to see how TFI International Inc. actually prints money, and after two decades analyzing this space, I can tell you their business model is pure operational grit, not hype. Forget abstract strategy; the proof is in the pudding: they converted a massive 84.1% of their earnings into free cash flow (TTM Q2 2025), supporting a $8.048 billion revenue base as of September 30, 2025. We're going to map out exactly how their disciplined, tuck-in acquisition strategy-over 130 deals deep-and decentralized management of their 646 facilities create this cash machine, so you know precisely what to watch for next quarter.

TFI International Inc. (TFII) - Canvas Business Model: Key Partnerships

You're looking at the core relationships TFI International Inc. (TFII) relies on to keep its asset-light and asset-heavy operations running smoothly across North America. These partnerships are crucial because they provide scale, technology, and necessary capital without requiring TFII to own every single asset.

Long-established partner carrier relationships for asset-light services

TFI International Inc. actively cultivates long-established partnerships with other transport companies. This network is key to their asset-light model, allowing them to extend service offerings to customers across the United States, Canada, and Mexico, effectively giving customers access to more carriers than TFII owns directly. This approach helps manage capacity fluctuations without massive fixed asset investment.

The company's operational structure relies on a vast network of operating companies across its segments. For instance, as of the second quarter of 2025, the Truckload segment alone comprised 57 Operating Companies.

Here's a look at some of the entities within the broader TFI International Inc. network, which often function as critical partners or subsidiaries:

Technology vendors for fleet management and supply chain visibility

To maintain operational excellence and offer a web-enhanced experience for clients, TFI International Inc. partners with technology vendors. The company equips its tractors and trailers with the latest technology to track and measure capacity. These systems are designed to facilitate on-time and damage-free transportation of customer freight, which is a non-negotiable for their value proposition.

While specific vendor names aren't always public, the reliance on these external innovators is a clear partnership block. This technological backbone supports their asset optimization programs, helping them maintain financial strength even under challenging market conditions.

Financial institutions for revolving credit facilities of up to $1.0 billion

Access to flexible capital is a cornerstone of TFI International Inc.'s strategy, especially for funding acquisitions or managing working capital through cyclical downturns. The company maintains significant committed credit lines with financial institutions.

As of the second quarter ended June 30, 2025, TFI International Inc. reported access to US$1.0 billion in revolving facilities. This facility size demonstrates a strong relationship with its lending partners, providing substantial liquidity. Furthermore, in the third quarter of 2025, the company executed an increase in this facility by $83.0 million.

The company's financial discipline is reflected in its covenant management. For instance, as of June 30, 2025, the required funded debt-to-EBITDA ratio covenant was a key metric maintained under this credit agreement.

Independent contractors (owner-operators) operating 7,087 trucks as of Q1 2025

The relationship with independent contractors, or owner-operators, is a vital component of TFI International Inc.'s asset-light strategy, particularly within the Truckload segment. These owner-operators provide critical trucking capacity.

As specified for the first quarter of 2025, TFI International Inc. contracted with 7,087 independent contractors. This number fluctuates with market conditions and business strategy; for context, as of September 30, 2025, the number stood at 6,280 independent contractors.

The total fleet size supported by both company-owned and contracted units is substantial. For example, at the end of Q2 2025, the combined fleet included 19,555 trucks.

The reliance on this group means that TFI International Inc. must manage risks associated with independent contractor classification, as a determination that these drivers are employees would result in significant additional exposure under U.S. tax, labor, and employment laws.

• Independent contractor count as of March 31, 2025: 7,087.
• Independent contractor count as of September 30, 2025: 6,280.
• Total trucks in fleet as of Q2 2025: 19,555.
• Revolving credit facility access as of Q2 2025: US$1.0 billion.

Finance: draft 13-week cash view by Friday.

TFI International Inc. (TFII) - Canvas Business Model: Key Activities

You're mapping out the core actions TFI International Inc. takes to run its business as of late 2025. This isn't just about moving freight; it's about the disciplined, repeatable processes that drive their decentralized model.

Executing a disciplined, tuck-in acquisition strategy

TFI International Inc. has historically built its scale through aggressive M&A, completing more than 130 acquisitions since its inception. This strategy remains a core activity, though tempered by the late 2025 environment. For instance, in the first quarter of 2025, the company closed two small, tuck-in deals: Basin Transportation LLC and Veilleux Transit Inc., both added to the Truckload segment.

However, management signaled a shift in focus for the remainder of 2025. Due to tariff uncertainty, CEO Alain Bédard stated that M&A in 2025 would be "minimal," noting they had to walk away from one transaction. Despite this short-term pause on large deals, the long-term appetite remains, with management indicating a focus on enhancing density in the U.S. LTL space through potential acquisitions in the $3 billion to $5 billion range by late 2025 or 2026.

Driving operational efficiency, especially in the US LTL segment

A major ongoing activity is the relentless drive for operational efficiency, particularly within the challenging U.S. Less-Than-Truckload (LTL) division, TForce Freight. Management has a clear target to bring the U.S. LTL operating ratio (OR) down to 93 to 95 for the full year 2025, with a longer-term goal of achieving an OR sub-90. The results show a volatile but improving trend in the segment:

• The U.S. LTL Adjusted Operating Ratio was 97.3% in Q4 2024, worsening from 91% the prior year.
• The OR deteriorated further to 98.9% in Q1 2025.
• By Q2 2025, the OR improved sequentially to 94%.
• In Q3 2025, the segment delivered an OR that matched its strong performance from a year earlier, signaling successful execution against the efficiency mandate.

This contrasts sharply with the Canadian LTL segment, which reported an OR of 80.2% in Q1 2025 and 80.6% in Q2 2025, serving as the internal benchmark for the U.S. operations.

Managing a decentralized network of over 95 operating companies

TFI International Inc. operates through a highly decentralized structure, managing a network of 95+ Operating Companies across its segments. This structure requires significant activity in centralized oversight and resource allocation across a vast physical footprint. As of the second quarter of 2025, the network included 636 facilities and a total fleet of 19,555 trucks and 42,726 trailers. The workforce supporting this network totaled 26,287 employees, with 13,314 drivers. The Truckload segment alone comprises 57 Operating Companies.

Here's a look at the scale and efficiency metrics as of mid-2025:

Returning capital to shareholders via share repurchases and dividends

A consistent key activity is the commitment to returning excess capital. The company has a stated mission to create long-term shareholder value through both dividends and buybacks.

The dividend policy shows consistent increases. The quarterly dividend was raised to $0.45 per share for Q1 and Q2 2025, up 13% from the prior year's $0.40. Following the Q3 2025 results, the Board approved a further 4% increase to $0.47 per share, payable January 15, 2026. The annualized dividend stands at $1.80 per share, representing a 2.10% yield, with a payout ratio currently at 40% of earnings.

Share repurchases have been substantial. In Q3 2025 alone, the company returned $104.8 million to shareholders, with $67.4 million allocated to share repurchases. As of September 30, 2025, under the NCIB, TFI International had repurchased 2,606,500 common shares at a volume-weighted average price of CAD $128.3986 per share.

Optimizing fleet technology for safety and fuel economy

TFI International Inc. actively manages its physical assets by integrating modern technology into its fleet. This is a necessary activity to control costs, especially fuel, and meet customer expectations for service reliability.

The fleet is equipped with the latest systems to track and measure capacity. Furthermore, the procurement strategy for new equipment prioritizes environmental and efficiency features. Most new tractors and trailers are ordered with eco-options and/or greenhouse gas (GHG) emission lowering features, which are expected to result in significant potential fuel savings compared to older designs.

TFI International Inc. (TFII) - Canvas Business Model: Key Resources

You're looking at the physical and financial backbone of TFI International Inc. as of late 2025. These are the tangible assets and financial capacity that let them execute their strategy across North America.

Extensive North American Network and Fleet

TFI International Inc. maintains a vast physical footprint, critical for its diversified service offerings across the United States and Canada. The network density supports its Less-Than-Truckload (LTL), Truckload (TL), and Logistics segments.

As of March 31, 2025, the company reported a total of 646 facilities across North America. This network is geographically split, reflecting the company's primary market focus.

The fleet size, which is a mix of owned/leased assets and independent contractors, is substantial. The company owns or leases a significant number of power units and trailers to support its operations.

Diverse Workforce

The human capital at TFI International Inc. is spread across its operating companies, providing the necessary labor for its asset-heavy and logistics operations. This resource base is key to managing the decentralized structure.

As of September 30, 2025, TFI International Inc. had 26,287 total employees. A significant portion of this workforce is directly involved in transportation services.

The company's driver base is a core component of its operational capacity.

• Total Employees (as of Sep 30, 2025): 26,287
• Drivers: 13,314 (in a 2025 context)

Financial Strength and Capital Access

A strong financial position is a stated enabler for TFI International Inc.'s growth strategy, which heavily relies on mergers and acquisitions (M&A). This financial flexibility allows the company to act decisively when opportunities arise.

The company highlighted its ability to fund operations and shareholder returns through internal generation. For the nine months ending September 30, 2025, TFI International Inc. generated more than $570 million of free cash flow, enhancing its strategic operating and investment capacity. This performance supports continued capital returns, including dividend increases and share repurchases.

Proprietary Technology

TFI International Inc. utilizes technology to manage its assets and interact with customers, though specific financial investment figures aren't detailed here. The search results confirm the integration of tracking capabilities across the fleet.

Tractors and trailers are equipped with the latest technology to track and measure capacity. This supports operational efficiency and provides data for freight tracking and customer service enhancements.

TFI International Inc. (TFII) - Canvas Business Model: Value Propositions

You're looking at what TFI International Inc. actually offers its customers and investors, and it boils down to scale, specialization, and exceptional cash generation. The core value is providing a full-service North American transportation network, which they structure across a diversified portfolio. While the business is often described with four segments-Less-Than-Truckload (LTL), Truckload (TL), Logistics, and Package and Courier-the revenue snapshot for the trailing twelve months ending Q3 2025 shows a clear weighting across three primary areas.

This scale means they can handle a wide variety of freight needs across the United States, Canada, and Mexico. Here's a look at the operational footprint as of late 2025, which underpins their service promise:

The revenue split for the year-to-date period ending Q3 2025 demonstrates where the volume is concentrated:

• LTL: 41% of revenue
• Truckload: 39% of revenue
• Logistics: 20% of revenue

For complex freight, TFI International leverages its Specialized Truckload services, which include flatbed, tanks, and oversized hauling capabilities. This capability was significantly enhanced by the 2024 acquisition of Daseke, which immediately scaled the specialized offering. That single deal added approximately 4,900 tractors and 11,000 flatbed and specialized trailers to their fleet, giving them immediate depth in handling difficult or non-standard loads that require specific equipment and expertise. This is a key differentiator from pure-play LTL carriers.

The value proposition extends beyond just moving goods; it's about offering Integrated supply chain solutions to reduce customer delivery costs. TFI International positions itself as a one-stop experience for customers, providing comprehensive supply chain management and transportation planning services. This integration helps customers streamline their logistics spend, moving beyond transactional shipping to strategic partnership, which is crucial when freight volumes are tight.

For you as an analyst or investor, the financial stability derived from this model is a major selling point. TFI International boasts a high free cash flow conversion of 84.1% for the trailing twelve months ending Q2 2025, which ensures operational stability and funding for acquisitions or shareholder returns. This is far superior to peer averages, which is a direct result of their asset-light approach. For instance, in TTM Q2 2025, the LTL segment converted 84.4% of its cash flow, and the Logistics segment hit 97.1%, compared to their respective peer averages of 31.9% and 78.4%. That kind of cash generation is a clear sign of resilience and a strong balance sheet, even when volumes are slow.

Finally, the commitment to Best-in-class customer service is focused on on-time and damage-free delivery, which they tie directly to operational efficiency. While specific on-time percentages aren't public in the latest filings, the operational focus is clear. For example, the U.S. LTL segment leadership drove the overall LTL Operating Ratio to 89.5% in Q2 2025, a 360 basis point improvement sequentially, showing intense focus on efficiency that directly impacts service quality. They live their mission of 'Delivering more than freight' through quality care across their 26,200-plus employees.

Finance: draft 13-week cash view by Friday.

TFI International Inc. (TFII) - Canvas Business Model: Customer Relationships

You're looking at how TFI International Inc. manages its relationships across a network built on over 130 acquisitions. The company serves a diverse customer base across the United States, Canada, and Mexico, generating a TTM revenue of $8.04 Billion USD as of late 2025.

Dedicated account management for large, recurring industrial clients

For your biggest, most consistent industrial shippers, TFI International Inc. assigns dedicated management. This is crucial because the customer base is spread across many sectors, with Retail accounting for 19% of revenue, Manufactured goods at 17%, and Building materials at 13% in fiscal year 2025. This structure ensures continuity and deep understanding of complex supply chains, which is key when you operate over 630 facilities across North America. The company has over 26,200+ employees dedicated to operations.

Self-service web-enhanced portals for order facilitation and tracking

For the high volume of day-to-day transactions, TFI International Inc. pushes customers toward digital tools. They explicitly state they offer clients a web-enhanced experience for facilitating and expediting their orders and inquiries. This self-service layer helps manage the sheer scale of their operations, which includes a fleet of over 19,500+ trucks and 42,700+ trailers.

• Facilitate order placement digitally.
• Expedite tracking of shipments.
• Support on-time delivery metrics.
• Designed for damage-free transportation.

Tailored, integrated solutions across LTL, Truckload, and Logistics

The relationship strategy hinges on cross-selling their three main segments: Less-Than-Truckload (LTL), Truckload (TL), and Logistics. This integration allows them to offer a complete solution rather than just point-to-point service. For instance, in Q1 2025, the revenue breakdown before fuel surcharge showed the relative importance of each pillar:

The LTL segment, which handles smaller loads, generated 41% of Q2-2025 revenue. The Truckload segment, which handles full loads, made up 39% of that same revenue base.

High-touch, consultative approach for specialized freight needs

When a customer needs something beyond standard dry-van LTL, the consultative approach kicks in, particularly within the Truckload segment. This segment includes specialized services like flatbed, tanks, and oversized freight. The acquisition of Daseke in April 2024 for $1.1 billion specifically bolstered this specialized Truckload capability. For Q3 2025, the Truckload segment saw revenue increase by 9% year-over-year, largely due to acquisitions like Daseke, suggesting strong, tailored relationships in that niche. The Logistics segment also offers asset-light services, including brokerage and freight forwarding, requiring a consultative partnership to manage multiple providers effectively.

Finance: draft 13-week cash view by Friday.

TFI International Inc. (TFII) - Canvas Business Model: Channels

You're looking at how TFI International Inc. gets its services-from LTL to specialized logistics-into the hands of its customers. It's a mix of boots-on-the-ground sales and a massive physical footprint, supported by digital tools.

Direct sales force targeting large industrial and retail customers

TFI International Inc. serves a diverse customer base, which the direct sales effort targets across various industries. The revenue breakdown by industry for fiscal year 2025 shows the focus areas for this direct engagement:

• Retail: 19% of revenue
• Manufactured goods: 17% of revenue
• Building materials: 13% of revenue
• Automotive: 10% of revenue
• Metals and mining: 10% of revenue

Extensive network of 381 US and 265 Canadian facilities

The physical backbone of TFI International Inc.'s channel strategy is its vast network of operating locations across North America. As of March 31, 2025, the total facility count stood at 646. The geographical split of these facilities is precise:

This network supports over 95+ Operating Companies under the TFI International Inc. umbrella.

The scale of TFI International Inc.'s owned and contracted assets moving freight through these channels, as reported around mid-2025, includes:

Digital channels providing a web-enhanced experience for clients

TFI International Inc. uses technology to enhance client interaction, aiming for a complete one-stop experience for supply chain management and transportation planning.

• The company plans capital-light AI/software investments to drive efficiency in 2026.
• Tractors and trailers are equipped with the latest technology to track and measure capacity.

Intermodal rail and third-party carrier access for asset-light logistics

The Logistics segment, which accounted for 20% of year-to-date revenue before fuel surcharge in Q2 2025, leverages asset-light strategies. This involves using intermodal rail and long-established partnerships to access more carriers, providing enhanced management of multiple providers.

The revenue contribution from the primary asset-heavy segments for the first half of 2025 was:

• Truckload: 39% of year-to-date Q2 2025 revenue before fuel surcharge
• Less-Than-Truckload: 41% of year-to-date Q2 2025 revenue before fuel surcharge (Calculated as 100% - 39% - 20%)

The quarterly dividend approved in July 2025 was $0.47 per share.

TFI International Inc. (TFII) - Canvas Business Model: Customer Segments

You're looking at the core customer base for TFI International Inc. as of late 2025, which is built on a foundation of diverse, high-volume freight needs across North America. The company's strategy relies on serving a wide array of shippers, which helps insulate it from downturns in any single industry. As of the twelve months ending September 30, 2025, TFI International's total revenue stood at approximately $8.048 billion.

The customer base is segmented by the type of service required, which aligns closely with TFI International's operating segments. The company has explicitly stated that it maintains a diverse customer base across a broad cross-section of industries, with no single client accounting for more than 5% of consolidated revenue as of December 31, 2024.

Here is a breakdown of the key customer groups TFI International serves:

• Retail and Manufactured Goods companies, representing an estimated 36% of revenue.
• Industrial sectors, including those in Building Materials, Automotive, and Metals and Mining.
• Shippers requiring Less-Than-Truckload (LTL) services in the US and Canada.
• Clients needing specialized transportation, such as flatbed or tank transport.

The Less-Than-Truckload (LTL) service forms a substantial part of the business. For the year ended December 31, 2024, the LTL segment revenue declined by 6% relative to the prior year. Based on year-to-date Q1 2024 revenue figures, LTL services accounted for 43% of that period's revenue. TFI International operates Canada's largest LTL business.

The specialized transportation services are captured within the Truckload and Logistics segments, with the Specialized service category making up 20% of year-to-date Q1 2024 revenue. The acquisition of Daseke in April 2024 significantly bolstered the Truckload segment, which saw its revenue increase by 64% for the full year 2024 due primarily to that acquisition. Furthermore, TFI International has been active in acquiring specialized carriers, such as Groupe CRS Express, a flatbed and heavy-haul carrier, in July 2024.

You can see how the revenue was distributed across the main service categories based on the latest available detailed segment data from Q1 2024:

Geographically, the US market is a major focus, with US operations accounting for 34% of year-to-date Q1 2024 revenue, while Canadian operations represented 9% of total revenues for the same period. TFI International's executive office is in Etobicoke, Ontario, but as of December 31, 2024, 388 of its 658 facilities were located in the United States, with 270 in Canada. The company intends to pursue re-domiciliation from Canada to the United States, where approximately 70% of its operations are now based.

The company's focus on specialized and LTL services means it directly serves shippers who need more than standard dry van truckload capacity. For example, the Logistics segment, which was 25% of revenue in Q1 2024, benefits from E-Commerce fulfillment opportunities, with total U.S. E-Commerce revenue reaching $362.7 million in the trailing twelve months ending Q1 2024. This shows a clear customer segment tied to the growing digital economy.

Finance: review the impact of the Daseke acquisition on the Industrial sectors' revenue contribution for the full year 2025 by Friday.

TFI International Inc. (TFII) - Canvas Business Model: Cost Structure

Significant operating expenses are driven by personnel and materials/services, which for the three months ended March 31, 2025, totaled $1,849.7 million, an increase of $130.5 million year-over-year.

Labor costs, reflected in personnel expenses, rose to $607.4 million in Q1 2025, marking an 8% increase from the prior year period. As of March 31, 2025, TFI International Inc. employed 26,312 individuals across its operations.

Maintenance and related costs are captured within materials and services expenses. For Q1 2025, these expenses, net of fuel surcharge revenue, saw a decrease of $37.5 million, or 16%, compared to the same quarter last year. This reduction included a $9.1 million decrease in rolling stock maintenance and repair and tire expense.

Fuel costs are subject to volatility, but for the three months ended March 31, 2025, fuel costs specifically decreased by $7.6 million within the materials and services category. Fuel surcharge revenue for Q1 2025 was $81.290 million for the U.S. Based Less-Than-Truckload segment alone.

The fixed cost base stems from owning a vast network of terminals and fleet assets, though specific fixed cost amounts like depreciation are presented as percentages of revenue in some reports. For instance, depreciation of property and equipment as a percentage of revenue before fuel surcharge for TTM Q1 2025 was 5.0%.

The cost of capital is evident in the interest expense. The average level of long-term debt for the three-month period ended March 31, 2025, was $2.43 billion, up from $2.06 billion in the same quarter last year, with an average interest rate of 4.97%. This resulted in an increase in interest expense of $7.8 million compared to Q1 2024. The funded debt-to-EBITDA ratio stood at 2.21 as of March 31, 2025.

Costs associated with integrating new acquisitions and rationalizing operations are ongoing. The increase in personnel expenses in Q1 2025 was due to business acquisitions adding 4,400 employees, partially offset by rationalizations affecting 3,093 employees. TFI International Inc. closed two tuck-in acquisitions, Basin Transportation LLC and Veilleux Transit Inc., subsequent to the end of Q1 2025. The company has acquired 94 companies since 2016.

Here are some key expense and operational metrics from Q1 2025:

The company's operating ratio performance highlights cost control efforts, though results vary by segment:

• U.S. Based Less-Than-Truckload Adjusted Operating Ratio (Q1 2025): 98.9%
• Canada LTL Operating Ratio (Q1 2025): 80.2%
• LTL Operating Ratio (Q1 2025): 93.1%
• Truckload Operating Ratio (Q1 2025): 93.7%

TFI International Inc. (TFII) - Canvas Business Model: Revenue Streams

You're looking at the core ways TFI International Inc. brings in money as of late 2025. The overall picture shows a business heavily reliant on its core freight services, but with a significant contribution from its diversified segments.

The Total Trailing Twelve Month (TTM) revenue for TFI International Inc. as of September 30, 2025, was reported at $8.048 billion USD. This figure reflects a dynamic period, showing a year-over-year decline of 2.91% for the TTM period.

The primary revenue drivers, based on the composition for Year-to-Date (YTD) Q2 2025, are clearly segmented, which helps you understand where the bulk of the business activity lies. The structure is defintely built around moving freight.

Here is the breakdown of the business segments by their contribution to the YTD Q2 2025 revenue:

The LTL segment itself has an internal structure that matters for analysis. For YTD Q2 2025, the components within the LTL category were:

• US LTL: 27% of YTD Q2 2025 revenue.
• Canadian LTL: 8% of YTD Q2 2025 revenue.
• Package & Courier: 6% of YTD Q2 2025 revenue.

To give you a concrete sense of the scale during the recent reporting period, TFI International Inc.'s total revenue for the second quarter ended June 30, 2025, was $2.04 billion. This Q2 2025 revenue before fuel surcharge was $1.79 billion. This shows the impact of the variable component in their top line.

A key variable impacting the reported revenue figures is the fuel surcharge revenue. This component fluctuates directly with market prices for diesel and other fuels, meaning it can cause short-term swings in total revenue, even if underlying freight volumes are stable or growing. A reduction in this surcharge revenue was cited as a factor contributing to the year-over-year revenue decrease in the first half of 2025.

The revenue streams are supported by the company's asset-light model, which results in lower capital intensity compared to peers, contributing to strong free cash flow conversion across all segments. For instance, the Logistics segment showed a 97.1% Free Cash Flow (FCF) conversion rate against a peer average of 78.4% in the TTM period ending Q2 2025.

Finance: draft 13-week cash view by Friday.