Dive Brief:
- LTL revenue before fuel surcharge slipped to $660.5 million in Q4 2025 from $737.3 million a year ago, TFI International reported Tuesday in an earnings release, highlighting bleak market conditions.
- That decline was more pronounced in the U.S., where LTL revenue there declined by 11% to $501.3 million. The company’s U.S. LTL operations make up more than a quarter of the company’s total revenue.
- “We're still in a very difficult environment” regarding its LTL segment, CEO and President Alain Bédard said on an earnings call Wednesday. "We anticipate that's still probably going to be the case in 2026 as a whole.”
Dive Insight:
TFI’s adjusted operating ratio in U.S. LTL improved to 95.3% in Q4 from 97.3% a year ago, showing improvement despite the tough environment.
Meanwhile, its Canada-based LTL adjusted operating ratio rose to 81.7%, compared to 81% YoY. But its claims ratio for that particular geography improved in further, getting close to zero, Bédard said.
Operating income for the business across segments, which also includes TL and logistics, dropped to $127.2 million versus $160.2 million YoY.
“2025 versus 2026, I think that we’re going to be in a different position,” Bédard said.
A slow, soft industrial economy is prolonging a very difficult LTL environment, Bédard said. TL has a better outlook given constraints in the driver supply side, but nothing is guaranteed in a turnaround, and the logistics side has a clearer path for improvement, he said.
TFI projects market dynamics to normalize later in 2026, probably Q3 or Q4, for its division that moves Paccar and Freightliner trucks, Bédard said.
“I believe logistics will do way better in Q4 ’26 versus Q4 ’25 because” OEM customers will be busier, he said.
Other carriers also echoed the hits to revenue. Old Dominion Freight Line reported a 5.9% decrease to $1.3 billion YoY, but others reported less-pronounced shifts, such as ArcBest’s 2.9% decline to $972.7 million.
