Dive Brief:
- TFI International’s operating income dropped 24% to $153.3 million in Q3, with hits in its logistics, TL and LTL segments, per an earnings release
- The carrier noted it's a key hauler for Freightliner and Paccar, and trucks assembled in Mexico are having three-month delays, CEO Alain Bédard said on an earnings call Friday.
- Both of those factors are out of TFI’s control, but “we know it’s short term,” he said, suggesting it may only last two or three quarters before OEM sales ramp up.
Dive Insight:
Other carriers, such as Old Dominion Freight Line and Saia, are also reporting soft market conditions and drops in operating income, down 10.2% and 5.2%, respectively.
With TFI, the government shutdown is also affecting its U.S. Department of Defense business, which represents 30% of revenues for one company division. However, that pause will eventually resolve itself, Bédard said.
Bédard said that the environment could change notably in 2026, particularly with truckload possibly shifting away from truckload carriers taking LTL freight.
“There’s lots of freight that has been moved to the truckload guys,” he said.
He also said that Canada and Mexico still lack a deal with the U.S. regarding tariffs, but once that happens, they’ll know what they need to do. He suggested that a three-country deal needs to happen and could transpire in 2026.
“If you don’t know the rules, everybody sits on the sideline,” Bédard said.
