Canada's TFI International Q3 adjusted net income misses estimates

Overview

• Canada transportation and logistics firm's Q3 revenue rose 13% yr/yr, driven by acquisitions and market gains

• Q3 adjusted net income missed analyst expectations

• Company raised quarterly dividend by 4% over prior year period

Outlook

• TFI International expects Q4 2026 adjusted diluted EPS between $1.30 and $1.40

• Company expects 2026 net capital expenditures excluding real estate of $225 mln to $250 mln

• Company anticipates Q4 adjusted operating ratio improvement in Truckload and Logistics, decline in LTL

Result Drivers

• TRUCKLOAD SEGMENT - Co said Truckload segment saw double-digit revenue growth and operating income nearly doubled, despite fewer trucks

• LOGISTICS SEGMENT - Logistics segment operating income up nearly 60%, with 22% revenue growth and 15% return on invested capital

• ACQUISITIONS AND MARKET CONDITIONS - Co attributed revenue growth to business acquisitions and improved market conditions

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy"

• Wall Street's median 12-month price target for TFI International Inc. is C$222.31, about 41.9% above its October 28 closing price of C$156.69

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• Oct 27 - Logistics firm Landstar System's Q3 revenue rises 25%, beats estimates

• Oct 29 - Saia Inc Q3 revenue rises 17%, beats analyst estimates

• Oct 29 - Schneider National Q3 revenue slightly beats estimates; raises 2026 EPS outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)