TFI International Posts 39% Net Income Surge in Q2 2026 and Boosts Dividend by 4%

Robust Earnings Growth Across Full Truckload, LTL, and Logistics Segments

TFI International showcased broad-based strength in Q2 2026, with all three segments—full truckload, less-than-truckload (LTL), and logistics—delivering revenue and profit growth. Total revenues reached $2.29 billion, up 12% from $2.04 billion in Q2 2025. Revenues excluding fuel surcharges increased 6% to $1.90 billion from $1.79 billion, highlighting operational improvements independent of fuel cost pass-through.

The full truckload segment led growth with a 50% increase in operating profit, driven by diversification in industrial markets, a strong presence in specialized and flatbed transportation, and improved capital efficiency. The less-than-truckload and logistics segments posted double-digit operating profit gains of 17% and 32%, respectively, reflecting sustained pricing power and operational efficiencies.

Significant Net Income and EPS Growth

Net income rose 39% to $136.2 million in Q2 2026 versus $98.2 million a year earlier. Diluted earnings per share increased 41% to $1.65 from $1.17, supported by improved profitability and a slight decrease in average diluted shares outstanding to 82.4 million from 83.7 million. Adjusted net income, excluding acquisition-related amortization and non-recurring items, grew 36% to $152.5 million, or $1.85 per diluted share, compared to $112.0 million, or $1.34 per share, in Q2 2025.

Management attributed earnings growth primarily to organic expansion, margin improvements, and $10.7 million in acquisition contributions, partially offset by additional accident-related provisions, reflecting a conservative stance on claims exposure.

Strong Cash Flow and Capital Deployment

Operating cash flow totaled $255.6 million in Q2 2026, a 4% increase from $246.7 million in the prior year, driven by higher net income and lower tax payments, partially offset by working capital timing. Free cash flow, defined as operating cash flow minus capital expenditures plus asset sale proceeds, reached $202.1 million, up 11% from $182.3 million in Q2 2025.

This robust free cash flow enabled TFI International to reduce net debt by $117.4 million while continuing shareholder returns. The company projects full-year 2026 net capital expenditures, excluding real estate, between $225 million and $250 million, reflecting a measured fleet expansion and selective investments amid improving market conditions.

Dividend Hike Demonstrates Confidence

On June 15, 2026, the board approved a 4% increase in the quarterly dividend to $0.47 per share, payable July 15, 2026, up from $0.45 per share in Q2 2025. This marks the second consecutive year of dividend growth, underscoring management’s confidence in sustained earnings and cash flow.

The dividend aligns with TFI’s capital allocation strategy prioritizing strategic acquisitions, balance sheet strength, and incremental shareholder returns, reflecting a disciplined approach amid ongoing acquisition opportunities and competitive market dynamics.

First Half 2026 Results and Trends

For H1 2026, total revenues reached $4.24 billion, up from $4.00 billion in H1 2025, with revenues excluding fuel surcharge rising to $3.60 billion from $3.51 billion. Operating profit increased to $317.0 million from $284.8 million, while net income rose to $179.5 million from $154.2 million year-over-year. Diluted EPS grew to $2.18 from $1.83.

Adjusted net income for the first six months was $209.7 million, or $2.54 per diluted share, compared to $176.3 million, or $2.10 per share, in the prior year. Administrative expenses increased to $45.0 million from $24.2 million, mainly due to $16.9 million in additional accident-related provisions amid heightened claims. Operating profit gains in full truckload (up 35%) and logistics (up 22%) offset a 4% decline in less-than-truckload year-to-date.

Segment Operating Performance Details

The less-than-truckload segment posted Q2 revenues before fuel surcharge of $724.9 million, up from $703.7 million, with operating profit of $85.8 million (11.8% margin) versus $73.6 million (10.5% margin) in Q2 2025. Full truckload revenues increased to $760.8 million from $712.3 million, with operating profit rising to $105.8 million (13.9% margin) from $70.6 million (9.9% margin). Logistics generated $431.9 million in revenues, up from $393.1 million, with operating profit of $49.7 million (11.5% margin) compared to $37.7 million (9.6% margin) in Q2 2025.

Management noted opportunities for further tariff increases, especially in less-than-truckload, indicating continued pricing power despite improving market conditions. Margin expansions across all segments reflect pricing gains and operational leverage from acquisitions and organic efficiencies.

Q3 2026 Outlook and Capital Expenditure Forecast

TFI International expects adjusted diluted EPS in Q3 2026 to range from $1.70 to $1.80, assuming stable operating conditions. Full-year net capital expenditures, excluding real estate, are forecast between $225 million and $250 million.

Management anticipates adjusted operating ratio improvements year-over-year of 550 to 650 basis points in full truckload, 250 to 350 basis points in logistics, and stable ratios in less-than-truckload, signaling confidence in sustained margin expansion supported by market and efficiency gains.

Acquisition Impact on Growth

Acquisitions contributed $10.7 million to Q2 operating profit and $20.1 million to first-half operating profit, highlighting M&A’s role in TFI’s growth. The majority of the 29% Q2 profit increase was organic, underscoring strong internal performance.

Investing cash flows increased by $47.4 million due to $34.3 million in net acquisition cash outflows during Q2, reflecting ongoing acquisition activity. Management emphasized the company’s capability to identify and capitalize on freight transportation market opportunities, underpinning its strategic acquisition pipeline and integration strengths.

CEO Remarks on Operational Strength and Market Position

Alain Bédard, President and CEO, commented: "Our three business segments delivered revenue and operating profit growth in Q2, surpassing profit forecasts. This reflects our teams’ dedication and the payoff from strategic investments made in recent years." He highlighted the full truckload segment’s 50% operating profit increase, attributing it to industrial diversification, specialized transportation services, and capital efficiency.

Bédard added that strong performance across all activities generated free cash flow exceeding $200 million, enabling balance sheet strengthening, strategic investments, and incremental shareholder returns. This underscores management’s confidence in the current market environment and TFI’s competitive positioning.

Non-IFRS Financial Measures and Definitions

The release includes reconciliations of non-IFRS measures such as adjusted EBITDA, adjusted net income, and free cash flow. Adjusted EBITDA for Q2 2026 was $363.9 million, up from $326.6 million in Q2 2025. These exclude intangible amortization related to acquisitions, contingent consideration fair value changes, foreign exchange effects, asset sale gains or losses, and other non-recurring items, providing supplemental operational performance insights.

Management cautions these non-IFRS measures lack standardized IFRS definitions and are not directly comparable to other companies’ metrics. They should complement, not replace, IFRS-reported results and be viewed alongside GAAP figures.