TFI International’s earnings report beat Wall Street estimates, but every operational metric in its key LTL division was lower compared to the previous quarter. Despite this, CEO Alain Bedard noted strong free cash flow and solid margin performance. The US LTL operating ratio ballooned to 94%, with revenue per hundredweight excluding fuel falling by 2%.

TFI noted a slight increase in weight per shipment in its US LTL operations, but reported a 10.1% drop in the number of shipments and a 5.5% decline in total shipments by tons. Canadian LTL saw a worse decline in its operating ratio, dropping to 80.6% with a revenue decrease of 3.56% per hundredweight excluding fuel.

TFI’s truckload operations faced a weak quarter, with revenue before fuel down 3.4% and adjusted EBITDA also declining. However, adjusted OR in truckload decreased to 90.1%. Overall adjusted net income was $1.34 per share, down from $1.71 a year earlier, but still better than forecasts.

Total revenue for TFI International was down 9.4% from a year earlier, falling short of the Wall Street consensus by $20 million. TFI stock saw a 41.3% decrease in the last 12 months before a post-market increase. Despite the challenges, the company remains focused on improving its margins and performance.

Read more at Yahoo Finance: Most metrics at TFI are down from 2Q 2024 but Bedard touts higher margin