New TFI Report: Outstanding Q2 Performance and
Profit Growth, Still Room For Improvement

TFI International Inc., a big player in North American transportation and logistics, shared its second-quarter results for 2024 on July 25. Despite a tough market, TFI showed strong financial performance, thanks to smart acquisitions and smooth integration efforts.

Key Financial Highlights

Here are the main financial points for the second quarter shown on the new TFI report:

• Operating Income: Rose to $208.1 million from $192.4 million in Q2 2023, mainly due to new business acquisitions.
• Net Income: Was $117.8 million, down a bit from $128.2 million last year. Adjusted net income increased to $145.6 million from $138.9 million.
• Earnings Per Share (EPS): Diluted EPS was $1.38, down from $1.47, while adjusted diluted EPS grew to $1.71 from $1.59.
• Revenue: Total revenue jumped to $2.26 billion from $1.79 billion. Revenue before fuel surcharge went up to $1.96 billion from $1.55 billion.

Performance by Segment

TFI’s different business segments performed well:

• Less-Than-Truckload (LTL): Revenue grew by 1%, and operating income increased by 2%.
• Truckload: Saw a huge 78% rise in revenue, mainly from acquiring Daseke, and a 26% increase in operating income.
• Logistics: Revenue went up by 24%, and operating income rose by 54%.

Cash Flow and Investments

TFI saw a significant rise in net cash from operating activities, which increased to $248.5 million from $200.4 million. Free cash flow also grew to $151.4 million from $138.1 million, helped by strategic debt repayments and lower cash taxes.

Strategic Moves

TFI’s purchase of Daseke was a big factor in its Q2 success. The integration of Daseke’s operations helped boost revenue and efficiency. Alain Bédard, TFI’s Chairman, President, and CEO, praised the team’s work in integrating Daseke and improving performance in the U.S. LTL segment.

First Half of 2024 Results

For the first six months of 2024, TFI reported:

• Total Revenue: Went up to $4.14 billion from $3.64 billion last year.
• Operating Income: Slightly increased to $359.7 million from $358.8 million.
• Net Income: Dropped to $210.6 million from $240.2 million, impacted by a $19.7 million restructuring charge and higher interest expenses due to the Daseke acquisition.

Shareholder Returns

TFI returned $67.5 million to shareholders through dividends and share buybacks in Q2 2024. The Board of Directors declared a quarterly dividend of $0.40 per common share, a 14% rise from last year’s $0.35. This dividend represents 18.5% of the last twelve months’ free cash flow.

Looking Ahead

Even with a tough market, TFI International showed resilience and growth through smart acquisitions and smooth integration. The company’s strong cash flow and commitment to returning capital to shareholders highlight its solid financial position and strategic focus.