TFI International Inc TFII Earnings Miss Estimates by 4.0%

TFI International’s adjusted EPS rose 39% year over year, but the company still missed the calendar estimate. Results varied widely across its freight businesses.

TFI International (TSX: TFII) reported third-quarter 2026 adjusted diluted EPS of US$1.67, 4.0% below the supplied calendar estimate of US$1.74. EPS was up from US$1.20 a year earlier, and revenue rose 13% to US$2.23 billion. Truckload and Logistics posted strong operating-income growth, while Less-Than-Truckload (LTL) weakened and free cash flow fell. For Canadian investors, the results show strong earnings growth alongside uneven segment performance and lower cash generation.

Recent earnings trend

Analyst coverage: 14 analyst(s) cover this name; upcoming EPS consensus is available.

Beat estimates in 3 of the last 4 comparable quarter(s).

Investor takeaway: TFI’s adjusted EPS missed the calendar estimate despite rising 39% year over year. Truckload and Logistics drove growth, while LTL operating income fell 43%. Free cash flow dropped to US$116.4 million from US$199.4 million. TFI expects fourth-quarter adjusted EPS of US$1.30–US$1.40. Investors should weigh the earnings growth against weaker LTL results and cash flow.

US$1.67 adjusted EPS, 4.0% below estimate

Adjusted diluted EPS rose from US$1.20 a year earlier but came in below the supplied calendar estimate of US$1.74. Revenue reached US$2.23 billion, up 13% year over year and above the supplied Zacks consensus estimate of US$2.21 billion. TFI’s reported adjusted operating ratio was 89.5%, compared with the analyst average estimate of 89.0%.

Analysis

TFI reported adjusted diluted EPS of US$1.67 for the quarter ended September 30, 2026, compared with the supplied calendar estimate of US$1.74, a 4.0% miss. Adjusted EPS was US$1.20 in the same quarter last year, making this a 39% year-over-year increase. Reported IFRS diluted EPS was US$1.28, up from US$1.02. These figures use different measures. Adjusted EPS excludes items the company identifies as non-recurring, so investors shouldn’t treat the two figures as interchangeable.

Revenue rose 13% to US$2.23 billion, while revenue before fuel surcharge increased 8% to US$1.86 billion. The supplied Zacks estimate was US$2.21 billion, so revenue was 1.1% above that figure. Operating income rose 17% to US$180.0 million. TFI attributed the revenue increase partly to acquisitions and improving market conditions. Higher revenue and margin improvements supported operating-income growth, partly offset by the US$14.4-million non-cash building impairment charge in LTL.

Based on the supplied history, this was TFI’s first EPS miss in the last four comparable quarters. It had beaten estimates in three of those quarters. The automatically inserted recent-earnings trend table shows the quarter-by-quarter results. For more company information, visit the TFI International stock page.

Analysis

The differences between TFI’s segments are central to understanding the results. Truckload revenue rose 15%, and operating income increased 91% to US$100.2 million. Management said the business delivered double-digit revenue growth while operating fewer trucks. Logistics revenue rose 22%, and operating income increased 59% to US$49.4 million.

LTL revenue increased 7%, but operating income fell 43% to US$44.4 million, including the building impairment charge. Its adjusted operating ratio was 91.3%, compared with the supplied analyst average estimate of 88.8%. A higher operating ratio means operating costs take up a larger share of revenue. Other supplied LTL metrics showed 1.86 million shipments, above the 1.84-million estimate, while average weight per shipment and tonnage were below estimates. Management said pricing initiatives began to benefit LTL results late in the quarter and into October. Investors can compare that progress with future reported results.

Cash generation lagged earnings growth. Net cash from operating activities was US$235.2 million, down from US$255.4 million a year earlier. Free cash flow fell to US$116.4 million from US$199.4 million. TFI said year-to-date free cash flow reached US$440 million. The board approved a quarterly dividend of US$0.47, up 4% from the prior-year period. The supplied fundamentals snapshot lists a dividend yield of 1.19%, which can change as the share price moves.

Analysis

TFI expects fourth-quarter adjusted diluted EPS of US$1.30 to US$1.40, assuming no significant change in the operating environment. It also forecast full-year net capital expenditures, excluding real estate, of US$225 million to US$250 million. Management expects year-over-year adjusted operating-ratio improvement of 400 to 500 basis points in Truckload and 100 to 200 basis points in Logistics. For LTL, it expects a decline of 0 to 100 basis points. These are company forecasts, not guaranteed results.

Analyst price targets: The supplied analyst data shows an average target of C$224.62, compared with the last close of C$157.14. That implies 42.9% upside to the average target. The source calls the consensus bullish based on the average target versus the last close. A formal rating isn’t available for Canadian listings. Price targets are estimates, not promises. See the analyst ratings section for more information.

Wealth Awesome price forecast: The supplied statistical 90-day model gives a mean forecast of C$131.44. Its 68% range is C$115.03–C$150.20, and its 95% range is C$100.67–C$171.62. This is a statistical model, not financial advice or a price target. Its estimates can differ substantially from analyst targets and future prices. See the price-prediction section for details. At the supplied last close, TFII was below its 50-day and 200-day moving averages. That’s one data point, not an investment signal on its own.