TFI International’s Q3 profit falls 32% as its U.S. LTL business struggles

Q3 profit fell 32% as freight conditions soured

TFI International Inc. (TSX: TFII) has reported a 32% slump in third-quarter profit as freight-market softness and cost pressures weighed on its outlook. Its shares then pulled back while analysts reconsidered the Canadian trucking group, although one market analysis sees them trading below fair value after the decline.

Five years after buying UPS’s freight business, TFI is struggling to turn the acquisition around, the Globe and Mail reports. The situation at Canada’s biggest trucking company is testing investor patience and exposing the risks of acquisitions.

On the third-quarter earnings call, Bédard described the company’s less-than-truckload disappointment as a “broken record”. He guided fourth-quarter adjusted EPS of $1.30 to $1.40. That compares with the $1.70 to $1.80 third-quarter guide issued on the second-quarter call.

Truckload volume is also feeling pressure. TFI has pointed to tariffs imposed by the Trump administration, canceled infrastructure projects and the recent U.S. federal government shutdown as sources of uncertainty on volumes.

Why is TFI’s U.S. LTL business under pressure?

TFI operates transportation and logistics businesses in the United States, Canada and Mexico through subsidiaries. One of its segments is less-than-truckload, or LTL.

The immediate problem isn’t rising demand. RBC says the U.S. LTL operation is contending with inadequate pricing, weak network density and higher costs even while some freight trends are stronger. In plain terms, TFI isn’t getting enough revenue per shipment and isn’t filling its network efficiently enough to absorb costs.

U.S. LTL challenges also prompted Stifel to cut its stock-price target. TD Cowen said TFI’s third quarter missed expectations, adding to pressure on 4Q.

TeluguOne separately used the initials TFI for TFI filmmakers facing a new CBFC headache. The financial TFI covered here is the trucking company, not that industry.

How far have brokerage target cuts gone?

TD Cowen lowered TFI International’s price target to $119 from $158 while retaining a Buy rating. The firm said third-quarter results missed and used them to justify the revision.

CIBC separately lowered its target to $120. For instance, TD Cowens’s revised target sits $39 below the level it previously used, while CIBC’s new target is only $1 higher. One says the stock remains a Buy despite the softer outlook; CIBC now puts the expected value just above TD’s estimate.

Yahoo Finance’s latest commentary describes TFI’s pullback as putting its current value below fair value. That makes TFI a straightforward example of how liquidity and market sentiment can turn quickly when an acquisition-heavy freight carrier misses earnings and faces an execution problem in one geography.

What is management doing about it?

Management is prioritizing the weak link in TFI’s network while doubling down on higher-margin logistics. The company’s stated focus is fixing U.S. LTL execution.

A tranche update on TFI’s equity buyback shows no activity from July 1, 2026 through September 30, 2026. It had repurchased zero shares, or 0%, for CAD 0 million.

The next concrete benchmark is the fourth quarter: whether TFI’s adjusted EPS lands inside management’s $1.30 to $1.40 guidance range.