TFI International Inc (TFII) stock plummeted over 5% in intraday trading on Friday, following the company's release of disappointing fourth quarter 2024 earnings results and an analyst downgrade from UBS.

In its Q4 earnings report, TFI International reported a decline in key operating metrics compared to the prior year period. Operating income fell to $160 million from $198 million, while the operating margin dropped to 8.8% from 11.8%. Adjusted net income decreased to $102 million from $148 million, and adjusted earnings per share declined to $1.19 from $1.71.

The company cited several challenges weighing on its performance, including higher accident-related expenses of around $9 million more than the prior year. TFI's logistics segment also saw a significant revenue decline, dropping from $472 million to $410 million year-over-year. Additionally, the company is facing issues in its US LTL operations with a high claims ratio and cost management problems.

Following the weak Q4 results, investment bank UBS downgraded its rating on TFI International stock from Buy to Neutral, lowering their price target from $163 to $107. In their report, UBS analysts cited concerns over TFI's ability to navigate the current freight downturn and cost pressures.