TFI International (TFII) reported a weaker-than-expected Q3 revenue, but disciplined cost management helped minimize earnings before interest and taxes downside, Morgan Stanley said in a note Friday.

Despite the roughly 10% fall in quarterly revenue, the company's less-than-truckload margins held steady, supported by management initiatives to address SMB losses, fleet optimization, and claims management, according to the note.

The company issued Q4 adjusted earnings per share guidance of $0.80 to $0.90, well below consensus estimates, as it cited a slow start to the quarter, the US government shutdown, and weaker truck manufacturing activity.

Management, however, believes 2026 will be stronger than 2025, citing potential tailwinds, including cycle recovery, M&A activity, and financial discipline. This relatively positive tone is a good sign, the firm said.

Morgan Stanley lowered its price target to $152 from $158, but maintained an overweight rating on the stock.

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