By Adriano Marchese
TFI International's shares rose Tuesday after the transportation and logistics company reported better-than-expected results in the first quarter thanks to strategic investments.
Shares rose 6.3% to 200.38 Canadian dollars ($147.03).
Total revenue fell slightly to $1.95 billion from $1.96 billion, coming in better than analysts expected, with consensus expectations projecting a steeper decline to $1.89 billion.
Net income fell to $43.3 million from $56 million, or 53 cents a share compared with 66 cents, the company reported late on Monday.
Excluding certain one-off items, such as higher accident-related expenses, adjusted earnings were 69 cents, above the company's guidance range of between 50 cents and 60 cents, and analyst forecasts of 61 cents, per FactSet.
"We easily exceeded our first-quarter earnings outlook on stronger revenue and higher profitability for both Truckload and Logistics despite adverse weather early in the quarter," Chairman Chief Executive Alain Bédard said. He also said that strategic acquisitions made during the weaker cycle helped diversify its portfolio of operating companies more into the industrial end market.
The transportation and logistics sectors have recently been squeezed by a mix of weak freight demand, higher operating costs, such as higher fuel costs, as well as persistent supply chain disruptions.
Looking ahead, Bédard said there have been recent improvements in the sector which the company can benefit from. "TFI is well positioned as freight dynamics build on the improvement in March," he said.
The improvements appear to be noticed across the sector. Earlier in the week, Mullen Group's Chair and Senior Executive Murray Mullen said that there were early signs of improvements in the freight sector, with strong demand and tighter supply, noting that if the trend were to continue, pricing should improve. His optimism was balanced by some caution that there are still risks from the added cost of fuel caused by the conflict in Iran.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
April 28, 2026 12:36 ET (16:36 GMT)
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