MONTREAL, QUEBEC — TFI International Inc. is pursuing re-domiciliation from Canada to the United States.
According to a company press release, TFI has operated in the U.S. since 2011 and has traded on the New York Stock Exchange since February 2020. Approximately 70% of TFI’s operations are currently based in the U.S., and a plurality of its shareholders are U.S.based.
Company Financials
“Amidst ongoing challenging conditions, TFI International’s solid performance continued through the final quarter of 2024. We generated more than $260 million of net cash from operating activities and over $200 million of free cash flow, bringing our full-year free cash flow to more than $750 million for a third year in a row,” said Alain Bédard, chairman, president and CEO. “(TFI) reinforced our firm financial footing by reducing debt, and executed targeted bolt-on acquisitions during and subsequent to the quarter, as well as additional share repurchases following the October renewal of our normal course issuer bid. We were also pleased to declare a 13% increase to our quarterly dividend in December. Looking ahead into 2025, the skilled men and women of TFI International are intensely focused on continued strong execution in our mission to generate robust free cash flow and make strategic investments, especially during periods of reduced freight volumes, all while returning meaningful capital to shareholders and building long-term value.”
Fourth Quarter Results
Total revenue of $2.08 billion compared to $1.97 billion in the prior year period and revenue before fuel surcharge of $1.83 billion compared to $1.67 billion in the prior year period. The increase is primarily due to contributions from business acquisitions, offset by reduced volumes driven by weaker end market demand.
Operating income of $160.2 million compared to $198.3 million in the prior year period. The decrease is primarily attributable to the decline in revenues as a result of weaker market demand in the quarter, partially offset by contributions from business acquisitions of $12.2 million.
Net income of $88.1 million compared to $131.4 million in the prior year period, and net income of $1.03 per diluted share compared to $1.53 in the prior year period.
Adjusted net income, a non-IFRS measure, was $101.8 million, or $1.19 per diluted share, compared to $147.0 million, or $1.71 per diluted share, in the prior year period. Total revenue increased by 64% for the Truckload segment due primarily to the acquisition of Daseke, while the Less-Than-Truckload and Logistics segments declined by 13 and 14%, respectively.
Operating income in the Truckload segment increased by 18% compared to Q4 2023, while the Less-Than-Truckload and Logistics segments declined by 34% and 22%, respectively.
The Less-Than-Truckload recorded US accident-related expenses of approximately $8.0 million more than in the prior year period.
Full-Year Results
Total revenue was $8.40 billion for 2024 versus $7.52 billion in 2023. Revenue before fuel surcharge of $7.30 billion compared to $6.42 billion the prior year. The increase is primarily due to the acquisition of Daseke and is partially offset by decreases from existing operations due to weaker market demand.
Operating income totaled $719.0 million compared to $757.6 million in the prior year. The decrease is mainly attributable to the weaker market demand referenced above and less gains from the sale of rolling stock, equipment, and assets held for sale of $24.5 million in 2023, partially offset by contributions from business acquisitions.
Net income was $422.5 million, or $4.96 per diluted share, compared to $504.9 million, or $5.80 per diluted share a year earlier. Adjusted net income and adjusted diluted EPS, non-IFRS measures, were $489.5 million, or $5.75 per diluted share, compared to $538.3 million, or $6.18 per diluted share the prior year.
During 2024, total revenue increased 52% for Truckload, due to the acquisition of Daseke, and 7% for Logistics, and declined 6% for Less-Than-Truckload relative to the prior year.
Operating income was up 6% for Truckload, 14% Logistics, and decreased 15% for LessThan-Truckload.
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
