TFI International (TFII) Stock Forecast & Price Target

TFI International Inc. has reported its first positive year-over-year revenue/package increase of 1.1% in ten quarters, alongside a shipment volume rise of 1.4%, indicating a potential recovery in operational performance. The company's EBIT revenue also experienced a positive inflection for the first time in 12 quarters, increasing by 2.5% year-over-year, highlighting improved profitability and efficiency. Furthermore, TFI's strong free cash flow generation and ongoing focus on margin enhancement position it favorably to leverage growth opportunities, particularly in the expanding eCommerce sector and through synergies from the acquisition of UPS Freight.

TFI International's financial outlook remains negative, primarily due to significant revenue pressure in its Truckload segment and ongoing challenges posed by a persistent freight recession, which has led to a forecasted decline in performance for 2025. The company's revenue for the latest quarter was reported to have decreased by 13% year-over-year, while the operating ratio showed deterioration, indicating declining profitability amidst competitive market pressures, particularly in the Less-Than-Truckload segment. Furthermore, the anticipated EBITDA for Truckload has been revised downwards to $659 million, reflecting a weak market backdrop that is expected to adversely affect results in the near term.