We use cookies on our website.
Some of them are necessary for the functioning of the site, but you can decide about others.
TFI Q2 Profit, Revenue Fall Double Digits as Tariffs Bite
TFI International experienced a significant decline in both profit and revenue in the second quarter of 2025, primarily due to the impact of cross-border tariffs affecting its less-than-truckload (LTL) operations and truckload unit. The company's net income fell to $98.2 million, a 17.8% year-over-year decrease, with revenues dropping to $2.04 billion, down 10.1% from the previous year. The LTL division saw a 13% revenue decline, while truckload revenue decreased by 6%. CEO Alain Bédard emphasized that the current tariff instability in the industrial truckload base is causing many clients to hesitate, leading to reduced miles and business activity.
The firm has also taken measures to streamline operations by reducing its facility footprint, down to 636 from 688 locations, and cutting its fleet size by 2.7%. Bédard noted that the company still holds excess real estate and rolling stock, which they plan to address in the coming months.
From a transportation expert's perspective, TFI's challenges underscore the vulnerabilities of supply chains in the face of regulatory changes, such as tariffs. The reliance on cross-border operations makes them susceptible to external factors, which can lead to fluctuations in demand and operational efficiency. A strategic approach, including diversifying routes or enhancing logistics technology, could mitigate these risks and improve resilience against future disruptions.
TFI International is actively selling off old UPS Freight trucks that currently hold little resale value. CEO Bédard noted that the company has an excess of trucks and trailers that are not generating significant capital returns. TFI has seen improvements in sales to small- and medium-sized customers, along with better performance in missed pickups and claims, attributed to management changes made in the previous quarter.
The company also reduced its warehouse space, ending Q2 with 636 facilities, a decrease from 688 the previous year. Despite selling off some properties, TFI is looking to optimize its operations further by engaging in trades and swaps with peers to address an excess of 3,000 to 4,000 loading doors in the U.S.
As part of their strategy to streamline operations, TFI has slashed its fleet size, reporting a reduction of 2.7% in its truck and tractor count in U.S. LTL operations compared to the previous year. This operational tightening likely reflects broader industry trends toward efficiency and cost management in response to fluctuating demand.
From an expert perspective, the moves by TFI can be seen as a necessary evolution in the transportation sector where operational efficiency is pivotal. Consolidation of facilities and rolling stock not only reduces costs but positions companies like TFI better against competitors in a tightening market. Such strategic decisions can enhance the overall resilience of logistics companies, especially in adapting to changing consumer demands and economic conditions.
The firm has also taken measures to streamline operations by reducing its facility footprint, down to 636 from 688 locations, and cutting its fleet size by 2.7%. Bédard noted that the company still holds excess real estate and rolling stock, which they plan to address in the coming months.
From a transportation expert's perspective, TFI's challenges underscore the vulnerabilities of supply chains in the face of regulatory changes, such as tariffs. The reliance on cross-border operations makes them susceptible to external factors, which can lead to fluctuations in demand and operational efficiency. A strategic approach, including diversifying routes or enhancing logistics technology, could mitigate these risks and improve resilience against future disruptions.
TFI International is actively selling off old UPS Freight trucks that currently hold little resale value. CEO Bédard noted that the company has an excess of trucks and trailers that are not generating significant capital returns. TFI has seen improvements in sales to small- and medium-sized customers, along with better performance in missed pickups and claims, attributed to management changes made in the previous quarter.
The company also reduced its warehouse space, ending Q2 with 636 facilities, a decrease from 688 the previous year. Despite selling off some properties, TFI is looking to optimize its operations further by engaging in trades and swaps with peers to address an excess of 3,000 to 4,000 loading doors in the U.S.
As part of their strategy to streamline operations, TFI has slashed its fleet size, reporting a reduction of 2.7% in its truck and tractor count in U.S. LTL operations compared to the previous year. This operational tightening likely reflects broader industry trends toward efficiency and cost management in response to fluctuating demand.
From an expert perspective, the moves by TFI can be seen as a necessary evolution in the transportation sector where operational efficiency is pivotal. Consolidation of facilities and rolling stock not only reduces costs but positions companies like TFI better against competitors in a tightening market. Such strategic decisions can enhance the overall resilience of logistics companies, especially in adapting to changing consumer demands and economic conditions.
Vehicle Guru