Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 27, 2026 · Beat 4 of last 7 quarters
TFI International Inc. reported Q2 FY2026 revenue of $2.29B, a beat of 2.8% against consensus, and EPS of $1.85, a beat of 16.4%.
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TFI's specialized truckload exposure to data centers, wind, and steel is showing up in results, with management citing data center construction and steel demand as drivers of flatbed and specialized growth. The company's improving free cash flow and deleveraging to 2.4x funded debt-to-EBITDA position it to pursue M&A, potentially adding capacity serving industrial and infrastructure end markets. Autonomous truck technology adoption in LTL line-haul could reshape cost structures and consolidation dynamics across the freight network that supports AI infrastructure buildout.
TFI International reported Q2 2026 adjusted diluted EPS of $1.85, beating the outlook range of $1.50-$1.60 and up 38% year-over-year. Total revenue before fuel surcharge was $1.9 billion, up 6%, while operating income climbed nearly 30% to $220 million, reflecting an 11.6% margin. All three segments grew operating income by double digits: LTL operating income rose 17% to $86 million (88.5% OR), Truckload rose 50% to $106 million (86.1% OR), and Logistics rose 32% to $50 million (11.5% margin). The company generated over $200 million in free cash flow and paid close to $40 million in quarterly dividends. Truckload revenue per truck per week excluding fuel rose 13% year-over-year, accelerating through the quarter, while LTL shipment count rose 7.5% but revenue per shipment before fuel fell 2% due to overexposure to low-priced 3PL blanket freight.
Management guided Q3 2026 adjusted EPS to $1.70-$1.80, which would represent a 50% year-over-year increase at the high end. They expect year-over-year adjusted operating ratio improvement of 500-600 basis points in Truckload, 250-350 basis points in Logistics, and a comparable operating ratio in LTL. Full-year net CapEx excluding real estate remains unchanged at $225M-$250M. The tone was notably more confident on Truckload, where Alain Bedard said the supply-driven dynamic feels 'more of a permanent thing than we've ever seen before' in 30 years, while LTL remains soft with pricing repair work underway. Management said they hope to restore a full-year guide soon, with David Saperstein noting 'the delta is going to come from getting the LTL to produce to its full potential.' They also highlighted an ongoing Daseke integration effort expected to complete by Q1 2027, targeting an 80-83% Truckload OR if market conditions hold.
“What I like about this, which I've never seen before in 30 years being a trucker, okay, is now it's the supply, right?”
on Truckload supply dynamics
“The reason that the margins are expected to be flat is because we have too much volume and not enough price. And that's what we're working on fixing, okay?”
on LTL pricing issue
“We've dropped our depreciation by $12.5 million in this quarter alone. And yet the organic revenue is higher than it was last year. So we're truly getting an enormous benefit to the bottom line as a result of that.”
on Truckload asset optimization
Are you seeing spill from truckload into LTL, and what are you seeing on truckload pricing, particularly differences between flatbed and other parts?
Bedard said LTL remains soft with no major demand revolution, while truckload pricing is impressive mostly due to supply constraints rather than surging demand. Saperstein added that LTL margins are flat because of too much volume and not enough price, specifically in 3PL blanket freight, and that truckload revenue per truck accelerated through the quarter from 11.1% in April to 14.4% in June.
Is the LTL pricing issue something you can reset in one cycle or a multi-cycle process, and are you getting more confidence to restore a full-year guide?
Bedard said the issue is concentrated in 3PL blanket freight where TFI was likely the cheapest, and the commercial team is already fixing it, adding 'does that take 3 quarters? I don't think so.' Saperstein said they are gaining confidence in the truckload cycle due to its supply-driven sustaining power, and that restoring a full-year guide depends on getting LTL to its full potential.
Can you explain changes to the LTL commercial team and how pricing software or AI tools are being used, and is the $10.5 million accident reserve increase recurring?
Bedard said TFI is implementing pricing software used by peers, replacing old UPS freight pricing, and using AI through the finance team to make surgical lane-by-lane and customer-by-customer pricing decisions. Saperstein said the reserve increase is not recurring, explaining that settling claims faster on the spot (about 200 cases) causes actuarial reserves to temporarily run high, which should unwind as future spend declines.