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TFI second-quarter profit rises as truckload margin outpaces LTL
Diluted EPS increased 41% year over year to $1.65, driven by higher truckload profitability despite LTL revenue growth lagging.
TFI International reported stronger second-quarter financial results, with diluted earnings per share up 41% year over year to $1.65 and EBITDA rising by more than 11%, according to a conference call with analysts covered by Yahoo Finance.
The company said the profit lift came primarily from its Truckload operations and Logistics segment, while its LTL business improved but at a slower pace. LTL provided 41% of revenue, and EBITDA margins diverged, with LTL at 18% versus Truckload at 24.1%, while Logistics had a 16.3% margin.
Management highlighted that Truckload pricing improved largely due to supply constraints, not a surge in demand. CEO Alain Bedard said Truckload pricing is being supported by limited supply, and CFO David Saperstein pointed to revenue per truck per week accelerating year over year, rising 11.1% in April, 13.3% in May, and 14.4% in June.
For Truckload, Bedard also cited a lower operating ratio, falling to 86.1% from 92.7% in the first quarter. In LTL, shipments were up 7.5% in the quarter, but revenue per shipment was down 2%, according to Yahoo Finance’s account of the call.