TFI International shares plunge as high fuel costs drive earnings miss

Higher profits and revenue failed to keep TFI International's stock from sinking Friday as investors focused instead on the company's earnings miss, a disappointing forecast and a major contract loss.

The country's largest trucking firm saw its share price drop 17 per cent to close at $130.05 on the Toronto Stock Exchange.

The decrease came after its net income and adjusted earnings fell short of expectations and its fourth-quarter outlook underwhelmed analysts.

"You have inflation like we went through in Q2 and in Q3 with fuel, that turns to be more of a negative," said CEO and chairperson Alain Bédard.

He was talking specifically about less-than-truckload (LTL) shipments, which see multiple drops of cargo for different clients on a single run, in the United States. There, the company has a farther-flung network and less efficient routes than in Canada.

"We do about 20,000 shipments a day. We cover all of the U.S. and our density is not good," he said.

Pricing in the segment marks another area of concern.

"It's not the market that's the problem, it's us. We have to do a better job commercially to identify what fits," Bédard said.

"We've been going through a very rough patch in our U.S. LTL for the year," he summarized. "We're not very happy at all with the results.

"We believe that we're going to turn the corner in 2027."

Some analysts cast doubt on that prospect.

"Inadequate pricing and lack of density mentioned on the call do not in our view sound like easy fixes," said analyst Walter Spracklin of RBC Dominion Securities in a note to investors.

He also pointed to the newly announced loss of a US$300-million contract with shipping giant UPS, "which explains the market reaction today."

However, analyst Benoit Poirier said weakness in the company's less-than-truckload segment "overshadowed solid execution" from its full truckload and logistics divisions.

TFI's net income jumped 25 per cent year-over-year to US$105.7 million last quarter. Revenue at the Montreal-based company, which keeps its books in U.S. dollars, rose 13 per cent to US$2.23 billion.

South of the border, an immigration crack down on commercial truck drivers has had varied effects on shipping carriers. The demand for licensing data by the U.S. Department of Homeland Security and the Department of Transportation has forced the closure of some driver training schools and pushed out drivers who have valid licenses but may also be undocumented.

The result is less competition as some firms have shuttered, but also higher wages for workers.

"We have pressure on labour costs. Why is that? Because everybody is looking for drivers," Bédard said.

"That brings inflation to the salary, which between you and me I think is needed," he said.

"We have to push customers around that this is the new reality, my friend, and this is the new price. We're not in the business of practising delivery just to have fun."

On an adjusted basis, diluted earnings leaped 39 per cent to US$1.67 per share in the three months ended Sept. 30 from US$1.20 per share in the same period a year earlier. But the outcome fell below analysts' expectations of US$1.76 per share.

TFI's adjusted profit forecast of between US$1.30 and US$1.40 per share in its fourth quarter also notched well beneath analyst predictions of roughly US$1.65.

This report by The Canadian Press was first published Oct. 30, 2026.

Companies in this story: (TSX:TFII)

By Christopher Reynolds | Copyright 2026, The Canadian Press. All rights reserved.