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Mar 31, 2024
TFI Q1 2024 Earnings Report
TFI International Inc. reported a decrease in operating income and net income for the first quarter of 2024, primarily due to a weaker freight market and lower gains on asset sales, despite an increase in total revenue driven by business acquisitions.
Key Takeaways
TFI International Inc. experienced a mixed first quarter in 2024. While total revenue saw an increase to $1.87 billion, primarily driven by business acquisitions, operating income decreased by 9% to $151.6 million, and net income fell by 17% to $92.8 million. This decline was largely attributed to a weaker freight market and reduced gains from asset sales. Despite these headwinds, the company maintained strong cash flow from operations and increased its quarterly dividend by 14%.
Total revenue increased to $1.87 billion, up from $1.85 billion in Q1 2023, mainly due to business acquisitions.
Operating income decreased by 9% to $151.6 million, primarily due to a weaker freight market and lower gains on asset sales.
Net income fell by 17% to $92.8 million, and diluted EPS decreased to $1.09 from $1.27 in Q1 2023.
The company generated $200.7 million in net cash from operating activities and declared a 14% increase in quarterly dividend to $0.40 per share.
Revenue by Segment
Forward Guidance
The North American economic growth forecast remains subdued and uncertain due to various factors, including high inflation, elevated interest rates, and global supply chain challenges. Despite reduced freight volumes, TFI International's diverse market exposure and disciplined operations helped support Q1 results. Management believes well-timed investments during weaker market conditions should drive stronger future results if the freight cycle improves.
Positive Outlook
- Company's diverse industrial and consumer end market exposure provides resilience.
- Multiple modes of transportation offer flexibility and stability.
- Disciplined approach to operations helps maintain efficiency.
- Various self-help initiatives support results during challenging periods.
- Well-timed investments during weaker market conditions are expected to drive stronger future results if the freight cycle improves.
Challenges Ahead
- Subdued and uncertain North American economic growth forecast.
- Stubbornly high inflation continues to be a concern.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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