TFI International Inc. is preparing for “something of size” regarding a U.S. acquisition late next year or in early 2026, Alain Bédard, the mega fleet's chairman, president, and chief executive, told analysts this week.
Speaking to analysts after TFI (No. 7 on the FleetOwner 500: For-Hire) reported its third-quarter results October 22, Bédard said he’s interested in growing the company’s less-than-truckload and logistics business via a sizable transaction on top of the several tuck-in acquisitions TFI makes most years. The company’s last big buy was in late 2023 for specialty transportation firm Daseke Inc., which TFI valued at about $1.1 billion.
The weak freight environment of the past two years, Bédard added, means the market for him as a buyer is positive. Assuming TFI pays down some of its debt in coming quarters as planned, he would entertain a deal of up to $5 billion if he could seal it without having to issue stock.
“Our pipeline is solid. We have lots of opportunities. It’s just that we have to be patient,” Bédard said, adding that he walked away from one deal this year because of valuation differences of opinion.
See also: TFI’s Bédard: Freight market won’t turn until next year
Growing TFI’s LTL presence is a priority for Bédard, who oversaw the 2021 acquisition of UPS Freight's operations, which have since been renamed TForce Freight. But the integration of that business hasn’t been a roaring success: TForce Freight continues to run into service and pricing challenges that Bédard discussed freely on the October 22 call.
TForce Freight handles about 22,000 shipments daily, but Bédard said that’s “too small” and that he wants the LTL group to be third or fourth in the U.S. market rather than sixth or seventh.
Montreal-based TFI produced net profits of $128 million in the three months ended Sept. 30, which was down about $5 million from the same period of 2023, even though revenues rose (thanks in large part to Daseke) to $2.18 billion from $1.91 billion. Operating income at the company’s LTL operations fell to $96.0 million from more than $125 million, a drop that essentially offset gains in TFI’s truckload and logistics businesses.
Bédard said LTL pricing gains slipped this summer to the low single digits from mid-single digits. He said the key to reversing that trend is to improve TForce Freight’s service levels and lower customer churn.
Shares of TFI (Ticker: TFII) ticked up after reporting its numbers but gave up 3% on Oct. 23, when it closed at $131.68. Over the past six months, they have given up nearly 10% of their value, a move that has trimmed the company’s market capitalization to about $11 billion.
