Thank you, operator, for the kind introduction, and thanks everyone for joining us on today's call. Last evening, we reported our quarterly results showing robust free cash flow driven by international initiatives and the hard work of our team.

With overall freight dynamics showing modest signs of stabilization, the men and women of TFI are busy preparing for a potential industry rebound and controlling the controllables. Another focus of ours which you've heard me emphasis many times is producing strong free cash flow regardless of the cycle.

I'm pleased to say that we generated more than $10 per share of free cash flow in 2025 or $832 million for the year, and notably, our fourth quarter free cash flow was 25% higher than the year-ago figure. At TFI, we view this free cash flow as very important given our strong track record of strategic capital allocation.

We intelligently invest for the long term even during down markets and, whenever possible, return our excess capital to shareholders. As you may recall, during the fourth quarter, our board again raised our dividend, and over the course of 2025, we continue our track record of opportunistic repurchase, buying back over $225 million of common shares.

Now let's turn to the other aspect of our fourth quarter results. Total revenue before fuel surcharge of $1.7 billion compares to $1.8 billion a year earlier, and we generated $127 million of operating income, reflecting a margin of 7.6%.

Our net cash from operating activities improved meaningfully to $282 million, which was up 8% over the prior year quarter. Our free cash flow from the quarter was $259 million, reflecting a 25% year-over-year increase, as I mentioned.

Taking a more granular look at our business segments, let's begin with LTL, which represents 39% of our segmented revenue before fuel surcharge. At $661 million, this was down 10% compared to a year earlier.

However, we're able to improve our adjusted OR slightly more than expected to 89.9 relative to 90.3 in the year-ago period. Our total LTL operating income was $62 million compared to $70 million a year earlier.

We also generated for LTL a return on invested capital of 12.2%. Next up is Truckload, which was 40% of segmented revenue before fuel surcharge at $674 million for the fourth quarter as compared to $693 million the prior year.

While tariff and general economic uncertainty still affect freight volumes and excess capacity has been an industry-wide concern, we continue to seek growth opportunity that our network and our infrastructure are particularly well suited for. This includes both data center and the broader economic grid, electric grid, two market in which we've demonstrated recent successes.

Our Truckload operating income of $48 million compares to $60 million a year earlier, and our OR of 93.2 compares to 91.5. Wrapping up on Truckload, our return on invested capital came in at 5.8%.

Lastly, in our segmented discussion, Logistics was 21% of segmented revenue at $358 million relative to $410 million in the fourth quarter of 2025. Operating income was $31 million versus $43 million last year, and this represents a margin of 8.7% versus the 10.5%.

I'll note that despite slightly lower Logistics revenue sequentially, we were able to expand our operating margin by 30 basis points over the third quarter, and finally, our Logistics return on invested capital was 11.8%. Shifting gears, our balance sheet is a pillar of our strength supported by the $830 million of free cash flow we produced during 2025, including more than 250, $250 million during the fourth quarter alone, both figures up year-over-year.

We ended the year with a 2.5 times funded debt-to-EBITDA ratio, and given this financial foundation, we continue to pay an attractive dividend and repurchase more than $225 million worth of common shares during 2025, as I mentioned previously. We also continue to seek accretive bolt-on acquisition opportunities.

I'll conclude with our outlook as we may enter the new year—as we enter the new year. For the first quarter, we look for adjusted diluted EPS to be in the range of 50 to 60 cents, and for the full year 2026, we initially expect net capex excluding real estate to be in the range of $225 to $250 million.

As I mentioned in the past, our outlook assumes no significant change, either positive or negative, in the operating environment. Before we open up the Q&A, you may also have seen our press release yesterday about the latest change to our board of directors.

I want again—I want to again express my gratitude to my friend André Bérard for his more than two decades of service as a director of TFI International, most recently as our lead director. His impact on our board since 2003 has been enormously beneficial to the firm, and we all wish him all the very best to his upcoming retirement.

I would also like to congratulate Diane Giard on her nomination as our new lead director. Now, operator, if you could please open the lines for both David and myself, we'll be happy to take questions.

Hi, this is Nancy on for Ravi. Thanks for taking my question.

I was wondering if you could help give some guidelines around the fiscal year guide and potential scenarios to get there, and how you're thinking about 2026 as a whole would be great.

Yeah. That's a very good question.

This is why we came out with our Q1, okay, with 50 to 60 cents. This is down year-over-year versus 2025 because we're still in a transition environment.

The freight recession that we've seen since 2023, '24 and 2025 is still persistent as we look at Q1. We're starting to see some very early signs in our Truckload sector that maybe things will start to get better, okay, during '26.

This is very early. That change in the US with the CDL and not renewing some permits as drivers, etc., etc., okay, that may help the Truckload industry in general.

On the Canadian side, the fact that now every owner-operator or not an employee, but let's say a Driver Inc. now has to be issued a T4A, which is a kind of like a W-2 in the US as an employee.

Now he's got to report his income and pay taxes. We're starting to see some people disappearing, okay, in '26.

This is the very early days in the Truckload sector. On the LTL side, we're still in a very difficult environment, and we anticipate that it's still going to be the case for probably 2026 as whole.

On the Logistics side, though, we feel really good that, okay, yes, our Q4 2025 was not as good as the previous year, but in terms of one of our division that moves trucks for the most important manufacturer in the US, PACCAR and Freightliner, we think that this is going to start improving by probably Q3 and Q4, going back to normal. On the Logistics side, we have a more clear path of the major improvement that we could see during the course of '26.

Truckload, meh, early signs that things will probably get better, although nothing is sure. It's very early in 2026.

We're just in February. On the LTL side, US, still very soft market.

On the Canadian side, very soft market too, but we do way better in Canada than we do in the US because if you look at our revenue per shipment, the number of shipments are down, okay, in Canada, the same as the US, but we're able to maintain an operating ratio very close to what we were doing, let's say a year ago. We have a better control on our costs still in Canada.

If you look at our claim ratio, for example, which is unbelievable, we're close to zero in Q4 on the Canadian LTL side, and we're still at 0.9% of revenue on the US side, which is an area that we definitely have to improve during the course of '26. We had some better quarters in that regard on the claim side, and we need to focus more on that.

This is a big area of focus in terms of improving our service on the US LTL side with our customers, you don't want to break the customer's freight or lose it, right?

Got it. Thank you.

That's very helpful. I guess touching on that a bit more, do you guys feel ready for the upcycle if it comes within US LTL with the idiosyncratic changes you've made, or is there a lot more work needed within 2026?

No, we're ready, Nancy. We are really ready.

In terms of the management tools that we have today versus let's say just two, three years ago, we are very well equipped. We have financial information by terminal now.

We've implemented Optym on our linehaul. We have Optym also implemented, which is a software, on our delivery side.

Now we're going to Phase 2, which is going to be also implemented for the pickup side. We're ready.

We have the tools. We are improving our team.

On the commercial side, we have way more stability in our sales force than ever, okay? Our friend, Mr.

Trickett, has done a fantastic job of creating some stable environment in the sales team, understanding the focus, what these guys need to do. I think that probably for the first time—it's still early in the game—but in Q1, we'll probably for the first time in a long time show that our shipment count is about equal to the one of the previous year.

Very early still, okay, but if you look at Q4, we were down 10%. We're down 6-7% in Canada, but down close to 10 in the US.

It would be quite an accomplishment as a first step, okay, to be able to at least maintain the volume that we had in Q1 '25.

Very helpful. Thank you.

You're welcome.

Hi. Good morning.

Hear your thoughts around the demand environment, and I'm just sort of curious as we roll through the first quarter, is there a way you could give some additional color as to perhaps the segment margin-related drivers behind the 50 to 60 cent EPS guide? Again, realizing that you're not assuming much change in the operating environment, but maybe give some sense for shape of those margins as we move forward seasonally.

Thanks.

That's a very good question, Jordan. This is why I'll pass it on to David, which is our CFO.

Sure. Hi, Jordan.

Hi.

We're looking at probably around 250 basis points of sequential margin deterioration in the US LTL, and I just want to qualify that by saying that Q1 is unique in the year in that it's very back-end weighted to March. It's very difficult to get a sense for the trends based on January and the first half of February.

In this year, particularly so because we lost at least 100 basis points related to weather, which caused us to have a lot of overtime expense, etc. We anticipate around 250 basis points sequential deterioration, but it's heavily weighted towards March, which of course hasn't occurred yet, and we don't have perfect visibility into.

In terms of Canadian LTL, about the same in terms of the sequential move. P&C is 1,000 basis points down and 15% revenue down sequentially, which is normal seasonality for us, Q4 being a peak season in the P&C.

Specialty Truckload, like Mr. Bédard was saying, we are seeing some early signs of positive things in the Truckload, and so we expect to be flat sequentially from Q4 to Q1 in the Specialty Truckload.

Canadian Truckload, a little bit of erosion, maybe 100 basis points margin deterioration sequentially, and then Logistics around 150 basis points.

All right. Great.

Thank you. Just out of curiosity, I know the weather has had an impact.

Are you able to share a little bit more color around—I know March is so important—how's January, February volumes, and is it possible—I know you alluded to it a little bit—can you still make that up in March on the tonnage side for LTL?

Yeah. Listen, the January was very, very difficult, both from a volume perspective and from a cost perspective because of the costs associated with the weather and the disruptions and the inefficiencies that that caused.

February, we saw volumes tick up, and that's why Mr. Bédard was making a reference to potentially being flat year-over-year in volumes.

We'll see how, yeah, the pricing follows as it relates to that. We can see that the volumes did tick up in Feb.

Thank you.

Welcome, Jordan.

Thanks very much. Good morning, everyone.

Morning.

Alain, you mentioned some of the improvement that you're seeing, and David just mentioned it as well, in the fundamentals of trucking, attributed to some of the CDL and English language proficiency testing. Are you seeing that now build into your pricing, your contract pricing?

We see pricing move on the spot side, but are you seeing at all any improvement in pricing on a contracted basis, particularly in US LTL, or if it is differentiated by segment or region, if you could touch on that?

That's a very good question also, Walter, because spot moves first, and when the shippers start to see a movement upward on the spot, they try to get into a long-term agreement with you with those low rates, right? To answer your question, yes, spot are up.

On the van side, it's also inflation for us on the linehaul for our LTL because some of our LTL is moved by third parties, okay, and we saw price moving up in Q1 so far. On the contract rate, it takes more time.

It takes more time, Walter, so that shippers are going after you, commit to long-term pricing at these low rates, and as a trucker, what you normally say is, let's wait and see. For now, no, on the long-term rates.

It's still not as good as the spot rate, but we believe that it's always an offer-and-demand balance, the offer is starting to reduce, okay. The demand is still not great, okay.

This is the issue we have for the last few years is that the offer has always been growing because of the '21-'22 COVID area where we added so much capacity, okay, that now we're stuck with overcapacity. Now the offer is starting to reduce a little bit, and the demand is still not very strong.

We anticipate that if the demand starts to go upward and the offer is also being reduced, this is why, as 3PL, they're starting to see some pressure because the trucker are asking for more money, and they can't get that kind of money from the shipper yet. A little bit of pressure on rates for, let's say, our 3PL organization.

Long term, medium term, for sure the contract rates will start to go up if this trend of reducing the offer and a little bit of increase in the demand continues in '26.

Okay. That's fantastic.

I'd like to go back to your guide now and just reflect in some of the inbounds I'm getting in the sense that you delivered much better than your guide had. Your guide for Q4 had been set at 80 to 90.

You came in with a buck nine. Can you talk a bit about what we could see what we had been forecasting relative to what you came in with, but really internally, where was the area of outperformance, and is that area of outperformance now built into your guide for Q1 as well?

What, Walter, like David was saying, the problem that we face is that we are giving guidance on Q1 based on an horrible month of January, right? A very early, okay, signs of improvement in February.

This is why we're cautious. This is what we believe could be delivered by our operation, okay?

Hopefully we do better than that, like we did in Q4. Then again, the other problem we have, Walter, until we have a deal between US, Canada and Mexico, which is supposed to come let's say in the summer of '26, even if the market, there's a reduction in the offer, the demand is still not very strong.

This is why we have to be very careful until such time that we have a new agreement between the three countries where our customers knows what's going to happen in the future. Then we're going to feel way better, okay, in terms of being able to forecast what can the company deliver in terms of profitability.

Okay. Appreciate the time, as always.

It's a pleasure, Walter.

Hey, good morning, Alain and David. Thanks for taking the question.

Good

morning, Brian.

Morning. Just wanted to hear a little bit more about the Specialty Truckload business.

Obviously heavy industrial there, assuming not seeing too much of an uptick yet. We've seen a little bit of life in the PMI, but also wanted to hear a little bit more about the data centers, the electrical grid, the things that probably have maybe a little bit more of a longer tail to them, but I'm not quite sure how big they are and how fast they're growing at this point.

Maybe some more details on the industrial side with those two in focus.

Yeah. Yeah.

What? This is something new for us, right?

This is coming right now, okay, it's our Lone Star operations out of Texas that is really the one being involved in wind. Although wind is is going to be quite active in '26, and and moving some equipment for the data center.

One of our latest acquisition is also bidding on some job up north, and in in Michigan, and in those northern states in the US. That could be a positive for us if these guys were able to win these these adventures.

We are an industrial carrier, us in in our Truckload. We're not a retail guy, okay?

We are industrial, and for sure, let's say homebuilding, we start moving in in the right direction in that in that regard, okay, that's going to help. Us, in the meantime, this is why we created this job of Chief Commercial Officer for all of our US Truckload with Mr.

Huppy that is now in charge of of working, okay, all of our network participant in that in that sector. We we're deeply focused on what is moving now, and what is moving now is where the major investment are, in the energy sector, and wind, solar, and the data center.

That's our area of focus right now, but hopefully the other sector, okay, of the industrial, which is construction material and and all that, starts to move in '26. Now, like I said, with this latest acquisition that we've done late in '25, these guys are very good.

Hopefully they're successful in those bids, and we'll see because this could be a very interesting win for us. We'll see if these guys are able to to get the ball moving on that.

All in all, we we start, okay, like we said, we're just seeing a little bit of the early sign of some industrial activity, which is our world. We're not a van carrier that moves retail freight, right, for let's say a Walmart or Amazon.

Us is is we move steel, we move aluminum, we move building material, etc., etc. That that's our core, okay, same in Canada too, right?

Hopefully this starts to move, and like you said, there's some movement on PMI. Hopefully, those major investments starts to to increase.

Under the new administration, we're hopeful that this is this will happen.

All right. Maybe just to follow up on the TForce side of things.

The weight per shipment looks like it's stabilizing a bit here, talking about getting back to maybe flat tonnage growth here in the quarter, maybe improving from there. Is that service and network dependent or is that more of a call on the economy?

I would assume it's more of the former, but just wanted to see how far along you are with those improvements to the point where you could maybe grow a little bit faster than what the market's giving you.

Yeah. See, our focus, us, is if you look at what we do in Canada in terms of our weight per shipment is way higher than what we do in the US.

Why is that? Because you have to understand that TForce Freight used to be UPS Freight, and their focus was retail, like UPS per se.

Us, we're saying forget about retail as much as you can. Move away from retail, and let's move freight that is based on the industrial base.

This is why our weight per shipment, since we bought the company, went from about 1,075 to 1,200-something now, 1,225, 1,250, right? The push is to continue to move into that sector of industrial LTL versus retail LTL.

We understand that a lot of the retail stuff more and more, okay, will be controlled by the gig economy, by the Amazon and all that. This is why we're saying to our guys in the US, let's focus on the industrial sector of the economy versus the retail sector of the economy.

Now, the problem, like I just said earlier, is that the industrial economy is slow, is very soft, right? This is why it may be a little bit more difficult to do this transition, but that's a focus of ours is to move away as fast as we can, okay, from the retail economy because we're seeing what's happening, okay, with the gig economy, with the Amazon and all the other one.

Hey guys, let's change, okay, the focus. We've been quite successful so far, okay, doing that, but we need to improve more.

We have to be closer to a 1,400-, 1,500-pound shipments because don't forget, normally you're paid by the weight. The cost is not based on the weight.

The cost is based on the movement, right? You move a pallet that's 1,000 pounds or you move a pallet that's 1,500 pounds, the cost is about the same.

Maybe different on the linehaul, but linehaul, the issue is always cube before weight.

The service point continues to be very important for us, Brian, and that's how we're looking to grow and move. It's true that we took a step back on the claims ratio, but the other service metrics are moving in the right direction.

I can tell you that in Q4, the mis-pickups were 1.5% down from 3.3 a year ago. Reschedules at 8% down from 12 a year ago.

On-time is flat around 91. Then we've continued to increase our small, medium-sized shippers as a percent of total.

It's around 28% of total revenue. That's up from 25 a year ago.

Yeah. Great.

Thanks, very helpful. Appreciate it.

Thanks, operator. Morning, Alain.

Morning, Jason.

Wanted to touch base a little bit on the data center comments, and I think you called it out in a previous release, and you guys typically don't do that. Maybe you could dig a little bit deeper

and

let us know sort of how big you think this can get for TFI.

What, Jason, like I said, right now, before this acquisition that we did late '25, we were only servicing the data center world, okay, through our Texas operation at Lone Star, okay? This is something new for those guys.

It's something new for the industry in general. Because these guys used to be big with wind and energy in Texas.

Now we're saying, okay, this is great, but how about data centers? We are kind of very close to what's this builder, Bechtel, Bechtel, okay?

We're trying to work very closely with those guys, but now with this new acquisition that we just made late in the year, those guys that are operating more in the Michigan area, those guys are also very close to a builder there that's been awarded two data center, one for Meta, one for Google. Hopefully we could continue to work for this builder, okay, to support him in those two data centers.

This could be a win for us if ever our team is successful up there. This is what we're trying to do is build some kind of a recipe partnering with the builder of those centers.

Like the Lone Star guys are with Bechtel, and our guys up north are with a different builder. This is what we're trying to do, and then, once this data center has been completely built, they will need servicing, right?

That's also something that we're trying to get into and to grow that business. We have lots of experience in Texas with Lone Star in moving very expensive—like we did a move for one of the energy company, ConocoPhillips, that was valued at about—just doing the move, if I remember correctly, was close to a million dollar just to move this kind of equipment, right?

These guys are really good at what they're doing, and it's just like, okay, guys, good for wind, good for energy for the oil sector and all that, but data center is the new thing, let's get up and running on that.

The approach is to approach this as a consolidated group, right? We have one of the larger flatbed fleets in the US, over $1 billion of US flatbed revenue.

We're going to market for the large customers as one, so that they are able to get that nationwide service. It's around the energy, it's around the construction, it's also around the high-value.

A lot of the materials are high-value, need to be on-time, and so we have that skillset with the DOD top-secret work that we do, high-value freight as well. That

makes sense, David. My follow-up, Alain, you touched on continuing to do acquisitions.

There's been a lot of articles out that 2026 could be a big M&A year for the logistics group in general. Maybe talk a little bit more about that.

Are you still targeting a larger acquisition this year, or is that going to be something that's more of a '27-'28 event?

Jason, in order to do a deal of large size, you've got to be patient. Like I've always said, you make your money on the buying, never on the selling, the price has to make sense and all that.

For sure, we could do something of size the end of '26 into '27. There again, I'm looking at what's going on with everything that's going on in the market right now on the parcel side and even on the LTL side.

You'll probably see us do some in '26, do some kind of smaller deals, okay, like the one we just did late in Q4. We just did one small deals in Minnesota to add to our Transport America division, okay, that makes a lot of sense.

We may be doing some smaller deals in the LTL world in the US. Large deals takes time, right, and we have to be very careful.

Like I said earlier, until we have a deal between the three countries, okay, nafta-kind deal, right, until we have that, it's very difficult to do a deal of size because you don't know what the rule's going to be. This is why I'm saying it's impossible to do something now.

Maybe possible by the end of '26, but probably more like '27. In the meantime, okay, because of our free cash flow generation, we'll keep continuing to do smaller deals, okay, where the risk is different, okay, now, because of too much unknown on the deal between the three major partners in the world, which is US, Canada and Mexico.

Makes sense. Alain, you mentioned smaller deals on the LTL side.

Would this be like buying cartage agents?

No, I'll give you an example. You buy a small Texas regional guy, as an example, okay, or you buy a regional guy in the Northeast, which is close to Ontario, Quebec, right?

That's what I'm saying by smaller deals. It's not a national carrier.

It could be a strong regional guy that covers one state, like Texas, or cover two, three states in the Northeast. This is more, okay, what we are trying to do right now because a large deal in US LTL for us, it's not possible right now.

Makes sense. Appreciate the time, as always, gentlemen.

Pleasure, Jason. Thank you.

Good morning. Wanted—

Morning, Tom.

Good morning, Alain. Morning, David.

Wanted to try to drill down a little bit on the non-domiciled CDL impact and how to look at that in your business, right? Truckload is extremely large market where we expect supply-side benefit, but the benefit might be different in dry van versus Specialty, in flatbed.

Do you have a sense of kind of how much non-domiciled CDL has impacted Specialty flatbed? You were mentioning some of the skillsets are a little more unique in Specialty,

and

I'm just trying to get a sense of, well, is this really going to cause capacity to come out in dry van, and then there's maybe less pricing impact to you? I know there's somewhat fungible, but just trying to get a little more sense of kind of how you would see the driver impact and whether you think there is a lot of activity in supply in Specialty that's actually non-domiciled.

Thanks.

Yeah. What, Tom?

This is a really good question because so far, okay, we see way more, okay, on the van side than on the Specialty Truckload side because what you just said. The Specialty, let's say on a flatbed or on a tanker operation, there's more than just driving the truck, right, whereas the van, you just pick up a trailer and you drive, right?

It's much easier than to tarp a load on a flatbed, right? I don't know that, Tom, so far.

It's very hard to put a finger on what the effect of that's going to be. One thing is for sure is that we'll probably not see as much benefit as the van because us, it's probably less of an issue for our world.

It's a little bit like a domino effect, right? Once the spot moves, okay, on the van, it starts to move on the reefer.

We see also some movement on the price on the flatbed side year-over-year. It's starting to move.

I don't know if exactly is it because the supply is constrained or is it the demand that's more. My feeling would be more like not the demand because the demand, in my mind, is still very soft and weak, excluding the data center thing there or the energy sector.

I think it's an issue of the supply that's starting to constrain because our revenue per mile, although we still have some of our division that are not doing well on a revenue per mile basis because of market condition, but overall, okay, our revenue per mile is improving. In Q1, okay, I think we're going to start to see those improvement, because we did not improve in Q4.

That's for sure. I've never seen a Specialty Truckload OR at 93, which is worse than my van 91 OR in Canada.

This is not acceptable, absolutely not, but there's market condition to that. We should see some improvement there, and is it because of the demand or is it because of the supply?

I think it's a little bit the supply. Demand will probably improve over the course of '26-'27, and CDL, is that helping us as much in the Specialty Truckload world and then the van world?

I think that probably it's more benefit to the van world versus the Specialty, but we're still getting, I think, improvement because our revenue per mile is improving year-over-year as of now.

That's great. Thank you.

Then quick one for David, or one or two for David. Just want to make sure I understand your comments on US LTL in 1Q.

If you see flat year-over-year shipments, then that would imply, want to say, 3% to 4% growth in shipments per day, 1Q versus 4Q. That would be a kind of a meaningful improvement.

I don't know if you were saying kind of flat shipments sequentially or year-over-year. If you're saying flat year-over-year, what might be driving the improvement in activity?

Thanks.

It would be potentially flat year-over-year, again, hard to say what's going to happen in March. That was what it was, the comment was with regard to year-over-year.

What's driving the improvement is the sales team, the service, and all of the things that we've been working on over the course of the past year. Now, the revenue per shipment may not be positive, right, and that's why we'll see where the revenue per shipment is relative to year-over-year.

There is pricing pressure out there, and so that's going to be the offset to what could be strong volumes or stronger volumes as it relates to the profitability contribution.

The 100-basis-point comment on weather impact, that's a full-quarter impact in US LTL?

Yeah. We're estimating that we've lost $5 to $6 million already on the weather, just through extra overtime and just inefficiencies and cleaning up the dock and all that cost.

Versus a normal environment because, Tom, see, the issue of the weather, we always have weather in Q1. This is not something that we normally talk about.

This year, it's special because it affected our big market, which is Northeast, Midwest and Texas, right? If the weather is an issue in Idaho or in Utah, bah, not too big for us, right?

When it affects Chicago, when it affects Dallas, when it affects New York, this is really, really difficult because Dallas, we were shut down for three days because of the ice. What David is talking about, $5-$6 million, this is over and above what we consider to be a normal environment of weather.

We're not saying that, oh, because we have—no, no, no, no, no. This is exceptional for this year because weather was really bad in our major sector, okay, for TForce Freight.

Right. Totally makes sense.

Thank you for the time.

Pleasure, Tom.

Good morning, Alain and David and team. Maybe just a first one on the earnings side of things.

As we kind of look into the back end of 2026, hopefully conditions improve, but is Q4 going to face a tough comp from the buck nine in EPS you reported for Q4 of 2025? If I'm looking sequentially, you have effectively a drop of 50% in EPS from Q4 to Q1 as guided, and that's a little bit wider than what you typically see, right?

I'm just trying to make sure we're not missing anything when we are comping or lapping the Q4 2025 and Q4 2026.

Okay. I think, Konark, that Q4, okay, 2025 versus '26, I think that we're going to be in a different position, okay, versus this year versus '25.

Reason being that I believe that our Logistics will do way better in 4 '26 versus 4 '25 because our customers will be busier. I'm talking about the OEMs, the truck manufacturers, okay, and also the fact that we've added as an acquisition late in Q4 '25 a great company in our Logistics sector.

This is why, on the Logistics side, I think that we're going to do way better, okay, Q4 versus '24 '25 '26. On the Truckload side, I'm convinced that we're going to do better because I've never seen 93 OR, and we're taking some action, okay?

I'll give you an example. One of our division on the West Coast, which we're doing really well, okay, with certain accounts, like the aerospace, we have Boeing as a customer over there.

We have Bombardier as a customer too. We're doing really, really well with those guys, but we're doing so poorly with some other customers.

We took the bull by the horn, and we said, guys, no. No more of that, right?

We have also another division that's from Daseke that is doing really well with one sector of their business, but they're doing really poorly with another sector. There again, we're going to take action there.

This is why, to me, I think that Steve and his team understand that we can't run a Specialty Truckload with a 93 OR. This is completely unacceptable, and we're taking action over and above what we think that we're seeing some early signs of market improvement.

On the LTL side, like David was saying, the big focus of Carl and the team there is really to improve our service, okay, and we are. We are improving our service.

As an example, we move way more freight on the road versus the rail. The rail miles within TForce Freight are down to about 20%.

When we bought UPS Freight, these guys were 38% to 40% on the rail. For sure, you move freight on the rail, you don't control the service because this is the rail, whereas if you do it yourself on the road, well, it's under your control.

We are improving our service as an example, just moving rail to road. Now, like I said earlier, because we move that on a van, and the van, okay, world's rate per mile is moving up, like we were talking about, this environment is changing, it's also a little bit of pressure on our costs because where we used to pay, let's say, $2.20 a mile, now, okay, you could be stuck paying $2.50 to $2.70 or $2.80 a mile depending on the lane, right?

A little bit of pressure on that for us, but for sure with better service, I believe that our commercial team with Chris and the rest of the boys there will help us grow for the first time organically in '26 year-over-year, right? This is why you look at what we're saying about Q1, I think it's exceptional what we're seeing because it's still a very soft environment.

Our customers don't know what's going to happen in the future because until we have a deal, like I said earlier, between US, Canada and Mexico, a lot of guys are sitting on the fence because don't forget, TFI is a US carrier for about 75% of our revenue, but 25% to 30% of our revenue is Canadian, right? A lot of our Canadian customers, they don't know, okay, what the future is.

Also some of our US customers are facing a tough time selling to Canada right now. All of that being said, when we come up with 50 cents in Q1, it looks really bad versus $1 in Q4.

It's a special environment, okay, and we're cautious.

That's great color, Alain. If I can follow up maybe on Logistics.

I think you mentioned that sequentially speaking at least, Logistics margin expanded from Q3, and I was pleasantly surprised to see that. Any color you can share in terms of what's driving this improvement?

Is it early days, or is it the mix, or is it something else? How should we extrapolate this performance at Logistics into 2026?

Yeah. I think, Konark, that you see us improving during the course of '26, like I said, because of this acquisition, okay, that we did, because of one of our large customer, the OEMs, are also going to be busier.

Our Canadian logistics is doing pretty good. We have a great business there.

Our US logistics is under a little bit of pressure with what's going on in the Truckload sector in the US where the rates are starting to move up on the spot. You try to get a truck, it's a little bit more money, and you're stuck with contracted rates with customers, and these guys want to extend those contracts, and we're saying, well, no, because the market is changing.

On the US side, a little bit more pressure, okay, on our profitability there, maybe for the next few months. All in all, I feel really good about where we're heading with our logistics.

Logistics for us, with this new acquisition and a few things that we're working on, should do better in '26 than in '25, absolutely. The other thing also that's worth mentioning is that if you look at our Truckload brokerage operation in the US, the revenue is up, okay, and it will continue to grow.

This is one area of focus of Steve and his team is to grow more of this asset-light operation versus asset-heavy operation and get a better mix like we have in Canada. In Canada, we run a hybrid model where we have our own assets, okay, but we also generate a lot of revenue without any assets.

When we bought Daseke, they were doing some of that, but not a lot. The goal during '25, '26 and '27 is to grow the share of the asset-light operation share of revenue, okay, versus the total revenue of the company.

You're in a way better position to improve your return on invested capital because, when you don't buy steel, bah, your capital cost goes down. If the profitability or the revenue remains the same, your return on invested capital improve.

This is when we talk to the Truckload team, they say we can't run a single-digit return on invested capital, guys. If you do that, the future is bleak.

We got to do something. The market will help us, yes, but we need to help ourselves too.

Appreciate the time and color. Thanks, Alain.

Pleasure, Konark.

Hi, good morning, gents, and thank you, operator. Alain, you made some helpful comments around the road-to-rail shift in LTL.

I think that makes a lot of sense for service. Maybe you could also remind us of what percentage of linehaul miles are currently outsourced on the LTL side, whether that's to truck or rail, and then, given your fleet investments, you have any plans to bring that number down this year?

Yeah. What we do is about 20% on the rail, 20-22% on the rail, and then we have owner-op, okay, and we have third-party.

The third-party and the owner-op probably, our own guys do, if I remember correctly, David, correct me if I'm wrong—

Our own guys are doing around 55, 55%.

55%. Yeah.

It's 45% outsourced.

Yeah. Out of the 45% outsourced, 20 of that is rail.

Yep. So

25 is third party, owner-op and third party.

Great. Then just maybe broad plans if you're comfortable with that number as far as it suits your model or whether you plan to bring that down over time?

Listen, for sure, okay, if your average length of haul is 1,000 miles and more, you have to have some rail, right? I cannot answer is 20 the right number.

I would say we're getting close to the right number if the average length of haul stays above 1,000 miles. Now, one thing is for sure is the 55%, like David was mentioning, with our own guys, that could grow probably closer to 60%, okay, over time, yes, because you have better control when it's your own people.

The rail at 20%, we're probably close if we remain over 1,000 miles. We're probably close to the best that we could do.

Now, again, this is going back to the average weight per shipment that we went from 1,075 to 1,200-something. The average length of haul is down a bit, but the discussion I'm having with Carl and the rest of the team is over time, okay, we need to change our approach to the market and reduce, over time, the average length of haul so that we don't touch the product three or four times.

We touch the product less. In order to touch the product less, you have to do less miles, less on the average length of haul, right?

It's an evolution, okay, that's going to take place over time. There again, what I'm saying, if you run over 1,000 miles, you need the rail.

Makes sense. Thank you.

Hey, good morning, Alain and David. Alain, maybe just a bit of a contrasting message, maybe some clarity.

You noted a weak environment, but 1Q should be flat after a down 7% ton and down 11% shipment quarter. Maybe clarity on what's driving that near 50% EPS downtick in the first quarter, and then you threw in, hey, it's conservative, we could do better.

Is it just the weather that's stepping you back? Are there gains in the fourth quarter, any impacts from the fourth quarter acquisitions in there?

Maybe just some clarity on that. Thanks, Alain.

Yeah. David, you want to give some clarity to Ken on that?

Sure. Look, Ken, in terms of gains or anything special in the fourth quarter, the only thing special in the fourth quarter was tax for about $5 million.

Other than that, there was nothing one-time in nature. In terms of what's driving the trend of volumes up is the work that the team's doing.

What may still weigh on the profitability, though, is the revenue per shipment. That's why the growth in volume may not be as profitable as otherwise would be.

We'll just have to see how that plays out. Then more broadly, it's very, very difficult to, especially at TForce Freight, to forecast the first quarter because all the money is made in March.

That's just the nature of this business. When we're looking at a Jan and Feb that were very difficult with or at least January very difficult with the dynamics that we've talked about, there's a lot that's unknown.

We've done the best that we can, and we are being conservative about what March might be when we put together that guidance.

Okay. That was flat on—

Okay.

That was flat on shipments or on tonnage? I think you've said both.

I just want to make sure I'm getting—

The shipments year-over-year potentially on shipments. Yeah.

Then you previously noted, I think, 2 to 300 basis points of margin improvement at LTL in a flattish environment. If I think you mentioned if we're starting off flattish in 1Q, does that mean you're looking flattish for the year, or is it too big a hole, and so that 2, 300 basis points for the full year is too big, or is that still achievable, Alain, in your outlook?

How about EPS? Are you then looking for it to be at least up on a year-over-year basis?

Yeah. In terms of the volume, like I said, Ken, I think for the first time, '26 in our US LTL, we should see a little bit of organic growth, okay, on the shipment count, right?

On the weight, we believe that it's going to be about flat or up a bit. On the revenue per shipment, like David was saying, okay, right now what we're seeing is a little bit of pressure on the revenue per shipment when we look at Q1 so far.

The team is is working to correct that, okay? It's not like we accept that.

No, no, no, no, no, no. Carl, no, no.

We we cannot live with $5 less a shipment, whatever it is. No, no.

Don't forget, our GRI, which is small, okay, it's a it's a small number of shipments, right, but we didn't do any. We're doing one in mid-March, okay?

Most of our peers have done theirs earlier than us, and us, we waited, okay? We waited because we want to continue to improve our service, there's no there's less issue with customer when you talk to them about asking for more money.

This is why we're doing that mid-March, okay, fine. If we go back to the year in terms of global TFI, my mind is, for sure, our plan is we will deliver better OE or EPS in '26 versus '25, without a doubt.

That that's our plan because our, like I said, our logistics will definitely improve. That we have visibility.

We know, okay, where the OEMs are going because we talk to them, okay? We know that it's going to be weak for the first six months year-over-year in '26 versus '25, but the latter part of the year, they're going to do way better in Q3 and in Q4 versus '25.

We're we are suffering a little bit in that business in Q1 and in Q2 year-over-year. In our Truckload, we've talked a lot about that.

I'm I'm convinced that we're not going to deliver a 93 OR, okay, in Q1. We are improving our year year-over-year basis in Q1 and during the course of the year.

On the LTL side, we're we're taking some actions there, okay, improving our service. Organic growth small, I think that we'll do a better job in '26 as we've done.

Now, we've said it clearly, and this is why our guidance is is only 50 to 60 cents, is that we had a difficult start of the year, okay, not just in US LTL, in Truckload as well, and Logistics because some of our customers are not that busy. This is why this is what we believe is is achievable, okay, and hopefully we do better than that.

The other thing I would point out on the full year is that in Truckload, we've done a lot of work in 2025 to reduce the capital intensity of Truckload because we had way too much equipment. Depreciation expense will be lower in the Truckload in '26 than it was in '25.

You can actually already see that if you look at the D&A of Truckload just in Q4 is $3 million lower than it was the year prior, and lower as a percentage of revenue as well, right? There's real efficiency as it relates to the capital there, and that's going to continue into '26, and the impact would probably be higher in '26 than $3 million a quarter.

Because if I may add, guys, if I remember correctly, our revenue per truck in Q4 is better even with rates per mile that are not that better.

Yep.

Velocity is more.

Exactly. Great.

Appreciate the thoughts. Thanks, guys.

Thank you.

Thanks. Good morning.

I just wanted to, I guess, follow up on M&A. You mentioned a few times the acquisition you closed in Q4, I guess the Hearn Industrial.

Obviously not huge, but you've cited it a couple times here as a really great fit. Can you just talk a little bit about that business?

Because it looks like in your disclosures that not huge from revenue point of view, but a pretty good margin profile for that business.

You see, those guys are doing a great job. They are entrepreneur, and I think that what these guys are doing today is great, and I think that the potential for being part of the TFI family is going to help us help them and us, okay, do even better in the future.

This is something new for them. I'll give you an example.

They don't touch freight. They do a lot of work in the automotive business, but they don't touch freight, but they have a certain degree in the freight.

That's something new for them, right? For sure, they are in touch with our GHT division, okay, because these guys have a lot of capacity that could be used to deliver freight for those guys.

There's going to be some great synergies, I think, between members of the family with the Truckload sectors and all that. For sure, these guys are lean and mean operators, very successful guys, and yeah, I think it's going to be a great acquisition in our Logistics sector, a little bit like the GHT and the other ones that we've done in the Logistics sector.

Okay. No, that's helpful.

Maybe just a bigger-picture capital allocation question. You've mentioned that continue to be active with the tuck-in acquisitions.

Just wondering if you've got kind of a target for leverage at year-end. It's still pretty comfortable here, great free cash flow still expected in 2026, but just any targets there as far as leverage and lists of capital allocation priorities?

Yeah. Capital is always the same thing.

If we don't do anything of size, we're going to do probably, I would say, '26, in 2026, $200 to $300 million of M&A in terms of tuck-in, probably $200 minimum, maybe up to 3. Then we've got the dividend, and the rest, okay, we'll just use the cash to pay down debt or, depending on the stock valuation, do some buyback.

We have the possibility of buying back all the way up to 7 million shares that we're approved to do. Now, again, 2.5 leverage, it's okay, but we would prefer to bring that down to closer to 2 over time.

Let's say that we do about the same free cash as we did last year. We've got the dividend.

We've got the M&A. Then, for sure, we'll be reducing our leverage if we don't do any stock buyback.

Leverage, I don't remember the plan, David. Where do we end up?

We're closer to 2 than 2.5.

No doubt. The other thing we'll point out, and we actually added this into the MD&A where just under the table where we show the leverage ratio, that leverage ratio is calculated according to the way that our banking covenants are calculated, and it includes two things that some investors may not consider leverage.

One is letters of credit, and the second is the book value of earnouts, right, which are subject, of course, to the future performance of target companies. Those numbers are a little bigger than they have been in the past, and so that's why we set them out in the table.

You can see that, and you can work out by backing those out what, let's say, the real economic leverage of the company is, which is a little lower than is presented in the banking syndicate.

Yeah. With these numbers, David, I think we're at 2.2, right?

Mhm.

Okay. No, that's great.

Appreciate the time. Thanks.

Pleasure, Cameron.

Thank you. All right then.

Thank you very much, operator, and thank you everyone for being on today's call. We appreciate your interest in TFI International, and we're both confident in our position and enthusiastic about what 2026 will bring.

As always, please reach out if you have any additional question. I look forward to seeing many of you on this year's conference circuit.

Enjoy the day, and we'll be in touch. Thank you.