TFI International, a leading transportation and logistics company, has announced plans to expand its nonunion less-than-truckload (LTL) operations in the United States. The company is evaluating the acquisition of a nonunion LTL carrier for approximately C$200 million, or $142 million at current exchange rates. This strategic move is part of TFI’s efforts to diversify its LTL business beyond its unionized TForce Freight fleet.
The acquisition is a response to the growing demand for LTL services, as evidenced by a 7.5% increase in shipments in the second quarter of 2026. However, the company has also noted a decline in revenue per shipment and shipment weight, indicating the need for strategic adjustments in pricing and operations.
Strategic Expansion into Key Markets
TFI International aims to strengthen its presence in several key states, including Texas, California, Ohio, Michigan, New York, and the Carolinas. The company’s CEO, Alain Bédard, emphasized the importance of these regions in building a robust nonunion LTL network. Currently, TFI’s nonunion LTL business in the U.S. is relatively small, handling around 1,000 to 1,300 shipments per day. The acquisition and expansion plans are designed to significantly increase this volume.
The LTL segment contributes 38% of TFI’s revenue before fuel surcharge. In the second quarter of 2026, the LTL unit posted a revenue total before fuel surcharge of $724.9 million, a 3% increase compared with the same period in 2026. However, the division’s average weight per shipment fell 1.5% to 1,515 pounds from 1,538 pounds, and revenue per shipment (excluding fuel) fell 2.1% to $297.73 from $304.11.
Addressing Pricing Challenges
TFI executives have expressed concerns about the weakness in pricing for the LTL division, particularly in the third-party logistics (3PL) segment. The company has seen a significant increase in business from 3PL shippers due to competitive pricing, which has impacted service quality. To address this issue, TFI’s commercial team is working on adjusting pricing strategies to better reflect market conditions.
Despite these challenges, the LTL unit’s The unit posted an operating ratio of 88.5 in the most recent quarter, compared with 89.5 in the year-ago period. A lower operating ratio indicates better cost management and revenue generation.
Strong Financial Performance Driven by Truckload Division
TFI’s second-quarter net income increased 39% to $136.2 million from $98.2 million in Q2 2026, bolstered by a strong performance from its truckload division. The carrier’s revenue rose 12.4% to $2.29 billion in the most recent quarter from $2.04 billion in the year-ago period. The truckload division saw a 6.8% increase in revenue before fuel surcharge to $760.8 million from $712.3 million in the same period 12 months earlier.
The company’s financial performance was also aided by a drop in depreciation of property and equipment, down 5.6% year-on-year. This improvement can be attributed to changes in the company’s specialized operations, particularly the acquisition of Daseke, a publicly-traded flatbed operator, in 2026. TFI is now adjusting its asset base to align with its business needs, resulting in a more efficient fleet.
Looking ahead, TFI expects continued improvement in its truckload segment, with an anticipated improvement of 500 to 600 basis points in the operating ratio for the year 2026. The logistics segment is also expected to improve by 250 to 350 basis points, while the LTL segment is projected to remain comparable. Despite the challenges in the LTL market, TFI remains optimistic about its strategic expansion and financial performance.
