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SEC filingTFI International's 2024 revenue grew 14% to $7.3B driven by acquisitions, but operating income fell 5% amid weak freight demand and elevated accident costs, pressuring profitability.
For the fiscal year ended December 31, 2024, TFI International reported total revenue before fuel surcharge of $7,304.6 million, up 13.8% from $6,416.9 million in 2023, driven primarily by the April 2024 acquisition of Daseke. Including fuel surcharges, total revenue reached $8,396.8 million. Operating income decreased 5.1% to $719.0 million from $757.6 million, reflecting a weak freight market, especially in the U.S. LTL segment, and elevated accident-related expenses. Net income fell to $422.5 million ($4.96 diluted EPS) from $504.9 million ($5.80 diluted EPS), impacted by higher interest expense from increased debt levels and restructuring costs. Adjusted EBITDA rose to $1,321.0 million from $1,187.9 million, primarily due to acquisition contributions.
As of December 31, 2024, total assets stood at $7,145.8 million, up from $6,283.6 million a year earlier, largely from the Daseke acquisition. Long-term debt increased to $2,402.9 million from $1,884.2 million, with a debt-to-equity ratio of 0.90x vs. 0.73x in 2023. The company had $549.7 million available under its revolving credit facility and an additional $175.0 million of accordion capacity. Cash and cash equivalents fell to zero (net of bank indebtedness of $6.8 million) from $335.6 million at year-end 2023, as cash was deployed for acquisitions and shareholder returns. Lease liabilities rose to $573.7 million from $460.2 million due to new leases from acquisitions.
Net cash from operating activities increased 5% to $1,062.7 million from $1,013.8 million, driven by lower income tax payments and higher provisions, partly offset by a decline in non-cash working capital. Free cash flow was $768.6 million, slightly below $775.9 million in 2023, due to higher capital expenditures ($392.8 million vs. $361.6 million) and lower proceeds from asset sales. The free cash flow conversion rate was 80.6% (adjusted EBITDA less net capex divided by adjusted EBITDA). The company used cash for acquisitions ($958.0 million), share repurchases ($76.6 million), and dividends ($133.9 million), while increasing debt to fund the Daseke purchase.
Management cited continued weak Freight volumes across the industry, but expressed confidence in the company’s diversity across segments and end markets. The outlook highlighted potential benefits from a gradual shift toward domestic manufacturing, e-commerce growth, and disciplined cost management. Key risks include inflation, interest rates, geopolitical tensions, potential tariffs, and labor market tightness. TFI plans to pursue selective accretive acquisitions while maintaining a focused approach to pricing, network density, and driver retention. No specific numerical guidance was provided.
The LTL segment saw revenue decline 4.7% to $3,085.7 million as U.S. LTL tonnage fell 2.9% and revenue per hundredweight (ex-fuel) decreased 3.7%. Canadian LTL revenue edged up 3.7% driven by higher pricing. Package and Courier revenue dipped 3.6%. The Truckload segment surged 56.9% to $2,551.5 million, reflecting the Daseke acquisition; organic revenue declined about 5% due to lower volumes and pricing. Logistics revenue rose 7.2% to $1,721.0 million, with acquisitions contributing $355.4 million offsetting organic declines. Corporate expenses increased to $77.1 million from $64.7 million, largely due to restructuring costs related to Daseke. Share-based compensation totaled $11.1 million. The effective tax rate was 24.7% vs. 25.4% in 2023, benefiting from tax deductions and exempt income. Goodwill and intangible assets increased to $2.6 billion from $2.0 billion, primarily from the Daseke acquisition.