Tfi International Inc. · TSX:TFII
Tfi International — Q1 2025 Earnings Presentation
48 slides from Tfi International's earnings presentation, Apr 24, 2025
Slide 1: First Quarter Ended March 31, 2025
First Quarter Ended March 31, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements In the interest of providing shareholders and potential investors with information regarding TFI International, including management’s assessment of future plans and operations, certain statements in this presentation are forward-looking statements subject to risks, uncert
Slide 3: TFI International: Who We Are
TFI International: Who We Are Diversified: Full service: Transport and Less-Than-Truckload, logistics Truckload and Logistics North Number of Extensive American Operating Network: Leader: Companies: 646 facilities, Operations across 20,756 trucks1, U.S. and Canada 100+ 42,710 trailers 26,312 Decentr
Slide 4: Our Customer Value Proposition
Our Customer Value Proposition ◼ We create transportation and supply chain advantages to… …mitigate risk for customers …improve their efficiency and delivery timing …reduce their delivery costs …drive satisfaction for the end consumer 4
Slide 5: Why Invest in TFI International?
Why Invest in TFI International? Superior record Market leader in of growth and key transportation shareholder value and logistics creation segments Track record of M&A execution Diversification by with well-defined industry sectors acquisition and geography pipeline Robust Return on Invested Capita
Slide 6: Investment Highlights
Investment Highlights ◼ 9.2% Operating Margin2 Best-in-class operating margins, ◼ 12.7% FCF Yield1,3 FCF yield and FCF conversion ◼ 82.5% FCF Conversion1,4 Proven track record of growth ◼ Completed 91 acquisitions since 2016, through disciplined of which 5 were major acquisitions6 acquisition strate
Slide 7: Low Capex Facilitates Asset-Light Model
Low Capex Facilitates Asset-Light Model TTM Net Capex (% of Total Revenue) 14.9% 8.0% 2.7% 1.1% 2 3 Truckload Peer Average1 Less-than-Truckload Peer Average Logistics Peer Average Note: TFI Net Capex excludes purchases and sales of property. TFII data reflects TTM Q1-2025 while peer data is TTM Q4-2
Slide 8: Market Leadership in Key Segments: TTM FCF Conversion
Market Leadership in Key Transportation and Logistics Segments: TTM FCF Conversion Less-Than-Truckload 81.9% 19.4% Peer Average1 Truckload Logistics 78.6% 97.7% 75.7% 32.8% 2 Peer Average 3 Peer Average Note: FCF Conversion (%) calculated as (Adjusted EBITDA – Net Capex of rolling stock and equipmen
Slide 9: Our Strategy of Growth Through Acquisitions
Our Strategy of Growth Through Acquisitions ◼ Proven track record of executing on M&A strategy across highly fragmented markets – Completed 91 acquisitions since 2016, of which 5 were major acquisitions1. – Strong focus on integration, operations and realization of synergies ◼ Our disciplined acquis
Slide 10: Overview of the TFI International Platform
Overview of the TFI International Platform Less-Than-Truckload Truckload Logistics (41% of YTD Q1-2025 (38% of YTD Q1-2025 (20% of YTD Q1-2025 Revenue) Revenue) Revenue) US LTL Package & Specialized Canadian LTL Conventional (27% of YTD Courier (34% of YTD (8% of YTD Q1- (4% of YTD Q1- Q1-2025 (6% o
Slide 11: Services by Geography
Services by Geography ◼ TFI has built a robust and well-diversified revenue base By Geography (YTD Q1-2025) — No client accounts for > 5% of consolidated revenue Less-Than- Truckload Logistics Truckload By Top Customers' Industry1 (YTD Q4-2024) 2% 1% 1% 3% 3% 6% Canada 19% 7% 17% 8% 10% 13% 10% Unit
Slide 12: Less-Than-Truckload Segment
Less-Than-Truckload Segment Geographic Footprint Segment Overview ◼ Over-the-road and asset-light intermodal LTL services ◼ Significant scale in both Canada and US ◼ Solid track record for safety and on-time delivery ◼ Focus on customer facing technology ◼ 41% of YTD Q1-2025 Revenue Less-Than-Truckl
Slide 13: Truckload Segment
Truckload Segment Geographic Footprint Segment Overview ◼ Dry van full truckload ◼ Flatbed, tanks, dumps, oversized and other specialized services ◼ Modern fleet ◼ We own the majority of our assets and have long established partner carrier relationships ◼ 38% of YTD Q1-2025 Revenue Truckload Operati
Slide 14: Logistics Segment
Logistics Segment Geographic Footprint Segment Overview ◼ Same day parcel delivery nationwide in the United States and Canada ◼ Truck brokerage and other logistics services ◼ 20% of YTD Q1-2025 Revenue Logistics Operating Companies AC Logistics Canada Craler Stream Logistics Active Truck Transport D
Slide 15: Return on Invested Capital by Operating Segment
Return on Invested Capital¹ by Operating Segment 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Package & Courier 25.7% 24.2% 22.2% 23.5% 23.3% Canadian Less-Than-Truckload 19.1% 19.1% 17.6% 18.5% 18.3% US Less-Than-Truckload 15.2% 15.4% 15.4% 12.8% 10.0% Canadian Truckload 10.4% 8.9% 7.7% 8.1% 8.3% Specia
Slide 16: Our Decentralized Structure: Uniquely Delivering Value for Shareholders
Our Decentralized Structure: Uniquely Delivering Value for Shareholders ◼ Our four segments are constituted of wholly-owned subsidiaries operating under their own brands ◼ Our differentiated approach to operating our businesses enables us to create shareholder value by… …reaping the benefits of both
Slide 17: Superior Track Record of Growth
Superior Track Record of Growth Revenue Before Fuel Surcharge (US$ in millions) Adjusted EBITDA1,2 (US$ in millions) 8,000 7,305 1,600 7,000 1,400 1,321 6,000 1,200 5,000 1,000 4,000 800 3,000 600 2,000 400 1,000 200 0 2002 0 2024 2002 2024 Diluted Adjusted EPS from Continuing Operations (US$)1,2,3
Slide 18: Total Shareholder Return
Total Shareholder Return Over Various Periods Less-Than- Peer Average Truckload1 Truckload2 Logistics3 15-Year 1,321% 730% 817% 2,124% 193% 135% Total Shareholder Return 10-Year 1,030% 307% 187% 485% 16% 60% 5-Year 275% 145% 133% 346% 23% 29% 1-Year (51)% 49% (21)% (32)% (19)% (12)% 1Less-Than-Truck
Slide 19: Resilience Through the Cycle
Resilience Through the Cycle ◼ TFI’s operating income, adjusted EPS – Diluted and Free Cash Flow continued growing despite the global pandemic of COVID-19. (US$ in millions) 2018 2019* 2020 2021 2022 Total Revenue 3,954.8 3,903.5 3,781.1 7,220.4 8,812.5 Operating Income 332.0 382.9 416.6 979.2 1146.
Slide 20: E-Commerce Provides Additional Growth
E-Commerce Provides Additional Growth ◼ E-Commerce is a powerful secular force, driving new shipping demands including greater emphasis on last-mile logistics E-Commerce Revenue Evolution of B2B/B2C Split (US$ in millions) 9.0% 478 CAGR 41% 42% 39% 42% 43% 53% 51% 58% 67% 165 57% 59% 58% 61% 58% 47%
Slide 21: Evolution of E-Commerce Fulfillment
Evolution of E-Commerce Fulfillment ◼ The evolution of E-Commerce fulfillment has created numerous opportunities for TFI companies – both next-day (Canada) and same-day (Canada & U.S.) Next-Day Services Same-Day Services Shipper - Warehouse Shipper - Warehouse Pickup Sorting Facility Region A Lineha
Slide 22: TFI International Serves a Vast E-Commerce Network
TFI International Serves a Vast E-Commerce Network TTM Q1 2025 E-Commerce Revenue by Segment (US$ in millions) United States Canada 37.1 94.4 202.6 115.6 10.3 ◼ TFI services E-Commerce from nearly 17.7 Logistics TL LTL 80 North American cities ◼ Further opportunities for the Logistics ◼ Total Canadi
Slide 23: Robust Balance Sheet With Strategic Flexibility
Robust Balance Sheet With Strategic Flexibility March 31, Covenants Requirements 2025 Funded debt-to-EBITDA ratio [ratio of total debt, net of cash, plus letters of credit and some other long- term liabilities to earnings before interest, income tax, depreciation and amortization (“EBITDA”), < 3.50
Slide 24: Track Record of M&A Execution and Integration
Track Record of M&A Execution and Integration ◼ Acquired 91 companies across our highly fragmented markets since 2016, of which 5 were major acquisitions1. Number of Acquisitions per Year TForce Worldwide MCT TForce Grammer Dry Freight Bulk JHT Laser Coastal Transport SGT South Shore STG CFI Cavalie
Slide 25: Our Approach To Creating Shareholder Value
Our Approach To Creating Shareholder Value Growth & ROIC ◼ We deliver earnings Market growth and strong ROIC, both organically and Leadership through our proven acquisition strategy ◼ We continually solidify Our our position as a leader in the North American People transportation and logistics indus
Slide 26: Appendix
TF International Appendix
Slide 27: Additional Operational Data (Slide 1 of 5)
Additional Operational Data (Slide 1 of 5) Operational Data – LTL 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 U.S. based LTL Revenue (in thousands of dollars) 467,903 503,275 481,102 484,314 492,199 479,496 449,722 424,682 GFP Revenue (in thousands of dollars) 81,823 77,874 81,56
Slide 28: Additional Operational Data (Slide 2 of 5)
Additional Operational Data (Slide 2 of 5) Operational Data – LTL 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Canadian based LTL Revenue (in thousands of dollars) 127,936 140,794 138,241 134,918 143,906 137,963 134,653 125,398 FSC revenue (in thousands of dollars) 32,055 37,581 3
Slide 29: Additional Operational Data (Slide 3 of 5)
Additional Operational Data (Slide 3 of 5) Operational Data - LTL 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 P&C Revenue (in thousands of dollars) 115,588 111,749 122,033 103,180 108,565 108,631 125,033 101,965 FSC Revenue (in thousands of dollars) 26,651 27,808 34,165 25,464 27
Slide 30: Additional Operational Data (Slide 4 of 5)
Additional Operational Data (Slide 4 of 5) Operational Data – TL 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Specialized TL Revenue (in thousands of U.S. dollars) 291,768 284,322 283,383 278,468 565,936 553,870 531,890 493,823 Brokerage revenue (in thousands of U.S. dollars)2 43,
Slide 31: Additional Operational Data (Slide 5 of 5)
Additional Operational Data (Slide 5 of 5) Operational Data – TL 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Canadian based Conventional TL Revenue (in thousands of U.S. dollars) 54,520 54,300 53,838 51,596 49,484 47,665 46,511 42,039 3 Brokerage revenue (in thousands of U.S. dol
Slide 32: Reconciliations
TF International Reconciliations 32
Slide 33: Five-Year Reconciliation of Adjusted EBITDA
Five-Year Reconciliation of Adjusted EBITDA1 (US$ in millions) TTM Q1 2024 2023 2022 2021 (from Continuing Operations) 2025 Net Income 385.7 422.5 504.9 823.2 754.4 Net Finance Costs 171.2 158.2 80.9 80.4 73.0 Income Tax Expense 125.1 138.2 171.9 242.4 151.8 Depreciation of Property and Equipment 35
Slide 34: Five-Year Reconciliation of Adjusted Net Income and Adjusted EPS – Diluted
Five-Year Reconciliation of Adjusted Net Income1 and Adjusted EPS – Diluted1 TTM Q1 (US$ in millions, except per share data) 2024 2023 2022 2021 2025 Net Income 385.7 422.5 504.9 823.2 754.4 Amortization of Intangible Assets Related to Business Acquisitions 76.7 73.7 56.2 52.0 50.5 Net Change in Fai
Slide 35: Adjusted Operating Ratio Reconciliation
Adjusted Operating Ratio1 Reconciliation (US$ in thousands) 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 US Based Less-Than-Truckload Total revenue 649,043 696,734 674,745 655,153 648,396 621,812 564,204 539,210 Total operating expenses 602,026 628,476 631,118 614,031 597,611 582,
Slide 36: Adjusted Operating Ratio Reconciliation
Adjusted Operating Ratio1 Reconciliation (US$ in thousands) 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Canadian Based Less-Than-Truckload Total revenue 159,991 178,375 177,629 170,326 180,902 171,826 164,772 155,907 Total operating expenses 126,336 146,263 149,809 144,573 145,80
Slide 37: Adjusted Operating Ratio Reconciliation
Adjusted Operating Ratio1 Reconciliation (US$ in thousands) 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 P&C Total revenue 142,239 139,557 156,198 128,644 135,745 135,603 154,454 127,773 Total operating expenses 115,135 114,335 121,487 110,489 111,702 111,969 121,848 110,423 Opera
Slide 38: Adjusted Operating Ratio Reconciliation
Adjusted Operating Ratio1 Reconciliation (US$ in thousands) 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Canadian based Conventional TL Total revenue 89,756 93,112 93,102 92,666 89,486 90,172 87,755 83,249 Total operating expenses 77,613 83,452 84,518 85,721 81,323 82,341 80,347 6
Slide 39: Adjusted Operating Ratio Reconciliation
Adjusted Operating Ratio1 Reconciliation (US$ in thousands) 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Specialized TL Total revenue 392,456 386,691 389,318 379,070 765,327 742,086 700,868 677,259 Total operating expenses 338,416 346,294 347,245 344,551 690,149 677,690 648,624 64
Slide 40: Return on Invested Capital TTM Reconciliation
Return on Invested Capital1 TTM Reconciliation (US$ in thousands) 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Less-Than-Truckload – US based LTL2 Operating income 200,019 203,787 175,158 143,683 107,511 Loss on sale of land and buildings 36 - - - - Impairment on assets held for sale - - - - 11,368 (Gain
Slide 41: Return on Invested Capital TTM Reconciliation
Return on Invested Capital1 TTM Reconciliation (US$ in thousands) 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Less-Than-Truckload – Canadian based LTL Operating income 119,344 120,781 121,368 119,117 118,186 (Gain) loss on sale of land and buildings and assets held for sale 3 3 (1) - - Amortization of i
Slide 42: Return on Invested Capital TTM Reconciliation
Return on Invested Capital1 TTM Reconciliation (US$ in thousands) 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Less-Than-Truckload - Package and Courier Operating income 105,192 102,130 100,542 98,435 97,630 Loss on sale of land and buildings and assets held for sale 7 7 - - - Amortization of intangible
Slide 43: Return on Invested Capital TTM Reconciliation
Return on Invested Capital1 TTM Reconciliation (US$ in thousands) 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Truckload - Canadian based Conventional TL Operating income 37,331 33,292 31,643 30,287 37,326 Gain on sale of assets held for sale - - - - (7,086) Amortization of intangible assets 2,231 2,252
Slide 44: Return on Invested Capital TTM Reconciliation
Return on Invested Capital1 TTM Reconciliation (US$ in thousands) 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Truckload - Specialized TL2 Operating income 171,030 192,212 216,212 222,148 222,423 Gain on sale of land and buildings and assets held for sale (535) (513) (1,821) (2,321) (2,290) Amortization
Slide 45: Return on Invested Capital TTM Reconciliation
Return on Invested Capital1 TTM Reconciliation (US$ in thousands) 2024-Q1 2024-Q2 2024-Q3 2024-Q4 2025-Q1 Logistics Operating income 168,584 186,281 194,121 182,363 173,414 Gain on sale of land and buildings and assets held for sale (262) (262) (262) (36) - Amortization of intangible assets 30,356 3
Slide 46: Reconciliation of FCF Conversion TTM 2025-Q1
Reconciliation of FCF Conversion1 TTM 2025-Q1 (US$ in thousands) Less-Than-Truckload Truckload Logistics Adjusted EBITDA1 reconciliation TTM 2025-Q1 Operating income 323,328 259,749 173,414 Depreciation and amortization 211,516 342,669 60,954 (Gain) loss on sale of assets held for sale 2,809 (9,379)
Slide 47: Reconciliation of Free Cash Flow Measures
Reconciliation of Free Cash Flow1 Measures (US$ in millions) TTM 2025-Q1 Reconciliation of free cash flow1 Net cash from operating activities 1,055.6 Additions to property and equipment (349.8) Proceeds from sale of property and equipment and AHFS 117.5 Free Cash Flow 823.1 (US$ in millions) TTM 202
Slide 48: TF International
TF International