TFI International raises dividends despite revenue drop in Q4 2025
TFI International Inc. has released its financial results for the fourth quarter and full year ending December 31, 2025. The company announced a 4% increase in its quarterly dividend, raising it to $0.47 per common share. Despite a drop in revenue and operating income, the firm highlighted strong free cash flow and operational improvements.
Total revenue for the fourth quarter reached $1.91 billion, down from $2.08 billion in the same period the previous year. The decline was mainly due to lower volumes. For the full year, revenue fell to $7.88 billion from $8.40 billion in 2024, again because of reduced activity in existing operations.
Operating income also saw a decrease. In the fourth quarter, it dropped to $127.2 million from $160.2 million in the prior year, largely because of weaker market demand. Over the full year, operating income fell to $565.3 million from $719.0 million, affected by both softer demand and higher depreciation costs.
Despite these challenges, TFI International improved its operating ratio in U.S. LTL (less-than-truckload) services. The company also reported robust free cash flow of over $10 per share in 2025, driven by better customer service and operational efficiency. Management noted that attractive growth opportunities remain within reach.
During the fourth quarter, TFI returned $54.1 million to shareholders. This included $36.7 million in dividends and $17.4 million through share repurchases. The Board of Directors also approved a dividend increase, lifting the quarterly payout by 4% to $0.47 per share.
Looking ahead, the company expects adjusted diluted earnings per share (EPS) for the first quarter of 2026 to range between $0.50 and $0.60. This outlook follows a broader industry trend, as seen with competitors like Old Dominion Freight Line, which also reported declining results for 2025 but suggested signs of a potential recovery in freight demand.
TFI International's latest financial report shows a mix of challenges and strengths. While revenue and operating income declined due to weaker market conditions, the company maintained strong cash flow and increased shareholder returns. The dividend raise and cautious optimism for 2026 reflect confidence in its long-term strategy.
