TFI CEO Bédard Slams LTL’s Endless Cycle of Disappointment

TFI’s Bédard bemoans ‘broken record’ of disappointment in U.S. LTL

TFI International’s U.S. less-than-truckload operation turned in another disappointing quarter, prompting Chairman and CEO Alain Bédard to promise management changes and a renewed effort to recruit executives from rival carriers.

The Montreal-based transportation company said its U.S. LTL business, which operates under the TForce Freight brand, saw its operating ratio deteriorate to 91.3 in the third quarter of 2026, compared with 88.8 in the same period a year earlier. A higher operating ratio indicates that a carrier is spending more to produce each dollar of revenue.

Revenue before fuel surcharges declined 1.4% to $677.7 million. Operating income fell 42.9% to $44.4 million.

Bédard described the results as part of a continuing pattern of underperformance. During TFI’s earnings call, he referred to the LTL results as a “broken record” and said the business needs to be corrected.

“Truckload is great. Logistics is great. U.S. LTL is not,” Bédard said, according to the call transcript.

He said TFI has installed a new manager in the U.S. LTL operation, although the executive was not identified. Bédard also said the company intends to look outside TFI for additional management talent, including recruiting leaders from competing carriers.

The planned personnel changes come as TFI continues working to improve an operation built largely through its 2021 acquisition of UPS Freight. The business has faced a prolonged period of soft freight volumes, while management has worked to improve service, pricing and costs across the network.

Bédard said the broader LTL market remains competitive but that pricing has generally held. He characterized TFI’s major competitors as well-managed companies and said the current market does not appear to involve a widespread pricing war.

He also indicated that TFI is preparing for a recovery in LTL demand. The company wants to retain employees and maintain operational capacity so it will not have to rebuild its workforce when freight volumes improve.

“We have to protect our staff,” Bédard said. “When this business gets back on track, you don’t want to have to rehire drivers and at the same time also rehire the staff.”

For drivers and other employees, that approach could mean TFI will try to preserve experienced personnel even while the division works through weak demand and poor profitability. Bédard also said the company is building a nonunion network in parallel with its existing operations, a move intended to give TFI more flexibility as it develops its U.S. LTL business.

The company reported some progress on service and cost initiatives. Bédard said the new management team is working on expenses and service quality, and he pointed to results from the recently released Mastio report as evidence of improved customer satisfaction. He acknowledged, however, that some areas still need work. Next-day service, he said, is now “up to par” with competitors.

The LTL turnaround also faces the loss of a profitable partner contract. Bédard said new pricing began to help late in the quarter, but revenue per shipment declined 4%. The division is expected to lose its Ground with Freight Pricing partner after January 2027.

TFI’s overall third-quarter results were stronger than the U.S. LTL performance suggested. Adjusted diluted earnings per share rose nearly 40% to $1.67 from $1.20 a year earlier, while companywide operating income increased 17% to $180 million, despite an office-related real estate impairment charge.

The company’s truckload division was the primary contributor to that performance. Truckload operating income nearly doubled, supported by higher rates per truck and double-digit top-line growth despite a smaller fleet. TFI reduced its average truckload fleet by 12% while shifting more freight to third-party brokers.

Management said retaining skilled drivers during the previous downturn helped the division respond when freight returned. Truckload’s operating margin improved 2.9 percentage points to 11.3%, while return on invested capital reached 15%, up from 13.3% in the second quarter.

TFI also resumed share buybacks in October, adding to the company’s confidence in its broader financial position. But the results leave the U.S. LTL operation as the central challenge for management.

TFI’s next steps will include filling management positions, improving service consistency, controlling costs and expanding the nonunion portion of its network. The company is also counting on retaining drivers and other skilled workers while it works toward better results in a market where freight volumes remain soft.