01:05 PM EDT, 05/15/2025 (MT Newswires) -- TFI International ( TFII ) Chief Executive Alain Bedard presented at the RBC Industrials Conference.

According to RBC analysts Walter Spracklin and James MacGarragle, an important takeaway from the discussion was Bedard's observations that demand is still subdued. While visibility into the outlook is uncertain management believes that the current backdrop is unsustainable, with smaller carriers unprofitable in the current volume and pricing environment. "We view this as generally in line with our view that the demand outlook is uncertain but that the trucking market has likely bottomed. Key is that we believe this is creating an opportunity to focus on costs, which we view as setting the stage for solid operating leverage when the demand environment (eventually) recovers."

On M&A, management said it is looking at potential deals to increase density in the LTL segment and/or beef up the specialty business in the U.S.

"We continue to believe that management will take down leverage this year on the back of meaningful FCF generation and some self-help opportunities we expect to drive growth this year. We see that as positioning the company well for a bigger deal in 2026, which we expect would be focused on US LTL to increase density."

TFI International ( TFII ) is rated Outperform, with a US$94 target.

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