TFI International eyes U.S. nonunion LTL acquisition as part of expansion push

TFI International is plotting a major expansion into U.S. nonunion less-than-truckload (LTL) freight, including a potential acquisition valued at roughly $142 million (C$200 million). The move comes as the Montreal-based logistics giant seeks to diversify beyond its heavily unionized U.S. LTL operations, which are anchored by TForce Freight. During its second-quarter 2026 earnings call on July 27, CEO Alain Bédard outlined plans to enter new markets, specifically targeting Texas, California, Ohio, Michigan, New York, and the Carolinas. “Where would we want to be? We want to be in Texas. That is for sure. We want to be in California. That is for sure. We want to be in Ohio. We want to be in Michigan. One will be in New York. One will be in the Carolinas. This is the beauty when you build from scratch,” Bédard said. The company currently operates a minuscule nonunion LTL footprint in the U.S., handling just 1,000 to 1,300 shipments daily—”peanuts” compared to its overall volume, according to CFO David Saperstein. TFI’s LTL segment, which contributed 38% of total revenue before fuel surcharges, posted $724.9 million in revenue in Q2 2026, up 3% year-over-year from $703.7 million. However, average shipment weight declined 1.5% to 1,515 pounds, and revenue per shipment (excluding fuel) dropped 2.1% to $297.73. The division’s operating ratio improved to 88.5 from 89.5 in the prior-year period, signaling better cost control. Executives admitted pricing missteps, particularly with third-party logistics (3PL) providers, where aggressive underpricing led to unsustainable volume growth at the expense of profitability. “The biggest culprit where we probably made a mistake is 3PL … where we got inundated with volume? Because probably we were the cheapest guy in the country? This is what now our commercial team is working on fixing,” Bédard explained. Despite these challenges, TFI’s overall Q2 2026 performance strengthened, with net income surging 39% to $136.2 million and total revenue rising 12.4% to $2.29 billion. The truckload division also delivered a 6.8% revenue increase before fuel surcharges, reaching $760.8 million. TFI has aggressively expanded its truckload operations in recent years through acquisitions like Daseke, though it has made only one deal so far in 2026. The company ranks No. 6 on Transport Topics’ Top 100 list of North America’s largest for-hire carriers and No. 8 in the LTL segment.