Where Will TFI International Be in 5 Years?

TFI stock has been going through a lot lately, so what can investors expect next?

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 23, 2025 4:40 pm EDT

| More on: TFII

The transportation industry has seen massive changes over the past few years, from supply chain disruptions to soaring demand for e-commerce and a renewed focus on sustainability. In the middle of this evolving sector is TFI International (TSX:TFII), a Canadian logistics powerhouse with a long history of profitable growth. Investors are increasingly wondering what the next five years could look like for this transport titan. With a strategy rooted in acquisitions, disciplined capital allocation, and operational efficiency, TFI may be setting the stage for an even more ambitious future.

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The stock

TFI International is a leader in the North American freight and logistics sector. It operates across four segments: Package and Courier, Less-Than-Truckload (LTL), Truckload, and Logistics. Over the years, the company has developed a reputation for acquiring underperforming businesses, streamlining operations, and turning them into profitable contributors. That’s a core part of its strategy, and it was on full display this year.

In the first quarter of 2025, TFI reported total revenue of US$1.96 billion, an increase of 5% from the same quarter in 2024. While top-line growth was solid, net income came in at US$56 million, down from US$92.8 million in the first quarter (Q1) of 2024. The decline was attributed to weakness in the broader freight market, which has impacted several companies across the industry. Still, despite softer earnings, TFI managed to increase its free cash flow by 40% year over year, hitting US$191.7 million. That’s a meaningful number because it shows TFI is still generating substantial cash it can reinvest or return to shareholders.

A truckload of growth

The real standout this quarter was the performance of its Truckload segment, thanks in large part to the acquisition of Daseke. This addition helped boost Truckload revenue by 61% and operating income by 18% compared to a year earlier. TFI’s track record with acquisitions is one of the reasons investors continue to have faith in its long-term vision. By targeting companies with turnaround potential and integrating them into its decentralized business model, TFI often finds ways to squeeze out efficiencies and boost profitability.

In fact, this model is one of the keys to TFI’s resilience. Each acquired company maintains operational independence but benefits from access to capital, infrastructure, and strategic support from the parent company. This allows TFI to operate with flexibility, adjusting to regional and sector-specific conditions while still maintaining a strong financial core. Over time, this approach has helped TFI expand its footprint across Canada and the U.S., making it a dominant player in the industry.

Future outlook

Looking ahead to the next five years, TFI appears to be on solid ground. The company’s backlog, as of its last report, stood at a record US$12.8 billion. Importantly, 40.3% of that backlog consists of zero-emission vehicles. This is a signal that TFI is aligning its business with the broader push toward sustainability and environmental responsibility. As more cities, companies, and consumers demand cleaner logistics solutions, TFI is in a position to meet that demand.

Analysts covering the stock have generally been upbeat, even with the recent freight softness. The company has continued to repurchase shares, reward shareholders with dividends, and pursue growth through acquisitions. As of writing, TFI had a market cap of approximately $10.4 billion and a share price hovering around $124. It also pays an annual dividend of $2.50 per share, which works out to a yield of about 2%. While not a high-yield stock, the dividend has grown over time, offering a little extra for patient investors.

Bottom line

In five years, TFI International could be a significantly larger company, especially if it maintains its current pace of expansion. Its ability to acquire, adapt, and grow sets it apart in a challenging industry. Although the road ahead may include bumps, particularly if the economy enters a prolonged downturn, TFI has shown it can thrive in both good times and bad.