News

TFI International Increases Dividend Despite Drop in Profit

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4.5

Andrew R. Michaud

• October 23, 2023

TFI International has announced a 14% increase in its quarterly dividend, despite experiencing lower profit and revenue in the third quarter due to weakened market demand.

The Canadian transport and logistics company's board of directors has approved a quarterly payout of 40 cents per share to shareholders, up from 35 cents.

In the third quarter, TFI International reported a net profit of $133.3 million, or $1.54 per share, compared to $245.2 million, or $2.72 per share, in the same period last year.

After adjusting for one-time items, the company's earnings per share remained at $1.54. Analysts surveyed by FactSet had predicted adjusted earnings per share of $1.73.

Meanwhile, revenue declined by 15% to $1.91 billion, falling short of analysts' expectations of $1.88 billion.

Despite these challenges, Chief Executive Alain Bedard remains optimistic about the future. "Looking ahead, we're well positioned to capitalize on the eventual pick-up in demand given our efficient platform, our team's focus on profitability and cash flow, and our solid financial foundation, which further benefited from our post-quarter, half billion dollar private placement," Bedard said.