MONTREAL - TFI International Inc. (NYSE:TFII), a major player in the North American transportation and logistics industry, has announced a quarterly dividend increase for its shareholders. The Board of Directors declared a dividend of $0.45 per outstanding common share, payable on January 15, 2025, to shareholders on record as of December 31, 2024. According to InvestingPro data, the company has maintained dividend payments for 23 consecutive years, demonstrating a strong commitment to shareholder returns.
This recent dividend is a 13% hike from the previous rate of $0.40 per share, as disclosed by the company on October 21, 2024. The increase in dividends reflects the company's commitment to shareholder returns and confidence in its financial stability. With revenue of $8.29 billion in the last twelve months and a solid return on equity of 17%, InvestingPro analysis shows the company maintains a GOOD overall financial health score.
TFI International operates a diverse network of subsidiaries across the United States, Canada, and Mexico, providing a range of services including less-than-truckload, truckload, and logistics. The company focuses on strategic acquisitions and efficient management of its subsidiaries to enhance shareholder value.
The company's shares are listed on both the New York Stock Exchange and the Toronto Stock Exchange under the ticker symbol TFII. This announcement is based on a press release statement from TFI International Inc.
In other recent news, TFI International has experienced a series of noteworthy developments. The company's Q3 financial reports showed a 17% increase in revenue, totaling $1.9 billion, and a 37% increase in free cash flow to $273 million, leading to a $130 million debt reduction. Operating income for the period reached $203 million, with a margin of 10.7%. Despite these positive results, TD Cowen, Susquehanna, and Citi reduced their price targets for TFI International, while Stifel downgraded the company's stock from Buy to Hold due to operational issues.
TFI International's third-quarter performance fell short of expectations due to operational ratio pressures from pricing challenges and service issues. This led to a reduction in earnings per share (EPS) guidance and a more cautious stance for the year 2025. However, TD Cowen and Susquehanna still see significant growth potential for TFI International, supported by its strategic approach to acquisitions and potential for a major deal towards the end of 2025 or the beginning of 2026.
On the other hand, Stifel expressed concerns over systemic issues within TFI's operations, such as problems related to misaligned incentives, declining service quality, missed pickups, and issues with the billing system. These factors are seen as significant obstacles to gaining larger customer wallet share and improving pricing structures.
Lastly, Neil Manning, an independent director, retired from TFI International's board after 11 years of service. Despite ongoing market challenges, TFI International anticipates a stable performance for 2024, with potential improvements in 2025 if market conditions normalize.
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