First look: TFI Truckload sparkles, but OR at LTL slips
Transportationvia FreightWaves
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TFI International has tried to get investors to take notice of its Truckload operations, which are substantial but smaller than its more better-known LTL segment. The third quarter results may be the catalyst that gets that recognition to occur. Where the third quarter LTL segment at TFI (NYSE: TFII) saw its operating ratio rise compared to a year ago, the OR for Truckload strengthened. And it was the Truckload operations that led CEO Alain Bedard’s comments in the prepared statement released Thursday afternoon along with its earnings. Bedard described Truckload as having a “remarkably strong” quarter. “Our Truckload performance is particularly gratifying, with double digit top line growth despite fewer trucks and operating income that nearly doubled,” Bedard said. The overall impact of the higher LTL OR and the much improved truckload OR led to a company-wide OR of 89.5% compared to 91.2% from a year ago. The Truckload segment had operating income of $100.2 million, up 13.3% from a year ago, while LTL’s operating income was $44.4 million, up 6.6%. A year ago, LTL’s operating income was $77.7 million while Truckload was $52.6 million. TFI’s Logistics segment had operating income that surpassed LTL, coming in at $49.4 million. Diluted EPS of $1.28, compared to $1.02 a year earlier, is expected to be surpassed in the fourth quarter, TFI said, projecting EPS for the three months to be between $1.30 to $1.40. Several of the LTL metrics fell sharply, leading to the deterioration in adjusted OR. Revenue per hundred weight excluding fuel, the key yield figure, declined less than 1%. But revenue per shipment excluding fuel fell 22%. The average weight per shipment was down 3.58%. TFI did see its total LTL shipments rise 4.62%. With year-ago comparisons on revenue in Truckload impacted by the weak freight market of 2025, Truckload revenue rose 142.1%. But adjusted EBITDA in Truckload was up 24.7% and operating income rose more than 90%. The Truckload segment was much smaller in size than a year ago, with the truck count down almost 12%. The number of owner operators also declined about 4.8%. TFI International’s earnings call with analysts will be Friday at 9:30 am EDT. More articles by John Kingston FMCSA’s Elison addresses Motus again, still no date on full repair C.H Robinson and Landstar stock prices slammed; insurance a factor Jacobs, RXO’s creator, backs its acquisition by C.H. Robinson The post First look: TFI Truckload sparkles, but OR at LTL slips appeared first on FreightWaves.
TFI International has tried to get investors to take notice of its Truckload operations, which are substantial but smaller than its more better-known LTL segment. The third quarter results may be the catalyst that gets that recognition to occur.
Where the third quarter LTL segment at TFI (NYSE: TFII) saw its operating ratio rise compared to a year ago, the OR for Truckload strengthened. And it was the Truckload operations that led CEO Alain Bedard’s comments in the prepared statement released Thursday afternoon along with its earnings.
Bedard described Truckload as having a “remarkably strong” quarter. “Our Truckload performance is particularly gratifying, with double digit top line growth despite fewer trucks and operating income that nearly doubled,” Bedard said.
The overall impact of the higher LTL OR and the much improved truckload OR led to a company-wide OR of 89.5% compared to 91.2% from a year ago.
The Truckload segment had operating income of $100.2 million, up 13.3% from a year ago, while LTL’s operating income was $44.4 million, up 6.6%. A year ago, LTL’s operating income was $77.7 million while Truckload was $52.6 million.
TFI’s Logistics segment had operating income that surpassed LTL, coming in at $49.4 million.
Diluted EPS of $1.28, compared to $1.02 a year earlier, is expected to be surpassed in the fourth quarter, TFI said, projecting EPS for the three months to be between $1.30 to $1.40.
Several of the LTL metrics fell sharply, leading to the deterioration in adjusted OR. Revenue per hundred weight excluding fuel, the key yield figure, declined less than 1%. But revenue per shipment excluding fuel fell 22%.
The average weight per shipment was down 3.58%. TFI did see its total LTL shipments rise 4.62%.
With year-ago comparisons on revenue in Truckload impacted by the weak freight market of 2025, Truckload revenue rose 142.1%. But adjusted EBITDA in Truckload was up 24.7% and operating income rose more than 90%.
The Truckload segment was much smaller in size than a year ago, with the truck count down almost 12%. The number of owner operators also declined about 4.8%.
TFI International’s earnings call with analysts will be Friday at 9:30 am EDT.
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The post First look: TFI Truckload sparkles, but OR at LTL slips appeared first on FreightWaves.
The nation’s largest less-than-truckload carrier, FedEx Freight, said Thursday that volumes have continued to stabilize and that it expects to see stronger operating leverage next year as a standalone company. Its local, dedicated LTL sales teams are seeing business wins and driving a better freight mix across the network. FedEx Freight (NYSE: FDXF) completed its spinoff from FedEx (NYSE: FDX) in June. FedEx reported financial results on Wednesday. The carrier reported four-month results (June through September) Thursday after the market closed as part of a transition to calendar-year financial reporting. Revenue in the period increased 9% year over year to $3.28 billion. Revenue per day was up 8%. Adjusted earnings per share of $2.15 were 70 cents lower y/y. The revenue increase was driven by a 9% increase in revenue per hundredweight (yield), while tonnage was level with the prior-year period. The tonnage result stemmed from a 1% decline in shipments per day, which was offset by a 1% increase in weight per shipment. Yield (ex-fuel) was up just 0.3% y/y. Revenue per shipment (ex-fuel) increased 2%. It has repriced approximately 25% of its contract business since the separation and said net revenue churn has improved. It expects both volumes and yield (ex-fuel) to increase in the fourth quarter. September marked the ninth straight month of expansion for the U.S. manufacturing complex, which is a significant source of LTL freight. FedEx Freight’s 2027 general rate increase is expected to average 6.9% and takes effect on Jan. 8. The company reported an 84.5% adjusted operating ratio (inverse of operating margin), which was 90 basis points better y/y. Guidance for the fourth quarter includes revenue of $2.3 billion to $2.37 billion, a 13% y/y increase at the midpoint of the range. Higher diesel fuel surcharges will be a primary driver of the increase. Diesel prices were 48% higher y/y in the third quarter. Adjusted operating income is expected to increase 20% y/y (at the midpoint) to a range of $185 million to $205 million. (The guide implies a 91.4% to 92% adjusted OR, 50 bps better y/y at the midpoint.) The company said it will soon decide on a dividend, and on buying back stock. It said that share repurchases would likely be executed to offset dilution as FedEx unwinds its equity position. Shares of FDXF were up 3% in after-hours trading on Thursday. Why it matters? FedEx Freight’s standalone results provide deeper context around its LTL operations and broader market trends. More FreightWaves articles by Todd Maiden: Saia’s expanded terminal network delivers record revenue, tonnage XPO’s pricing, operating initiatives drive Q3 beat Old Dominion’s tonnage turns positive; recovery needs demand inflection The post FedEx Freight sees volumes stabilize, eyes Q4 margin improvement appeared first on FreightWaves.
Amazon reported record operating profitability in the third quarter on Thursday after the market closed, as the e-commerce giant continued expanding its delivery network and robotics investments amid higher transportation costs. CEO Andy Jassy said investments in same-day fulfillment facilities and ultra-fast delivery services are helping the company attract more customers while lowering fulfillment expenditures. “We’re on track to reduce cost to serve per unit for the fourth consecutive year,” Jassy said during a call with analysts. The Seattle-based company reported third-quarter revenue of $201.9 billion, up 12% from $180.2 billion a year earlier. Operating income surged 61% to $28.1 billion, compared with $17.4 billion in the same period last year. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668545404-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668545404-0'); }); Revenue in the quarter came in below Wall Street estimates of $202.3 billion, while earnings per share came in at $1.89, lower than the expectation of $1.96. Amazon’s (Nasdaq: AMZN) operating margin reached 13.9%, its highest ever, as improvements across its retail and cloud computing businesses helped offset higher expenses. “In our fulfillment network, the team navigated higher transportation costs from fuel inflation and higher line haul rates,” Chief Financial Officer Brian Olsavsky said. Despite those pressures, Amazon lowered its overall cost to serve during the quarter through better inventory placement, shorter shipping distances and package consolidation, he said. Shipping costs increased 11% year over year, compared with 12% growth in units shipped. Excluding fuel and linehaul inflation, shipping costs rose 8%, approximately 4 percentage points slower than unit growth. Amazon’s North America segment, which includes its U.S. and Canadian retail operations, generated $112.9 billion in third-quarter revenue, up 6% year over year. Operating income in the segment jumped to $8.7 billion from $4.8 billion a year earlier, an increase of approximately 81%. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767553440-0'); }); North America’s operating margin reached 7.7%. International revenue increased 5% to $43.1 billion, while operating income climbed to $1.6 billion from $1.2 billion. Amazon said the timing of Prime Day affected year-over-year comparisons because the shopping event occurred in the second quarter of 2026 for most major markets, compared with the third quarter in 2025. Excluding that timing change, Amazon estimated third-quarter revenue growth would have been approximately 4 percentage points higher. Amazon said it achieved its fastest third-quarter delivery speeds ever for Prime members, delivering more than 1.5 billion items on the same day or overnight during the three-month period ending Sept. 30. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot4', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668086344-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668086344-0'); }); Automation remains a major component of Amazon’s strategy to lower fulfillment expenses and increase productivity. Jassy told analysts the company now operates more than 1 million robots across its fulfillment network. He said robotics has contributed to improved productivity, reduced operating costs and record-low safety incident levels across its fulfillment operations. Amazon doubled its fleet of robotic arms, including Cardinal and Sparrow systems, during 2026, according to Olsavsky. The company is also developing robotics foundation models designed to help machines perform increasingly complex physical tasks. During the question-and-answer portion of Thursday’s earnings call, Jassy said that transportation cost pressures are expected to continue into the fourth quarter. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767778941-0'); }); Responding to an analyst’s question about fuel and linehaul inflation, Jassy said the impact would be somewhat higher in the fourth quarter than in the third. Amazon implemented a fuel surcharge earlier this year for sellers using its Fulfillment by Amazon service, allowing the company to recover some of its higher fuel expenses. However, Jassy said the surcharge does not fully offset the increases, leaving Amazon exposed to higher costs for inbound retail shipments and outbound deliveries. Amazon expects fourth-quarter net sales between $240 billion and $247 billion, representing year-over-year growth of 12% to 16%. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot6', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767872042-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767872042-0'); }); The company forecast fourth-quarter operating income between $28.5 billion and $33.5 billion, compared with $25 billion in the year-earlier period. Amazon Q3 2026: Key financial and operating metrics The table below is suitable for inserting after the article’s opening financial results section. Why it matters: Amazon’s ability to lower per-unit delivery costs despite higher fuel and linehaul expenses illustrates how automation, inventory placement and transportation network optimization could reshape the economics of e-commerce fulfillment and parcel delivery. The post Amazon battles freight inflation as shipping costs jump 11% in Q3 appeared first on FreightWaves.
Covenant Logistics Group reported a 19.2% year-over-year increase in third-quarter revenue Thursday, driven by strong growth in its managed freight segment. The Chattanooga, Tennessee-based carrier (NYSE: CVLG) generated $353.9 million in total revenue for the quarter ended Sept. 30, compared with $296.9 million a year earlier. Freight revenue excluding fuel surcharges rose 17.2% to $315.1 million from $268.8 million. Other highlights during the quarter included improved freight pricing, even as the trucking company continued shrinking its tractor fleet and shifting capacity toward long-term contracts. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668545404-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668545404-0'); }); Net income increased to $10.7 million, or 40 cents per diluted share, compared with $9.1 million, or 35 cents per share, in the third quarter of 2025. On an adjusted basis, Covenant earned 50 cents per diluted share, up 13.6% from 44 cents a year earlier. Chairman and CEO David R. Parker said the results marked the first time since the second quarter of 2022 that adjusted earnings per share increased both sequentially and year over year. “We were pleased with our third-quarter earnings of $0.40 per diluted share, or $0.50 per diluted share on a non-GAAP adjusted basis,” Parker said in a news release. The company’s operating income increased to $12.5 million from $7.9 million a year earlier. However, its adjusted operating ratio deteriorated to 95% from 94.4%, reflecting continued pressure from operating expenses. Covenant will hold a conference call to discuss results with analysts at 10 a.m. Friday. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767553440-0'); }); Covenant Logistics Q3 2026 financial and operating performance Managed Freight drives revenue growth Covenant’s Managed Freight segment was the primary driver of the company’s third-quarter revenue growth, generating $121.6 million compared with $72.2 million in the same period last year, an increase of 68.4%. Adjusted segment operating income more than doubled to $7.1 million from $3 million, while its adjusted operating ratio improved to 94.2% from 95.8%. The company attributed the gains primarily to the integration of brokerage operations acquired during the fourth quarter of 2025, along with customer rate increases and lower purchased transportation costs. Parker said the acquired brokerage operations delivered their strongest quarterly performance since joining Covenant. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot4', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668086344-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668086344-0'); }); The company’s existing brokerage business also benefited from sourcing additional carrier capacity to handle overflow expedited freight. Covenant cautioned that sourcing qualified carrier capacity at prices below contractual freight rates remains challenging as trucking capacity exits the market. Rising insurance and claims expenses also pose risks to Managed Freight profitability. Truckload fleet shrinks as revenue per mile climbs Covenant’s combined Truckload operations generated $204.6 million in total revenue, up 2.5% from $199.7 million a year earlier. However, Truckload freight revenue excluding fuel surcharges declined 3.4% to $166 million from $171.8 million. The decline was largely attributable to an 8.9% reduction in the company’s average tractor fleet, which fell to 2,186 tractors from 2,400 a year earlier. Despite operating fewer trucks, Covenant reported improved pricing and revenue productivity. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767778941-0'); }); Average freight revenue per total mile climbed 19.8% to $3.03 from $2.53, while average freight revenue per tractor per week increased 6.1% to $5,778 from $5,445. Average miles per tractor during the quarter declined 11.4% to 25,081 from 28,306. President Paul Bunn said higher rates and an improved freight mix helped offset the impact of operating fewer tractors. However, inflation and costs associated with repositioning equipment and drivers weighed on profitability. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot6', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767872042-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767872042-0'); }); Truckload adjusted operating income declined to $7.9 million from $10 million, while the segment’s adjusted operating ratio deteriorated to 95.3% from 94.2%. Bunn said truckload operating expenses increased approximately 20.8% year over year on an adjusted basis, compared with a roughly 19.7% increase in freight revenue per total mile. The company cited rising wages, employee benefits, equipment depreciation, maintenance and technology costs, along with temporary expenses related to starting new customer contracts. Expedited revenue falls as Dedicated business expands Covenant’s Expedited segment continued transitioning toward multiyear capacity agreements. Expedited freight revenue excluding fuel surcharges declined 12% to $70.6 million from $80.2 million a year earlier. The segment’s average tractor fleet fell 21.4% to 677 units from 861, while adjusted operating income declined 19% to $4.2 million. Despite the reduction in fleet size, average freight revenue per tractor per week increased 12% to $7,934. By the end of September, approximately 58% of Covenant’s Expedited tractors were operating under committed capacity agreements, compared with about 40% at the end of the second quarter. Dedicated freight revenue excluding fuel surcharges increased 4.2% to $95.4 million from $91.6 million. Dedicated revenue per tractor per week climbed 6.2% to $4,810, supported by expansion in the company’s agricultural protein-related transportation business and its decision to exit less profitable dedicated contracts. Across its entire asset-based fleet, Covenant said approximately 80% of tractors were operating under long-term contracts at the end of the quarter. Parker said the company’s longer-term goal is to place substantially all of its asset-based business under dedicated or other committed freight contracts by the end of the current freight market upcycle. Freight demand holds steady, but costs remain elevated Parker described freight demand as adequate across most sectors and strong in certain markets tied to U.S. economic growth. However, he said tightening driver capacity and inflation continue to create significant operating challenges. “Driver capacity is tight, and the cost of recruiting, retaining, and compensating drivers is increasing significantly,” Parker said. He added that higher expenses for wages, equipment ownership, maintenance and technology have largely offset the benefits of freight rate increases. Covenant expects its transition toward committed capacity contracts to reduce earnings volatility and improve profitability as the freight market strengthens. The company’s Warehousing segment also faced profitability challenges during the quarter. Warehousing freight revenue increased 7.8% to $26.7 million, but adjusted operating income declined to $888,000 from approximately $2 million a year earlier. The company attributed the decline to operational inefficiencies at new customer locations and labor inflation. Covenant forecasts further earnings improvement Covenant expects a modest sequential increase in earnings per share during the fourth quarter as it continues shifting equipment into higher-margin committed contracts and reduces repositioning expenses. The company also anticipates growth in its Dedicated fleet and a stable Expedited fleet, with a greater percentage of tractors operating under long-term agreements. Its 49% ownership stake in Transport Enterprise Leasing contributed $5.7 million in pretax income during the quarter, compared with $3.6 million a year earlier. Covenant expects a lower contribution from the leasing business in the fourth quarter. As of Sept. 30, Covenant reported approximately $283.9 million in net indebtedness, down $12.4 million from the end of 2025. The company also reported $75.2 million in immediately available borrowing capacity under its asset-based lending facility. For the remainder of 2026, Covenant expects net capital equipment expenditures of $35 million to $40 million. Why it matters: Covenant’s earnings improvement highlights how trucking companies are using higher contract rates, smaller fleets and asset-light brokerage operations to offset persistent cost inflation and uneven freight demand. The post First look: Covenant Logistics’ Q3 freight revenue surges 68% appeared first on FreightWaves.
