TFI International Inc. reported revenue of $1.91 billion for the quarter ended December 2025, down 7.8% year over year. EPS was $1.09, compared with $1.19 a year earlier. Revenue was slightly below the Zacks Consensus Estimate of $1.92 billion, a surprise of -0.48%. EPS beat the consensus of $0.85, an EPS surprise of +27.93%. Adjusted operating ratio figures were 92.3% versus 92.7% estimated, 93.2% for Truckload versus 92.8% estimated, and 89.9% for Less-Than-Truckload versus 92.9% estimated. Canadian LTL adjusted operating ratio was 81.7% versus 82.8% estimated, and Canadian LTL revenue per hundredweight (excluding fuel) was $11.01 versus $11.11 estimated. Canadian LTL tonnage totaled 563.00 KTons versus 548.86 KTons estimated, while U.S. LTL tonnage was 756.00 KTons versus 739.88 KTons estimated. Revenue before fuel surcharge was $1.68 billion versus $1.68 billion estimated, down 8.1% year over year, and fuel surcharge was $234.33 million versus $239.95 million estimated, down 6.4%. Truckload revenue was $674.18 million versus $753.23 million estimated, down 2.7% year over year. Less-than-truckload revenue was $660.52 million versus $668.29 million estimated, down 10.4%, and Logistics revenue was $358.1 million versus $376.26 million estimated, down 12.7%. The market is reacting to a mixed report for the end of 2025. Revenue fell, but earnings came in far above expectations. The nearly 28% earnings surprise appears to be driven mainly by strong cost control, not higher sales. That mix can create uncertainty, which is often important for options traders. The key details are in operations, especially in the Less-Than-Truckload (LTL) segment. LTL’s adjusted operating ratio came in at 89.9%, much better than the 92.9% analysts expected. That points to strong efficiency. LTL tonnage also came in above forecasts. Together, these results suggest TFI is handling a tough freight market better than many peers. Recent industry data adds some cautious optimism that the freight market may be near a bottom. The Cass Freight Index for January 2026 showed its first month-to-month increase in several months, which may signal stabilizing shipping volumes. This lines up with TFI’s solid tonnage results and could mean the revenue weakness seen in 2025 may not get much worse. With strong earnings but weaker revenue, traders may look at bullish strategies that still manage risk. Buying March or April 2026 call options could offer upside if investors focus on the company’s improved profitability and efficiency. Still, revenue declined in every segment, which remains a major headwind and reflects broader economic softness. A more conservative choice could be a bull call spread. It lowers the upfront cost and limits losses if the stock does not rally. This approach balances the positive earnings story with the reality of shrinking sales. Transport stocks have often rallied quickly when investors see early signs of a freight recovery, like the move in early 2024 after a long downturn. With the U.S. Manufacturing PMI for January 2026 improving to 49.8, just below expansion, some may argue the worst is near or already past. Based on that view, a measured bullish position that looks for improvement over the next several weeks could make sense.

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