TFI International reported lower first-quarter earnings as weaker freight demand and higher accident-related costs weighed on results, but executives said improving market conditions are beginning to emerge across several business segments.

Operating income fell to $96.6 million from $114.6 million a year earlier, while net income declined to $43.3 million from $56 million. Adjusted diluted EPS came in at $0.69, down from $0.76 in Q1 2025.

Revenue was relatively flat at $1.95 billion, with softer volumes partially offset by acquisitions completed during the downturn.

Truckload and logistics both posted operating income gains, while LTL remained under pressure. Truckload operating income rose 14% year over year, logistics improved 10%, and LTL operating income dropped 35%.

Still, CEO and chairman Alain Bédard struck a notably more optimistic tone during the company’s analyst call, saying truckload markets are tightening as capacity exits the system.

“What we’re seeing really in the truckload sector is that the offer has been reduced month after month,” Bédard said, pointing to stricter CDL enforcement and the closure of some driving schools in the U.S.

He said TFI’s industrial freight exposure is beginning to benefit from improving market conditions.

“Customers now are asking, ‘Can you help me? Can we be partners?’” Bédard said. “When the market starts to tighten up, shippers want to be partners with truckers.”

The company also indicated its long-struggling U.S. LTL operation may finally be stabilizing. Executives said shipments improved steadily through the quarter, moving from a 10% year-over-year decline in January to an 8% increase in March, with April tracking similarly.

Bédard acknowledged service challenges remain, particularly on second- and third-day delivery performance, but said operational improvements are gaining traction.

“Finally, these guys are getting their act together,” he said of the U.S. LTL business. “We’re not perfect — far from that yet — but we are improving.”

The company said truckload pricing is also improving, especially in specialized flatbed operations in the U.S., where contract renewals are coming in at high single-digit to low double-digit increases. The company is focusing on the industrial segment rather than retail, and its specialized truckload division is benefiting from the data center construction boom.

Executives declined to provide full-year guidance, citing uncertainty surrounding North American trade negotiations and fuel markets, but forecast second-quarter adjusted EPS between $1.50 and $1.60.

“I think that 2026 is a transition year to a much better future for us,” Bédard said.