Titanium is the last of Canada’s publicly traded companies to report Q2 earnings, and like its peers it was unable to match record year-ago numbers.

Consolidated revenue totaled $100.4 million, down 26%, and net income was down 55% to $3.37 million. But the company was able to improve its truck transportation margins and recently completed its largest acquisition to date — Crane Transport, Titanium’s first asset-based U.S. purchase.

“Despite the ongoing economic uncertainty, we are pleased to report yet another profitable quarter, highlighted by $3.4 million in net income and continued growth within our trucking segment,” CEO Ted Daniel said in a release. “This continued growth amid challenging conditions is a testament to the resilience of the Titanium business model, our excellent team and focus on strategic investments in technology and accretive acquisitions.”

Crane Transport adds about US$60 million in annual revenues.

“The acquisition of Crane Transport marks the largest acquisition in our company’s history and Titanium’s third in the last three years,” Daniel said. “With approximately 200 trucks in its fleet generating about US$60 million annually in revenue, this strategic transaction will allow us to expand our reach into the U.S. asset-based market and complement our existing freight brokerage services. Our ability to close this large-scale acquisition amidst the current economic environment without raising any capital is another clear example of Titanium’s vigilant capital deployment strategy.”

Below-trend demand, elevated inventories

Looking ahead to the remainder of the year, on a conference call with analysts, Daniel said the fleet expects the “North American economy will continue to be impacted by below-trend demand and elevated inventory levels.”

Titanium maintained its recently revised guidance at $450-$470 million this year. It also remains on track to reach a total of 10 U.S.-based logistics offices by the end of 2024 or early 2025, but Daniel noted there may not be any more opened this year as the company focuses on integrating Crane. That deal is going better than expected initially, said chief operating officer Marilyn Daniel.

“The team we have acquired in the U.S. is an exceptional team. We are looking forward to growing with them,” she said.

Asked what macro-economic indicators the company is monitoring that may hint of a recovery in the market, Ted Daniel said used truck prices have plummeted, suggesting the removal of capacity from the marketplace. Used truck prices soared to record highs mid-2022. Daniel said they’ve since come down to recessionary levels.

“Very low demand for used trucks with high supply is clearly an indicator of macro-shrinkage,” he said, especially when coupled with continuing net revocations of operating authorities in the U.S.

“How long it will take to get to, rather than a shipper’s market, a supplier market, that’s to be determined,” Daniel said.