Titanium Transportation Group (TSX:TTNM, OTCQX:TTNMF), a leading North American transportation and logistics provider, reported its financial results for the fiscal year 2024, showcasing resilience in the face of ongoing market challenges. The company achieved a 5% year-over-year revenue growth despite a prolonged downturn in the freight market.
The company’s consolidated revenue for FY 2024 reached $460.2 million, up from $413.7 million in FY 2023, marking an 11.3% increase. This growth was primarily driven by the company’s strategic expansion into the U.S. market and strong performance in both its Trucking and Logistics segments.
Titanium’s Truck Transportation segment saw an 11.6% revenue increase to $229.8 million, while the Logistics segment grew by 10.6% to $234.9 million. The Logistics segment demonstrated particularly strong momentum in Q4 2024, delivering 25% volume growth year-over-year and an 18.4% revenue increase compared to Q4 2023.
However, the challenging market conditions did impact profitability. The company’s EBITDA for FY 2024 was $41.9 million, down from $48.1 million in 2023, with EBITDA margin decreasing from 13.4% to 10.3%. Titanium also recognized a non-cash impairment charge of $23.1 million due to the ongoing freight recession and uncertainty over trade disputes.
Despite these headwinds, Titanium took proactive steps to strengthen its financial position. The company divested non-core assets, generating $21 million in cash flow, which, combined with free cash flow, was used to pay down $52.2 million of debt. This strategic move demonstrates Titanium’s commitment to maintaining a strong balance sheet in challenging times.
Ted Daniel, Chief Executive Officer of Titanium Transportation Group, commented on the results: “2024 was a year of disciplined execution as we navigated a prolonged downturn in the freight market. Despite these challenges, we delivered steady revenue growth and continued to take proactive steps to optimize our capital allocation strategy.”
Looking ahead to 2025, Titanium faces an uncertain operating environment, with impending tariffs and ongoing market challenges. However, the company remains focused on its long-term strategy of sustainable growth and operational excellence. Titanium’s asset-light strategy, combined with its young, efficient fleet and disciplined capital allocation, positions it to adapt to shifting market conditions.
The company has also continued its expansion in the U.S. freight brokerage market, opening new logistics offices in Virginia Beach, VA, and Irving, TX, bringing its U.S. footprint to nine locations. This strategic growth aligns with Titanium’s plan to strengthen its presence in the U.S. market.
In light of the current market conditions and ongoing uncertainties in the transportation sector, Titanium has elected to withhold guidance for 2025. The company plans to reassess providing guidance once there is greater clarity on the operating environment.
As Titanium enters 2025, it faces both challenges and opportunities. While potential tariffs on U.S.-Canada trade could affect cross-border volumes, approximately two-thirds of Titanium’s volume is non-cross border and not exposed to potential tariffs. This diversification, coupled with the company’s focus on technology-driven efficiencies and operational agility, positions Titanium to navigate the evolving transportation landscape. Titanium Transportation Group’s 2024 financial results demonstrate the company’s ability to generate revenue growth and maintain financial discipline in a challenging market environment.
