Covenant Logistics Group Announces Fourth Quarter 2025 Financial and Operating Results
Rhea-AI Summary
Covenant Logistics Group (NYSE: CVLG) reported Q4 2025 results: total revenue of $295.4M, a GAAP net loss of $18.3M (loss per diluted share $0.73) and adjusted EPS of $0.31. Q4 operating ratio was 108.2% while adjusted operating ratio was 96.0%. The quarter included impairment charges, elevated insurance expense, and a $130M-revenue truckload brokerage asset acquisition branded Star Logistics Solutions. Year-end net indebtedness rose to $296.3M, cash was $4.9M, and 2026 net equipment capex is guided to $40–50M.
Positive
- Total revenue increased to $295.4M in Q4 2025 (+6.5% vs Q4 2024)
- Non-GAAP adjusted EPS of $0.31 in Q4 2025
- Acquisition of assets from ~$130M revenue truckload brokerage (Star Logistics Solutions) expands logistics platform
- 49% equity investment in TEL contributed $3.1M pre-tax in Q4 2025
Negative
- GAAP net loss of $18.3M in Q4 2025 (loss per diluted share $0.73)
- Operating loss of $24.2M and Q4 operating ratio 108.2%
- Net indebtedness increased by $76.7M to $296.3M at year-end 2025
- Cash and cash equivalents totaled only $4.9M at December 31, 2025
- Adjusted operating income declined to $10.9M in Q4 2025 from $17.9M in Q4 2024
News Market Reaction
On the day this news was published, CVLG gained 1.77%, reflecting a mild positive market reaction. Argus tracked a trough of -2.9% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $11M to the company's valuation, bringing the market cap to $607M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Ahead of this earnings release, CVLG was down 0.43%. Peers HTLD, ULH, MRTN, and ARCB were also lower (from -1.50% to -2.99%), while WERN gained 2.20%, pointing to mixed but generally soft trucking sentiment rather than a clean sector‑wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 22 | Q3 2025 earnings | Neutral | +0.3% | Mixed Q3 results with softer margins but higher revenue and TEL income. |
| Jul 23 | Q2 2025 earnings | Positive | +3.8% | Record freight revenue, strong Managed Freight growth, and TEL contribution. |
| Apr 23 | Q1 2025 earnings | Neutral | +10.4% | Weather‑impacted quarter with lower revenue but positive adjusted EPS and TEL income. |
| Jan 23 | Q4 2024 earnings | Negative | -2.9% | Higher operating ratio and lower net income despite modest revenue growth. |
| Oct 23 | Q3 2024 earnings | Positive | -0.3% | Strong EPS and operating income growth with debt reduction, yet shares slipped. |
Earnings releases have usually led to modest moves (avg 3.54%), often positive when results are solid, with only one notable divergence where strong earnings coincided with a small selloff.
Across the last five earnings releases from Jan 2024 through Oct 2025, Covenant reported consistent freight revenue growth but with margin pressure and shifting segment performance. Q3 and Q2 2025 showed revenue gains and meaningful contributions from the TEL investment, while Q1 2025 highlighted weather and disease‑related disruptions. Earlier, Q4 and Q3 2024 featured higher operating ratios and declining net income from prior-year levels. Historically, these earnings updates produced share moves around 3–4%, skewing modestly positive.
Historical Comparison
In the past year, CVLG issued 5 earnings updates with an average move of 3.54%, typically modest and often skewing positive on stronger quarters.
Through 2025, quarterly reports showed revenue growth but pressured margins, with TEL consistently contributing pre‑tax income and Managed Freight and Dedicated often offsetting softer Expedited performance.
Market Pulse Summary
This announcement details a GAAP loss of $0.73 per share for Q4 2025, largely from $35.1 million of non‑cash impairments and claims, versus adjusted EPS of $0.31. Revenue grew to $295.4 million, but higher operating ratios and net indebtedness of $296.3 million highlight balance sheet and margin pressure. Management emphasizes reallocating capital, exiting unprofitable accounts, and reducing net capex in 2026. Investors may watch adjusted margins, debt reduction, and performance of Star Logistics and warehousing startups.
Key Terms
non-gaap financial
operating ratio financial
segment operating income financial
equity method investment financial
impairment of goodwill financial
assets held for sale financial
net indebtedness financial
abl credit facility financial
AI-generated analysis. Not financial advice.
CHATTANOOGA, Tenn., Jan. 29, 2026 (GLOBE NEWSWIRE) -- Covenant Logistics Group, Inc. (NYSE: CVLG) (“Covenant” or the “Company”) announced today financial and operating results for the fourth quarter ended December 31, 2025. The Company’s conference call to discuss the quarter will be held at 10:00 A.M. Eastern Time on Friday, January 30, 2026.
Chairman and Chief Executive Officer, David R. Parker, commented: “Our fourth quarter resulted in a loss of
“Our adjusted results were in line with our expectations, with operating positives and negatives roughly offsetting. A seasonal uplift in volume provided some benefit, which was largely offset by the longest U.S. government shut down in history that affected our specialized team operation, increased costs of securing capacity in our Managed Freight segment, and start-up costs in Warehousing for a new location in November.
“Our plan for 2026 includes continued reallocation of capital to better returning operations while positioning for an expected improvement in freight fundamentals. During the first half of the year, we expect to exit unprofitable business relationships, moderately reduce our total truckload fleet (while growing the most profitable components), improve free cash flow and deleverage our balance sheet. We will be opportunistic in investing in areas that differentiate us from other carriers, focusing on high value and high service requirement freight. Our truckload business requires substantial capital and carries significant risks, and we need to seek and execute on business where the returns justify continued reinvestment.
“While tightly managing our asset-based fleet, we recently expanded our logistics platform and ability to flex with market demand by acquiring the assets of an approximately
“Our
Fourth Quarter Financial Performance:
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| ( | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Total Revenue | $ | 295,374 | $ | 277,331 | $ | 1,164,472 | $ | 1,131,476 | ||||||||
| Freight Revenue, Excludes Fuel Surcharge | $ | 270,644 | $ | 251,145 | $ | 1,059,235 | $ | 1,013,941 | ||||||||
| Operating (Loss) Income | $ | (24,179 | ) | $ | 8,613 | $ | 2,937 | $ | 44,760 | |||||||
| Adjusted Operating Income(1) | $ | 10,882 | $ | 17,943 | $ | 51,735 | $ | 70,740 | ||||||||
| Operating Ratio | 108.2 | % | 96.9 | % | 99.7 | % | 96.0 | % | ||||||||
| Adjusted Operating Ratio(1) | 96.0 | % | 92.9 | % | 95.1 | % | 93.0 | % | ||||||||
| Net (Loss) Income | $ | (18,257 | ) | $ | 6,720 | $ | 7,239 | $ | 35,921 | |||||||
| Adjusted Net Income(1) | $ | 8,032 | $ | 13,687 | $ | 41,252 | $ | 54,977 | ||||||||
| (Loss) Earnings per Diluted Share | $ | (0.73 | ) | $ | 0.24 | $ | 0.27 | $ | 1.30 | |||||||
| Adjusted Earnings per Diluted Share(1) | $ | 0.31 | $ | 0.49 | $ | 1.53 | $ | 1.98 | ||||||||
| (1) | Represents non-GAAP measures. |
Truckload Operating Data and Statistics
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| ( | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Combined Truckload | ||||||||||||||||
| Total Revenue | $ | 188,943 | $ | 190,418 | $ | 776,474 | $ | 780,875 | ||||||||
| Freight Revenue, excludes Fuel Surcharge | $ | 164,355 | $ | 164,479 | $ | 671,844 | $ | 664,484 | ||||||||
| Segment Operating Income(1) | $ | 10,705 | $ | 19,121 | $ | 41,112 | $ | 86,520 | ||||||||
| Adj. Seg. Operating Income(2) | $ | 9,168 | $ | 10,529 | $ | 34,943 | $ | 47,814 | ||||||||
| Segment Operating Ratio(1) | 94.3 | % | 90.0 | % | 94.7 | % | 88.9 | % | ||||||||
| Adj. Seg. Operating Ratio(2) | 94.4 | % | 93.6 | % | 94.8 | % | 92.8 | % | ||||||||
| Average Freight Revenue per Tractor per Week | $ | 5,327 | $ | 5,444 | $ | 5,416 | $ | 5,613 | ||||||||
| Average Freight Revenue per Total Mile | $ | 2.61 | $ | 2.48 | $ | 2.54 | $ | 2.41 | ||||||||
| Average Miles per Tractor per Period | 26,812 | 28,795 | 110,971 | 121,935 | ||||||||||||
| Weighted Average Tractors for Period | 2,347 | 2,299 | 2,379 | 2,264 | ||||||||||||
| Expedited | ||||||||||||||||
| Total Revenue | $ | 86,669 | $ | 98,666 | $ | 373,294 | $ | 416,461 | ||||||||
| Freight Revenue, excludes Fuel Surcharge | $ | 73,556 | $ | 83,816 | $ | 317,218 | $ | 346,697 | ||||||||
| Segment Operating Income(1) | $ | 2,991 | $ | 11,967 | $ | 21,126 | $ | 47,940 | ||||||||
| Adj. Seg. Operating Income(2) | $ | 2,064 | $ | 6,677 | $ | 16,934 | $ | 24,295 | ||||||||
| Segment Operating Ratio(1) | 96.5 | % | 87.9 | % | 94.3 | % | 88.5 | % | ||||||||
| Adj. Seg. Operating Ratio(2) | 97.2 | % | 92.0 | % | 94.7 | % | 93.0 | % | ||||||||
| Average Freight Revenue per Tractor per Week | $ | 6,718 | $ | 7,291 | $ | 7,143 | $ | 7,416 | ||||||||
| Average Freight Revenue per Total Mile | $ | 2.06 | $ | 2.13 | $ | 2.10 | $ | 2.09 | ||||||||
| Average Miles per Tractor per Period | 42,774 | 45,036 | 177,114 | 185,340 | ||||||||||||
| Weighted Average Tractors for Period | 833 | 875 | 852 | 894 | ||||||||||||
| Dedicated | ||||||||||||||||
| Total Revenue | $ | 102,274 | $ | 91,752 | $ | 403,180 | $ | 364,414 | ||||||||
| Freight Revenue, excludes Fuel Surcharge | $ | 90,799 | $ | 80,663 | $ | 354,626 | $ | 317,787 | ||||||||
| Segment Operating Income(1) | $ | 7,714 | $ | 7,154 | $ | 19,986 | $ | 38,580 | ||||||||
| Adj. Seg. Operating Income(2) | $ | 7,104 | $ | 3,852 | $ | 18,009 | $ | 23,519 | ||||||||
| Segment Operating Ratio(1) | 92.5 | % | 92.2 | % | 95.0 | % | 89.4 | % | ||||||||
| Adj. Seg. Operating Ratio(2) | 92.2 | % | 95.2 | % | 94.9 | % | 92.6 | % | ||||||||
| Average Freight Revenue per Tractor per Week | $ | 4,561 | $ | 4,310 | $ | 4,453 | $ | 4,436 | ||||||||
| Average Freight Revenue per Total Mile | $ | 3.32 | $ | 3.01 | $ | 3.13 | $ | 2.88 | ||||||||
| Average Miles per Tractor per Period | 18,029 | 18,818 | 74,076 | 80,556 | ||||||||||||
| Weighted Average Tractors for Period | 1,514 | 1,424 | 1,527 | 1,370 | ||||||||||||
| (1) | Segment operating income and segment operating ratio exclude indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, impairment of goodwill, and contingent consideration liability adjustments to match the information our Chief Operating Decision Maker uses to evaluate the operating results of our reportable segments. The prior year periods have been conformed to this presentation. |
| (2) | Represents non-GAAP measures. |
Combined Truckload Revenue
Paul Bunn, the Company’s President commented on truckload operations, “For the quarter, total revenue in our truckload operations slightly decreased
Expedited Truckload Revenue
Mr. Bunn added, “Freight revenue in our Expedited segment decreased
Dedicated Truckload Revenue
“For the quarter, freight revenue in our Dedicated segment increased
Combined Truckload Operating Expenses
Mr. Bunn continued, “On a non-GAAP adjusted basis, operating expenses increased approximately 14 cents per total mile or
“Salaries, wages, and related expenses increased by
“Equipment related expenses, including operations and maintenance, leased revenue equipment and depreciation and amortization expense, increased approximately
Managed Freight Segment
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| ( | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Freight Revenue | $ | 80,186 | $ | 62,271 | $ | 286,806 | $ | 248,939 | ||||||||
| Segment Operating Income(1) | $ | 1,203 | $ | 5,421 | $ | 12,166 | $ | 14,905 | ||||||||
| Adj. Seg. Operating Income(2) | $ | 1,007 | $ | 5,152 | $ | 11,563 | $ | 13,996 | ||||||||
| Segment Operating Ratio(1) | 98.5 | % | 91.3 | % | 95.8 | % | 94.0 | % | ||||||||
| Adj. Seg. Operating Ratio(2) | 98.7 | % | 91.7 | % | 96.0 | % | 94.4 | % | ||||||||
| (1) | Segment operating income and segment operating ratio exclude indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, and contingent consideration liability adjustments to match the information our Chief Operating Decision Maker uses to evaluate the operating results of our reportable segments. The prior year periods have been conformed to this presentation. |
| (2) | Represents non-GAAP measures. |
“For the quarter, Managed Freight achieved a
Warehousing Segment
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| ( | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Freight Revenue | $ | 25,519 | $ | 24,395 | $ | 99,948 | $ | 100,518 | ||||||||
| Segment Operating Income(1) | $ | 1,440 | $ | 2,866 | $ | 7,699 | $ | 11,403 | ||||||||
| Adj. Seg. Operating Income(2) | $ | 707 | $ | 2,260 | $ | 5,229 | $ | 8,934 | ||||||||
| Segment Operating Ratio(1) | 94.4 | % | 88.4 | % | 92.3 | % | 88.8 | % | ||||||||
| Adj. Seg. Operating Ratio(2) | 97.2 | % | 90.7 | % | 94.8 | % | 91.1 | % | ||||||||
| (1) | Segment operating income and segment operating ratio exclude indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, and contingent consideration liability adjustments to match the information our Chief Operating Decision Maker uses to evaluate the operating results of our reportable segments. The prior year periods have been conformed to this presentation. |
| (2) | Represents non-GAAP measures. |
“For the quarter, Warehousing’s freight revenue increased
Capitalization, Liquidity and Capital Expenditures
Tripp Grant, the Company’s Chief Financial Officer, added the following comments: “At December 31, 2025, our total indebtedness, composed of total debt and finance lease obligations, net of cash (“net indebtedness”), increased by
“The increase to net indebtedness in the year is primarily attributable to
“At December 31, 2025, we had cash and cash equivalents totaling
“At the end of the quarter, we had
“Our expectations for net capital equipment expenditures in 2026 is
Impairment and Other Adjustments
Mr. Grant continued, “The fourth quarter included approximately
| Expense items: | ||
| Acquisition related transaction costs | $ | 0.4 million |
| Impairment of goodwill | $ | 10.7 million |
| Large claims settlement | $ | 11.6 million |
| Impairment of revenue equipment and related charges | $ | 8.7 million |
| Non-cash intangibles amortization and contingent consideration adjustments | $ | 3.7 million |
| Total Fourth Quarter Adjustments | $ | 35.1 million |
Outlook
Mr. Parker concluded, “I am positive about Covenant’s outlook as we enter a year full of challenge and opportunity. Challenge because we need to do more with the assets we have. Opportunity because our high-value pipeline and ability to capitalize on a freight recovery are as strong as ever. After a few years of using our balance sheet to fundamentally change our company, and buy back our shares at an attractive value, we look to operate more efficiently, refine our capital allocation, de-lever, and look for the next opportunity.”
Conference Call Information
The Company will host a live conference call tomorrow, January 30, 2026, at 10:00 a.m. Eastern time to discuss the quarter. Individuals may access the call by dialing 877-550-1505 (U.S./Canada) and 0800-524-4760 (International). An audio replay will be available for one week following the call at 800-645-7964, access code 3895#. For additional financial and statistical information regarding the Company that is expected to be discussed during the conference call, please visit our website at www.covenantlogistics.com/investors under the icon “Earnings Info.”
Covenant Logistics Group, Inc., through its subsidiaries, offers a portfolio of transportation and logistics services to customers throughout the United States. Primary services include asset- based expedited and dedicated truckload capacity, as well as asset-light warehousing, transportation management, and freight brokerage capability. In addition, Transport Enterprise Leasing is an affiliated company providing revenue equipment sales and leasing services to the trucking industry. Covenant's Class A common stock is traded on the New York Stock Exchange under the symbol, “CVLG.”
(1) See GAAP to Non-GAAP Reconciliation in the schedules included with this release. In addition to operating (loss) income, segment operating income, operating ratio, segment operating ratio, net (loss) income, and (loss) earnings per diluted share, we use adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share, non-GAAP measures, as key measures of profitability. Adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share are not substitutes for operating (loss) income, segment operating income, operating ratio, segment operating ratio, net (loss) income, and (loss) earnings per diluted share measured in accordance with GAAP. There are limitations to using non-GAAP financial measures. We believe our presentation of these non-GAAP financial measures are useful because it provides investors and securities analysts with supplemental information that we use internally for purposes of assessing profitability. Further, our Board and management use non-GAAP operating (loss) income, segment operating income, operating ratio, segment operating ratio, net (loss) income, and (loss) earnings per diluted share measures on a supplemental basis to remove items that may not be an indicator of performance from period-to-period. Although we believe that adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share improves comparability in analyzing our period-to-period performance, they could limit comparability to other companies in our industry, if those companies define such measures differently. Because of these limitations, adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “expects,” “estimates,” “projects,” “believes,” “anticipates,” “plans,” “could,” “continue,” “would,” “may,” “will,” "intends," “outlook,” “focus,” “seek,” “potential,” “mission,” “continue,” “goal,” “target,” “objective,” derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, statements relating to equipment age, net capital expenditures and related priorities, benefits, and returns, capital allocation alternatives, expectations for the general freight market, our ability to achieve our desired business mix, the driver market, including driver pay and recruiting, the expected impact of our acquisition of the assets of a brokerage business operating under the brand “Star Logistics Solutions,” future insurance and claims expense, margin, and return on capital, future repurchases under the stock repurchase program, if any, progress toward our strategic goals and the expected impact of achieving such goals, and the statements under “Outlook” are forward-looking statements. The following factors, among others could cause actual results to differ materially from those in the forward-looking statements: Our business is subject to economic, credit, business, and regulatory factors affecting the truckload industry that are largely beyond our control; We may not be successful in achieving our strategic plan; We operate in a highly competitive and fragmented industry; We may not grow substantially in the future and we may not be successful in improving our profitability; We may not make acquisitions in the future, or if we do, we may not be successful in our acquisition strategy; The conflicts in Ukraine and the Middle East, expansion of such conflicts to other areas or countries or similar conflicts, as well as rising tensions between China and Taiwan, could adversely impact our business and financial results; Increases in driver compensation or difficulties attracting and retaining qualified drivers could have a materially adverse effect on our profitability and the ability to maintain or grow our fleet; Our engagement of independent contractors to provide a portion of our capacity exposes us to different risks than we face with our tractors driven by company drivers; We derive a significant portion of our revenues from our major customers; Fluctuations in the price or availability of fuel, the volume and terms of diesel fuel purchase commitments, surcharge collection, and hedging activities may increase our costs of operation; We depend on third-party providers, particularly in our Managed Freight segment; We depend on the proper functioning and availability of our management information and communication systems and other information technology assets (including the data contained therein) and a system failure or unavailability, including those caused by cybersecurity breaches internally or with third-parties, or an inability to effectively upgrade such systems and assets could cause a significant disruption to our business; If we are unable to retain our key employees, our business, financial condition, and results of operations could be harmed; Seasonality and the impact of weather and climate change and other catastrophic events affect our operations and profitability; We self-insure for a significant portion of our claims exposure, which could significantly increase the volatility of, and decrease the amount of, our earnings; Our self-insurance for auto liability claims and our use of captive insurance companies could adversely impact our operations; We have experienced, and may experience additional, erosion of available limits in our aggregate insurance policies; We may experience additional expense to reinstate insurance policies due to liability claims; We operate in a highly regulated industry; If our independent contractor drivers are deemed by regulators or judicial process to be employees, our business, financial condition, and results of operations could be adversely affected; Developments in labor and employment law and any unionizing efforts by employees could have a materially adverse effect on our results of operations; The Compliance Safety Accountability program adopted by the Federal Motor Carrier Safety Administration could adversely affect our profitability and operations, our ability to maintain or grow our fleet, and our customer relationships; Receipt of an unfavorable Department of Transportation safety rating at any of our motor carriers could have a materially adverse effect on our operations and profitability; Compliance with various environmental laws and regulations; Regulatory changes related to climate change could increase our costs significantly; Changes to trade regulation, quotas, duties, or tariffs; Litigation may adversely affect our business, financial condition, and results of operations; Conflicting views on environmental, social and governance matters may have a negative impact on our business, impose additional costs on us, and expose us to additional risks; A large-scale outbreak of avian flu or related illness among the nation’s poultry flock may adversely affect the revenues of our Dedicated segment; Our ABL credit facility and other financing arrangements contain certain covenants, restrictions, and requirements, and we may be unable to comply with such covenants, restrictions, and requirements; In the future, we may need to obtain additional financing that may not be available or, if it is available, may result in a reduction in the percentage ownership of our stockholders; Our indebtedness and finance and operating lease obligations could adversely affect our ability to respond to changes in our industry or business; Our profitability may be materially adversely impacted if our capital investments do not match customer demand or if there is a decline in the availability of funding sources for these investments; Increased prices for new revenue equipment, design changes of new engines, future uses of autonomous tractors, volatility in the used equipment market, decreased availability of new revenue equipment, and the failure of manufacturers to meet their sale or trade-back obligations to us could have a materially adverse effect on our business, financial condition, results of operations, and profitability; Our
For further information contact:
M. Paul Bunn, President
PBunn@covenantlogistics.com
Tripp Grant, Chief Financial Officer
TGrant@covenantlogistics.com
For copies of Company information contact:
Brooke McKenzie, Executive Administrative Assistant
BMcKenzie@covenantlogistics.com
| Covenant Logistics Group, Inc. Key Financial and Operating Statistics | ||||||||||||||||||||||||
| Income Statement Data | ||||||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| ($s in 000s, except per share data) | 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Freight revenue | $ | 270,644 | $ | 251,145 | 7.8 | % | $ | 1,059,235 | $ | 1,013,941 | 4.5 | % | ||||||||||||
| Fuel surcharge revenue | 24,730 | 26,186 | (5.6 | %) | 105,237 | 117,535 | (10.5 | %) | ||||||||||||||||
| Total revenue | $ | 295,374 | $ | 277,331 | 6.5 | % | $ | 1,164,472 | $ | 1,131,476 | 2.9 | % | ||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Salaries, wages, and related expenses | 109,393 | 105,796 | 433,238 | 423,319 | ||||||||||||||||||||
| Fuel expense | 26,629 | 27,391 | 112,292 | 115,981 | ||||||||||||||||||||
| Operations and maintenance | 17,405 | 14,858 | 69,573 | 61,696 | ||||||||||||||||||||
| Revenue equipment rentals and purchased transportation | 80,207 | 60,362 | 286,711 | 254,302 | ||||||||||||||||||||
| Operating taxes and licenses | 3,450 | 3,083 | 13,776 | 11,954 | ||||||||||||||||||||
| Insurance and claims | 23,356 | 15,066 | 70,125 | 59,845 | ||||||||||||||||||||
| Communications and utilities | 1,799 | 1,402 | 6,379 | 5,407 | ||||||||||||||||||||
| General supplies and expenses | 15,061 | 18,809 | 59,185 | 66,053 | ||||||||||||||||||||
| Depreciation and amortization | 31,352 | 22,069 | 99,221 | 86,529 | ||||||||||||||||||||
| Loss on disposition of property and equipment, net | 203 | (118 | ) | 337 | 1,630 | |||||||||||||||||||
| Impairment of goodwill | 10,698 | - | 10,698 | - | ||||||||||||||||||||
| Total operating expenses | 319,553 | 268,718 | 1,161,535 | 1,086,716 | ||||||||||||||||||||
| Operating (loss) income | (24,179 | ) | 8,613 | 2,937 | 44,760 | |||||||||||||||||||
| Interest expense, net | 3,260 | 3,235 | 12,055 | 13,576 | ||||||||||||||||||||
| Income from equity method investment | (3,087 | ) | (2,950 | ) | (14,709 | ) | (14,713 | ) | ||||||||||||||||
| (Loss) income from continuing operations before income taxes | (24,352 | ) | 8,328 | 5,591 | 45,897 | |||||||||||||||||||
| Income tax (benefit) expense | (6,095 | ) | 1,758 | 1,181 | 10,576 | |||||||||||||||||||
| (Loss) income from continuing operations | (18,257 | ) | 6,570 | 4,410 | 35,321 | |||||||||||||||||||
| Income from discontinued operations, net of tax | - | 150 | 2,829 | 600 | ||||||||||||||||||||
| Net (loss) income | $ | (18,257 | ) | $ | 6,720 | $ | 7,239 | $ | 35,921 | |||||||||||||||
| Basic (loss) earnings per share(1) | ||||||||||||||||||||||||
| (Loss) income from continuing operations | $ | (0.73 | ) | $ | 0.25 | $ | 0.17 | $ | 1.35 | |||||||||||||||
| Income from discontinued operations | $ | - | $ | 0.01 | $ | 0.11 | $ | 0.02 | ||||||||||||||||
| (Loss) net income per basic share | $ | (0.73 | ) | $ | 0.26 | $ | 0.28 | $ | 1.37 | |||||||||||||||
| Diluted (loss) earnings per share(1) | ||||||||||||||||||||||||
| (Loss) income from continuing operations | $ | (0.73 | ) | $ | 0.24 | $ | 0.16 | $ | 1.27 | |||||||||||||||
| Income from discontinued operations | $ | - | $ | 0.01 | $ | 0.11 | $ | 0.02 | ||||||||||||||||
| Net (loss) income per diluted share | $ | (0.73 | ) | $ | 0.24 | $ | 0.27 | $ | 1.30 | |||||||||||||||
| Basic weighted average shares outstanding (000s) | 25,048 | 26,402 | 25,648 | 26,307 | ||||||||||||||||||||
| Diluted weighted average shares outstanding (000s) | 26,216 | 27,900 | 26,909 | 27,714 | ||||||||||||||||||||
| (1) | Total may not sum due to rounding. |
| Segment Freight Revenues | ||||||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| ($s in 000's) | 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||
| Expedited - Truckload | $ | 73,556 | $ | 83,816 | (12.2 | %) | $ | 317,218 | $ | 346,697 | (8.5 | %) | ||||||||||||
| Dedicated - Truckload | 90,799 | 80,663 | 12.6 | % | 354,626 | 317,787 | 11.6 | % | ||||||||||||||||
| Combined Truckload | 164,355 | 164,479 | (0.1 | %) | 671,844 | 664,484 | 1.1 | % | ||||||||||||||||
| Managed Freight | 80,186 | 62,271 | 28.8 | % | 286,806 | 248,939 | 15.2 | % | ||||||||||||||||
| Warehousing | 25,519 | 24,395 | 4.6 | % | 99,948 | 100,518 | (0.6 | %) | ||||||||||||||||
| Other | 584 | - | 100.0 | % | 637 | - | 100.0 | % | ||||||||||||||||
| Consolidated Freight Revenue | $ | 270,644 | $ | 251,145 | 7.8 | % | $ | 1,059,235 | $ | 1,013,941 | 4.5 | % | ||||||||||||
| Truckload Operating Statistics | ||||||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | |||||||||||||||||||
| Average freight revenue per loaded mile | $ | 3.15 | $ | 2.91 | 8.2 | % | $ | 3.02 | $ | 2.77 | 9.0 | % | ||||||||||||
| Average freight revenue per total mile | $ | 2.61 | $ | 2.48 | 5.2 | % | $ | 2.54 | $ | 2.41 | 5.4 | % | ||||||||||||
| Average freight revenue per tractor per week | $ | 5,327 | $ | 5,444 | (2.1 | %) | $ | 5,416 | $ | 5,613 | (3.5 | %) | ||||||||||||
| Average miles per tractor per period | 26,812 | 28,795 | (6.9 | %) | 110,971 | 121,935 | (9.0 | %) | ||||||||||||||||
| Weighted avg. tractors for period | 2,347 | 2,299 | 2.1 | % | 2,379 | 2,264 | 5.1 | % | ||||||||||||||||
| Tractors at end of period | 2,315 | 2,307 | 0.3 | % | 2,315 | 2,307 | 0.3 | % | ||||||||||||||||
| Trailers at end of period | 7,280 | 6,445 | 12.9 | % | 7,280 | 6,445 | 12.9 | % | ||||||||||||||||
| Selected Balance Sheet Data | ||||||||
| ($s in '000's, except per share data) | 12/31/2025 | 12/31/2024 | ||||||
| Total assets | $ | 1,047,548 | $ | 997,568 | ||||
| Total stockholders' equity | $ | 403,997 | $ | 438,340 | ||||
| Total indebtedness, comprised of total debt and finance leases, net of cash | $ | 296,297 | $ | 219,620 | ||||
| Net Indebtedness to Capitalization Ratio | 42.3 | % | 33.4 | % | ||||
| Leverage Ratio(1) | 2.89 | 1.65 | ||||||
| Tangible book value per end-of-quarter basic share | $ | 8.69 | $ | 10.17 | ||||
| (1) | Leverage Ratio is calculated as total indebtedness, comprised of total debt and finance leases, net of cash, divided by the trailing twelve months sum of operating (loss) income, depreciation and amortization, and gain on disposition of property and equipment, net. |
| Covenant Logistics Group, Inc. Non-GAAP Reconciliation (Unaudited) Adjusted Operating Income and Adjusted Operating Ratio(1) | ||||||||||||||||||||||||
| (Dollars in thousands) | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| GAAP Presentation | 2025 | 2024 | bps Change | 2025 | 2024 | bps Change | ||||||||||||||||||
| Total revenue | $ | 295,374 | $ | 277,331 | $ | 1,164,472 | $ | 1,131,476 | ||||||||||||||||
| Total operating expenses | 319,553 | 268,718 | 1,161,535 | 1,086,716 | ||||||||||||||||||||
| Operating (loss) income | $ | (24,179 | ) | $ | 8,613 | $ | 2,937 | $ | 44,760 | |||||||||||||||
| Operating ratio | 108.2 | % | 96.9 | % | 1,130 | 99.7 | % | 96.0 | % | 370 | ||||||||||||||
| Non-GAAP Presentation | 2025 | 2024 | bps Change | 2025 | 2024 | bps Change | ||||||||||||||||||
| Total revenue | $ | 295,374 | $ | 277,331 | $ | 1,164,472 | $ | 1,131,476 | ||||||||||||||||
| Fuel surcharge revenue | (24,730 | ) | (26,186 | ) | (105,237 | ) | (117,535 | ) | ||||||||||||||||
| Freight revenue (total revenue, excluding fuel surcharge) | 270,644 | 251,145 | 1,059,235 | 1,013,941 | ||||||||||||||||||||
| Total operating (loss) income | (24,179 | ) | 8,613 | 2,937 | 44,760 | |||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||
| Amortization of intangibles(2) | 3,000 | 2,372 | 10,770 | 9,488 | ||||||||||||||||||||
| Contingent consideration liability adjustment | 708 | 6,958 | 2,838 | 16,492 | ||||||||||||||||||||
| Transaction costs | 418 | - | 567 | - | ||||||||||||||||||||
| Employee separation costs | - | - | 1,375 | - | ||||||||||||||||||||
| Lease abandonment and customer exit costs | - | - | 429 | - | ||||||||||||||||||||
| Abandonment of long-lived software | - | - | 1,884 | - | ||||||||||||||||||||
| Impairment of goodwill | 10,698 | - | 10,698 | - | ||||||||||||||||||||
| Large claims settlement | 11,585 | - | 11,585 | - | ||||||||||||||||||||
| Impairment of revenue equipment and related charges | 8,652 | - | 8,652 | - | ||||||||||||||||||||
| Adjusted operating income | $ | 10,882 | $ | 17,943 | $ | 51,735 | $ | 70,740 | ||||||||||||||||
| Adjusted operating ratio | 96.0 | % | 92.9 | % | 310 | 95.1 | % | 93.0 | % | 210 | ||||||||||||||
| (1) | Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating (loss) income and operating ratio to consolidated non-GAAP adjusted operating income and adjusted operating ratio. |
| (2) | "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets. |
| Non-GAAP Reconciliation (Unaudited) Adjusted Net Income and Adjusted EPS(1) | ||||||||||||||||
| (Dollars in thousands) | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| GAAP Presentation – Net (loss) income | $ | (18,257 | ) | $ | 6,720 | $ | 7,239 | $ | 35,921 | |||||||
| Adjusted for: | ||||||||||||||||
| Amortization of intangibles(2) | 3,000 | 2,372 | 10,770 | 9,488 | ||||||||||||
| Discontinued operations reversal of loss contingency(3) | - | (200 | ) | (3,773 | ) | (800 | ) | |||||||||
| Contingent consideration liability adjustment | 708 | 6,958 | 2,838 | 16,492 | ||||||||||||
| Transaction costs | 418 | - | 567 | - | ||||||||||||
| Employee separation costs | - | - | 1,375 | - | ||||||||||||
| Lease abandonment and customer exit costs | - | - | 429 | - | ||||||||||||
| Abandonment of long-lived software | - | - | 1,884 | - | ||||||||||||
| Impairment of goodwill | 10,698 | - | 10,698 | - | ||||||||||||
| Large claims settlement | 11,585 | - | 11,585 | - | ||||||||||||
| Impairment of revenue equipment and related charges | 8,652 | - | 8,652 | - | ||||||||||||
| Total adjustments before taxes | 35,061 | 9,130 | 45,025 | 25,180 | ||||||||||||
| Provision for income tax expense at effective rate | (8,772 | ) | (2,163 | ) | (11,012 | ) | (6,124 | ) | ||||||||
| Tax effected adjustments | $ | 26,289 | $ | 6,967 | $ | 34,013 | $ | 19,056 | ||||||||
| Non-GAAP Presentation - Adjusted net income | $ | 8,032 | $ | 13,687 | $ | 41,252 | $ | 54,977 | ||||||||
| GAAP Presentation - Diluted (loss) earnings per share ("EPS")(4) | $ | (0.73 | ) | $ | 0.24 | $ | 0.27 | $ | 1.30 | |||||||
| Adjusted for: | ||||||||||||||||
| Amortization of intangibles(2) | 0.11 | 0.09 | 0.40 | 0.34 | ||||||||||||
| Discontinued operations reversal of loss contingency(3) | - | (0.01 | ) | (0.14 | ) | (0.03 | ) | |||||||||
| Contingent consideration liability adjustment | 0.03 | 0.25 | 0.11 | 0.59 | ||||||||||||
| Transaction costs | 0.02 | - | 0.02 | - | ||||||||||||
| Employee separation costs | - | - | 0.05 | - | ||||||||||||
| Lease abandonment and customer exit costs | - | - | 0.02 | - | ||||||||||||
| Abandonment of long-lived software | - | - | 0.07 | - | ||||||||||||
| Impairment of goodwill | 0.41 | - | 0.40 | - | ||||||||||||
| Large claims settlement | 0.44 | - | 0.43 | - | ||||||||||||
| Impairment of revenue equipment and related charges | 0.33 | - | 0.32 | - | ||||||||||||
| Total adjustments before taxes | 1.34 | 0.33 | 1.67 | 0.90 | ||||||||||||
| Provision for income tax expense at effective rate | (0.33 | ) | (0.08 | ) | (0.41 | ) | (0.22 | ) | ||||||||
| Tax effected adjustments | $ | 1.01 | $ | 0.25 | $ | 1.26 | $ | 0.68 | ||||||||
| Tax effected impact of dilutive shares | 0.03 | - | - | - | ||||||||||||
| Non-GAAP Presentation - Adjusted EPS | $ | 0.31 | $ | 0.49 | $ | 1.53 | $ | 1.98 | ||||||||
| (1) | Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP net (loss) income to consolidated non-GAAP adjusted net income and consolidated GAAP diluted (loss) earnings per share to non-GAAP consolidated Adjusted EPS. |
| (2) | "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets. |
| (3) | "Discontinued Operations reversal of loss contingency" reflects the non-cash reversal of a previously recorded loss contingency that is no longer considered probable. The original loss contingency was recorded in Q4 2020 as a result of our disposal of our former accounts receivable factoring segment, TFS. |
| (4) | Total may not sum due to rounding. |
| Covenant Logistics Group, Inc Non-GAAP Reconciliation (Unaudited) Adjusted Operating Income and Adjusted Operating Ratio(1) | ||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||
| GAAP Presentation | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||
| Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | |||||||||||||||||||||||||||||||
| Total revenue | $ | 86,669 | $ | 102,274 | $ | 188,943 | $ | 80,186 | $ | 25,661 | $ | 98,666 | $ | 91,752 | $ | 190,418 | $ | 62,271 | $ | 24,642 | ||||||||||||||||||||
| Total segment operating expenses(2) | 83,678 | 94,560 | 178,238 | 78,983 | 24,221 | 86,699 | 84,598 | 171,297 | 56,850 | 21,776 | ||||||||||||||||||||||||||||||
| Segment operating income(2) | $ | 2,991 | $ | 7,714 | $ | 10,705 | $ | 1,203 | $ | 1,440 | $ | 11,967 | $ | 7,154 | $ | 19,121 | $ | 5,421 | $ | 2,866 | ||||||||||||||||||||
| Segment operating ratio(2) | 96.5 | % | 92.5 | % | 94.3 | % | 98.5 | % | 94.4 | % | 87.9 | % | 92.2 | % | 90.0 | % | 91.3 | % | 88.4 | % | ||||||||||||||||||||
| Non-GAAP Presentation | ||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 86,669 | $ | 102,274 | $ | 188,943 | $ | 80,186 | $ | 25,661 | $ | 98,666 | $ | 91,752 | $ | 190,418 | $ | 62,271 | $ | 24,642 | ||||||||||||||||||||
| Fuel surcharge revenue | (13,113 | ) | (11,475 | ) | (24,588 | ) | - | (142 | ) | (14,850 | ) | (11,089 | ) | (25,939 | ) | - | (247 | ) | ||||||||||||||||||||||
| Freight revenue (total revenue, excluding fuel surcharge) | 73,556 | 90,799 | 164,355 | 80,186 | 25,519 | 83,816 | 80,663 | 164,479 | 62,271 | 24,395 | ||||||||||||||||||||||||||||||
| Total segment operating income(2) | $ | 2,991 | 7,714 | $ | 10,705 | $ | 1,203 | $ | 1,440 | $ | 11,967 | $ | 7,154 | $ | 19,121 | $ | 5,421 | $ | 2,866 | |||||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||||||||||
| Other(3) | (927 | ) | (610 | ) | (1,537 | ) | (196 | ) | (733 | ) | (5,290 | ) | (3,302 | ) | (8,592 | ) | (269 | ) | (606 | ) | ||||||||||||||||||||
| Adjusted segment operating income | $ | 2,064 | $ | 7,104 | $ | 9,168 | $ | 1,007 | $ | 707 | $ | 6,677 | $ | 3,852 | $ | 10,529 | $ | 5,152 | $ | 2,260 | ||||||||||||||||||||
| Adjusted segment operating ratio | 97.2 | % | 92.2 | % | 94.4 | % | 98.7 | % | 97.2 | % | 92.0 | % | 95.2 | % | 93.6 | % | 91.7 | % | 90.7 | % | ||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
| GAAP Presentation | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||
| Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | |||||||||||||||||||||||||||||||
| Total revenue | $ | 373,294 | $ | 403,180 | $ | 776,474 | $ | 286,806 | $ | 100,555 | $ | 416,461 | $ | 364,414 | $ | 780,875 | $ | 248,939 | $ | 101,662 | ||||||||||||||||||||
| Total segment operating expenses(2) | 352,168 | 383,194 | 735,362 | 274,640 | 92,856 | 368,521 | 325,834 | 694,355 | 234,034 | 90,259 | ||||||||||||||||||||||||||||||
| Segment operating income(2) | $ | 21,126 | $ | 19,986 | $ | 41,112 | $ | 12,166 | $ | 7,699 | $ | 47,940 | $ | 38,580 | $ | 86,520 | $ | 14,905 | $ | 11,403 | ||||||||||||||||||||
| Segment operating ratio(2) | 94.3 | % | 95.0 | % | 94.7 | % | 95.8 | % | 92.3 | % | 88.5 | % | 89.4 | % | 88.9 | % | 94.0 | % | 88.8 | % | ||||||||||||||||||||
| Non-GAAP Presentation | ||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 373,294 | $ | 403,180 | $ | 776,474 | $ | 286,806 | $ | 100,555 | $ | 416,461 | $ | 364,414 | $ | 780,875 | $ | 248,939 | $ | 101,662 | ||||||||||||||||||||
| Fuel surcharge revenue | (56,076 | ) | (48,554 | ) | (104,630 | ) | - | (607 | ) | (69,764 | ) | (46,627 | ) | (116,391 | ) | - | (1,144 | ) | ||||||||||||||||||||||
| Freight revenue (total revenue, excluding fuel surcharge) | 317,218 | 354,626 | 671,844 | 286,806 | 99,948 | 346,697 | 317,787 | 664,484 | 248,939 | 100,518 | ||||||||||||||||||||||||||||||
| Total segment operating income(2) | $ | 21,126 | $ | 19,986 | $ | 41,112 | $ | 12,166 | $ | 7,699 | $ | 47,940 | $ | 38,580 | $ | 86,520 | $ | 14,905 | $ | 11,403 | ||||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||||||||||
| Other(3) | (5,801 | ) | (3,918 | ) | (9,719 | ) | (890 | ) | (2,470 | ) | (23,645 | ) | (15,061 | ) | (38,706 | ) | (909 | ) | (2,469 | ) | ||||||||||||||||||||
| Transaction costs | - | 149 | 149 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
| Employee separation costs | 680 | 622 | 1,302 | 73 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
| Lease abandonment and customer exit costs | 49 | 166 | 215 | 214 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
| Abandonment of long-lived software | 880 | 1,004 | 1,884 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
| Adjusted segment operating income | $ | 16,934 | $ | 18,009 | $ | 34,943 | $ | 11,563 | $ | 5,229 | $ | 24,295 | $ | 23,519 | $ | 47,814 | $ | 13,996 | $ | 8,934 | ||||||||||||||||||||
| Adjusted segment operating ratio | 94.7 | % | 94.9 | % | 94.8 | % | 96.0 | % | 94.8 | % | 93.0 | % | 92.6 | % | 92.8 | % | 94.4 | % | 91.1 | % | ||||||||||||||||||||
| (1) | Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP segment operating income and segment operating ratio to consolidated non-GAAP adjusted segment operating income and adjusted segment operating ratio. |
| (2) | Segment operating expenses, segment operating income, and segment operating ratio exclude indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, impairment of goodwill, and contingent consideration liability adjustments to match the information our Chief Operating Decision Maker uses to evaluate the operating results of our reportable segments. The prior year periods have been conformed to this presentation. |
| (3) | Represents indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, and contingent consideration liability adjustments. |
FAQ
What did Covenant Logistics (CVLG) report for Q4 2025 revenue and EPS?
Why did CVLG have a net loss in Q4 2025 and what charges affected results?
How did the Star Logistics Solutions acquisition affect Covenant (CVLG)?
What is Covenant's balance sheet position and debt outlook at year-end 2025 (CVLG)?
What guidance did Covenant (CVLG) give for 2026 capital expenditures and fleet strategy?
