Covenant Logistics Group Announces Third Quarter 2026 Financial and Operating Results

Q: What were Covenant Logistics Group’s third-quarter 2026 earnings?

Covenant reported $0.40 in diluted earnings per share, compared with $0.35 in the prior-year quarter. Net income increased to $10.704 million from $9.093 million. Adjusted diluted earnings per share were $0.50, compared with $0.44.

Q: What does Covenant Logistics expect for the fourth quarter of 2026?

Covenant expects sequential improvement as a higher percentage of its fleet operates under committed arrangements and repositioning costs decline. It also expects Dedicated fleet growth and a stable Expedited fleet with a higher proportion of capacity under dedicated or committed contracts.

Q: How much cash and credit facility borrowing did Covenant Logistics have at September 30, 2026?

Covenant had $5.1 million in cash and cash equivalents and $35.0 million in outstanding borrowings under its asset-based lending credit facility. The facility also had $19.8 million in outstanding undrawn letters of credit and $75.2 million of immediate available borrowing capacity.

Q: How much did Covenant Logistics spend on capital equipment in the first nine months of 2026?

Net capital expenditures were approximately $18.4 million for the first three quarters of 2026. Proceeds from fleet downsizing and sales of excess used equipment kept pace with investment in new replacement equipment.

Managed Freight growth offset Truckload repositioning pressures, while nine-month net income remained below the prior year.

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Rhea-AI Summary

Covenant Logistics Group (NYSE: CVLG) reported third-quarter 2026 diluted earnings of $0.40 per share, up from the prior-year quarter. Revenue rose to $353.894 million from $296.889 million, while net income increased to $10.704 million from $9.093 million. Adjusted diluted earnings were $0.50 versus $0.44.

Managed Freight revenue grew 68.4%, primarily reflecting acquired operations, while Truckload freight revenue declined as its fleet shrank. Warehousing revenue increased, but operating income fell. Approximately 80% of fleet assets were under long-term contracts at quarter-end. Covenant expects sequential improvement in the fourth quarter as committed arrangements increase and repositioning costs ease. Net indebtedness fell $12.4 million from year-end to approximately $283.9 million. Nine-month net income declined to $23.659 million from $25.496 million.

27 points · 0 major

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0 major · 17 points

Hollow bars mark forward-looking points. How the balance works

Positive

Moderate pointThird-quarter revenue increased to $353.894 million from $296.889 million a year earlier.
Moderate pointThird-quarter net income rose to $10.704 million from $9.093 million; diluted EPS increased to $0.40 from $0.35.
Moderate pointThird-quarter operating income increased to $12.494 million from $7.926 million a year earlier.
Moderate pointManaged Freight quarterly revenue grew 68.4% to $121.635 million, primarily reflecting acquired operations.
Moderate pointTruckload quarterly segment operating income increased to $14.262 million from $9.178 million.
Moderate pointDedicated quarterly freight revenue increased 4.2% to $95.405 million.
Moderate point. Forward-looking: it has not happened yet and may not happen.Covenant expects fourth-quarter sequential improvement as committed arrangements increase and repositioning costs ease.
Moderate pointTEL investment quarterly pre-tax income contribution rose to $5.7 million from $3.6 million.

19 minor points

Minor pointThird-quarter adjusted diluted EPS increased to $0.50 from $0.44 a year earlier.
Minor pointThird-quarter adjusted operating income rose to $15.823 million from $14.977 million a year earlier.
Minor pointThird-quarter operating ratio improved to 96.5% from 97.3%; this measures operating expenses relative to revenue.
Minor pointManaged Freight quarterly segment operating income increased to $7.367 million from $2.960 million.
Minor pointManaged Freight quarterly adjusted operating ratio improved to 94.2% from 95.8%, aided by rates and lower capacity costs.
Minor pointTruckload quarterly freight revenue per tractor per week increased to $5,778 from $5,445.
Minor pointDedicated quarterly freight revenue per tractor per week increased 6.2% to $4,810.
Minor pointExpedited quarterly freight revenue per tractor per week increased 12.0% to $7,934.
Minor pointExpedited tractors under committed capacity agreements reached approximately 58%, versus approximately 40% three months earlier.
Minor pointFleet assets under long-term contracts reached approximately 80% at quarter-end.
Minor point. Forward-looking: it has not happened yet and may not happen.Covenant targets substantially all asset-based business under long-term committed contracts by this freight market upcycle’s end.
Minor point. Forward-looking: it has not happened yet and may not happen.Covenant expects Dedicated fleet growth and a stable Expedited fleet with more capacity under committed contracts.
Minor pointWarehousing quarterly freight revenue increased to $26.738 million from $24.802 million.
Minor point. Forward-looking: it has not happened yet and may not happen.Covenant targets high single-digit Warehousing margins through rate increases and cost reductions.
Minor pointNet indebtedness decreased $12.4 million from year-end to approximately $283.9 million at September 30, 2026.
Minor pointNet indebtedness to total capitalization improved to 40.2% from 42.3% at December 31, 2025.
Minor pointCredit facility provided $75.2 million of immediate available borrowing capacity at September 30, 2026.
Minor pointNine-month revenue increased to $993.928 million from $869.098 million a year earlier.
Minor pointNine-month operating income increased to $27.617 million from $27.116 million a year earlier.

Negative

Moderate pointNine-month net income fell to $23.659 million from $25.496 million; diluted EPS declined to $0.89 from $0.94.
Moderate pointNine-month adjusted operating income declined to $37.602 million from $40.853 million a year earlier.
Moderate pointTruckload quarterly freight revenue declined to $165.960 million from $171.765 million as average fleet size fell 8.9%.
Moderate pointTruckload quarterly adjusted segment operating income fell to $7.853 million from $9.977 million.
Moderate pointExpedited quarterly freight revenue declined 12.0% to $70.555 million as average tractors fell 21.4%.
Moderate pointDedicated quarterly adjusted segment operating income fell to $3.692 million from $4.837 million.
Moderate point. Forward-looking: it has not happened yet and may not happen.Covenant expects $35.0 million to $40.0 million in net capital equipment expenditures for the balance of 2026. 4.8% of market cap

10 minor points

Minor pointNine-month adjusted diluted EPS declined to $1.18 from $1.22 a year earlier.
Minor pointThird-quarter adjusted operating ratio worsened to 95.0% from 94.4% a year earlier.
Minor pointNine-month operating ratio worsened to 97.2% from 96.9% a year earlier.
Minor pointTruckload quarterly average miles per tractor declined to 25,081 from 28,306 a year earlier.
Minor pointTruckload repositioning and contract start-ups added costs and reduced utilization during the quarter.
Minor pointTruckload cost inflation and extreme heat also increased quarterly operating expenses.
Minor pointManaged Freight faces carrier sourcing pressure that can compress margins below contractual freight pricing.
Minor pointManaged Freight faces increased risk from higher insurance and claims expense.
Minor pointWarehousing quarterly segment operating income fell to $1.697 million from $2.498 million amid inefficiencies and labor inflation.
Minor pointWarehousing quarterly adjusted operating ratio worsened to 96.7% from 92.1% a year earlier.

News Explained

The $75.2 million ABL figure is borrowing capacity, not cash held at quarter-end.

Covenant Logistics reported third-quarter 2026 results; at September 30, it had $5.1 million in cash and $75.2 million in immediate available ABL borrowing capacity, alongside $35.0 million in borrowings and $19.8 million of undrawn letters of credit.

Management expects $35.0 million to $40.0 million in net capital expenditures for the balance of 2026, after $18.4 million during the first three quarters.

Key Figures

Total revenue: $353,894 thousand Operating income: $12,494 thousand Net income: $10,704 thousand +5 more

Total revenue: $353,894 thousand; Q3 2026; $296,889 thousand in Q3 2025
Operating income: $12,494 thousand; Q3 2026; $7,926 thousand in Q3 2025
Net income: $10,704 thousand; Q3 2026; $9,093 thousand in Q3 2025
Earnings per diluted share: $0.40; Q3 2026; $0.35 in Q3 2025
Adjusted earnings per diluted share: $0.50; Q3 2026; $0.44 in Q3 2025
TEL pre-tax net income contribution: $5.7 million; Q3 2026; $3.6 million in the 2025 quarter
Net indebtedness: Approximately $283.9 million; At September 30, 2026; decreased by $12.4 million from December 31, 2025
Net capital equipment expenditures outlook: $35.0 million to $40.0 million; Balance of 2026

Previous Earnings Reports

1 past event · Latest: Jul 29

Same Type 1 event

Jul 29
Quarterly earnings

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Q2 results showed lower year-over-year earnings per share amid revenue growth and margin pressure.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, equity method investment, operating ratio, abl credit facility

4 terms

non-gaap financial

"on a non-GAAP adjusted basis"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

equity method investment financial

"Our 49% equity method investment with Transport Enterprise Leasing"

An equity method investment is an accounting way to report ownership in another company when an investor has significant influence (commonly around 20–50% of voting rights). Instead of listing the other company’s full assets and debts, the investor records its share of that company’s profits or losses on its own income statement—like keeping track of your share of a neighborhood bakery’s monthly earnings. Investors care because those shared profits, losses and changes in the investee’s value directly affect the investor’s reported earnings and balance sheet, so this method can materially change a company’s financial picture and valuation.

operating ratio financial

"Operating Ratio"

A company's operating ratio is a simple percentage that shows how much of its revenue is eaten up by the costs of running the business — calculated by dividing operating expenses by operating revenue. For investors it signals efficiency and profit potential: a lower operating ratio means the company keeps more of each dollar it earns (like a household with lower bills keeping more of its paycheck), while a higher ratio suggests tighter margins and less room to absorb shocks.

abl credit facility financial

"Under our ABL credit facility"

An ABL credit facility is a loan where the borrower uses tangible assets—like unpaid customer invoices, inventory, or equipment—as collateral to secure borrowing capacity. Think of it like a business pawning its goods to get cash; the amount available rises and falls with the value of those assets. Investors watch ABLs because they affect a company’s short-term liquidity, borrowing limits, and the lender’s priority claim if the company runs into financial trouble.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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10/29/2026 - 04:05 PM EDT

CHATTANOOGA, Tenn., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Covenant Logistics Group, Inc. (NYSE: CVLG) (“Covenant” or the “Company”) announced today financial and operating results for the third quarter ended September 30, 2026. The Company’s conference call to discuss the quarter will be held at 10:00 A.M. Eastern Time on Friday, October 30, 2026.

Chairman and Chief Executive Officer David R. Parker commented, “We were pleased with our third-quarter earnings of $0.40 per diluted share, or $0.50 per diluted share on a non-GAAP adjusted basis. This marked the first time since the second quarter of 2022 that adjusted earnings per diluted share increased both sequentially and year over year.

“The third quarter reflected strong coordination between our Truckload and Managed Freight segments as we continued to re-allocate assets to customers that are seeking long-term capacity for their needs and are willing to offer a reasonable return on our meaningful investments in professional drivers, new equipment, and advanced technology. Exiting the third quarter, approximately 80% of our fleet assets were under long-term contracts, and we continue to receive inbound demand from our customers on growing our committed capacity. I’m proud of our team’s execution, as repositioning hundreds of drivers, tractors, and trailers, and starting up several new operational and administrative systems during the quarter was a big accomplishment. Repositioning for new contracts created some disruption to utilization and added cost to the Truckload fleets. This was more than countered by higher revenue and operating income in Managed Freight, as our historical brokerage operations successfully sourced capacity for overflow Expedited freight, and the brokerage operations we acquired in the fourth quarter of 2025 had their best quarter as part of Covenant. Margin improvement reflected customer rate increases implemented during the first half of the year and lower purchased transportation costs as spot rates eased during the quarter. These improvements followed three consecutive quarters of margin compression.

“From a market perspective, freight demand is adequate in most sectors and strong in specific sectors that are aligned with U.S. economic growth. Driver capacity is tight, and the cost of recruiting, retaining, and compensating drivers is increasing significantly. Cost inflation is weighing on nearly every significant line item in our business, including wages and benefits, equipment ownership and maintenance, and technology. In this environment, rate increases have been largely offset by cost increases. However, we expect sequential improvement to continue in the fourth quarter as a higher percentage of our fleet operates under committed arrangements and we incur less repositioning cost.

“Our goal is to place substantially all of our asset-based business under long-term dedicated or other committed contracts by the end of this freight market upcycle. Consistent with our strategy, which reduced volatility during the recent freight market downturn, we intend to remain disciplined and patient in pursuing customers and markets that support sustainable long-term value creation.

“Our 49% equity method investment with Transport Enterprise Leasing (“TEL”) exceeded our expectations for a second consecutive quarter by contributing pre-tax net income of $5.7 million, or $0.16 per share, compared to $3.6 million, or $0.10 per share, in the 2025 quarter. TEL’s results benefited from the combination of equipment leasing growth, as well as higher equipment sale gains.”

Third Quarter Financial Performance:
	Three Months Ended September 30,						Nine Months Ended September 30,
($000s, except per share information)	2026			2025			2026			2025
Total Revenue	$	353,894		$	296,889		$	993,928		$	869,098
Freight Revenue, Excludes Fuel Surcharge	$	315,050		$	268,840		$	891,668		$	788,591
Operating Income	$	12,494		$	7,926		$	27,617		$	27,116
Adjusted Operating Income ⁽¹⁾	$	15,823		$	14,977		$	37,602		$	40,853
Operating Ratio		96.5	%		97.3	%		97.2	%		96.9	%
Adjusted Operating Ratio ⁽¹⁾		95.0	%		94.4	%		95.8	%		94.8	%
Net Income	$	10,704		$	9,093		$	23,659		$	25,496
Adjusted Net Income ⁽¹⁾	$	13,197		$	11,517		$	31,198		$	32,927
Earnings per Diluted Share	$	0.40		$	0.35		$	0.89		$	0.94
Adjusted Earnings per Diluted Share ⁽¹⁾	$	0.50		$	0.44		$	1.18		$	1.22

(1) Represents non-GAAP measures.

Truckload Operating Data and Statistics
	Three Months Ended September 30,						Nine Months Ended September 30,
($000s, except statistical information)	2026			2025			2026			2025
Combined Truckload
Total Revenue	$	204,597		$	199,652		$	598,477		$	587,531
Freight Revenue, excludes Fuel Surcharge	$	165,960		$	171,765		$	496,735		$	507,489
Segment Operating Income ⁽¹⁾	$	14,262		$	9,178		$	38,834		$	30,407
Adj. Seg. Operating Income ⁽²⁾	$	7,853		$	9,977		$	21,316		$	25,775
Segment Operating Ratio ⁽¹⁾		93.0	%		95.4	%		93.5	%		94.8	%
Adj. Seg. Operating Ratio⁽²⁾		95.3	%		94.2	%		95.7	%		94.9	%
Average Freight Revenue per Tractor per Week	$	5,778		$	5,445		$	5,741		$	5,469
Average Freight Revenue per Total Mile	$	3.03		$	2.53		$	2.89		$	2.53
Average Miles per Tractor per Period		25,081			28,306			77,412			84,456
Weighted Average Tractors for Period		2,186			2,400			2,219			2,379

Expedited
Total Revenue	$	89,473		$	94,632		$	267,564		$	286,625
Freight Revenue, excludes Fuel Surcharge	$	70,555		$	80,184		$	216,246		$	243,662
Segment Operating Income ⁽¹⁾	$	7,846		$	5,079		$	19,053		$	18,135
Adj. Seg. Operating Income⁽²⁾	$	4,161		$	5,140		$	8,799		$	14,870
Segment Operating Ratio ⁽¹⁾		91.2	%		94.6	%		92.9	%		93.7	%
Adj. Seg. Operating Ratio ⁽²⁾		94.1	%		93.6	%		95.9	%		93.9	%
Average Freight Revenue per Tractor per Week	$	7,934		$	7,082		$	7,726		$	7,281
Average Freight Revenue per Total Mile	$	2.52		$	2.10		$	2.35		$	2.11
Average Miles per Tractor per Period		41,422			44,275			128,188			134,288
Weighted Average Tractors for Period		677			861			718			858

Dedicated
Total Revenue	$	115,124		$	105,020		$	330,913		$	300,906
Freight Revenue, excludes Fuel Surcharge	$	95,405		$	91,581		$	280,489		$	263,827
Segment Operating Income⁽¹⁾	$	6,416		$	4,099		$	19,781		$	12,272
Adj. Seg. Operating Income⁽²⁾	$	3,692		$	4,837		$	12,517		$	10,905
Segment Operating Ratio ⁽¹⁾		94.4	%		96.1	%		94.0	%		95.9	%
Adj. Seg. Operating Ratio ⁽²⁾		96.1	%		94.7	%		95.5	%		95.9	%
Average Freight Revenue per Tractor per Week	$	4,810		$	4,529		$	4,791		$	4,446
Average Freight Revenue per Total Mile	$	3.56		$	3.07		$	3.52		$	3.08
Average Miles per Tractor per Period		17,754			19,365			53,134			56,352
Weighted Average Tractors for Period		1,509			1,539			1,501			1,521

(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.
(2) Represents non-GAAP measures.

Combined Truckload Revenue

Paul Bunn, the Company’s President, commented on Combined Truckload operations, “For the quarter, total revenue in our Truckload operations increased 2.5%, to $204.6 million. The increase in total revenue consisted of $10.8 million more fuel surcharge revenue, which varies with the cost of fuel, offset by $5.8 million less freight revenue. The reduction in freight revenue is largely attributable to a 8.9% decrease in the average fleet size, offset with the improvements to pricing and freight mix discussed earlier.

Expedited Truckload Revenue

Mr. Bunn added, “Freight revenue in our Expedited segment decreased $9.6 million, or 12.0%. Average total tractors decreased by 184 units or 21.4% to 677, compared to 861 in the prior year quarter. Average freight revenue per tractor per week increased 12.0% compared to the prior year. During the quarter, our Expedited fleet continued to transition to multi-year committed capacity agreements. By the end of the quarter, approximately 58% of our Expedited tractors were serving under committed capacity agreements, compared to approximately 40% three months ago. As we progress throughout this cycle, our focus for our Expedited fleet is to serve customers who truly need our teams and are willing to agree to multi-year agreements as a sign of their commitment.

Dedicated Truckload Revenue

“For the quarter, freight revenue in our Dedicated segment increased $3.8 million, or 4.2%. Average total tractors decreased by 30 units or 1.9% to 1,509, compared to 1,539 in the prior year quarter. Average freight revenue per tractor per week increased 6.2% as a result of the expansion of our agricultural protein-related business and exiting non-specialized dedicated business that has struggled to meet profitability thresholds.”

Combined Truckload Operating Expenses

Mr. Bunn continued, “Truckload freight revenue per total mile increased approximately 19.7% year-over-year, and Truckload operating expenses increased approximately 20.8% year-over-year, each on a non-GAAP adjusted basis. Elevated expenses during the quarter reflected a combination of ongoing inflation (wages, benefits, equipment depreciation and maintenance, and technology) and quarter-specific costs (equipment repositioning, driver hiring in new locations, costs and lower utilization associated with start-ups for a large number of contracts, and the effects of extreme heat on certain Dedicated operations). As mix continues to shift toward more committed capacity contracts, we expect the repositioning and start-up costs to moderate as a percentage of revenue and for ongoing rate increases to more than outpace general inflation.

Managed Freight Segment
	Three Months Ended September 30,						Nine Months Ended September 30,
($000s)	2026			2025			2026			2025
Freight Revenue	$	121,635		$	72,220		$	311,908		$	206,620
Segment Operating Income ⁽¹⁾	$	7,367		$	2,960		$	12,809		$	10,962
Adj. Seg. Operating Income ⁽²⁾	$	7,082		$	3,035		$	13,302		$	10,555
Segment Operating Ratio⁽¹⁾		93.9	%		95.9	%		95.9	%		94.7	%
Adj. Seg. Operating Ratio⁽²⁾		94.2	%		95.8	%		95.7	%		94.9	%

(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.
(2) Represents non-GAAP measures.

“For the quarter, Managed Freight grew freight revenue by 68.4% year over year, primarily as a result of the integration of assets acquired during the fourth quarter of 2025. The segment operating ratio and adjusted segment operating ratio improved compared to the same quarter last year due to the combination of customer rate increases obtained during the first half of the year and sequentially easing capacity costs experienced during the quarter. As supply continues to exit the freight market, our ability to source quality carrier capacity below contractual freight pricing can be challenging at times, leading to periods of margin compression. Additionally, higher insurance and claims expense has become a greater risk in Managed Freight.

Warehousing Segment
	Three Months Ended September 30,						Nine Months Ended September 30,
($000s)	2026			2025			2026			2025
Freight Revenue	$	26,738		$	24,802		$	81,012		$	74,429
Segment Operating Income⁽¹⁾	$	1,697		$	2,498		$	5,049		$	6,258
Adj. Seg. Operating Income⁽²⁾	$	888		$	1,963		$	2,984		$	4,521
Segment Operating Ratio ⁽¹⁾		93.7	%		90.0	%		93.8	%		91.6	%
Adj. Seg. Operating Ratio ⁽²⁾		96.7	%		92.1	%		96.3	%		93.9	%

(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.
(2) Represents non-GAAP measures.

“For the quarter, Warehousing’s freight revenue increased $1.9 million, primarily from onboarding a significant new customer in the fourth quarter of 2025. Segment operating income and adjusted segment operating income fell short of the prior year as a result of the combination of operational inefficiencies at new customer locations and general labor inflation. Looking ahead, our focus will be on returning this segment to high single digit margins through the combination of rate increases and cost reductions.”

Capitalization, Liquidity and Capital Expenditures

Tripp Grant, the Company’s Chief Financial Officer, added the following comments: “At September 30, 2026, our total indebtedness, comprised of total debt and finance lease obligations, net of cash (“net indebtedness”), decreased by $12.4 million to approximately $283.9 million as compared to December 31, 2025. In addition, our net indebtedness to total capitalization improved to 40.2% at September 30, 2026, from 42.3% at December 31, 2025.

“At September 30, 2026, we had cash and cash equivalents totaling $5.1 million. Under our ABL credit facility, we had $35.0 million in outstanding borrowings, undrawn letters of credit outstanding of $19.8 million, and immediate available borrowing capacity of $75.2 million.

“At the end of the quarter, we had $0.2 million in assets held for sale that we anticipate disposing of within twelve months. The average age of our tractors increased to 26 months compared to 23 months a year ago. Given the mix change between our high mileage expedited fleet and lower mileage dedicated fleets, going forward, we anticipate the average age of our tractors to range from 25 to 28 months.

“Our net capital expenditures for the first three quarters of the year were approximately $18.4 million, as proceeds from fleet downsizing and selling excess used equipment kept pace with the investment in new replacement equipment. For the balance of 2026, our expectations for net capital equipment expenditures range from $35.0 million to $40.0 million.”

Outlook

Mr. Parker concluded, “Based on our growing customer pipeline, we expect Dedicated fleet growth and a stable Expedited fleet with a higher proportion of capacity under dedicated or committed contracts. We are also focused on reducing overhead and other controllable costs as a percentage of revenue, which we expect will support gradual margin expansion. For the fourth quarter of 2026, we expect a modest sequential increase in earnings per share, with anticipated operating margin improvement from our asset-based operations partially offset by lower income from our equity method investment, TEL. Longer term, we believe our strategy can materially improve Combined Truckload operating margins through continued world-class customer service and disciplined asset reallocation to operations offering higher margins and returns.”

Conference Call Information

The Company will host a live conference call tomorrow, October 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.”

About Covenant Logistics Group

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 income, segment operating income, operating ratio, segment operating ratio, net income, and 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 income, segment operating income, operating ratio, segment operating ratio, net income, and 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 is 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 income, segment operating income, operating ratio, segment operating ratio, net income, and 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,” “strategy,” 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 equipment expenditures and related priorities, benefits, and returns, capital allocation alternatives, expectations for the general freight market, including rates, demand, and capacity, our ability to achieve our desired business mix, future margin and return on capital, future expenses and the impact of inflation, including maintenance, wages, benefits, technology, and insurance and claims, 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; Global conflicts 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 reportable 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, have exposure outside of our insurance coverage, could be uninsured or underinsured, and have additional exposure following the Supreme Court’s recent Montgomery decision, 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 a captive insurance company 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 or employees of related businesses 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 and changes to various environmental laws and regulations; Regulatory changes related to climate change could increase our costs significantly; Changes to trade regulation, export controls, duties, or tariffs; Litigation may adversely affect our business, financial condition, and results of operations; Conflicting views on environmental and societal 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 49% owned subsidiary, Transport Enterprise Leasing, faces certain additional risks particular to its operations, any one of which could adversely affect our operating results; We could determine that our goodwill and other intangible assets are impaired, thus recognizing a related loss; Our Chairman of the Board and Chief Executive Officer and his wife control a large portion of our stock and have substantial control over us, which could limit other stockholders' ability to influence the outcome of key transactions, including changes of control; Provisions in our charter documents or Nevada law may inhibit a takeover, which could limit the price investors might be willing to pay for our Class A common stock; The market price of our Class A common stock may be volatile; We cannot guarantee the timing or amount of repurchases of our Class A common stock, or the declaration of future dividends, if any; Changes in taxation could lead to an increase of our tax exposure; If we fail to maintain effective internal control over financial reporting in the future, there could be an elevated possibility of a material misstatement, and such a misstatement could cause investors to lose confidence in our financial statements, which could have a material adverse effect on our stock price; and The effects of a widespread outbreak of an illness or disease, or any other public health crisis, as well as regulatory measures implemented in response to such events, could negatively impact the health and safety of our workforce and/or adversely impact our business and results of operations. Readers should review and consider these factors along with the various disclosures by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.

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 September 30,									Nine Months Ended September 30,
($s in 000s, except per share data)	2026			2025			% Change			2026			2025			% Change
Revenues
Freight revenue	$	315,050		$	268,840			17.2	%	$	891,668		$	788,591			13.1	%
Fuel surcharge revenue		38,844			28,049			38.5	%		102,260			80,507			27.0	%
Total revenue	$	353,894		$	296,889			19.2	%	$	993,928		$	869,098			14.4	%

Operating expenses:
Salaries, wages, and related expenses		115,501			109,745						334,903			323,845
Fuel expense		38,259			29,506						104,406			85,663
Operations and maintenance		20,235			19,352						56,915			52,168
Revenue equipment rentals and purchased transportation		113,412			72,908						301,354			206,504
Operating taxes and licenses		3,089			3,304						9,104			10,326
Insurance and claims		9,791			14,179						40,575			46,769
Communications and utilities		2,152			1,631						6,063			4,580
General supplies and expenses		16,448			15,872						43,046			44,124
Depreciation and amortization		23,458			22,953						70,253			67,869
(Gain) loss on disposition of property and equipment, net		(945	)		(487	)					(308	)		134
Total operating expenses		341,400			288,963						966,311			841,982
Operating income		12,494			7,926						27,617			27,116
Interest expense, net		3,854			3,468						10,721			8,795
Income from equity method investment		(5,650	)		(3,578	)					(14,602	)		(11,622	)
Income from continuing operations before income taxes		14,290			8,036						31,498			29,943
Income tax expense		3,586			1,772						7,839			7,276
Income from continuing operations		10,704			6,264						23,659			22,667
Income from discontinued operations, net of tax		-			2,829						-			2,829
Net income	$	10,704		$	9,093					$	23,659		$	25,496

Basic earnings per share ⁽¹⁾
Income from continuing operations	$	0.42		$	0.25					$	0.94		$	0.88
Income from discontinued operations	$	-		$	0.11					$	-		$	0.11
Net income per basic share	$	0.42		$	0.36					$	0.94		$	0.99
Diluted earnings per share ⁽¹⁾
Income from continuing operations	$	0.40		$	0.24					$	0.89		$	0.83
Income from discontinued operations	$	-		$	0.11					$	-		$	0.10
Net income per diluted share	$	0.40		$	0.35					$	0.89		$	0.94
Basic weighted average shares outstanding (000s)		25,383			25,030						25,229			25,872
Diluted weighted average shares outstanding (000s)		26,603			26,301						26,559			27,156

	Segment Freight Revenues
	Three Months Ended September 30,							Nine Months Ended September 30,
($s in 000's)	2026		2025		% Change			2026		2025		% Change
Expedited - Truckload	$	70,555	$	80,184		(12.0	%)	$	216,246	$	243,662		(11.3	%)
Dedicated - Truckload		95,405		91,581		4.2	%		280,489		263,827		6.3	%
Combined Truckload		165,960		171,765		(3.4	%)		496,735		507,489		(2.1	%)
Managed Freight		121,635		72,220		68.4	%		311,908		206,620		51.0	%
Warehousing		26,738		24,802		7.8	%		81,012		74,429		8.8	%
Other		717		53		1252.8	%		2,013		53		3698.1	%
Consolidated Freight Revenue	$	315,050	$	268,840		17.2	%	$	891,668	$	788,591		13.1	%

	Truckload Operating Statistics
	Three Months Ended September 30,							Nine Months Ended September 30,
	2026		2025		% Change			2026		2025		% Change
Average freight revenue per loaded mile	$	3.67	$	2.99		22.7	%	$	3.50	$	2.98		17.4	%
Average freight revenue per total mile	$	3.03	$	2.53		19.8	%	$	2.89	$	2.53		14.2	%
Average freight revenue per tractor per week	$	5,778	$	5,445		6.1	%	$	5,741	$	5,469		5.0	%
Average miles per tractor per period		25,081		28,306		(11.4	%)		77,412		84,456		(8.3	%)
Weighted avg. tractors for period		2,186		2,400		(8.9	%)		2,219		2,379		(6.7	%)
Tractors at end of period		2,178		2,434		(10.5	%)		2,178		2,434		(10.5	%)
Trailers at end of period		7,011		6,851		2.3	%		7,011		6,851		2.3	%

	Selected Balance Sheet Data
($s in '000's, except per share data)	9/30/2026			12/31/2025
Total assets	$	1,023,637		$	1,047,548
Total stockholders' equity	$	422,257		$	403,997
Total indebtedness, comprised of total debt and finance leases, net of cash	$	283,927		$	296,297
Net Indebtedness to Capitalization Ratio		40.2	%		42.3	%
Tangible book value per end-of-quarter basic share	$	9.63		$	8.69

Covenant Logistics Group, Inc. Non-GAAP Reconciliation (Unaudited) Adjusted Operating Income and Adjusted Operating Ratio⁽¹⁾

*(Dollars in thousands)*	Three Months Ended September 30,									Nine Months Ended September 30,
GAAP Presentation	2026			2025			bps Change			2026			2025			bps Change
Total revenue	$	353,894		$	296,889					$	993,928		$	869,098
Total operating expenses		341,400			288,963						966,311			841,982
Operating income	$	12,494		$	7,926					$	27,617		$	27,116
Operating ratio		96.5	%		97.3	%		(80	)		97.2	%		96.9	%		30

Non-GAAP Presentation	2026			2025			bps Change			2026			2025			bps Change
Total revenue	$	353,894		$	296,889					$	993,928		$	869,098
Fuel surcharge revenue		(38,844	)		(28,049	)					(102,260	)		(80,507	)
Freight revenue (total revenue, excluding fuel surcharge)		315,050			268,840						891,668			788,591

Total operating income		12,494			7,926						27,617			27,116
Adjusted for:
Amortization of intangibles⁽²⁾		3,001			2,653						9,001			7,770
Contingent consideration liability adjustment		328			710						984			2,130
Transaction costs		-			-						-			149
Employee separation costs		-			1,375						-			1,375
Lease abandonment and customer exit costs		-			429						-			429
Abandonment of long-lived software		-			1,884						-			1,884
Adjusted operating income		15,823			14,977						37,602			40,853
Adjusted operating ratio		95.0	%		94.4	%		60			95.8	%		94.8	%		100

(1) Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating 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 September 30,						Nine Months Ended September 30,
	2026			2025			2026			2025
GAAP Presentation - Net income	$	10,704		$	9,093		$	23,659		$	25,496
Adjusted for:
Amortization of intangibles ⁽²⁾		3,001			2,653			9,001			7,770
Contingent consideration liability adjustment		328			710			984			2,130
Transaction costs		-			-			-			149
Employee separation costs		-			1,375			-			1,375
Lease abandonment and customer exit costs		-			429			-			429
Abandonment of long-lived software		-			1,884			-			1,884
Total adjustments before taxes		3,329			3,278			9,985			9,964
Provision for income tax expense at effective rate		(836	)		(854	)		(2,446	)		(2,533	)
Tax effected adjustments	$	2,493		$	2,424		$	7,539		$	7,431
Non-GAAP Presentation - Adjusted net income	$	13,197		$	11,517		$	31,198		$	32,927

GAAP Presentation - Diluted earnings per share ("EPS") ⁽³⁾	$	0.40		$	0.35		$	0.89		$	0.94
Adjusted for:
Amortization of intangibles⁽²⁾		0.11			0.10			0.34			0.29
Discontinued operations reversal of loss contingency⁽⁴⁾		-			(0.14	)		-			(0.14	)
Contingent consideration liability adjustment		0.01			0.03			0.04			0.08
Transaction costs		-			-			-			0.01
Employee separation costs		-			0.05			-			0.05
Lease abandonment and customer exit costs		-			0.02			-			0.02
Abandonment of long-lived software		-			0.07			-			0.07
Total adjustments before taxes		0.12			0.12			0.38			0.37
Provision for income tax expense at effective rate		(0.02	)		(0.03	)		(0.09	)		(0.09	)
Tax effected adjustments	$	0.10		$	0.09		$	0.29		$	0.28
Non-GAAP Presentation - Adjusted EPS	$	0.50		$	0.44		$	1.18		$	1.22

(1) Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP net income to consolidated non-GAAP adjusted net income and consolidated GAAP diluted earnings per share to non-GAAP consolidated Adjusted EPS.
(2) "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets.
(3) Total may not sum due to rounding.
(4) "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.

Covenant Logistics Group, Inc Non-GAAP Reconciliation (Unaudited) Adjusted Operating Income and Adjusted Operating Ratio ⁽¹⁾

*(Dollars in thousands)*	Three Months Ended September 30,
GAAP Presentation	2026															2025
	Expedited			Dedicated			Combined Truckload			Managed Freight			Warehousing			Expedited			Dedicated			Combined Truckload			Managed Freight			Warehousing
Total revenue	$	89,473		$	115,124		$	204,597		$	121,635		$	26,945		$	94,632		$	105,020		$	199,652		$	72,220		$	24,964
Total segment operating expenses (2)		81,627			108,708			190,335			114,268			25,248			89,553			100,921			190,474			69,260			22,466
Segment operating income (2)	$	7,846		$	6,416		$	14,262		$	7,367		$	1,697		$	5,079		$	4,099		$	9,178		$	2,960		$	2,498
Segment operating ratio (2)		91.2	%		94.4	%		93.0	%		93.9	%		93.7	%		94.6	%		96.1	%		95.4	%		95.9	%		90.0	%

Non-GAAP Presentation
Total revenue	$	89,473		$	115,124		$	204,597		$	121,635		$	26,945		$	94,632		$	105,020		$	199,652		$	72,220		$	24,964
Fuel surcharge revenue		(18,918	)		(19,719	)		(38,637	)		-			(207	)		(14,448	)		(13,439	)		(27,887	)		-			(162	)
Freight revenue (total revenue, excluding fuel surcharge)		70,555			95,405			165,960			121,635			26,738			80,184			91,581			171,765			72,220			24,802

Total segment operating income (2)	$	7,846		$	6,416			14,262		$	7,367		$	1,697		$	5,079		$	4,099			9,178		$	2,960		$	2,498
Adjusted for:
Other (3)		(3,685	)		(2,724	)		(6,409	)		(285	)		(809	)		(1,548	)		(1,054	)		(2,602	)		(212	)		(535	)
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		4,161			3,692			7,853			7,082			888			5,140			4,837			9,977			3,035			1,963
Adjusted segment operating ratio		94.1	%		96.1	%		95.3	%		94.2	%		96.7	%		93.6	%		94.7	%		94.2	%		95.8	%		92.1	%

	Nine Months Ended September 30,
GAAP Presentation	2026															2025
	Expedited			Dedicated			Combined Truckload			Managed Freight			Warehousing			Expedited			Dedicated			Combined Truckload			Managed Freight			Warehousing
Total revenue	$	267,564		$	330,913		$	598,477		$	311,908		$	81,530		$	286,625		$	300,906		$	587,531		$	206,620		$	74,894
Total segment operating expenses (2)		248,511			311,132			559,643			299,099			76,481			268,490			288,634			557,124			195,658			68,636
Segment operating income (2)	$	19,053		$	19,781		$	38,834		$	12,809		$	5,049		$	18,135		$	12,272		$	30,407		$	10,962		$	6,258
Segment operating ratio (2)		92.9	%		94.0	%		93.5	%		95.9	%		93.8	%		93.7	%		95.9	%		94.8	%		94.7	%		91.6	%

Non-GAAP Presentation
Total revenue	$	267,564		$	330,913		$	598,477		$	311,908		$	81,530		$	286,625		$	300,906		$	587,531		$	206,620		$	74,894
Fuel surcharge revenue		(51,318	)		(50,424	)		(101,742	)		-			(518	)		(42,963	)		(37,079	)		(80,042	)		-			(465	)
Freight revenue (total revenue, excluding fuel surcharge)		216,246			280,489			496,735			311,908			81,012			243,662			263,827			507,489			206,620			74,429

Total segment operating income (2)	$	19,053		$	19,781		$	38,834		$	12,809		$	5,049		$	18,135		$	12,272		$	30,407		$	10,962		$	6,258
Adjusted for:
Other (3)		(10,254	)		(7,264	)		(17,518	)		493			(2,065	)		(4,874	)		(3,308	)		(8,182	)		(694	)		(1,737	)
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		8,799			12,517			21,316			13,302			2,984			14,870			10,905			25,775			10,555			4,521
Adjusted segment operating ratio		95.9	%		95.5	%		95.7	%		95.7	%		96.3	%		93.9	%		95.9	%		94.9	%		94.9	%		93.9	%

(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.

FAQ

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What were Covenant Logistics Group’s third-quarter 2026 earnings?

Covenant reported $0.40 in diluted earnings per share, compared with $0.35 in the prior-year quarter. Net income increased to $10.704 million from $9.093 million. Adjusted diluted earnings per share were $0.50, compared with $0.44.

What does Covenant Logistics expect for the fourth quarter of 2026?

Covenant expects sequential improvement as a higher percentage of its fleet operates under committed arrangements and repositioning costs decline. It also expects Dedicated fleet growth and a stable Expedited fleet with a higher proportion of capacity under dedicated or committed contracts.

How much cash and credit facility borrowing did Covenant Logistics have at September 30, 2026?

Covenant had $5.1 million in cash and cash equivalents and $35.0 million in outstanding borrowings under its asset-based lending credit facility. The facility also had $19.8 million in outstanding undrawn letters of credit and $75.2 million of immediate available borrowing capacity.

How much did Covenant Logistics spend on capital equipment in the first nine months of 2026?

Net capital expenditures were approximately $18.4 million for the first three quarters of 2026. Proceeds from fleet downsizing and sales of excess used equipment kept pace with investment in new replacement equipment.

Covenant Logistics Group Announces Third Quarter 2026 Financial and Operating Results