Covenant Logistics Group reported a fourth-quarter net loss as impairment charges and higher insurance costs weighed on results, even as core operating performance came in roughly in line with management expectations.
The carrier posted adjusted earnings of $0.31 per share, compared to $0.49 in Q4 2024. Total revenue rose 6.5% year-over-year to $295.37 million.
Chattanooga-based Covenant Logistics Group (NYSE: CVLG) provides truckload, expedited, dedicated, and logistics services across the U.S.
“Our adjusted results were in line with our expectations, with operating positives and negatives roughly offsetting,” Chairman and CEO David Parker said in a news release. “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.”
Covenant Logistics missed analysts revenue estimates of $299.2 million for the quarter, and earnings per share of $0.33.
Truckload revenue slipped slightly to $188.9 million, down 0.8% year over year, as declines in the company’s expedited business offset growth in its dedicated segment.
Dedicated freight revenue rose 12.6%, supported by an expanded specialized agriculture fleet, while expedited freight revenue fell 12.2%, reflecting lower utilization, pricing pressure and disruption tied to a prolonged government shutdown.
Covenant also highlighted strong top-line growth in its Managed Freight segment, where revenue increased nearly 29% following the acquisition of a truckload brokerage now operating as Star Logistics Solutions. Segment profitability, however, was pressured by elevated capacity costs during peak season.
Looking ahead, management said the company plans to exit unprofitable business, modestly shrink its overall truckload fleet while emphasizing higher-return freight, and focus on improving free cash flow and reducing leverage in 2026.
“The fourth quarter included approximately $19.4 million of non-cash impairment charges relating to goodwill and tractors pulled from service as we continue to evaluate and exit unprofitable accounts in both our Expedited and Dedicated fleets,” Tripp Grant, Covenant’s CFO said in a statement. “Additionally, we recorded $11.6 million in claims costs primarily related to the settlement of an auto liability claim in insurance layers with shared retention.”
Covenant will hold a conference call to discuss results with analysts at 10 a.m. Friday.
| Covenant Logistics Group | Q4/25 | Q4/24 | Y/Y % Change |
| Total revenue | $295M | $277M | 6.5% |
| Truckload combined: | |||
| Revenue | $188M | $190M | (1%) |
| Freight revenue (ex fuel) | $164.35M | $164.49M | (0.8%) |
| Revenue per tractor per week | $5,327 | $5,444 | (2%) |
| Managed Freight: | |||
| Revenue | $80M | $62M | 29% |
| Adjusted operating income | $1M | $5M | (80%) |
| Dedicated: | |||
| Total revenue | $102M | $91M | 12% |
| Operating income | $7M | $3M | 133% |
| Expedited Freight: | |||
| Revenue | $86M | $98M | (12%) |
| Operating income | $2M | $6M | (66%) |
| Adjusted earnings per share | $0.31 | $0.49 | (37%) |
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