Covenant Logistics Group reported $269.4 million in total revenue during the first quarter, a 3% year-over-year decrease from the same period in 2024.
Freight revenue declined 2% year over year in the first quarter to 243.2 million, while truckload operations decreased 1% to $188.3 million.
Chattanooga, Tennessee-based Covenant (NASDAQ: CVLG) reported adjusted earnings per share of 32 cents in the quarter, compared to 42 cents in the same year-ago quarter.
The company missed Wall Street revenue estimates of $278 million and earnings per share of 34 cents in the quarter.
Chairman and CEO David R. Parker said Covenant remains confident in its strategy and market position.
“The decrease in adjusted earnings per share compared with the first quarter of 2024 resulted primarily from subpar equipment utilization due to prolonged inclement weather conditions and avian influenza outbreaks, which were especially severe this year,” Parker said in a news release. “We enter the second quarter with modest rate increases secured in expedited, higher margins in managed freight, and the expectation of revenue growth in our dedicated, managed freight, and warehousing divisions compared with the second quarter of 2024.”
Freight revenue per tractor per week decreased 4% year over year to $5,416. Revenue in the expedited truckload segment fell 10% to $94.7 million, while dedicated segment revenue rose 11% to $93.6 million.
Covenant’s managed freight segment saw revenue of $56.8 million in the first quarter, a decrease of 9.7% from the same time last year. The warehousing segment had revenue of $24 million during the quarter, a 6% year-over-year decrease.
Covenant also announced a plan to buy back up to $50 million of its Class A common stock.
Parker said the company sees some improvement in the freight marketplace.
“Currently, the general freight market appears to be incrementally improving as capacity and demand are better balanced than they have been for approximately two years, and customers are acknowledging this during rate and volume allocation discussions,” he said. “However, uncertainty around global trade policy may cause a temporary disruption to improvement, delaying the path to a 2025 recovery of the freight economy.”
Covenant will hold a conference call to discuss results with analysts at 10 a.m. Thursday.
| Covenant Logistics Group | Q1/25 | Q1/24 | Y/Y% Change |
| Total revenue | $269.3M | $278.7M | (3%) |
| Truckload combined: | |||
| Revenue | $188.3M | $189.9M | (1%) |
| Freight revenue (ex fuel) | $162.3M | $159.1M | 2% |
| Revenue per total mile | $2.53 | $2.35 | 8% |
| Revenue per tractor per week | $5,416 | $5,651 | (4%) |
| Adjusted operating ratio | 96.2% | 93.7% | 2.7% |
| Managed freight: | |||
| Revenue | $56.8M | $62.9M | (9.7%) |
| Adjusted operating income | $3.3M | $2.5M | 32% |
| Adjusted Operating ratio | 94.1 % | 96% | (2%) |
| Expedited freight: | |||
| Revenue (ex fuel) | $94.6M | $105.5M | (10.3%) |
| Adjusted operating income | $4.7M | $5.3M | (11.3%) |
| Adjusted operating ratio | 95.6% | 95.5 % | 0.1% |
| Adjusted earnings per share | $0.32 | $0.42 | (24%) |
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