First look: Covenant Logistics Group Q2 earnings

Freight revenue rose 7.8% year-over-year in the second-quarter to $276.5 million

Covenant Logistics Group’s freight revenue per tractor per week in the second-quarter decreased 3.2% year-over-year to $5,543. (Photo: Jim Allen/FreightWaves)

Covenant Logistics Group Inc. reported $302.85 million in total revenue during the second quarter, a 5% year-over-year increase from the same period in 2024.

Freight revenue rose 7.8% year-over-year in the second-quarter to $276.5 million, while truckload operations decreased 1% to $199.6 million.

Chattanooga, Tennessee-based Covenant (NASDAQ: CVLG) reported adjusted earnings per share of 45 cents in the quarter, compared to 52 cents in the same year-ago quarter.

“The highlight of our second quarter’s results was year-over-year freight revenue growth of 7.8% to $276.5 million, an all-time high for any quarter in the history of our enterprise,” Covenant Chairman and CEO David R. Parker said in a news release. “This milestone was achieved despite an operating environment that remained competitive throughout the quarter across many Expedited, Managed Freight, and non-specialized equipment Dedicated accounts.”

Freight revenue per tractor per week decreased 3.2% year-over-year to $5,543. Revenue in the expedited truckload segment fell 10% to $97.3 million, while dedicated segment revenue rose 9% to $102.3 million.

Covenant’s managed freight segment saw revenue of $77.5 million in the second quarter, an increase of 28% from the same time last year. The warehousing segment had revenue of $25.5 million during the quarter, a 1% year-over-year gain.

During the quarter, Covenant repurchased 1.6 million shares of outstanding common stock at an average price of $22.69 per share, amounting to $35.2 million of the company’s $50 million stock repurchase program.

“Our 49% equity method investment with Transport Enterprise Leasing contributed pre-tax net income of $4.3 million, or $0.12 per share, roughly in line with the prior year quarter’s results of $4.1 million,” Parker said.

Covenant will hold a conference call to discuss results with analysts at 10 a.m. Thursday.

Covenant Logistics GroupQ2/25Q2/24Y/Y% Change
Total revenue$302.9M$287.5M5%
Truckload combined:
Revenue$199.6M$201.5M(1%)
Freight revenue (ex fuel)$173.4M$170.8M2%
Revenue per total mile$2.52$2.386%
Revenue per tractor per week$5,543$5,726(3%)
Managed freight:
Revenue$77.6M$60.428%
Adjusted operating income$4.2M$3.6M17%
Expedited freight:
Revenue (ex fuel)$97.3M$108M(6%)
Adjusted operating income$5.1M$5.3M(4%)
Adjusted earnings per share$0.45$0.52(16%)
Covenant Logistics Group key second quarter performance indicators.

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com