The earnings call highlighted positive aspects such as increased freight revenue and growth in the Dedicated segment, along with an optimistic long-term outlook on market capacity due to regulatory changes. However, these were overshadowed by significant challenges including a decline in operating income, increased indebtedness, underperformance in key segments, and the negative impact of the government shutdown on specific business areas.
Company Guidance
In the third quarter of 2025, Covenant Logistics Group faced a challenging environment marked by compressed margins, particularly in its Asset-Based Truckload segment, due to inflationary costs and high claims expenses. Despite these difficulties, consolidated freight revenue increased by 4%, or approximately $10.2 million, reaching $268.9 million. However, consolidated adjusted operating income decreased by 22.5% to $15 million. The company's net indebtedness rose by $48.6 million to $268.3 million as of September 30th, with an adjusted leverage ratio of approximately 2.1x and a debt-to-capital ratio of 38.8%. The Expedited segment reported a 93.6% adjusted operating ratio, while the Dedicated segment's adjusted operating ratio was 94.7%. Managed Freight exceeded both revenue and adjusted operating income compared to the prior year but was sequentially impacted by the loss of a short-term customer. The Warehouse segment saw a slight decrease in freight revenue and adjusted operating income, yielding an adjusted operating ratio of 92.1%. The company's minority investment in TEL contributed $3.6 million in pretax net income for the quarter. Looking ahead, Covenant anticipates a challenging fourth quarter due to a soft freight market and company-specific factors, but remains optimistic about market recovery, driven by government policy enforcement and potential improvements in consumer demand.
Consolidated Freight Revenue Increase
Consolidated freight revenue increased by 4% or approximately $10.2 million to $268.9 million year-over-year.
Dedicated Segment Growth
Dedicated fleet grew by 136 tractors or approximately 9.6% compared to the prior year, winning new business in specialized and high service niches.
Optimistic Outlook on Capacity Constraints
CEO David Parker expressed optimism about future capacity constraints due to government regulations and the potential impact on supply, projecting positive changes in the market over the next few years.
Covenant Logistics Group (CVLG) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CVLG Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Oct 22, 2025
$21.88
$19.96
-8.78%
Jul 23, 2025
$24.21
$25.12
+3.75%
Apr 23, 2025
$18.69
$20.64
+10.43%
Jan 23, 2025
$28.70
$27.87
-2.87%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Covenant Logistics Group (CVLG) report earnings?
Covenant Logistics Group (CVLG) is schdueled to report earning on Jan 22, 2026, After Close (Confirmed).
What is Covenant Logistics Group (CVLG) earnings time?
Covenant Logistics Group (CVLG) earnings time is at Jan 22, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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