Covenant Logistics Group reported second-quarter 2026 results with total revenue of $332.9 million and operating income of $8.8 million. GAAP diluted earnings per share were $0.32 and adjusted diluted EPS was $0.42 for the quarter. Management highlighted sequential freight-market improvement, fleet mix shifts toward committed contracts, and elevated maintenance and insurance costs that pressured margins.
Financial Highlights
- Total revenue: $332,873 (three months ended June 30, 2026).
- Freight revenue (excludes fuel surcharge): $294,693 for the quarter.
- Operating income: $8,841 for the quarter; adjusted operating income: $12,169.
- Net income: $8,535 for the quarter; adjusted net income: $11,201.
- Earnings per diluted share: $0.32 GAAP; adjusted diluted EPS: $0.42.
Business Highlights
- Combined Truckload revenue increased to $205.8 million; freight revenue mix improved with a 5.9% rise in average freight revenue per tractor per week driven by higher revenue per total mile.
- Converted roughly 15% of the Expedited fleet from uncommitted freight to multi-year committed contracts and expanded dedicated protein-related business while reducing general commodity freight.
- Fleet size declined ~8.6% year-over-year (weighted average tractors 2,199 vs. 2,406); fleet at quarter-end 2,202 tractors and average tractor age rose to ~26 months with expected range 25–28 months going forward.
- Managed Freight grew freight revenue 28.4% year-over-year due largely to integration of acquired assets, but experienced early-cycle margin compression as capacity costs rose faster than contractual revenue per load.
- Warehousing onboarded a significant new customer (added in Q4 2025), increasing freight revenue and incurring startup inefficiencies; management plans rate increases and cost reductions to drive margins higher.
Original SEC Filing:
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