Covenant Logistics Posts Record $276.5M Freight Revenue Q2 2025

Covenant Logistics Group reported mixed financial results for the second quarter of 2025, with revenue reaching a record $302.9 million, driven by a 7.8% year-over-year increase in freight revenue to $276.5 million. Despite this revenue growth, the company experienced compressed margins and a decrease in operating income due to inflationary costs, increased claims expenses, and higher fuel prices. Earnings per diluted share were $0.36, below analyst estimates, although the non-GAAP adjusted earnings per share of $0.45 exceeded expectations. Covenant's Expedited segment faced a 6.4% decline in freight revenue, while other segments like Managed Freight and Dedicated services contributed to overall growth. The company repurchased approximately 1.6 million shares as part of its $50 million stock buyback program, signaling a commitment to shareholder value. CEO David Parker expressed optimism about the company's positioning to capitalize on improving market conditions and enhance margins going forward.