Covenant Logistics Group quarterly earnings revealed for the second quarter of the year
Covenant Logistics Group Inc. (CVLG) has announced its financial results for Q2 2025, demonstrating solid growth and maintaining profitability. The logistics company reported a total revenue of $302.85 million, marking a 5% year-over-year increase, and freight revenue rising 7.8% to an all-time quarterly high of $276.5 million.
The company's net profit stood at $9.8 million, or 36 cents per share, with adjusted earnings per share at 45 cents. Although slightly down from 52 cents a year ago, these figures surpassed analyst estimates.
Segment performance showed mixed trends. Truckload operations revenue declined 1% to $199.6 million, while the expedited truckload segment revenue fell 10% to $97.3 million. However, the dedicated segment revenue increased 9% to $102.3 million.
The freight revenue growth was primarily driven by strength in the expedited, managed freight, and dedicated accounts, despite competitive market conditions.
Other company-wide highlights include share repurchases of 1.6 million shares totalling $35.2 million, a stable gross margin despite cost pressures, and increased operational efficiency supporting operating margin and profitability. As of late July 2025, the company's outstanding shares were roughly 57.9 million.
Covenant's 49% equity method investment with Transport Enterprise Leasing contributed pre-tax net income of $4.3 million, or $0.12 per share, in the second quarter, roughly in line with the prior year quarter's results.
The managed freight segment reported a revenue of $77.5 million, marking a 28% year-over-year increase. Notably, the freight revenue per tractor per week decreased 3.2% year-over-year to $5,543.
Covenant's Chairman and CEO, David R. Parker, stated, "The freight revenue growth of 7.8% to $276.5 million was a record high for any quarter in our company's history."
The company will hold a conference call to discuss these results with analysts at 10 a.m. on Thursday. Following the announcement, Covenant's stock price rose by 6.6% in after-hours trading, reflecting investor confidence in the company's performance.
The strong financial results of Covenant Logistics Group Inc. have revealed growth in various sectors outside the truckload operations, such as an impressive 49% equity method investment in Transport Enterprise Leasing and a substantial 28% increase in the managed freight segment. Moreover, the growth in the finance sector is evident with the company's net profit standing at $9.8 million, demonstrating strength despite the competitive market conditions in the transportation industry.
