CVLG
Covenant Logistics Group, Inc.23.27
+0.16+0.69%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A details rate gains, fleet cuts
Q&A amplified prepared remarks' freight optimism with specifics: early January Expedited rates averaged 3.5% gains, bids up 33% QoQ on capacity fears including resurgent cargo theft, and new wins at 7-8% higher pricing versus breakeven a year ago. Management detailed fleet tweaks—Expedited shrinking ~25 trucks quarterly, Dedicated stable via Ag growth over commoditized freight—and sequential Q1 OR improvements despite shutdown/weather risks. They stressed de-leveraging post-Star before more M&A, targeting Expedited ORs in the 80s long-term. Conviction on supply exit deepened. Watch rate execution amid tightening spot market.
Key Stats
Market Cap
582.85MP/E (TTM)
21.75Basic EPS (TTM)
1.07Dividend Yield
0.01%Recent Filings
10-K
FY2025 results
Covenant Logistics posted FY2025 revenue of $1.16B, up modestly from $1.13B in 2024, with freight revenue climbing to $1.06B amid Dedicated growth of 11.5% in average tractors to $403M despite 8% mileage drop, while Expedited freight fell 8.5% on 4.7% fewer tractors. Operating income cratered to $2.9M from $44.8M, squeezed by $10.7M Q4 goodwill impairment in legacy Dedicated, $6.5M held-for-sale write-down, and surging insurance to 26.6¢/mile; adjusted OR widened to 95.1% from 93.0%. Q4 momentum faltered with Star brokerage integration costs, peak-season capacity squeezes in Managed Freight, and Dedicated startup inefficiencies, yet TEL equity income held steady at $14.7M. Net debt rose to $296M (leverage 2.89x) after $112M capex and $36M buybacks, with $53M revolver room. Q1 2026 outlook flags revenue/earnings dips from weather, Expedited rate cuts, and Dedicated ramp costs. Driver shortages threaten quarterly capacity.
8-K
Quarterly $0.07 dividend declared
8-K
Parkers to sell $15M shares
Covenant Logistics Chairman and CEO David Parker and wife Jacqueline plan to sell about $15 million of Class A shares—roughly 5% of their holdings—via open market and charitable gifts, announced February 9, 2026. No Rule 10b5-1 plan in place. Signals personal liquidity needs, yet leaves them major stakeholders.
8-K
Q4 loss on impairments; brokerage buy
Covenant Logistics reported Q4 2025 revenue of $295M, up 6.5% YoY, but swung to a $0.73 per share loss from impairments ($10.7M goodwill, $8.7M equipment) and $11.6M claims settlement. Adjusted EPS hit $0.31, matching expectations amid offsets from government shutdown and capacity costs. Acquired $130M revenue truckload brokerage Star Logistics for retail and disaster relief exposure. Net debt climbed to $296M; 2026 plans deleveraging.
8-K
Exec bonus plan approved
Covenant Logistics approved its 2026 Senior Executive Bonus Program on December 16, 2025, effective January 1, 2026, tying payouts to adjusted EPS goals and strategic projects. CEO David R. Parker and EVP M. Paul Bunn target 100% of base salary, with max 150% for top performance; others range 60-70%. Incentives align execs with earnings growth.
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