olivLaw · US equity research
Covenant Logistics Group, Inc. CVLG
Trucking (No Local) · SIC 4213 · Vertical: Trucking (No Local) (SIC 4213)
Covenant Logistics Group is a US truckload carrier that combines expedited transport, dedicated capacity, brokerage and warehousing services with a relatively new fleet. Total revenue reached 1164.5 million USD in fiscal 2025, yet operating income collapsed to nearly zero, and in the second quarter of 2026 the company is trying to turn a freight-market recovery into better margins through longer-term committed contracts.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Covenant Logistics Group, Inc. (CVLG) stock was 33.88 USD (+1.13% on the day), with P/E 237.7 on diluted EPS of 0.14 USD over the last 12 months, beta 1.14, 52-week range 18.07–49.88 USD. Latest reported quarter (Q2 2026): revenue of 332.9 m USD (+9.9% YoY), net income of 8.5 m USD (−13.3% YoY), diluted EPS 0.32 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 62.6
- strong (55–70)
- Bollinger (20, 2)
- 27.61 – 33.99
- in the upper half of the band · %B 0.98 · band width 20.7%
- SMA 50 / 200
- 32.84 / 34.14
- mixed trend
- MACD (12, 26, 9)
- -0.17 / -0.81
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +2.1% | −1.1% | +3.2 pp | — |
| 3 months | −5.3% | −0.5% | −4.8 pp | — |
| 6 months | +3.5% | +4.4% | −0.8 pp | — |
| Year to date | +53.7% | +12.3% | +41.4 pp | — |
| 1 year | +67.6% | +13.5% | +54.1 pp | +32.2% |
| 3 years | +65.8% | +76.4% | −10.7 pp | −7.6% |
| 5 years | +133.5% | +63.7% | +69.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 287.9 m | 277.3 m | 269.4 m | 302.9 m | 296.9 m | 295.4 m | 307.2 m | 332.9 m |
| Operating income | 16.2 m | 8.6 m | 7.6 m | 11.6 m | 7.9 m | -24.2 m | 6.3 m | 8.8 m |
| Depreciation & amortisation | 21.2 m | 22.1 m | 21.8 m | 23.1 m | 23.0 m | 24.9 m | 24.0 m | 22.8 m |
| Interest expense | 3.2 m | 3.2 m | 2.9 m | 2.5 m | 3.5 m | 3.3 m | 3.9 m | 3.0 m |
| Pre-tax income | 17.0 m | 8.3 m | 8.5 m | 13.4 m | 8.0 m | -24.4 m | 6.1 m | 11.1 m |
| Income tax | 4.1 m | 1.8 m | 2.0 m | 3.5 m | 1.8 m | -6.1 m | 1.7 m | 2.6 m |
| Net income | 13.0 m | 6.7 m | 6.6 m | 9.8 m | 9.1 m | -18.3 m | 4.4 m | 8.5 m |
| Diluted EPS | 0.47 | 0.24 ≈ | 0.24 | 0.36 | 0.35 | -0.70 ≈ | 0.17 | 0.32 |
| Operating cash flow | 56.9 m ≈ | 21.9 m | 24.8 m | 21.9 m ≈ | 41.4 m ≈ | 25.5 m | 29.0 m | -10.9 m ≈ |
| Capex | 32.6 m ≈ | 21.5 m | 33.4 m | 36.4 m ≈ | 49.2 m ≈ | 28.5 m | 11.4 m | 33.8 m ≈ |
| Dividends paid | 1.5 m ≈ | 1.5 m | 1.9 m | 1.8 m ≈ | 1.8 m ≈ | 1.8 m | 1.8 m | 1.8 m ≈ |
| Share repurchases | 0 ≈ | 0 | — | — | 1.0 m ≈ | -7.0 k | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 97 percentile of its own 35-quarter history (min 2.0, median 10.4, max 310.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 880.4 m | 885.4 m | 838.6 m | 1.0 bn | 1.2 bn | 1.1 bn | 1.1 bn | 1.2 bn |
| Revenue YoY | +24.9% | +0.6% | −5.3% | +24.7% | +16.3% | −9.3% | +2.5% | +2.9% |
| Net income | 42.5 m | 8.5 m | -42.7 m | 60.7 m | 108.7 m | 55.2 m | 35.9 m | 7.2 m |
| Net income YoY | −23.3% | −80.1% | −603.9% | unavailable | +79.0% | −49.2% | −35.0% | −79.8% |
| Diluted EPS | 2.30 | 0.45 | -2.46 | 3.57 | 3.50 | 2.00 | 1.30 | 0.27 |
| Diluted EPS YoY | −23.8% | −80.4% | −646.7% | unavailable | −2.0% | −42.9% | −35.0% | −79.2% |
| net % | 4.8% | 1.0% | -5.1% | 5.8% | 8.9% | 5.0% | 3.2% | 0.6% |
| Free cash flow | 49.7 m | -74.2 m | -31.0 m | 37.9 m | 58.8 m | -132.8 m | -30.1 m | -33.9 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 4.9 m USD
- Financial debt
- 298.1 m USD
- Net debt
- 293.1 m USD
- Equity
- 404.0 m USD
- Total assets
- 1.0 bn USD
- Debt / equity
- 0.74x
- Current ratio
- 1.11x
- ROE
- 1.7%
- ROA
- 0.7%
- FCF margin
- -2.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 838.6 m | 1.0 bn | 1.2 bn | 1.1 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 27 Feb 2026verified |
| Operating income | -14.0 m | 67.2 m | 120.7 m | 58.8 m | 44.8 m | 2.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Depreciation & amortisation | 65.5 m | 53.9 m | 57.5 m | 69.9 m | 86.5 m | 92.7 m | SEC (XBRL)· 27 Feb 2026verified |
| EBITDA | 51.4 m ≈ | 121.0 m ≈ | 178.2 m ≈ | 128.8 m ≈ | 131.3 m ≈ | 95.7 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| Interest expense | 6.8 m | 2.8 m | 3.1 m | 8.0 m | 13.6 m | 12.1 m | SEC (XBRL)· 27 Feb 2026verified |
| Pre-tax income | -16.9 m | 79.2 m | 142.8 m | 72.2 m | 45.9 m | 5.6 m | SEC (XBRL)· 27 Feb 2026verified |
| Income tax | -2.8 m | 21.0 m | 34.9 m | 17.6 m | 10.6 m | 1.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Net income | -42.7 m | 60.7 m | 108.7 m | 55.2 m | 35.9 m | 7.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Diluted EPS | -2.46 | 3.57 | 3.50 | 2.00 | 1.30 | 0.27 | SEC (XBRL)· 27 Feb 2026verified |
| Weighted average diluted shares | 17.4 m | 17.0 m | 31.0 m | 27.7 m | 27.7 m | 26.9 m | SEC (XBRL)· 27 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 8.4 m | 8.4 m | 68.7 m | 2.3 m | 35.6 m | 4.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Receivables | 91.3 m | 142.4 m | 119.8 m | 142.5 m | 141.6 m | 151.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Current assets | 147.8 m | 188.5 m | 222.7 m | 185.9 m | 213.9 m | 232.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Property, plant & equipment, net | 391.5 m | 346.5 m | 407.7 m | 514.7 m | 524.8 m | — | SEC (XBRL)· 28 Feb 2025verified |
| Goodwill | 42.5 m | 42.5 m | 58.2 m | 75.7 m | 78.9 m | 80.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Intangibles (excl. goodwill) | 24.5 m | 20.5 m | 48.2 m | 99.6 m | 90.1 m | 105.6 m | SEC (XBRL)· 27 Feb 2026verified |
| Total assets | 676.7 m | 651.7 m | 796.6 m | 954.4 m | 997.6 m | 1.0 bn | SEC (XBRL)· 27 Feb 2026verified |
| Accounts payable | 31.7 m | 29.9 m | 33.9 m | 33.2 m | 31.9 m | 45.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Short-term debt | 7.6 m | 5.7 m | 18.9 m | 47.7 m | 64.2 m | 64.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Long-term debt | 47.9 m | 20.3 m | 90.4 m | 196.9 m | 187.1 m | 234.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Current liabilities | 133.4 m | 142.7 m | 156.1 m | 170.3 m | 181.3 m | 210.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Total liabilities | 386.1 m | 302.0 m | 419.5 m | 551.0 m | 559.2 m | 641.6 m | SEC (XBRL)· 27 Feb 2026verified |
| Equity | 290.6 m † | 349.7 m † | 377.1 m † | 403.4 m † | 438.3 m † | 404.0 m † | SEC (XBRL)· 27 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 63.0 m | 73.2 m | 159.2 m | 84.8 m | 122.9 m | 113.6 m | SEC (XBRL)· 27 Feb 2026verified |
| Capex | 94.0 m | 35.3 m | 100.5 m | 217.6 m | 153.0 m | 147.6 m | SEC (XBRL)· 27 Feb 2026verified |
| Free cash flow | -31.0 m ≈ | 37.9 m ≈ | 58.8 m ≈ | -132.8 m ≈ | -30.1 m ≈ | -33.9 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| Investing cash flow | 138.0 m | 10.3 m | -86.2 m | -235.9 m | -107.7 m | -140.1 m | SEC (XBRL)· 27 Feb 2026verified |
| Financing cash flow | -236.3 m | -83.6 m | -12.8 m | 84.7 m | 18.1 m | -4.3 m | SEC (XBRL)· 27 Feb 2026verified |
| Dividends paid | — | 0 | 4.3 m | 5.8 m | 5.8 m | 7.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Share repurchases | 17.5 m | 10.3 m | 84.7 m | 25.4 m | 0 | 36.6 m | SEC (XBRL)· 27 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 12 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Key indicators
Coverage and freshness
Score by group
- Balance sheet12
- Quality27
- Valuation0
- Growth0
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 4.73 – 7.42 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E4.73 – 7.42 (Mid 4.92)7 companies used · median multiple 34.5x · quartiles 33.2x – 52.1xJBHT, KNX, LSTR, MRTN, ODFL, SAIA, SNDR
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 12/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -0.1% | 40 (vs peers) | 15% |
| Net margin · Quality | 0.3% | 33 (vs peers) | 9% |
| FCF conversion · Quality | -998.6% | 0 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | -1.5% | 0 (on a fixed band) | 12% |
| EPS CAGR 3Y · Growth | -57.4% | 0 (on a fixed band) | 12% |
| Net debt / EBITDA · Balance sheet | 3.1x | 13 (vs peers) | 15% |
| Interest coverage · Balance sheet | -0.1x | 0 (on a fixed band) | 9% |
| Current ratio · Balance sheet | 1.1x | 28 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 237.7x | 0 (vs peers) | 15% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet12/100 · 3/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality27/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
COVENANT LOGISTICS GROUP, INC. (CVLG). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 1.2 bn USD in 2025; YoY growth 2.9%; net margin 0.3%; ROE 0.9%; net debt/EBITDA 3.1x.
The estimated value range is 4.73–7.42 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 4.92 USD, the price of 33.88 USD leaves a potential of -85.5% (value / price − 1) and a margin of safety of -588.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 12/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns, valuation. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- FCF conversion: -998.6%
- Revenue CAGR 3Y: -1.5%
- EPS CAGR 3Y: -57.4%
- Net debt / EBITDA: 3.1x
- Interest coverage: -0.1x
- Current ratio: 1.1x
- P/E (TTM): 237.7x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Trucking (No Local) (SIC 4213) · same industry (4-digit SIC) · compared with 12 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ODFLOld Dominion Freight Line, Inc. | 37.2 bn | 34.5 | 24.8% | 19.4% | −5.5% | +33% / −8% |
| JBHTJ.b. Hunt Transport Services, Inc. | 21.2 bn | 31.9 | 18.8% | 5.1% | −0.7% | +31% / +23% |
| KNXKnight-Swift Transportation Holdings Inc. | 10.2 bn | 67.2 | 2.2% | 1.9% | +0.8% | +36% / +16% |
| SAIASaia, Inc. | 9.7 bn | 34.3 | 10.6% | 8.0% | +0.8% | +28% / −7% |
| LSTRLandstar System, Inc. | 5.1 bn | 32.0 | 18.7% | 3.0% | −1.6% | +16% / −12% |
| ARCBArcbest Corporation | 3.1 bn | 201.5 | 1.3% | 0.4% | −4.0% | +117% / +17% |
| WERNWerner Enterprises, Inc. | 1.8 bn | — | -3.3% | -1.4% | −1.8% | +15% / −27% |
| MRTNMarten Transport, Ltd. | 1.0 bn | 74.8 | 1.6% | 1.5% | −8.3% | +21% / −34% |
| ULHUniversal Logistics Holdings, Inc. | 862.8 m | — | -15.1% | -6.0% | −15.6% | +118% / +32% |
| HTLDHeartland Express Inc | 829.0 m | — | -2.8% | -3.0% | −23.1% | +36% / −20% |
| PAMTPamt Corp | 259.3 m | — | -18.9% | -7.1% | −16.3% | +38% / −34% |
| SNDRSchneider National, Inc. | — | 37.0 | 4.6% | 2.4% | +7.3% | +32% / +29% |
| CVLGCovenant Logistics Group, Inc. | — | 237.7 | 0.9% | 0.3% | +2.9% | +68% / +66% |
1- and 3-year price returns: for CVLG from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 07 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results).
In brief
Covenant Logistics Group is a US truckload carrier that combines expedited transport, dedicated capacity, brokerage and warehousing services with a relatively new fleet. Total revenue reached 1164.5 million USD in fiscal 2025, yet operating income collapsed to nearly zero, and in the second quarter of 2026 the company is trying to turn a freight-market recovery into better margins through longer-term committed contracts.12
SWOT
Strengths
- A relatively new fleet lowers maintenance costs, improves fuel efficiency and safety, and supports driver retention and customer service.1
- Diversification across four segments, from expedited transport to warehousing, gives several revenue sources and a stronger place in customers' supply chains.1
- The stake in TEL brings equity-method income that does not depend directly on the volatility of trucking operations.1
Weaknesses
- Operating profitability fell sharply in 2025, and in the second quarter of 2026 costs exceeded expectations, compressing the operating margin.12
- Leverage increased and the leverage ratio rose significantly from the prior year, limiting financial flexibility.1
- Customer concentration and contracts with cancellation clauses make revenue sensitive to the loss of a major customer.1
Opportunities
- If the freight recovery continues, better rates and the shift to committed contracts could improve margins in Expedited and Dedicated.23
- Growth in the agricultural and protein business within Dedicated could create more predictable revenue.3
- Selling surplus equipment to reduce debt could strengthen the balance sheet.2
Risks
- Volatile insurance and claims costshigh
Insurance and claims expense ran above expectations in the second quarter of 2026, and high retention levels and possible uninsured losses could affect results.23
- Higher leveragemedium
Net debt rose in 2025 and leverage increased significantly, which could limit flexibility in weak periods.1
- Dependence on major customershigh
Losing or reducing business with a major customer could materially affect volumes and equipment utilization.1
- Market overcapacitymedium
If the freight recovery stalls, rates could remain under pressure, affecting fleet utilization.1
- Driver and labor costsmedium
A shortage of qualified drivers and rising pay could reduce productivity or raise costs if they cannot be passed on to customers.1
Investment thesis
What would need to be true (bull case)
- The freight market appears to have turned toward firmer conditions, and the company reports rising rates and revenue per mile, which could rebuild margins if the trend continues.3
- The shift toward long-term committed contracts could reduce earnings volatility and support more predictable growth.2
- A relatively new fleet and the TEL stake provide an operating base and income stream that could support a return to profitability.1
What would break the thesis
- Operating income fell considerably in 2025 and kept declining in the second quarter of 2026, with costs above expectations, which casts doubt on how quickly margins can recover.12
- Higher debt and pressure from insurance costs could limit the company's ability to invest and to reduce borrowings.12
- Customer concentration and possible contract losses could quickly reduce volumes and revenue.1
What to watch
- Trend in operating margin and in maintenance and insurance costs in the third quarterQ3 2026
- Share of the fleet under committed contracts and the renewals due in the next 12 months2027
- Level of net debt and leverage, especially after equipment salesnext 10-K
- Whether freight rate and revenue-per-mile increases continueQ4 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 07 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results).
The business
Covenant Logistics Group, Inc. was founded in 1986 as an expedited freight provider and has grown from 25 tractors to about 2,300, broadening its offer through acquisitions including Landair (2018), AAT (2022), LTST and Sims (2023) and Star (2025).1 The stated strategy is to become embedded in customers' supply chains and to reduce the seasonal and cyclical volatility of results.1 The company operates mainly across the continental United States, and its company-owned fleet has an average age of about 2.0 years, well below the roughly 6.3 years average of US Class 8 tractors in 2025.1
The business is organized into four reportable segments: Expedited, which covers non-routine routes with two-person driver teams; Dedicated, which provides committed capacity under contracts often running three to five years; Managed Freight, which includes brokerage and transportation management; and Warehousing, which manages customers' warehouse operations.1 Revenue is largely earned on a per-mile rate, and in Expedited and Dedicated the main variable costs are fuel, driver pay and payments to independent contractors.1 The company also owns 49% of Transport Enterprise Leasing, LLC (TEL), whose results are consolidated by the equity method.1
The customer base is concentrated: one customer exceeded 10% of consolidated revenue in 2025, and the top ten customers represented about 44% of revenue.1 In the second quarter of 2026 total revenue rose 9.9% from a year earlier, but operating income fell from 11.6 million USD to 8.8 million USD.2
Segments
Dedicated
The Dedicated segment, the largest contributor to freight revenue, represented about 33.47% of freight revenue in 2025 and kept growing in the second half of the year through agricultural and protein-related contracts.13
Market context
The truckload market went through a prolonged period of overcapacity and moderate demand in 2025, with cost pressures from insurance, wages and equipment.1 Management describes a freight-market recovery during 2026, and rates strengthened sequentially in the second quarter, which could support margins if the recovery continues.13
The share of committed contracts is central: the company aims to have substantially all its asset-based business under dedicated or other long-term contracts by the end of this upcycle, which could reduce volatility compared with the spot market.23
Trends
- Freight market recoverytailwind
Freight rates strengthened during the second quarter of 2026, and the company reports a 15.1% increase in freight revenue per total mile for its combined truckload fleet, if the recovery continues.3
- Shift to committed contractstailwind
The company is moving capacity from the uncommitted market to long-term contracts, which could reduce revenue volatility and improve margins over time.23
- Insurance and claims costsheadwind
Insurance and claims expenses remain volatile because of high self-insured retention, and a recent Supreme Court decision could extend liability to Managed Freight operations.2
- Driver shortage and labor costsmixed
Competition for qualified drivers keeps pressure on pay and equipment utilization, though higher costs can partly be passed on to customers when the market firms.1
Competitive position
Truckload transport is highly fragmented, and Covenant competes with many carriers of different sizes, as well as less-than-truckload carriers, railroads, intermodal operators and logistics companies.1 Many competitors have more equipment and capital, and some cut rates to win business during periods of slow economic growth.1
Competition is also intensifying through industry consolidation, freight brokers and new brokerage platforms, as well as customers that move part of their freight in-house or select core carriers.1 The company indicates these pressures could limit its growth and its ability to raise rates.1
- Knight-Swift Transportation HoldingsKNX
Large American truckload carrier, cited in the source as part of the group of carriers of varying sizes Covenant competes with.
- Werner EnterprisesWERN
American full-truckload carrier, representative of competition in the expedited and dedicated segments.
- Heartland ExpressHTLD
American truckload carrier operating long-haul routes, a typical competitor in full-load transport.
- Freight brokers and digital brokerage platforms
Freight brokers and new brokerage platforms are cited in the source as pressure on customer relationships and rates in Managed Freight.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Covenant Logistics Eyes Higher-Return Growth as Freight Markets RecoverYahoo Finance — News · 29 Aug 2026 · EN
The latest news item in our archive is from 29 Aug 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report17 Aug 2026Other events · Financial statements and exhibits
- Current report07 Aug 2026Departure or appointment of officers
- Quarterly report07 Aug 2026
- Current report29 Jul 2026Results of operations · Financial statements and exhibits
- Current report23 Jun 2026Material agreement
- Current report15 May 2026Departure or appointment of officers · Shareholder vote · Other events · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report23 Apr 2026Results of operations · Financial statements and exhibits
- Proxy statement10 Apr 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Covenant Logistics Group, Inc. · 27 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Covenant Logistics Group, Inc. · 07 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Covenant Logistics Group, Inc. · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.