Covenant Logistics Group, Inc. reported its financial results for the first quarter of 2025, revealing total revenue of $269.4 million, a decrease of 3.4% from $278.8 million in the same period of 2024. The decline was primarily attributed to a $4.9 million drop in fuel surcharge revenue and decreases in freight revenue across its Expedited, Managed Freight, and Warehousing segments. Despite the revenue decline, the company achieved an operating income of $7.6 million, up from $4.3 million a year earlier, and net income of $6.6 million, or $0.24 per diluted share, compared to $4.0 million, or $0.14 per diluted share, in the prior year.
In terms of operational metrics, Covenant's freight revenue was $243.2 million, down 1.8% from $247.7 million in the first quarter of 2024. The company experienced a 16.7% increase in average tractors in its Dedicated segment, which contributed to a revenue increase in that area. However, the Expedited segment saw a revenue decline due to lower average freight revenue per tractor and a decrease in fuel surcharge revenue. The Managed Freight segment's revenue also fell, primarily due to a weakened spot market, although it was partially offset by contributions from a recent acquisition.
Covenant's balance sheet showed total assets of $980.0 million as of March 31, 2025, down from $997.6 million at the end of 2024. Current liabilities decreased to $164.3 million from $181.3 million, while total stockholders' equity rose to $443.6 million from $438.3 million. The company reported a leverage ratio of 1.65, indicating a stable financial position with available borrowing capacity of $90.1 million under its credit facility.
Strategically, Covenant completed a tuck-in acquisition of a multi-stop distribution carrier, which is expected to enhance equipment utilization and earnings in its Dedicated segment. The company also plans to continue investing in its Dedicated, Managed Freight, and Warehousing segments to strengthen its market position. Looking ahead, Covenant anticipates modest rate increases in its Expedited segment and expects revenue growth in its Dedicated, Managed Freight, and Warehousing divisions compared to the second quarter of 2024. The company remains focused on cost control and delivering value to customers amid uncertain market conditions.
About COVENANT LOGISTICS GROUP, INC.
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