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Dec 31, 2025
Covenant Logistics Q4 2025 Earnings Report
Covenant Logistics Group announced a Q4 2025 loss of $0.73 per diluted share, driven by impairment charges and elevated insurance expense, with adjusted results reflecting income of $0.31 per diluted share.
Key Takeaways
Covenant Logistics Group reported a net loss of $18.257 million for Q4 2025, or $0.73 per diluted share, primarily due to impairment charges to goodwill and equipment, and increased insurance expenses. Despite these challenges, the company's adjusted results showed an income of $0.31 per diluted share, reflecting a seasonal uplift in volume partially offset by increased costs and startup expenses.
The company reported a net loss of $18.257 million, or $0.73 per diluted share, for Q4 2025.
Adjusted net income for Q4 2025 was $8.032 million, or $0.31 per diluted share.
Total revenue increased by 6.5% to $295.374 million compared to the prior year quarter.
Operating (loss) income for the quarter was -$24.179 million, significantly impacted by impairment charges and elevated insurance expense.
Revenue by Segment
Forward Guidance
Covenant Logistics Group anticipates a challenging yet opportunistic year in 2026, focusing on capital reallocation, improving free cash flow, and deleveraging the balance sheet while positioning for an expected improvement in freight fundamentals.
Positive Outlook
- Continued reallocation of capital to better returning operations.
- Positioning for an expected improvement in freight fundamentals.
- Opportunistic investment in areas that differentiate the company from other carriers, focusing on high-value freight.
- Anticipated recovery of operating income margins in Warehousing to high-single digit range.
- High-value pipeline and ability to capitalize on a freight recovery are strong.
Challenges Ahead
- Expectation to exit unprofitable business relationships during the first half of the year.
- Moderate reduction of the total truckload fleet.
- Heightened costs associated with securing capacity during peak season in Managed Freight.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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