Covenant Logistics Group Posts Q2 Earnings with Higher Freight Revenue but Lower Operating Income

Covenant Logistics Group reported earnings for the quarter, posting earnings per share of $0.42 on revenue of $332.87 million. The company’s return on equity was 9.41% and net margin 0.42%, with its stock trading around $41.72.

In the second‑quarter results, consolidated freight revenue rose 6.6% year over year to $294.7 million, driven by brokerage assets added in late 2025. Adjusted operating income fell 19% to $12.2 million, while adjusted net income declined 9.8% after higher insurance, maintenance and brokerage‑capacity costs offset improving rates. CFO Tripp Grant said the decline was mainly due to lower gross margins in the Managed Freight segment, and outlined a strategy to shift toward more contracted, value‑added services to stabilize margins. Director Joey B. Hogan sold 12,800 shares at an average price of $39.18 during the period.