Covenant Logistics Q3 Revenue Rises 19.2% to $353.9 Million; Adjusted EPS of $0.50 Increases Both Sequentially and Year Over Year for the First Time Since 2022
CHATTANOOGA, Tennessee — Covenant Logistics Group, Inc. (NYSE: CVLG) on October 29 announced financial and operating results for the third quarter ended September 30, 2026, with total revenue of $353.9 million, up 19.2% from a year earlier, and net income of $10.7 million, compared with $9.1 million in the prior-year quarter.
Operating income was $12.5 million, up from $7.9 million a year earlier, and freight revenue excluding fuel surcharge was $315.1 million, up 17.2%. Earnings per diluted share were $0.40, compared with $0.35 a year earlier; non-GAAP adjusted net income was $13.2 million, or $0.50 per diluted share, up from $0.44.
Chairman and Chief Executive Officer David R. Parker said adjusted diluted earnings per share increased both sequentially and year over year for the first time since the second quarter of 2022. Exiting the quarter, approximately 80% of the company's fleet assets were under long-term contracts, and its 49% equity method investment in Transport Enterprise Leasing (TEL) contributed pre-tax net income of $5.7 million, or $0.16 per share, exceeding expectations for a second consecutive quarter.
By segment, Combined Truckload total revenue rose 2.5% to $204.6 million as pricing and freight-mix improvements offset an 8.9% smaller average fleet; Managed Freight revenue grew 68.4% year over year to $121.6 million, driven mainly by the integration of assets acquired in the fourth quarter of 2025; and Warehousing freight revenue rose $1.9 million to $26.7 million.
At September 30, 2026, net indebtedness was approximately $283.9 million, down $12.4 million from December 31, 2025, with net indebtedness to total capitalization improving to 40.2% from 42.3%; cash and cash equivalents totaled $5.1 million. For the fourth quarter, the company expects a modest sequential increase in earnings per share.
Source: GSM · USA (original Chinese edition)
Photo: 图：一辆半挂货车在公路上行驶（资料图，非 Covenant Logistics 车辆）。Oto Zapletal 摄，CC BY-SA 4.0，经 Wikimedia Commons。 / A semi-trailer truck on the road (file photo; not a Covenant Logistics vehicle). Photo by Oto Zapletal, CC BY-SA 4.0, via Wikimedia Commons.
