Covenant Logistics Reports Q3 2026 Earnings Growth Driven by Managed Freight and Brokerage Integration
Covenant Logistics (CVLG) reported strong third-quarter 2026 results, highlighted by a 17.2% increase in freight revenue to $315.1 million. This growth was largely propelled by the integration of brokerage assets acquired in late 2025, which drove managed freight revenue up by 68.4% year-over-year. Adjusted net income rose 14.6% to $13.2 million, while adjusted EPS reached $0.50, marking its first sequential and year-over-year increase since mid-2022. The company is actively optimizing its fleet by exiting unprofitable freight, resulting in a reduction of the expedited fleet size but an improvement in revenue per tractor. Despite these gains, management noted headwinds including rising driver pay, equipment costs, and agricultural volume declines due to severe heat. Additionally, warehousing margins were pressured by labor inefficiencies related to a new customer onboarding.
Tickers: $CVLG
Topics: Adjusted Net Income Debt Reduction EPS Freight Revenue Truckload Operations