Covenant Logistics Group, Inc. (NYSE: CVLG) has announced its financial and operating results for the first quarter ended March 31, 2025. The company reported total revenue of $269.4 million, a decrease from the $278.8 million reported in the first quarter of 2024. Freight revenue, excluding fuel surcharge, also saw a decrease from $247.7 million in 2024 to $243.2 million in 2025.
The operating income for the first quarter of 2025 was $7.6 million, compared to $4.3 million in the same period in 2024. Adjusted operating income, a non-GAAP measure, was $10.9 million in 2025, down from $14.8 million in 2024. The operating ratio improved to 97.2% in 2025 from 98.4% in 2024, while the adjusted operating ratio, another non-GAAP measure, was 95.5% in 2025, compared to 94.0% in 2024.
Net income for the first quarter of 2025 was $6.6 million, up from $4.0 million in the first quarter of 2024. Adjusted net income, a non-GAAP measure, decreased to $9.0 million in 2025 from $11.6 million in 2024. Earnings per diluted share were $0.24 in 2025, a significant increase from $0.14 in the first quarter of 2024. However, adjusted earnings per diluted share, a non-GAAP measure, decreased to $0.32 in 2025 from $0.42 in 2024.
In terms of truckload operating data and statistics, combined truckload total revenue decreased by 0.9% to $188.3 million, with freight revenue excluding fuel surcharge growing by 2.0%. The operating income for combined truckload was $3.5 million in 2025, a significant increase from $87,000 in 2024, while the adjusted operating income decreased to $6.2 million in 2025 from $10.0 million in 2024. The average freight revenue per tractor per week decreased to $5,416 in 2025 from $5,651 in 2024.
The expedited segment saw a decrease in freight revenue by 7.3%, while the dedicated segment experienced a 13.1% increase in freight revenue. The warehousing segment's freight revenue decreased by 6.0% compared to the prior year quarter.
Covenant Logistics Group also provided insight into its capitalization, liquidity, and capital expenditures. The company's total indebtedness, composed of total debt and finance lease obligations, net of cash, increased to approximately $225.4 million at March 31, 2025, from $219.6 million at December 31, 2024. The company had cash and cash equivalents totaling $11.2 million at the end of the quarter.
The company's outlook acknowledges the incremental improvement in the general freight market but highlights the uncertainty around global trade policy as a potential disruptor. Covenant Logistics Group emphasized its focus on positioning the company to execute quickly and gain operating leverage as conditions improve.
Additionally, the company's board of directors approved a stock repurchase program authorizing the purchase of up to $50 million of the company's class A common stock.
Covenant Logistics Group, Inc. is known for offering a portfolio of transportation and logistics services throughout the United States. The company's class A common stock is traded on the New York Stock Exchange under the symbol "CVLG."
The market has reacted to these announcements by moving the company's shares 0.5% to a price of $18.8. If you want to know more, read the company's complete 8-K report here.
