Covenant Logistics | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 296.89 M

Revenue: As of FY2025 Q3, the actual value is USD 296.89 M, beating the estimate of USD 290.2 M.

EPS: As of FY2025 Q3, the actual value is USD 0.35, missing the estimate of USD 0.3974.

EBIT: As of FY2025 Q3, the actual value is USD 11.39 M.

Expedited Segment

• Revenue: $94.6 million for Q3 2025, down from $104.3 million in Q3 2024.
• Operating Income: $5.1 million for Q3 2025, down from $12.3 million in Q3 2024.

Dedicated Segment

• Revenue: $105.0 million for Q3 2025, up from $94.7 million in Q3 2024.
• Operating Income: $4.1 million for Q3 2025, down from $10.8 million in Q3 2024.

Managed Freight Segment

• Revenue: $72.2 million for Q3 2025, up from $63.4 million in Q3 2024.
• Operating Income: $3.0 million for Q3 2025, slightly up from $2.9 million in Q3 2024.

Warehousing Segment

• Revenue: $25.0 million for Q3 2025, slightly down from $25.5 million in Q3 2024.
• Operating Income: $2.5 million for Q3 2025, down from $2.8 million in Q3 2024.

Cash Flow

• Net Cash Provided by Operating Activities: $88.1 million for the nine months ended September 30, 2025, compared to $100.9 million for the same period in 2024.
• Net Cash Used in Investing Activities: $89.2 million for the nine months ended September 30, 2025, compared to $104.2 million for the same period in 2024.
• Net Cash Used in Financing Activities: $31.9 million for the nine months ended September 30, 2025, compared to $36.1 million provided in the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: Covenant Logistics Group, Inc. plans to continue growing its dedicated and warehouse business segments, aiming for acceptable margins and potentially downsizing other truckload capacity until returns improve.
• Non-Core Business: The company expects to experience severance, equipment disposal, and other costs that may create uneven results in a given quarter but are expected to lead to stronger and more sustained results over time.
• Priority: The company anticipates improving market conditions and internal plans to produce operating leverage and higher earnings and return on capital over time, although individual quarters may be volatile.