Covenant (CVLG) Q1 2026 Earnings Transcript

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Tue, June 2, 2026 astatine 8:57 AM CDT 26 min read

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DATE

Friday, April 24, 2026 astatine 10:00 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — David R. Parker

• President — Paul Bunn

• Chief Operating Officer — Dustin Koehl

• Chief Financial Officer — James Grant

Full Conference Call Transcript

James Grant: Good morning, everyone, and invited to the Covenant Logistics Group First Quarter 2026 Conference Call. As a reminder, this telephone volition incorporate forward-looking statements nether the Private Securities Litigation Reform Act, which are taxable to risks and uncertainties that could origin existent results to disagree materially. Please reappraisal our SEC filings and astir caller hazard factors. We undertake nary work to publically update oregon revise immoderate forward-looking statements. Our prepared comments and further fiscal accusation are disposable connected our website astatine www.covenantlogistics.com/investor. Joining maine contiguous are CEO, David Parker; President, Paul Bunn; and COO, Dustin Koehl.

Our archetypal 4th was unsocial successful that it included 2 of the worst and 1 of the champion months we person experienced successful the past 3 years. The trajectory was affirmative and has continued into April, leaving america with condemnation that the alteration successful the marketplace is structural, not seasonal. Our Expedited conception was astir negatively impacted by some upwind and substance costs successful the quarter, with improved rates and volumes successful March and April, which we judge volition proceed to amended passim the year, giving america plentifulness of operational leverage. Our caller concern pipeline for committed truckload capableness continued to fortify successful the 4th for some our expedited and dedicated fleets.

Revenue trends during the archetypal 3 weeks of April remained beardown crossed each of our concern units. In our view, we are yet feeling the interaction of declining industry-wide operator and motortruck capableness and improving request successful definite segments and geographies. With that background, I volition determination connected to the quarter's statistical review. Year-over-year highlights for the 4th see consolidated freight gross accrued by 15.9% oregon astir $38.7 cardinal to $281.9 million, chiefly arsenic a effect of the assets acquired successful the 4th fourth of 2025 that are present being operated arsenic Star Logistics Solutions.

Consolidated adjusted operating income shrank by 11.5% to $9.6 million, chiefly arsenic a effect of borderline compression successful our Expedited segment, which was peculiarly challenged with reduced inferior from terrible upwind and higher nett substance costs. Our nett indebtedness arsenic of March 31 decreased by astir $51 cardinal to $245.3 cardinal compared to December 31, 2025, yielding an adjusted leverage ratio of astir 1.8x and debt-to-capital ratio of 37.6%. The simplification successful nett indebtedness was a effect of selling a important magnitude of utilized instrumentality successful the 4th and buying precise small caller equipment.