Covenant Logistics Posts Q4 Net Loss on Impairments, Misses Revenue Estimates (CVLG)

Covenant Logistics Group (NYSE: CVLG) reported a Q4 net loss driven by $19.4M in non-cash impairment charges and $11.6M in insurance-related claims, despite core operations meeting internal targets. Adjusted EPS fell to $0.31 from $0.49 YoY; revenue rose 6.5% to $295.37M but missed analyst estimates of $299.2M. Truckload revenue dipped 0.8%, while Dedicated grew 12.6% and Managed Freight surged 29% post-Star Logistics acquisition. Expedited segment dropped 12.2% due to government shutdown disruptions and pricing pressure. CFO Tripp Grant cited fleet optimization and exiting unprofitable accounts as key 2026 priorities to boost free cash flow and reduce leverage.