CHATTANOOGA, Tenn., July 29, 2026 (GLOBE NEWSWIRE) -- Covenant Logistics Group, Inc. (NYSE: CVLG) (“Covenant” or the “Company”) announced today financial and operating results for the second quarter ended June 30, 2026. The Company’s conference call to discuss the quarter will be held at 10:00 A.M. Eastern Time on Thursday, July 30, 2026.
Chairman and Chief Executive Officer David R. Parker commented, “Our second quarter earnings were $0.32 per diluted share, or $0.42 per diluted share on a non-GAAP adjusted basis. We made constructive changes on the revenue side of the business, but our costs disappointed us in the quarter. Our strategy remains to pursue durable margin improvement during the current freight market upcycle through committed contracts that phase in over the next several quarters.
“The freight market strengthened sequentially throughout the quarter, and our team did a good job of capitalizing on opportunities to improve the quality of our Combined Truckload revenue. During the quarter, we moved approximately 15% of our Expedited fleet from uncommitted freight to attractive committed contracts, expanded our dedicated protein supply chain exposure, reduced general commodity freight, and implemented rate increases for certain customers who fell short of our profitability requirements. These actions led to a 5.9% increase in Combined Truckload average freight revenue per tractor per week, consisting of a 15.1% increase in freight revenue per total mile, offset by an 8.0% decrease in average miles per unit. Over half the increase in freight revenue per total mile came from mix shift among business units, with the balance coming from rate increases. Our fleet size was down 3.3% sequentially and is expected to hold approximately steady into the stronger market. Our goal is to have substantially all our asset-based business under long-term dedicated or other committed contracts by the end of this freight market upcycle. Consistent with our strategy that lowered volatility during the recent freight market downturn, we intend to patiently pursue the customers and markets that help us create sustainable long-term value.
“Combined Truckload margins failed to expand due to pressure from equipment and maintenance, insurance and claims, driver expense, and general overhead that has not reduced as quickly as our tractor count over the past year. Maintenance and insurance claims together were approximately 8 cents per diluted share higher than our expectations and historical averages and are not expected to continue at this elevated level. The excess maintenance and insurance claims expense more than offset an approximately 3 cents per diluted share benefit from a lower tax rate and interest income from a compensation plan, neither of which is expected to occur in the third quarter.
“Managed Freight experienced early cycle margin compression due to capacity costs rising faster than revenue per load, which lowered gross margin. This is typical early in the cycle because capacity is sourced in the spot market and most of our freight rates are contractual. Additionally, last year’s quarter included the benefit of a surge contract that was discontinued.
“Our 49% equity method investment with Transport Enterprise Leasing (“TEL”) contributed pre-tax net income of $5.3 million, or $0.16 per share, compared to $4.3 million, or $0.12 per share, in the 2025 quarter. TEL’s results benefited from higher equipment sale gains.”
Second Quarter Financial Performance:
Three Months Ended June 30, Six Months Ended June 30, ($000s, except per share information) 2026 2025 2026 2025 Total Revenue $332,873 $302,854 $640,034 $572,209 Freight Revenue, Excludes Fuel Surcharge $294,693 $276,532 $576,618 $519,751 Operating Income $8,841 $11,563 $15,123 $19,190 Adjusted Operating Income (1) $12,169 $15,019 $21,779 $25,876 Operating Ratio 97.3% 96.2% 97.6% 96.6%Adjusted Operating Ratio (1) 95.9% 94.6% 96.2% 95.0%Net Income $8,535 $9,840 $12,955 $16,403 Adjusted Net Income (1) $11,201 $12,415 $17,980 $21,384 Earnings per Diluted Share $0.32 $0.36 $0.49 $0.60 Adjusted Earnings per Diluted Share (1) $0.42 $0.45 $0.68 $0.78Truckload Operating Data and Statistics
Three Months Ended June 30, Six Months Ended June 30, ($000s, except statistical information) 2026 2025 2026 2025 Combined Truckload Total Revenue $205,786 $199,577 $393,880 $387,879 Freight Revenue, excludes Fuel Surcharge $167,762 $173,395 $330,775 $335,724 Segment Operating Income (1) $16,164 $13,679 $24,572 $21,316 Adj. Seg. Operating Income (2) $8,651 $9,590 $13,462 $15,799 Segment Operating Ratio (1) 92.1% 93.1% 93.8% 94.5%Adj. Seg. Operating Ratio (2) 94.8% 94.5% 95.9% 95.3%Average Freight Revenue per Tractor per Week $5,870 $5,543 $5,720 $5,480 Average Freight Revenue per Total Mile $2.90 $2.52 $2.83 $2.52 Average Miles per Tractor per Period 26,337 28,620 52,284 56,146 Weighted Average Tractors for Period 2,199 2,406 2,237 2,369 Expedited Total Revenue $93,420 $97,300 $178,091 $191,993 Freight Revenue, excludes Fuel Surcharge $73,742 $83,229 $145,691 $163,478 Segment Operating Income (1) $8,386 $7,466 $11,207 $13,056 Adj. Seg. Operating Income (2) $3,955 $5,077 $4,638 $9,731 Segment Operating Ratio (1) 91.0% 92.3% 93.7% 93.2%Adj. Seg. Operating Ratio (2) 94.6% 93.9% 96.8% 94.0%Average Freight Revenue per Tractor per Week $7,949 $7,442 $7,629 $7,383 Average Freight Revenue per Total Mile $2.36 $2.11 $2.28 $2.12 Average Miles per Tractor per Period 43,868 45,754 86,618 90,018 Weighted Average Tractors for Period 714 860 739 856 Dedicated Total Revenue $112,366 $102,277 $215,789 $195,886 Freight Revenue, excludes Fuel Surcharge $94,020 $90,166 $185,084 $172,246 Segment Operating Income (1) $7,778 $6,213 $13,365 $8,260 Adj. Seg. Operating Income (2) $4,696 $4,513 $8,824 $6,068 Segment Operating Ratio (1) 93.1% 93.9% 93.8% 95.8%Adj. Seg. Operating Ratio (2) 95.0% 95.0% 95.2% 96.5%Average Freight Revenue per Tractor per Week $4,870 $4,486 $4,778 $4,403 Average Freight Revenue per Total Mile $3.53 $3.06 $3.49 $3.08 Average Miles per Tractor per Period 17,913 19,085 35,356 36,974 Weighted Average Tractors for Period 1,485 1,546 1,498 1,513Combined Truckload Revenue
Paul Bunn, the Company’s President commented on Combined Truckload operations, “For the quarter, total revenue in our truckload operations increased 3.1%, to $205.8 million. The increase in total revenue consisted of $11.8 million more fuel surcharge revenue, which varies with the cost of fuel, offset by $5.6 million less freight revenue. The reduction in freight revenue is largely attributable to an 8.6% decrease in the average fleet size, offset with the improvements to pricing and freight mix discussed earlier.
Expedited Truckload Revenue
Mr. Bunn added, “Freight revenue in our Expedited segment decreased $9.5 million, or 11.4%. Average total tractors decreased by 146 units or 17.0% to 714, compared to 860 in the prior year quarter. Average freight revenue per tractor per week increased 6.8% compared to the prior year quarter, as a result of an 11.4% increase in revenue per total mile, partially offset by an approximately 4.2% decline in miles per average tractor. During the quarter, we converted approximately 15% of our Expedited fleet to multi-year committed capacity contracts and reduced a portion of the fleet serving customers with commoditized freight. As we progress throughout this cycle, our focus for our Expedited fleet is to serve customers who truly need our teams and are willing to agree to multi-year agreements as a sign of their commitment.
Dedicated Truckload Revenue
“For the quarter, freight revenue in our Dedicated segment increased $3.9 million, or 4.3%. Average total tractors decreased by 61 units or 3.9% to 1,485, compared to 1,546 in the prior year quarter. Average freight revenue per tractor per week increased 8.6% as a result of the expansion of our agricultural protein-related business and exiting non-specialized dedicated business that has struggled to meet profitability thresholds.”
Combined Truckload Operating Expenses
Mr. Bunn continued, “Our combined truckload operating expenses increased approximately $0.38 per total mile, or 16%, on a non-GAAP adjusted basis, primarily reflecting business mix changes from the prior-year quarter and slightly outpacing combined Truckload freight revenue per total mile increase of 15.1%. As our high-mileage, capital-intensive Expedited fleet has been reduced, our more specialized agricultural-related protein fleet within Dedicated has grown. This mix shift has produced a combined truckload fleet with more consistent and predictable volumes, but fewer miles per tractor, resulting in higher revenue and cost to serve on a per-total-mile basis. In addition to business mix, operating costs were elevated during the quarter, especially related to maintenance and insurance claims expense, which surged beyond our expectations and historical averages during the quarter. Going forward, we anticipate these costs to be more in line with our expectations, although given our level of risk retention, insurance and claims expense may vary from quarter to quarter.”
Managed Freight Segment
Three Months Ended June 30, Six Months Ended June 30, ($000s) 2026 2025 2026 2025 Freight Revenue $99,542 $77,550 $190,273 $134,400 Segment Operating Income (1) $1,739 $4,462 $5,442 $8,002 Adj. Seg. Operating Income (2) $2,633 $4,171 $6,220 $7,520 Segment Operating Ratio (1) 98.3% 94.2% 97.1% 94.0%Adj. Seg. Operating Ratio (2) 97.4% 94.6% 96.7% 94.4%“For the quarter, Managed Freight grew freight revenue by 28.4% year over year increase, primarily attributable to the integration of assets acquired during the fourth quarter of 2025. However, the segment operating ratio and adjusted segment operating ratio were negatively impacted compared to the same quarter last year due to heightened costs associated with securing capacity, currently outpacing our ability to capture contractual rate increases with certain of our customers. Additionally, the 2025 quarter included the benefit of a surge contract in Managed Freight that was discontinued. As supply continues to exit the freight market, sourcing quality carrier capacity below contractual freight pricing remains challenging, despite the implementation of numerous rate increases. Additionally, higher insurance and claims expense has become a greater risk in Managed Freight after the Supreme Court’s recent Montgomery decision.
Warehousing Segment
Three Months Ended June 30, Six Months Ended June 30, ($000s) 2026 2025 2026 2025 Freight Revenue $26,722 $25,587 $54,274 $49,627 Segment Operating Income (1) $1,574 $1,916 $3,352 $3,760 Adj. Seg. Operating Income (2) $885 $1,258 $2,097 $2,557 Segment Operating Ratio (1) 94.1% 92.6% 93.9% 92.5%Adj. Seg. Operating Ratio (2) 96.7% 95.1% 96.1% 94.8%“For the quarter, Warehousing’s freight revenue increased $1.1 million, primarily from onboarding a significant new customer in the fourth quarter of 2025. Segment operating income and adjusted segment operating income were comparable to the prior year period because new business startup expenses and operational inefficiencies more than offset the additional revenue. Looking ahead, our focus will be on returning this segment to high single digit margins through the combination of rate increases and cost reductions.”
Capitalization, Liquidity and Capital Expenditures
Tripp Grant, the Company’s Chief Financial Officer, added the following comments: “At June 30, 2026, our total indebtedness, composed of total debt and finance lease obligations, net of cash (“net indebtedness”), decreased by $6.9 million to approximately $289.7 million as compared to December 31, 2025. In addition, our net indebtedness to total capitalization decreased to 41.2% at June 30, 2026, from 42.3% at December 31, 2025.
“At June 30, 2026, we had cash and cash equivalents totaling $2.6 million. Under our ABL credit facility, we had $51.0 million in outstanding borrowings, undrawn letters of credit outstanding of $19.9 million, and immediate available borrowing capacity of $59.1 million.
“At the end of the quarter, we had $0.3 million in assets held for sale that we anticipate disposing of within twelve months. The average age of our tractors increased to 26 months compared to 22 months a year ago. Given the mix change between our high mileage expedited fleet and lower mileage dedicated fleets, going forward, we anticipate the average age of our tractors to range from 25 to 28 months.
“Our net capital expenditures for the first half of the year were less than $1.0 million, as proceeds from fleet downsizing and selling excess used equipment kept pace with the investment in new replacement equipment. For the balance of 2026, our expectations for net capital equipment expenditures range from $50 million to $60 million.”
Outlook
Mr. Parker concluded, “We were pleased with the recent progress in our top-line results, despite incurring higher costs to serve our customers. Based on our growing pipeline of customer demand, we expect our fleet count to stabilize, our fleet percentage under dedicated and committed capacity contracts to grow, and our margins to expand gradually. Most of our Combined Truckload fleet is under dedicated or similar committed capacity contracts, which will extend our renewal cycle compared with companies that operate largely in the uncommitted market. In the near term, approximately 40% of our Expedited fleet and 25% of our Dedicated fleet are operating under contracts that renew over the next 12 months, with many of these contracts being our least profitable. Additionally, we are intensely focused on reducing overhead and other controllable costs as a percentage of revenue. Despite our safety efforts, insurance and claims expense is expected to remain volatile due to high retention levels, the unpredictability of so-called nuclear verdicts in our industry, and the potential for higher costs and expansion of liability to Managed Freight operations after the Montgomery decision. For the third quarter of 2026, we expect a modest sequential increase to earnings per share as anticipated operating margin improvement is partially offset by the absence of higher TEL equipment sales, lower income tax rate, and interest income that benefitted the second quarter. In the longer term, we are confident in our ability to grow revenue and materially improve our Combined Truckload operating margin as we continue offering world-class service to our customers and proactively reallocate assets to operations that we believe will enhance margins and returns.
Conference Call Information
The Company will host a live conference call tomorrow, July 30, 2026, at 10:00 a.m. Eastern time to discuss the quarter. Individuals may access the call by dialing 877-550-1505 (U.S./Canada) and 0800-524-4760 (International). An audio replay will be available for one week following the call at 800-645-7964, access code 3895#. For additional financial and statistical information regarding the Company that is expected to be discussed during the conference call, please visit our website at www.covenantlogistics.com/investors under the icon “Earnings Info.”
About Covenant Logistics Group
Covenant Logistics Group, Inc., through its subsidiaries, offers a portfolio of transportation and logistics services to customers throughout the United States. Primary services include asset-based expedited and dedicated truckload capacity, as well as asset-light warehousing, transportation management, and freight brokerage capability. In addition, Transport Enterprise Leasing is an affiliated company providing revenue equipment sales and leasing services to the trucking industry. Covenant's Class A common stock is traded on the New York Stock Exchange under the symbol, “CVLG.”
(1) See GAAP to Non-GAAP Reconciliation in the schedules included with this release. In addition to operating income, segment operating income, operating ratio, segment operating ratio, net income, and earnings per diluted share, we use adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share, non-GAAP measures, as key measures of profitability. Adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share are not substitutes for operating income, segment operating income, operating ratio, segment operating ratio, net income, and earnings per diluted share measured in accordance with GAAP. There are limitations to using non-GAAP financial measures. We believe our presentation of these non-GAAP financial measures is useful because it provides investors and securities analysts with supplemental information that we use internally for purposes of assessing profitability. Further, our Board and management use non-GAAP operating income, segment operating income, operating ratio, segment operating ratio, net income, and earnings per diluted share measures on a supplemental basis to remove items that may not be an indicator of performance from period-to-period. Although we believe that adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share improves comparability in analyzing our period-to-period performance, they could limit comparability to other companies in our industry, if those companies define such measures differently. Because of these limitations, adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “expects,” “estimates,” “projects,” “believes,” “anticipates,” “plans,” “could,” “continue,” “would,” “may,” “will,” "intends," “outlook,” “focus,” “seek,” “potential,” “mission,” “continue,” “goal,” “target,” “objective,” “strategy,” derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, statements relating to equipment age, net capital equipment expenditures and related priorities, benefits, and returns, capital allocation alternatives, expectations for the general freight market, including rates and capacity, our ability to achieve our desired business mix, future margin and return on capital, future expenses, including maintenance and insurance and claims, progress toward our strategic goals and the expected impact of achieving such goals, and the statements under “Outlook” are forward-looking statements. The following factors, among others could cause actual results to differ materially from those in the forward-looking statements: Our business is subject to economic, credit, business, and regulatory factors affecting the truckload industry that are largely beyond our control; We may not be successful in achieving our strategic plan; We operate in a highly competitive and fragmented industry; We may not grow substantially in the future and we may not be successful in improving our profitability; We may not make acquisitions in the future, or if we do, we may not be successful in our acquisition strategy; Global conflicts could adversely impact our business and financial results; Increases in driver compensation or difficulties attracting and retaining qualified drivers could have a materially adverse effect on our profitability and the ability to maintain or grow our fleet; Our engagement of independent contractors to provide a portion of our capacity exposes us to different risks than we face with our tractors driven by company drivers; We derive a significant portion of our revenues from our major customers; Fluctuations in the price or availability of fuel, the volume and terms of diesel fuel purchase commitments, surcharge collection, and hedging activities may increase our costs of operation; We depend on third-party providers, particularly in our Managed Freight reportable segment; We depend on the proper functioning and availability of our management information and communication systems and other information technology assets (including the data contained therein) and a system failure or unavailability, including those caused by cybersecurity breaches internally or with third-parties, or an inability to effectively upgrade such systems and assets could cause a significant disruption to our business; If we are unable to retain our key employees, our business, financial condition, and results of operations could be harmed; Seasonality and the impact of weather and climate change and other catastrophic events affect our operations and profitability; We self-insure for a significant portion of our claims, have exposure outside of our insurance coverage, could be uninsured or underinsured, and have additional exposure following the Supreme Court’s recent Montgomery decision, which could significantly increase the volatility of, and decrease the amount of, our earnings; Our self-insurance for auto liability claims and our use of a captive insurance company could adversely impact our operations; We have experienced, and may experience additional, erosion of available limits in our aggregate insurance policies; We may experience additional expense to reinstate insurance policies due to liability claims; We operate in a highly regulated industry; If our independent contractor drivers are deemed by regulators or judicial process to be employees, our business, financial condition, and results of operations could be adversely affected; Developments in labor and employment law and any unionizing efforts by employees or employees of related businesses could have a materially adverse effect on our results of operations; The Compliance Safety Accountability program adopted by the Federal Motor Carrier Safety Administration could adversely affect our profitability and operations, our ability to maintain or grow our fleet, and our customer relationships; Receipt of an unfavorable Department of Transportation safety rating at any of our motor carriers could have a materially adverse effect on our operations and profitability; Compliance with and changes to various environmental laws and regulations; Regulatory changes related to climate change could increase our costs significantly; Changes to trade regulation, export controls, duties, or tariffs; Litigation may adversely affect our business, financial condition, and results of operations; Conflicting views on environmental and societal matters may have a negative impact on our business, impose additional costs on us, and expose us to additional risks; A large-scale outbreak of avian flu or related illness among the nation’s poultry flock may adversely affect the revenues of our Dedicated segment; Our ABL credit facility and other financing arrangements contain certain covenants, restrictions, and requirements, and we may be unable to comply with such covenants, restrictions, and requirements; In the future, we may need to obtain additional financing that may not be available or, if it is available, may result in a reduction in the percentage ownership of our stockholders; Our indebtedness and finance and operating lease obligations could adversely affect our ability to respond to changes in our industry or business; Our profitability may be materially adversely impacted if our capital investments do not match customer demand or if there is a decline in the availability of funding sources for these investments; Increased prices for new revenue equipment, design changes of new engines, future uses of autonomous tractors, volatility in the used equipment market, decreased availability of new revenue equipment, and the failure of manufacturers to meet their sale or trade-back obligations to us could have a materially adverse effect on our business, financial condition, results of operations, and profitability; Our 49% owned subsidiary, Transport Enterprise Leasing, faces certain additional risks particular to its operations, any one of which could adversely affect our operating results; We could determine that our goodwill and other intangible assets are impaired, thus recognizing a related loss; Our Chairman of the Board and Chief Executive Officer and his wife control a large portion of our stock and have substantial control over us, which could limit other stockholders' ability to influence the outcome of key transactions, including changes of control; Provisions in our charter documents or Nevada law may inhibit a takeover, which could limit the price investors might be willing to pay for our Class A common stock; The market price of our Class A common stock may be volatile; We cannot guarantee the timing or amount of repurchases of our Class A common stock, or the declaration of future dividends, if any; Changes in taxation could lead to an increase of our tax exposure; If we fail to maintain effective internal control over financial reporting in the future, there could be an elevated possibility of a material misstatement, and such a misstatement could cause investors to lose confidence in our financial statements, which could have a material adverse effect on our stock price; and The effects of a widespread outbreak of an illness or disease, or any other public health crisis, as well as regulatory measures implemented in response to such events, could negatively impact the health and safety of our workforce and/or adversely impact our business and results of operations. Readers should review and consider these factors along with the various disclosures by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.
For further information contact:
M. Paul Bunn, President
[email protected]
Tripp Grant, Chief Financial Officer
[email protected]
For copies of Company information contact:
Brooke McKenzie, Executive Administrative Assistant
[email protected]
Key Financial and Operating Statistics
Income Statement Data Three Months Ended June 30, Six Months Ended June 30, ($s in 000s, except per share data) 2026 2025 % Change 2026 2025 % Change Revenues Freight revenue $294,693 $276,532 6.6% $576,618 $519,751 10.9%Fuel surcharge revenue 38,180 26,322 45.0% 63,416 52,458 20.9%Total revenue $332,873 $302,854 9.9% $640,034 $572,209 11.9% Operating expenses: Salaries, wages, and related expenses 110,134 109,148 219,402 214,100 Fuel expense 37,850 27,989 66,147 56,157 Operations and maintenance 18,766 17,066 36,680 32,816 Revenue equipment rentals and purchased transportation 98,724 76,791 187,942 133,596 Operating taxes and licenses 3,026 3,436 6,015 7,022 Insurance and claims 18,138 17,307 30,784 32,590 Communications and utilities 1,877 1,481 3,911 2,949 General supplies and expenses 12,399 14,657 26,598 28,252 Depreciation and amortization 22,819 23,121 46,795 44,916 Loss on disposition of property and equipment, net 299 295 637 621 Total operating expenses 324,032 291,291 624,911 553,019 Operating income 8,841 11,563 15,123 19,190 Interest expense, net 2,981 2,470 6,867 5,327 Income from equity method investment (5,265) (4,268) (8,952) (8,044) Income from continuing operations before income taxes 11,125 13,361 17,208 21,907 Income tax expense 2,590 3,521 4,253 5,504 Net income $8,535 $9,840 $12,955 $16,403 Basic earnings per share(1) Income from continuing operations $0.34 $0.38 $0.52 $0.62 Diluted earnings per share(1) Income from continuing operations $0.32 $0.36 $0.49 $0.60 Basic weighted average shares outstanding (000s) 25,215 26,041 25,149 26,295 Diluted weighted average shares outstanding (000s) 26,589 27,228 26,529 27,564
Non-GAAP Reconciliation (Unaudited)
Adjusted Operating Income and Adjusted Operating Ratio(1)(Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, GAAP Presentation 2026 2025 bps Change 2026 2025 bps Change Total revenue $332,873 $302,854 $640,034 $572,209 Total operating expenses 324,032 291,291 624,911 553,019 Operating income $8,841 $11,563 $15,123 $19,190 Operating ratio 97.3% 96.2% 110 97.6% 96.6% 100 Non-GAAP Presentation 2026 2025 bps Change 2026 2025 bps Change Total revenue $332,873 $302,854 $640,034 $572,209 Fuel surcharge revenue (38,180) (26,322) (63,416) (52,458) Freight revenue (total revenue, excluding fuel surcharge) 294,693 276,532 576,618 519,751 Total operating income 8,841 11,563 15,123 19,190 Adjusted for: Amortization of intangibles(2) 3,000 2,746 6,000 5,117 Contingent consideration liability adjustment 328 710 656 1,420 Transaction costs - - - 149 Adjusted operating income 12,169 15,019 21,779 25,876 Adjusted operating ratio 95.9% 94.6% 130 96.2% 95.0% 120
Adjusted Net Income and Adjusted EPS(1) (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 GAAP Presentation - Net income $8,535 $9,840 $12,955 $16,403 Adjusted for: Amortization of intangibles (2) 3,000 2,746 6,000 5,117 Contingent consideration liability adjustment 328 710 656 1,420 Transaction costs - - - 149 Total adjustments before taxes 3,328 3,456 6,656 6,686 Provision for income tax expense at effective rate (662) (881) (1,631) (1,705)Tax effected adjustments $2,666 $2,575 $5,025 $4,981 Non-GAAP Presentation - Adjusted net income $11,201 $12,415 $17,980 $21,384 GAAP Presentation - Diluted earnings per share ("EPS") $0.32 $0.36 $0.49 $0.60 Adjusted for: Amortization of intangibles (2) 0.11 0.10 0.23 0.19 Contingent consideration liability adjustment 0.01 0.03 0.02 0.05 Transaction costs - - - 0.01 Total adjustments before taxes 0.12 0.13 0.25 0.25 Provision for income tax expense at effective rate (0.02) (0.04) (0.06) (0.07)Tax effected adjustments $0.10 $0.09 $0.19 $0.18 Non-GAAP Presentation - Adjusted EPS(3) $0.42 $0.45 $0.68 $0.78
Non-GAAP Reconciliation (Unaudited)
Adjusted Operating Income and Adjusted Operating Ratio (1)
(Dollars in thousands) Three Months Ended June 30, GAAP Presentation 2026 2025 Expedited Dedicated Combined
Truckload Managed
Freight Warehousing Expedited Dedicated Combined
Truckload Managed
Freight Warehousing Total revenue $93,420 $112,366 $205,786 $99,542 $26,878 $97,300 $102,277 $199,577 $77,550 $25,727 Total segment operating expenses (2) 85,034 104,588 189,622 97,803 25,304 89,834 96,064 185,898 73,088 23,811 Segment operating income (2) $8,386 $7,778 $16,164 $1,739 $1,574 $7,466 $6,213 $13,679 $4,462 $1,916 Segment operating ratio (2) 91.0% 93.1% 92.1% 98.3% 94.1% 92.3% 93.9% 93.1% 94.2% 92.6% Non-GAAP Presentation Total revenue $93,420 $112,366 $205,786 $99,542 $26,878 $97,300 $102,277 $199,577 $77,550 $25,727 Fuel surcharge revenue (19,678) (18,346) (38,024) - (156) (14,071) (12,111) (26,182) - (140)Freight revenue (total revenue, excluding fuel surcharge) 73,742 94,020 167,762 99,542 26,722 83,229 90,166 173,395 77,550 25,587 Total segment operating income (2) $8,386 $7,778 16,164 $1,739 $1,574 $7,466 $6,213 13,679 $4,462 $1,916 Adjusted for: Other (3) (4,431) (3,082) (7,513) 894 (689) (2,389) (1,700) (4,089) (291) (658)Adjusted segment operating income 3,955 4,696 8,651 2,633 885 5,077 4,513 9,590 4,171 1,258 Adjusted segment operating ratio 94.6% 95.0% 94.8% 97.4% 96.7% 93.9% 95.0% 94.5% 94.6% 95.1%
Truckload Managed
Freight Warehousing Expedited Dedicated Combined
Truckload Managed
Freight Warehousing Total revenue $178,091 $215,789 $393,880 $190,273 $54,585 $191,993 $195,886 $387,879 $134,400 $49,930 Total segment operating expenses (2) 166,884 202,424 369,308 184,831 51,233 178,937 187,626 366,563 126,398 46,170 Segment operating income (2) $11,207 $13,365 $24,572 $5,442 $3,352 $13,056 $8,260 $21,316 $8,002 $3,760 Segment operating ratio (2) 93.7% 93.8% 93.8% 97.1% 93.9% 93.2% 95.8% 94.5% 94.0% 92.5% Non-GAAP Presentation Total revenue $178,091 $215,789 $393,880 $190,273 $54,585 $191,993 $195,886 $387,879 $134,400 $49,930 Fuel surcharge revenue (32,400) (30,705) (63,105) - (311) (28,515) (23,640) (52,155) - (303)Freight revenue (total revenue, excluding fuel surcharge) 145,691 185,084 330,775 190,273 54,274 163,478 172,246 335,724 134,400 49,627 Total segment operating income (2) $11,207 $13,365 $24,572 $5,442 $3,352 $13,056 $8,260 $21,316 $8,002 $3,760 Adjusted for: Other (3) (6,569) (4,541) (11,110) 778 (1,255) (3,325) (2,341) (5,666) (482) (1,203)Transaction costs - - - - - - 149 149 - - Adjusted segment operating income 4,638 8,824 13,462 6,220 2,097 9,731 6,068 15,799 7,520 2,557 Adjusted segment operating ratio 96.8% 95.2% 95.9% 96.7% 96.1% 94.0% 96.5% 95.3% 94.4% 94.8%