Covenant Logistics Group, Inc. Class A (CVLG) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to today's Covenant Logistics Group Q3 2025 Earnings Release and Investor Conference Call. Our host for today's call is Tripp Grant. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. I would now like to turn the call over to your host, Mr. Grant. You may begin, sir. Good morning, everyone, and welcome to the Covenant Logistics Group third quarter 2025 conference call. As a reminder, this call will contain forward-looking statements under the Private Securities Litigation Reform Act, which are subsequent to risks and uncertainties that could cause actual results to differ materially. Please review our SEC filings and most recent risk factors. We undertake no obligation to publicly update or revise any forward-looking statements. Our prepared comments and additional financial information are available on our website at www.covenantlogistics.com slash investors. Joining me today are CEO David Parker, President Paul Bunn, and COO Dustin Koehl. Our business remained resilient in the third quarter. Although margins were compressed, particularly in our asset-based truckload segments, due to an inflationary cost environment, persistently high claims expense, headwinds from excessive unproductive equipment, and continued pressure on volume and yields in our expedited and dedicated segments. Year-over-year highlights for the quarter include consolidated freight revenue increased by 4% or approximately $10.2 million to $268.9 million, consolidated adjusted operating income shrank by 22.5%, to $15 million, primarily as a result of year-over-year increases within our combined truckload segment. Our net indebtedness as of September 30th increased by $48.6 million to $268.3 million compared to December 31st, 2024...