Covenant Logistics warns of delay in trucking industry recovery due to policy uncertainty.

From Yahoo Finance: 2025-04-24 15:33:00

Covenant Logistics Group officials warn U.S. trade policy uncertainty may delay trucking industry recovery. First-quarter earnings report revenue of $269.36 million, a 3% year-over-year decrease. Adjusted earnings per share fall short at 32 cents, with freight and truckload revenue declining. Avian influenza outbreak and severe weather contribute to slowdown.

Acquisition of Lew Thompson & Son in April 2023 adds to Covenant’s challenges with avian influenza disrupting poultry business. CFO Tripp Grant notes this year’s bird flu outbreak as severe, impacting revenue in first quarter. Grant anticipates revenue to recover by June, expecting to be back at 100% operational capacity.

Covenant Logistics officials foresee growth across segments in coming quarters. Dedicated segment revenue increases 11% year-over-year to $93.6 million, while expedited segment revenue decreases by 10.2% to $94.6 million. Warehousing revenue drops 6% and managed freight revenue declines by 9.7% year-over-year.

President Paul Bunn expects dedicated segment margins to improve with better weather conditions and waning impact of bird flu by early 2026. Despite challenges, Covenant Logistics remains optimistic about future growth and performance across all segments.

Read more: Covenant Logistics predicts ‘delay’ in improved freight market