Core Insights - Covenant Logistics Group reported second quarter earnings of $0.36 per diluted share, with a non-GAAP adjusted earnings of $0.45 per diluted share [2] - The company achieved a freight revenue growth of 7.8% year-over-year, reaching $276.5 million, marking an all-time high for any quarter [3] - The company repurchased approximately 1.6 million shares of common stock for $35.2 million as part of a $50 million stock repurchase program [3] Financial Performance - Total revenue for the second quarter was $302.9 million, a 5.3% increase from $287.5 million in the prior year [4] - Freight revenue, excluding fuel surcharge, was $276.5 million, up from $256.5 million, reflecting a 7.8% increase [4] - Operating income decreased to $11.6 million from $15.6 million year-over-year, while adjusted operating income was $15.0 million compared to $18.7 million [4] - Net income for the quarter was $9.8 million, down from $12.2 million in the previous year [4] Segment Performance - Truckload operations saw a slight revenue decrease of 0.9% to $199.6 million, primarily due to a $4.5 million drop in fuel surcharge revenue [6] - The Expedited segment's freight revenue decreased by 6.4% to $83.2 million, while the Dedicated segment's freight revenue increased by 10.2% to $90.2 million [7][27] - Managed Freight segment experienced a significant revenue increase of 28.5% to $77.6 million, driven by new business [12][13] - Warehousing segment's freight revenue increased by 0.8% to $25.6 million, but operating income decreased due to facility-related cost increases [16] Capitalization and Liquidity - As of June 30, 2025, total indebtedness increased by $49 million to approximately $268.7 million compared to December 31, 2024 [17] - The net indebtedness to total capitalization ratio rose to 39.2% from 33.4% [17][28] - The company had cash and cash equivalents of $0.1 million and $24.6 million in outstanding borrowings under its ABL credit facility [18] Outlook - The company anticipates gradual improvement in general freight market fundamentals, despite ongoing fluctuations in inventory levels and supply chain patterns [21] - There is optimism for demand improvement as excess inventories are reduced and tax and monetary policy changes take effect [21] - The company aims to grow profitably and generate meaningful returns for stockholders while expanding its dedicated fleet and exploring acquisition opportunities [21]