Covenant Logistics Q4 Profit Slides on Helene, Higher Costs

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Margin erosion, Hurricane Helene and higher costs took a significant toll on profits at Covenant Logistics Group in the fourth quarter of 2024, the company said.

Covenant reported a profit of $6.7 million or earnings per diluted share of 24 cents in Q4, just over half the $12.8 million or 47 cents per diluted share profit posted in Q4 2023.

Chattanooga, Tenn.-based Covenant saw revenues in the most recent quarter total $277.3 million, up 1.2% from $274.0 million in the year-ago period.

However, the company’s expenses totaled $268.7 million in the quarter that ended Dec. 31, up 3.4% from $259.8 million in the same period 12 months earlier, it said Jan. 23.

“We experienced both year-over-year and sequential margin erosion as a result of prolonged customer shutdowns and volume reductions due to internal operating issues, Hurricane Helene in the Southeast and the impact of midweek holidays,” Chief Financial Officer Tripp Grant said during a Jan. 24 conference call.

“Costs were also headwinds for th…