COVENANT LOGISTICS GROUP, INC. Segments Disclosure
| 17. | SEGMENT INFORMATION |
Our reportable segments are (i) Expedited, (ii) Dedicated, (iii) Managed Freight, and (iv) Warehousing. Refer to Note 1, for a description of each of our reportable segments.
The Company's chief operating decision maker, the Chief Executive Officer, evaluates the operating results through reportable segment operating income, which includes certain corporate overhead allocations directly attributable to each of the segments. We do not report our intersegment revenues by segment to our CODM and do not believe they are a meaningful metric for evaluating the performance of our reportable segments.
Each segment uses certain shared infrastructure and each segment is presented with its direct costs and an allocation of certain shared overhead costs. Insurance and claims expense is charged to the segments based on their historic claims experience and an allocation of current insurance premiums.
The CODM uses operating income for each segment in the annual budget and strategic planning process. The CODM considers budget-to-actual variances on a quarterly basis as well as month-over-month variances when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment operating income for evaluating pricing strategy, to assess the performance of each segment by comparing the results of each segment with one another, and in determining the compensation of certain employees.
The following tables summarize our reportable segment information as used by our CODM in making decisions regarding allocation of resources, etc., for 2025, 2024, and 2023:
| (in thousands) | ||||||||||||||||||||
| Year Ended December 31, 2025 | Expedited | Dedicated | Managed Freight | Warehousing | Total | |||||||||||||||
| Revenues | ||||||||||||||||||||
| Freight revenue | $ | 317,218 | $ | 354,626 | $ | 286,806 | $ | 99,948 | $ | 1,058,598 | ||||||||||
| Fuel surcharge revenue(1) | 56,076 | 48,554 | - | 607 | 105,237 | |||||||||||||||
| Subtotal operating revenues | $ | 373,294 | $ | 403,180 | $ | 286,806 | $ | 100,555 | $ | 1,163,835 | ||||||||||
| Other revenues | 637 | |||||||||||||||||||
| Total revenue | $ | 1,164,472 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Salaries, wages, and related expenses | 123,121 | 168,340 | 12,235 | 49,339 | ||||||||||||||||
| Fuel expense | 57,306 | 54,202 | - | 656 | ||||||||||||||||
| Operations and maintenance | 41,239 | 45,443 | 1,702 | 5,857 | ||||||||||||||||
| Revenue equipment rentals and purchased transportation | 68,455 | 33,287 | 246,904 | 4,542 | ||||||||||||||||
| Operating taxes and licenses | 1,314 | 2,807 | 105 | 2,141 | ||||||||||||||||
| Insurance and claims | 26,056 | 20,056 | 1,166 | 895 | ||||||||||||||||
| Communications and utilities | 2 | 796 | 62 | 981 | ||||||||||||||||
| General supplies and expenses | 913 | 2,158 | 3,571 | 17,133 | ||||||||||||||||
| Depreciation and amortization | 5 | 17,403 | 159 | 1,856 | ||||||||||||||||
| Gain on disposition of property and equipment, net | - | 249 | 13 | - | ||||||||||||||||
| Total allocated overhead | 33,757 | 38,453 | 8,723 | 9,456 | ||||||||||||||||
| Segment operating expenses | 352,168 | 383,194 | 274,640 | 92,856 | 1,102,858 | |||||||||||||||
| Segment operating income | $ | 21,126 | $ | 19,986 | $ | 12,166 | $ | 7,699 | $ | 61,614 | ||||||||||
| Other(2) | (58,677 | ) | ||||||||||||||||||
| Total consolidated operating income | 2,937 | |||||||||||||||||||
| Interest expense, net | (12,055 | ) | ||||||||||||||||||
| Income from equity method investment | 14,709 | |||||||||||||||||||
| Income before income taxes | $ | 5,591 | ||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Year Ended December 31, 2024 | Expedited | Dedicated | Managed Freight | Warehousing | Total | |||||||||||||||
| Revenues | ||||||||||||||||||||
| Freight revenue | $ | 346,697 | $ | 317,787 | $ | 248,939 | $ | 100,518 | $ | 1,013,941 | ||||||||||
| Fuel surcharge revenue(1) | 69,764 | 46,627 | - | 1,144 | 117,535 | |||||||||||||||
| Subtotal operating revenues | $ | 416,461 | $ | 364,414 | $ | 248,939 | $ | 101,662 | $ | 1,131,476 | ||||||||||
| Other revenues | - | |||||||||||||||||||
| Total revenue | $ | 1,131,476 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Salaries, wages, and related expenses | 136,453 | 141,051 | 9,180 | 46,299 | ||||||||||||||||
| Fuel expense | 64,661 | 50,063 | - | 1,473 | ||||||||||||||||
| Operations and maintenance | 39,651 | 36,983 | 1,421 | 5,419 | ||||||||||||||||
| Revenue equipment rentals and purchased transportation | 65,594 | 29,890 | 209,236 | 4,864 | ||||||||||||||||
| Operating taxes and licenses | 1,498 | 1,648 | 45 | 2,351 | ||||||||||||||||
| Insurance and claims | 26,321 | 15,882 | 913 | 792 | ||||||||||||||||
| Communications and utilities | 2 | 459 | 40 | 882 | ||||||||||||||||
| General supplies and expenses | 987 | 2,243 | 3,041 | 16,816 | ||||||||||||||||
| Depreciation and amortization | 23 | 12,238 | 84 | 1,759 | ||||||||||||||||
| Gain on disposition of property and equipment, net | - | (107 | ) | - | - | |||||||||||||||
| Total allocated overhead | 35,465 | 40,750 | 11,788 | 10,640 | ||||||||||||||||
| Segment operating expenses | 370,655 | 331,100 | 235,748 | 91,295 | 1,028,798 | |||||||||||||||
| Segment operating income | $ | 45,806 | $ | 33,314 | $ | 13,191 | $ | 10,367 | $ | 102,678 | ||||||||||
| Other(2) | (57,918 | ) | ||||||||||||||||||
| Total consolidated operating income | 44,760 | |||||||||||||||||||
| Interest expense, net | (13,576 | ) | ||||||||||||||||||
| Income from equity method investment | 14,713 | |||||||||||||||||||
| $ | 45,897 | |||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Year Ended December 31, 2023 | Expedited | Dedicated | Managed Freight | Warehousing | Total | |||||||||||||||
| Revenues | ||||||||||||||||||||
| Freight revenue | $ | 343,779 | $ | 268,465 | $ | 258,903 | $ | 99,362 | $ | 970,509 | ||||||||||
| Fuel surcharge revenue(1) | 80,041 | 51,822 | - | 1,201 | 133,064 | |||||||||||||||
| Subtotal operating revenues | $ | 423,820 | $ | 320,287 | $ | 258,903 | $ | 100,563 | $ | 1,103,573 | ||||||||||
| Other revenues | - | |||||||||||||||||||
| Total revenue | $ | 1,103,573 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Salaries, wages, and related expenses | 138,897 | 116,383 | 8,534 | 49,495 | ||||||||||||||||
| Fuel expense | 75,671 | 55,686 | - | 1,544 | ||||||||||||||||
| Operations and maintenance | 45,836 | 32,061 | 1,228 | 5,658 | ||||||||||||||||
| Revenue equipment rentals and purchased transportation | 55,064 | 30,492 | 221,535 | 5,974 | ||||||||||||||||
| Operating taxes and licenses | 1,679 | 927 | 45 | 2,107 | ||||||||||||||||
| Insurance and claims | 25,500 | 14,929 | 2,812 | 1,699 | ||||||||||||||||
| Communications and utilities | 65 | 272 | 9 | 927 | ||||||||||||||||
| General supplies and expenses | 1,072 | 2,173 | 2,282 | 17,141 | ||||||||||||||||
| Depreciation and amortization | 2,074 | 5,187 | 388 | 765 | ||||||||||||||||
| Gain on disposition of property and equipment, net | (17 | ) | (94 | ) | - | - | ||||||||||||||
| Total allocated overhead | 32,969 | 35,805 | 11,617 | 9,467 | ||||||||||||||||
| Segment operating expenses | 378,810 | 293,821 | 248,450 | 94,777 | 1,015,858 | |||||||||||||||
| Segment operating income | $ | 45,010 | $ | 26,466 | $ | 10,453 | $ | 5,786 | $ | 87,715 | ||||||||||
| Other(2) | (28,892 | ) | ||||||||||||||||||
| Total consolidated operating income | $ | 58,823 | ||||||||||||||||||
| Interest expense, net | (7,967 | ) | ||||||||||||||||||
| Income from equity method investment | 21,384 | |||||||||||||||||||
| Income before income taxes | $ | 72,240 | ||||||||||||||||||
| (1) | The CODM does not receive fuel surcharge revenue and fuel expense individually, but is provided with fuel expense less fuel surcharge revenue (other than the fuel surcharge revenue we reimburse to independent contractors and other third parties which is included in purchased transportation), which we refer to as net fuel expense. The CODM uses net fuel expense to measure the effectiveness of our fuel surcharge program. |
| (2) | Other represents indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, impairment of goodwill, write-down of held-for-sale assets, and contingent consideration liability adjustments, consistent with the information used by our CODM to evaluate the operating results of our reportable segments. |
Balance sheet data by reportable segment is not maintained by the Company.
Want the next COVENANT LOGISTICS GROUP, INC. segments disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment COVENANT LOGISTICS GROUP, INC.'s next filing hits EDGAR. No credit card, your email never gets sold.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 5, 2021 | |
| 2019 | Mar 9, 2020 | |
| 2018 | Mar 13, 2019 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.