Here are 1-2 brief analogies for Covenant Logistics (CVLG):

• Imagine a smaller, more expedited-focused **JB Hunt**, combining asset-based truckload and dedicated services with a freight brokerage arm.
• The **Ryder** of over-the-road truckload and expedited freight, providing dedicated contract solutions and warehousing alongside its transportation services.

• Expedited Truckload: Provides time-sensitive, critical freight transportation services across North America.
• Dedicated Contract Logistics: Offers customized private fleet solutions where Covenant acts as a dedicated carrier for specific customers.
• Managed Freight: Delivers freight brokerage services, arranging transportation with a network of third-party carriers.
• Temperature-Controlled Truckload: Specializes in the transportation of goods requiring specific temperature management during transit.

Covenant Logistics (CVLG) is a logistics and transportation company that primarily sells its services to other companies, rather than individuals. Its business model is B2B (business-to-business), providing freight transportation, warehousing, and logistics solutions to a wide range of industries.

Covenant Logistics serves a diversified customer base across various sectors, including retail, automotive, food and beverage, and manufacturing. However, the company does not publicly disclose the specific names of its major customers. According to its annual filings (10-K reports), no single customer accounts for 10% or more of its consolidated total revenue. This indicates a broad client base and prevents the identification of individual "major customers" by name that would typically warrant public disclosure.

Therefore, while Covenant Logistics sells primarily to other companies, the names and symbols of those specific customer companies are not publicly available.

David R. Parker, Chairman and Chief Executive Officer
David R. Parker is the founder and CEO of Covenant Logistics Group, which he started as Covenant Transport in 1986. He has been involved in the trucking industry since he was 17, working for his father's trucking company. Under his leadership, Covenant Logistics Group has grown into a $1 billion enterprise through organic growth and several acquisitions. His leadership philosophy is based on faith, empathy, and servant leadership.

James S. Grant, III, Executive Vice President and Chief Financial Officer
James S. Grant, III joined Covenant as Corporate Controller in July 2019, was promoted to Chief Accounting Officer in August 2019, and then to his current role as Executive Vice President and Chief Financial Officer in May 2022. Prior to Covenant, Mr. Grant held various financial roles, including Corporate Controller and Assistant Controller, at Chattem, Inc. from August 2007 to June 2019. He also served as a Senior Internal Auditor at Electric Power Board of Chattanooga.

M. Paul Bunn, President
Paul Bunn was appointed President & Chief Operating Officer of Covenant Logistics in January 2023. He previously held positions as Senior Executive Vice President and Chief Operating Officer, Executive Vice President and Chief Financial Officer, and Executive Vice President and Chief Administrative Officer at Covenant. Mr. Bunn also served as Senior Vice President and Chief Accounting Officer and Treasurer, and Corporate Controller. Before joining Covenant in 2009, he was a Senior Manager for Ernst & Young, LLP.

Dustin Koehl, Chief Operating Officer
Dustin Koehl joined Covenant Logistics as Chief Operating Officer in May 2024, bringing over 17 years of experience in the logistics industry. He began his career at Total Transportation of Mississippi, where he founded the company's dedicated division and led sales, customer service, and pricing. From 2019 to 2022, he served as SVP of Sales and later SVP of Operations at U.S. Xpress Enterprises. Before Covenant, Mr. Koehl was the Head of Commercialization at Waabi, a company focused on AI-driven self-driving truck technology.

Joey Ballard, Executive Vice President, People and Safety
Joey Ballard serves as the Executive Vice President, People and Safety (also referred to as Chief People & Safety Officer) at Covenant Logistics Group.

The key risks to Covenant Logistics (CVLG) include:

1. Economic Uncertainty and Highly Competitive Freight Market: Covenant Logistics faces significant risks from macroeconomic uncertainties that can delay the recovery of the freight economy, thereby impacting demand and pricing across its segments. The trucking sector is characterized by weak volumes and contract rates at cycle lows, leading to limited pricing power and persistent pressure on rates and margins, particularly in commoditized segments like the 53-foot dedicated business.
2. Customer Concentration: A substantial portion of Covenant Logistics' revenue is generated from a limited number of major customers. In 2024, ten clients accounted for 45% of the company's total revenue, with a single client representing 10% of sales in both 2023 and 2024. The loss of one or more of these significant contracts could materially harm the company's revenue and financial performance.
3. Rising Operating Costs and Increased Claims Expense: Covenant Logistics is exposed to increasing operating costs, including higher driver wages, insurance expenses, and fuel costs. The company has experienced a sharp increase in claims on its balance sheet, operating under a self-insurance model where it retains a portion of each loss. This escalation in claims expense directly impacts profitability and, combined with capital expenditures and share repurchases, can lead to a stretched balance sheet and increased reliance on its credit facility.

The increasing market penetration and technological sophistication of digital freight platforms and tech-enabled logistics providers pose a clear emerging threat. These platforms leverage advanced algorithms, AI, and real-time data to optimize freight matching, pricing, and visibility, potentially commoditizing traditional truckload services and putting pressure on the margins and market share of asset-heavy carriers and conventional brokerage models. Companies such as Uber Freight, Flexport (post-Convoy acquisition), and various specialized logistics technology providers are actively reshaping how shippers connect with carriers and manage their supply chains, creating a competitive environment that prioritizes digital efficiency and data-driven decision-making.

Covenant Logistics (CVLG) operates within several segments of the logistics and transportation industry. The addressable markets for their main products and services primarily cover the U.S. and North American regions.

• Truckload Shipping: The United States Full-Truck-Load (FTL) market size is estimated at USD 448.65 billion in 2025 and is projected to reach USD 534.86 billion by 2030. More broadly, the U.S. trucking freight bill, representing gross freight revenues, was estimated at USD 906 billion in 2024.
• Dedicated Contract Carriage (DCC): For the U.S. market, the Dedicated Contract Carriage segment of the Third-Party Logistics (3PL) market generated gross revenues of USD 29.7 billion in 2023.
• Warehousing: The General Warehousing & Storage market in the U.S. is projected to be USD 42.8 billion in 2025. In North America, the broader warehousing and storage market reached USD 88.2 billion in 2024. Another estimate for the North America warehousing market indicated revenue of USD 335.1 billion in 2024.
• Managed Freight / Brokerage: The U.S. Domestic Transportation Management (DTM) segment, which includes brokerage services and is part of the 3PL market, had gross revenues of USD 123.6 billion in 2023. The North America digital freight brokerage market was valued at USD 2.5 billion in 2024.

Covenant Logistics (CVLG) is expected to drive future revenue growth over the next 2-3 years through several strategic initiatives and anticipated market improvements:

1. Expansion of Dedicated Segment and New Customer Contracts: Covenant Logistics is actively pursuing and securing new dedicated contracts, particularly in specialized and high-service niches. This has led to growth in its dedicated fleet, and the company plans to continue investing in areas providing value-added services for customers. For example, the Dedicated segment's freight revenue increased by 10.8% in Q3 2025 and 17% in Q4 2024. The company aims to enhance margins in this segment and is focused on capturing new dedicated contracts to expand the fleet organically.
2. Growth in Warehouse Segment from New Customer Start-ups: The company anticipates top-line revenue growth and operating income growth in its Warehouse segment, driven by a significant customer start-up scheduled for November (2025). While the Warehouse segment's freight revenue was slightly below the prior year in Q3 2025, it showed a solid sequential improvement in operating profit. In Q4 2023, the Warehouse segment saw a 16% increase in freight revenue due to new customer startups and rate increases.
3. Strategic Price Increases and Optimization of Business Mix: As market conditions improve, Covenant Logistics intends to focus on enhancing margins through rate increases and by exiting less profitable business in favor of more profitable ventures. The company aims to improve profitability by better utilizing labor and implementing rate increases with existing customers, particularly in its Warehouse segment. This strategy suggests a focus on optimizing revenue per load and customer rather than simply increasing volume at any cost.
4. Anticipated Freight Market Recovery and Capacity Exits: Management expresses optimism about the intermediate to long-term outlook for the freight environment. They cite accelerating capacity exits among small carriers, increased enforcement of government policies, and potential demand drivers from the unwinding of excess inventories, as factors expected to improve market conditions. This recovery is expected to lead to improved operating leverage and higher returns on capital, and the company is prepared to quickly gain market share when conditions improve.