Adjusted earnings per share were 32 cents, down from 42 cents in the prior-year quarter. The company fell short of Wall Street estimates, which projected $285 million in revenue and 34 cents per share.

Chairman and CEO David R. Parker remained optimistic about the company’s strategic outlook, citing challenges primarily due to prolonged inclement weather and avian influenza outbreaks, which negatively impacted equipment utilization this year. Despite these issues, Parker highlighted that Covenant enters the second quarter with modest rate increases secured in expedited freight, along with higher margins in managed freight and expected revenue growth in dedicated, managed freight, and warehousing divisions compared to the same period last year.

Freight revenue per tractor week declined 4% to $5,416. In specific segments, revenue in the expedited truckload division fell 10% to $94.7 million, while dedicated segment revenue increased 11% to $93.6 million. The managed freight segment generated $56.8 million in revenue, down 9.7%, and the warehousing division saw revenues of $24 million, a 6% decrease year-over-year.

Additionally, Covenant announced plans to repurchase up to $50 million of its Class A common stock. Parker indicated some signs of improvement in the freight market, noting that capacity and demand are now better balanced than they have been in the past two years. However, ongoing uncertainties around global trade policies could delay the expected recovery of the freight economy into 2025.