As lingering weakness in freight market conditions continues, it’s interesting to see carriers showcase resilience and navigate a tough climate.
From setting the stage for future growth through gradual acquisitions, to deploying capital efficiently by reinvesting back to the business, carriers ended the year by gearing up to capitalize on potential opportunities.
Take a look at the rundown on the earnings of major publicly traded carriers below.
Covenant’s (CCJ Top 250, No. 43) total revenue in the last quarter of the year ended with a 7.4% year-on-year decline of $273.9 million. The carrier noted weaker freight conditions in the truckload market, despite strategic planning that yielded positive results, said David Parker, Covenant chairman and CEO.
The carrier’s asset-based segments contributed approximately 67% of total revenue, 74% of operating income, 63% of total freight revenue, and 76% of adjusted operating income in the quarter. While asset-based segment’s total revenue declined, Parker noted that adjusted operating income “remained comparable” as a result of improved uptime and utilization with newer equipment and cost savings measures that was executed by the team.
Asset-light segments, which contributed to approximately 33% of total revenue, saw year over year declines in both revenue and operating income. This was primarily driven by the carrier’s managed freight segment, Parker said, which experienced significant reductions in both revenue and profitability with little to no project related freight in the current quarter.
