Covenant Logistics targets higher capital spending to improve operating margins despite elevated costs offsetting revenue gains in Q2 2026.
Covenant Logistics Group announced plans to invest $50M-$60M in net capital expenditures during the second half of 2026. The move aims to support steady margin improvement as the company navigates elevated costs that outpaced revenue growth in Q2 2026.
In the quarter, improved rates and revenue quality were offset by higher operating expenses, limiting margin expansion. The company did not provide a prior capex figure for comparison but emphasized its focus on long-term efficiency gains.
Management indicated the spending will target strategic initiatives to enhance profitability, though no immediate market reaction was disclosed.