Risk Sleuth
CVLG · 10-K filed 27 Feb 2026 · year to 31 Dec 2025

Covenant Logistics Group

34 named things its latest annual report says its results depend on, each in the company's own words. 21 of them are also named by other companies we've read.

Customers

Top ten customers

concentrated in · approximately 44% and 45% of our total revenue in 2025 and 2024named as a risk
Our top ten customers accounted for approximately 44% and 45% of our total revenue in 2025 and 2024, respectively.Business (Item 1)

Also named by BGC, CBOE, ENTG, FBIN, HUBB, LPX, MEDP, MU and 9 more

Largest customer (unnamed)

earns from · more than 10% of our consolidated revenue in 2025named as a risk
We had one customer, serviced by our Expedited and Managed Freight reportable segments, that accounted for more than 10% of our consolidated revenue in 2025 and one customer, serviced by our Expedited, Managed Freight, and Warehousing reportable segments, that accounted for more than 10% of our consolidated revenue in 2024.Business (Item 1)

Also named by AEHR, AR, BF/B, BTU, DLR, FDXF, FIX, KGS and 6 more

U.S. Department of War

earns fromnamed as a risk
Our business with the Department of War is not subject to a contract, requires significant compliance work, and could be terminated at any time.Risk factors (Item 1A)

Also named by AIR, BA, CACI, CDRE, GD, HII, LHX, MP and 4 more

Retail industry

concentrated innamed as a risk
A substantial portion of our freight is from customers in the retail industry.Risk factors (Item 1A)

Also named by HTLD

Suppliers

Single IT vendor

depends onnamed as a risk
In addition, we are currently dependent on a single vendor to support several information technology functions.Risk factors (Item 1A)

Third-party carriers (Managed Freight)

depends onnamed as a risk
Our Managed Freight reportable segment is dependent upon the services of third-party providers, including other truckload carriers.Risk factors (Item 1A)

Other companies

Credit Facility

depends on · $110.0 millionnamed as a risk
We have a $110.0 million Credit Facility and numerous other financing arrangements.Risk factors (Item 1A)

Also named by AM, AR, AROC, BSM, CGBD, CLS, CWST, MYRG and 5 more

Transport Enterprise Leasing, LLC (TEL)

49% ownership; $14.7 million in each of 2025 and 2024named as a risk
We have accounted for our investment in TEL using the equity method of accounting and thus our financial results include our proportionate share of TEL's net income since May 2011, or $14.7 million in each of 2025 and 2024.Business (Item 1)

Arms, ammunition and explosives cargo

subject tonamed as a risk
Our 2022 acquisition of an arms, ammunitions, and explosives carrier requires us to meet stringent rules relating to those operations and failure to comply could result in loss of all business purchased and our related investment.Risk factors (Item 1A)

Places

U.S. ports

depends onnamed as a risk
Additionally, a portion of the freight we deliver is imported to the U.S. through ports of call where workers are represented by labor unions.Risk factors (Item 1A)

Also named by FND, HD, HTLD, LOW, TGT

Hazards

Avian influenza

named as a risk
Our subsidiary, LTST, derives the majority of its revenue from the transportation of poultry and feed products related to poultry operations.Risk factors (Item 1A)

Also named by CMG, FLO, MRK, ZTS

Commodities and inputs

Diesel fuel

exposed to its price · approximately 37.5 million gallons of diesel annuallynamed as a risk
A one dollar increase in the price of diesel per gallon would decrease our net income by approximately $1.8 million.Market risk (Item 7A)

Also named by ADM, BLDR, BTU, CAH, CHD, CHRW, COST, CP and 43 more

Used tractor and trailer market

exposed to its price · $6.5 millionnamed as a risk
Due in part to the soft used equipment market, during the fourth quarter of 2025, we recognized an asset held-for-sale write-down of $6.5 million, which is included in write-down of held-for-sale assets in the consolidated statements of operations, reducing assets to their current fair market value less costs to sell.Risk factors (Item 1A)

Semiconductor chips

depends onnamed as a risk
Tractor and trailer manufacturers have recently experienced periodic shortages of certain component parts and supplies, including semi-conductor chips, forcing many such manufacturers to curtail or suspend their production, which could lead to a lower supply of tractors and trailers, higher prices, and lengthened trade cycles, and which could lead to, among other things, higher maintenance expense and driver retention.Business (Item 1)

Also named by AME, BWA, CTOS, EQIX, GEV, RBRK, RMD, THO

Gulf Coast ULSD

exposed to its price
Under these contracts, we would pay a fixed rate per gallon of ULSD and receive the monthly average price of Gulf Coast ULSD.Business (Item 1)

Regulators

California Air Resources Board (CARB)

subject tonamed as a risk
While the greenhouse gas standards affecting trailers were removed from the federal regulations, we still must ensure the majority of our fleet is compliant with the California standards, which may adversely affect our operating results and profitability.Business (Item 1)

Also named by CMI, CRC, F, FND, GM, GNRC, HTLD, KMI and 11 more

Federal Motor Carrier Safety Administration (FMCSA)

subject tonamed as a risk
The DOT, through the FMCSA, imposes safety and fitness regulations on us and our drivers, including rules that restrict driver hours-of-service.Business (Item 1)

Also named by CASY, ET, FDXF, HTLD, IOT, JBHT, LSTR, R and 5 more

U.S. Department of Transportation (DOT) safety rating

subject tonamed as a risk
If any of our motor carriers received a conditional or unsatisfactory DOT safety rating, it could disrupt operations and adversely affect our business, as some of our existing customer contracts require a satisfactory DOT safety rating.Business (Item 1)

Laws and programs

FMCSA broker financial security regulations

subject to · $75,000named as a risk
Compliance with these changes was required starting in January 2026 and may negatively impact our business by increasing our compliance obligations, operating costs, and related expenses.Business (Item 1)

U.S. import tariffs

exposed to its pricenamed as a risk
The imposition of additional tariffs or export controls, changes to certain trade agreements, or retaliatory trade policies could, among other things, increase the costs of the materials used by our suppliers to produce new revenue equipment or increase the price of fuel.Risk factors (Item 1A)

Also named by AOS, APLD, BJ, BMI, CAVA, CVS, DKS, DTE and 18 more

Fair Labor Standards Act

subject tonamed as a risk
In a 2023 case involving the Fair Labor Standards Act, the First Circuit Court of Appeals affirmed a decision that would require additional payment to team drivers to be paid while in their sleeper berth.Business (Item 1)

Also named by APG, DPZ, DY, EME, FIX, FLO, SBUX

California SB 253 and SB 261

subject tonamed as a risk
Implementation of SB 253 and SB 261 or additional reporting requirements would result in increased compliance costs and resource utilization.Business (Item 1)

Also named by ARE, CHE, EWBC, HTLD, M, WDFC, WTS

Food Safety Modernization Act (FSMA)

subject tonamed as a risk
Moreover, expenses associated with compliance with these laws and regulations may increase given our 2023 acquisition of LTST, a company primarily involved in poultry-related freight movement.Business (Item 1)

Also named by CHD, HTLD, MKC, SJM, SYY, TXRH, USFD

FMCSA Compliance Safety Accountability (CSA) program

subject tonamed as a risk
Certain of our subsidiaries are currently exceeding the established intervention thresholds in a number of the seven CSA safety-related categories.Risk factors (Item 1A)

Also named by HTLD, RXO, XPO

FMCSA hours-of-service rules

subject tonamed as a risk
Any future changes to hours-of-service rules could materially and adversely affect our operations and profitability.Business (Item 1)

Also named by HTLD, ODFL

California wage and hour laws

subject tonamed as a risk
Both of these issues are adversely impacting the Company and the industry as a whole, with respect to the practical application of the laws, thereby resulting in additional cost.Business (Item 1)

Also named by DRVN, HTLD

CARB Advanced Clean Trucks (ACT) regulation

subject tonamed as a risk
Among other impacts, ACT could affect the cost and/or supply of traditional diesel tractors.Business (Item 1)

Also named by HTLD, ODFL

FMCSA Drug and Alcohol Clearinghouse

subject tonamed as a risk
It is expected that any additional changes to the rule may further impair the availability of an already weak driver pool.Business (Item 1)

Also named by HTLD

CARB Advanced Clean Fleets (ACF) regulation

subject tonamed as a risk
If CARB seeks to adopt and implement the ACF in the future, it could materially and negatively impact our business by increasing our compliance obligations, operating costs, and related expenses.Business (Item 1)

Also named by HTLD

FMCSA English proficiency and non-domiciled CDL rules

subject tonamed as a risk
The effects of these rules could result in a decrease in driver availability, greater competition for drivers, and/or an increase in recruitment and training costs, either of which could adversely affect our business, operations or profitability.Business (Item 1)

Federal Aviation Administration Authorization Act (FAAAA) broker liability preemption

subject tonamed as a risk
If the Supreme Court adopts the Ninth Circuit view that freight broker liability is not preempted by federal regulation in certain circumstances, it could lead to exposure to a patchwork of state laws across the United States and also result in primary (as opposed to contingent) liability being imposed upon freight brokers, and increased insurance premiums for brokerage operations generally.Business (Item 1)

California AB5

subject tonamed as a risk
AB5 has spurred the introduction of similar legislation in states other than California, which if enacted, could adversely affect our results of operations and profitability.Business (Item 1)

EPA heavy-duty vehicle emissions standards (2022 NOx Rule)

subject tonamed as a risk
This uncertainty may affect vehicle manufacturer production timelines, the availability and pricing of compliant equipment, expectations for fuel efficiency improvements and equipment productivity, compliance costs, operating expenses, and residual values of vehicles which may increase our costs or otherwise adversely affect our business or operations.Business (Item 1)

Covenant Transport captive insurance / FMCSA self-insurance authority

subject tonamed as a risk
Covenant Transport, LLC has been approved to self-insure for auto liability by the FMCSA.Risk factors (Item 1A)