Winter weather disruptions in January and February, elevated fuel costs, and a still-recovering freight market were common headwinds for some publicly traded truckload carriers. On a positive note, March showed meaningful improvement in freight volumes and pricing.
Covenant Logistics (CCJ Top 250, No. 9) delivered first-quarter revenue of $307 million, up 14% year over year from $269 million in Q1 2025, driven by the late-2025 acquisition of Star Logistics Solutions. Net income fell to $4.4 million, down from $6.6 million a year earlier.
The drag came from Covenant’s Expedited segment, where severe weather in January and February closed operations and fuel costs added to the pressure. March was considerably better, with Chief Financial Officer Tripp Grant stating that the momentum carried into April, with shippers increasingly seeking out dedicated capacity commitments.
“The trajectory was positive and has continued into April, leaving us with conviction that the change in the market is structural, not seasonal,” Tripp said on the company’s earnings call.
Schneider National (No. 6) posted largely flat revenue of $1.398 billion in Q1 2026, down marginally from $1.40 billion a year ago. Net income fell to $20.4 million, down 22% from $26.1 million in the year-ago quarter. Truckload was the bright spot, with revenue excluding fuel surcharges up 1% to $618 million, supported by improved pricing and stronger truck utilization.
CEO Mark Rourke described the results as “the impact of structural supply rationalization which is driving the market toward more normal conditions”—a theme echoed by other carriers in the quarter.
Meanwhile, Heartland Express (No. 28) reported an operating revenue decline of 19.7% to $176 million in Q1 2026, down from $219 million in the prior-year quarter. The carrier posted a net loss of $4.8 million, an improvement from the $13.9 million loss in Q1 2025.
CEO Mike Gerdin attributed the improvement to a strong finish in March, when freight volumes and driver utilization picked up as weather eased and industry capacity tightened.
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Capacity and labor tightening
Driver supply tightening, fueled by regulatory enforcement and carrier exits, was a common theme discussed by the carriers.
Covenant CEO David Parker noted that the market tightened for the first time in 40 months, adding they expect driver pay to increase in the mid-to-high single digits. Management noted targeted driver pay discussions, with possible retention pay and weekly minimums.
If capacity continues to tighten, the company expects to net 60%-70% of bottom line from rate increases.
Parker also pointed out two legislative tracks affecting capacity: CDL school reform to shut down bad actors, and tort reform, which he put odds of success at 25%.
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On equipment, Covenant’s average age of tractor fleet increased to 26 months from 20 months, indicating the company’s replacement cycle strategy. Grant noted that higher truck prices heading into 2027 stem from emissions standards, not Section 232 tariffs. “We are looking at probably a $7,000-$10,000 cost increase, I would say, on the average across all the different types of trucks that we buy for next year,” he said.
Capacity attrition has improved market conditions, Schneider management pointed out. President and CEO Mark Rourke noted that spot and contract pricing for Network truckload are recovering, with rate renewals expected to mid-to-high single digits and double digits for transactional customers.
Heartland also highlighted that capacity reductions and freight demand improvements as positive indicators. In addition, Heartland completed the consolidation of CFI’s domestic operations into the Heartland Express brand, including rebranding of corporate and tractors, and noted driver retention through the transition with access to new freight lanes not previously available to CFI.
The company is focused on driver utilization, reduction of unproductive miles, and other cost control initiatives, Gerdin said. He added, “We believe that meaningful improvements in freight demand and freight pricing have started, but may not fully materialize until later in 2026.”
