The first quarter of 2022 saw massive stock selloffs in the tech arena and frequent and dire predictions of a "trucking bloodbath" or freight recession on the horizon, but a look at earnings reports from the top fleets in the country shows that business is holding up pretty well. Most fleets reported strong earnings, sometimes setting records, and many said they actually got their long-delayed equipment deliveries.
Furthermore, despite record-high diesel prices and softening demand in some cases, many big fleets now predict conditions to remain good into Q2 and even the rest of 2022. Below are highlights from the earnings reports of top fleets in the country, with special emphasis placed on their predictions for the future and their successes and failures sourcing more capacity.
Covenant (CCJ Top 250, No. 38) posted a strong Q1 with record earnings after acquiring AAT Carriers Inc. in February. The company chalked up the success to strong freight demand despite mounting challenges. The company fully expects 2022 to outpace 2021 in terms of operating results, but acknowledged that wages, insurance, equipment, parts, fuel prices and interest rates were all driving the cost of doing business. "We expect cost pressure to persist even if freight demand moderates," the company said.
“The first quarter yielded strong results from each of our four operating segments, including sequential improvement in our Dedicated truckload segment. Despite economic indicators pointing to a slowing freight economy, the first quarter’s freight environment remained robust as a result of strong economic activity, low inventories, and supply chain disruptions, accompanied by constrained capacity due to a national driver and equipment shortage," said Chairman and Chief Executive Officer David R. Parker.
Revenue: 2022 Q1: $291.6 million vs. 2021 Q1: $220.8 million
Income: 2022 Q1: $23.8 million vs. 2021 Q1: $10.5 million
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