Werner Enterprises Reports First Quarter 2025 Results First Quarter 2025 Highlights (all metrics compared to first quarter 2024)
Total revenues of $712.1 million, decreased $57.0 million, or 7%
Operating loss was $5.8 million compared to $15.6 million operating income prior year; non-GAAP adjusted operating loss was $1.8 million compared to $18.6 million non-GAAP adjusted operating income prior year
Operating margin of (0.8)%, decreased 280 basis points from 2.0%; non-GAAP adjusted operating margin of (0.3)%, decreased 270 basis points from 2.4%
Diluted loss per share was $0.16 compared to diluted earnings per share of $0.10 prior year; non-GAAP adjusted diluted loss per share was $0.12 compared to non-GAAP adjusted diluted earnings per share of $0.13 prior year
OMAHA, Neb., April 29, 2025 -- Werner Enterprises, Inc. (Nasdaq: WERN), a premier transportation and logistics provider, today reported results for the first quarter ended March 31, 2025.
"First quarter results were below our expectations due to elevated insurance costs, extreme weather, a smaller fleet and changes in customer activity stemming from tariff-induced uncertainty. Despite these challenges, we are seeing strength in Dedicated with a streak of wins in new fleet contracts to be implemented in the coming quarters. One-Way Truckload revenue per total mile was up modestly for the third consecutive quarter, despite weather disruptions, increased deadhead, and network inefficiencies. Logistics improved operating income and margin with ongoing focus on cost management," said Derek Leathers, Chairman and CEO. "We are undertaking more aggressive restructuring efforts to drive out additional costs and to realize operational synergies from our technology investments. We are committed to driving growth in core business, expanding margins, increasing rates and maintaining strong operating cash flow."
Total revenues for the quarter were $712.1 million, a decrease of $57.0 million compared to the prior year, due to a $49.3 million, or 9%, decrease in Truckload Transportation Services ("TTS") revenues and a decline in Logistics revenues of $6.9 million, or 3%. A portion of the TTS revenue decline was due to
$15.3 million lower fuel surcharge revenues. Net of trucking fuel surcharge revenues, consolidated total revenues decreased $41.6 million, or 6%, during the quarter.
Operating loss of $5.8 million decreased $21.4 million, while operating margin of (0.8)% declined 280 basis points from 2.0%. On a non-GAAP basis, adjusted operating loss of $1.8 million decreased $20.4 million. Adjusted operating margin of (0.3)% declined 270 basis points from 2.4%.
TTS had an operating loss of $0.9 million, a decrease of $21.8 million, and TTS had non-GAAP adjusted operating income of $2.0 million, a decrease of $20.7 million. Logistics operating loss improved $1.9 million, and Logistics had non-GAAP adjusted operating income of $0.7 million compared to $1.2 million non-GAAP adjusted operating loss prior year. Corporate and Other (including driving schools) operating loss increased $1.5 million.
Net interest expense of $8.0 million increased $1.8 million primarily due to the impact of replacing lower-cost debt and interest rate swaps with higher-cost debt and interest rate swaps upon certain maturities in the second quarter of prior year and an increase in average debt outstanding. The effective income tax rate during the quarter decreased to 23.7%, compared to 32.9% in first quarter 2024 due to a higher amount of unfavorable discrete income tax items in prior year.
During first quarter 2025 we had gains on our strategic investments of $0.1 million compared to losses of
$0.3 million in prior year. Consistent with prior reporting, increases or decreases to the values of these strategic investments are adjusted out for determining non-GAAP adjusted net income and non-GAAP adjusted earnings per share.
Net loss attributable to Werner was $10.1 million compared to $6.3 million net income attributable to Werner prior year. On a non-GAAP basis, adjusted net loss attributable to Werner was $7.3 million compared to $8.5 million adjusted net income attributable to Werner prior year. Diluted loss per share was $0.16 compared to diluted earnings per share of $0.10 prior year. On a non-GAAP basis, adjusted diluted loss per share was $0.12 compared to adjusted diluted earnings per share of $0.13 prior year.
Key Consolidated Financial MetricsThree Months Ended March 31,
(In thousands, except per share amounts)
2025
2024
Y/Y Change
Total revenues
$ 712,114
$ 769,080
(7)%
Truckload Transportation Services revenues
$ 501,875
$ 551,126
(9)%
Werner Logistics revenues
$ 195,558
$ 202,482
(3)%
Operating income (loss)
$ (5,832)
$ 15,588
(137)%
Operating margin
(0.8)%
2.0%
(280) bps
Net income (loss) attributable to Werner
$ (10,098)
$ 6,312
(260)%
Diluted earnings (loss) per share
$ (0.16)
$ 0.10
(264)%
Adjusted operating income (loss) (1)
$ (1,803)
$ 18,591
(110)%
Adjusted operating margin (1)
(0.3)%
2.4%
(270) bps
Adjusted net income (loss) attributable to Werner (1)
$ (7,333)
$ 8,535
(186)%
Adjusted diluted earnings (loss) per share (1)
$ (0.12)
$ 0.13
(188)%
(1) See attached Reconciliation of Non-GAAP Financial Measures - Consolidated.
Truckload Transportation Services (TTS) Segment
Revenues of $501.9 million decreased $49.3 million; trucking revenues, net of fuel surcharge, decreased 8% year over year
Operating loss of $0.9 million decreased $21.8 million; non-GAAP adjusted operating income of $2.0 million decreased $20.7 million due largely to an $8.0 million increase in insurance and claims expense, a smaller fleet size, elevated technology spend and lower gains on the sale of property and equipment
Operating margin of (0.2)% decreased 400 basis points from 3.8%; non-GAAP adjusted operating margin, net of fuel surcharge, of 0.4% decreased 430 basis points from 4.7%
Average segment trucks in service totaled 7,415, a decrease of 520 trucks year over year, or 6.6%
Dedicated unit trucks at quarter end totaled 4,835, or 65% of the total TTS segment fleet, compared to 5,080 trucks, or 65%, a year ago
Average revenues per truck per week, net of fuel surcharge, decreased 1.4% for TTS
During first quarter 2025, Dedicated experienced net reduction in average trucks, down 7.1% year over year and down 53 trucks, or 1.1%, sequentially. Dedicated quarter-end fleet size was down 4.8% year over year and down 0.1% sequentially. Dedicated average revenues per truck per week, net of fuel
surcharge, decreased 0.3% year over year. Dedicated won several fleet contracts from new and existing customers during the quarter to be implemented in late Q2 and early Q3. Customer retention is 87%. One-Way revenues per total mile, net of fuel surcharge, increased 0.3% year over year.
Key Truckload Transportation Services Segment Financial MetricsThree Months Ended March 31,
(In thousands) 2025
2024
Y/Y Change
Trucking revenues, net of fuel surcharge $433,073
$ 469,879
(8)%
Trucking fuel surcharge revenues 57,640
72,983
(21)%
Non-trucking and other revenues 11,162
8,264
35 %
Total revenues $501,875
$ 551,126
(9)%
Operating income (loss) $ (916)
$ 20,840
(104)%
Operating margin (0.2)%
3.8%
(400) bps
Operating ratio 100.2%
96.2%
400 bps
Adjusted operating income (1)$ 1,964
$ 22,694
(91)%
Adjusted operating margin (1)0.4%
4.1%
(370) bps
Adjusted operating margin, net of fuel surcharge (1)0.4%
4.7%
(430) bps
Adjusted operating ratio (1)99.6%
95.9%
370 bps
Adjusted operating ratio, net of fuel surcharge (1)99.6%
(1) See attached Reconciliation of Non-GAAP Financial Measures - Truckload Transportation Services (TTS) Segment.
95.3%
430 bps
Werner Logistics Segment
Revenues of $195.6 million decreased $6.9 million, or 3%
Operating loss of $0.5 million improved $1.9 million; non-GAAP adjusted operating income was $0.7 million compared to $1.2 million non-GAAP adjusted operating loss prior year
Operating margin of (0.2)% increased 100 basis points from (1.2)%; non-GAAP adjusted operating margin of 0.3% increased 90 basis points from (0.6)%
Truckload Logistics revenues (75% of Logistics revenues) decreased $7.6 million, or 5%, driven by a decrease in shipments and a decline in revenue per shipment. Brokerage volumes decreased year over year while Power Only volume increased over 8%, marking the ninth consecutive quarter of Power Only volume growth.
Intermodal revenues (14% of Logistics revenues) increased $3.5 million, or 14%, due to an increase in shipments, partially offset by lower revenue per shipment year over year.
Final Mile revenues (11% of Logistics revenues) decreased $2.8 million, or 12%, due to lower volumes in furniture and appliance vertical.
Logistics operating loss improved $1.9 million and non-GAAP adjusted operating income increased $1.9 million year over year in first quarter 2025.
Key Werner Logistics Segment Financial MetricsThree Months Ended
March 31, | |||
(In thousands) | 2025 | 2024 | Y/Y Change |
Total revenues | $ 195,558 | $ 202,482 | (3)% |
Operating expenses: | |||
Purchased transportation expense | 167,158 | 172,487 | (3)% |
Other operating expenses | 28,875 | 32,324 | (11)% |
Total operating expenses | 196,033 | 204,811 | (4)% |
Operating income (loss) $ (475) $ (2,329) 80 % | |||
Operating margin | (0.2)% | (1.2)% | 100 bps |
Adjusted operating income (loss) (1) | $ 674 | $ (1,180) | 157 % |
Adjusted operating margin (1) | 0.3 % | (0.6)% | 90 bps |
(1) See attached Reconciliation of Non-GAAP Financial Measures - Werner Logistics Segment. Cash Flow and Capital Allocation |
Cash flow from operations in first quarter 2025 was $29.4 million compared to $88.6 million in first quarter 2024, a decrease of 67%.
Net capital proceeds in first quarter 2025 were $7.6 million compared to net capital expenditures of $19.0 million in first quarter 2024. We continue to prioritize business reinvestment in safe and modern equipment, including trucks and trailers, as well as in technology, our terminal network and our talent. The average ages of our truck and trailer fleets were 2.2 years and 5.4 years, respectively, as of March 31, 2025. Maintaining an industry-leading low-age, modern fleet improves our driver experience and results in more effective equipment maintenance, safety and fuel efficiency.
Gains on sales of property and equipment in first quarter 2025 were $2.8 million, or $0.03 per share, compared to $3.6 million, or $0.04 per share, in first quarter 2024. Year over year, we sold 37% fewer tractors and 5% fewer trailers, and realized lower average unit gains on tractors and improved average unit gains on trailers. Gains on sales of property and equipment are reflected as a reduction of other operating expenses in our income statement.
We did not repurchase shares of our common stock in first quarter 2025. As of March 31, 2025, we had
3.9 million shares remaining under our share repurchase authorization.
As of March 31, 2025, we had $52 million of cash and cash equivalents and $1.4 billion of stockholders' equity. Total debt outstanding was $640 million at March 31, 2025 and $598 million at March 31, 2024. After considering letters of credit issued, we had available liquidity consisting of cash and cash equivalents and available borrowing capacity as of March 31, 2025 of $777 million.
2025 Guidance Metrics and AssumptionsThe following table summarizes our updated 2025 guidance assumptions:
Prior (as of 2/6/25) | Actual (as of 3/31/25) | New (as of 4/29/25) | |
TTS truck count from beginning of year to end of year | 1% to 5% (annual) | (0.1)% (1Q25) | 1% to 5% (annual) |
Net capital expenditures (proceeds) | $185M to $235M (annual) | ($8M) (1Q25) | $185M to $235M (annual) |
TTS Guidance | |||
Dedicated RPTPW* growth | 0% to 3% (annual) | (0.3)% (1Q25 vs. 1Q24) | 0% to 3% (annual) |
One-Way Truckload RPTM* growth | 1% to 4% (1H25 vs. 1H24) | 0.3% (1Q25 vs. 1Q24) | 0% to 3% (2Q25 vs. 2Q24) |
Assumptions | |||
Effective income tax rate | 25.0% to 26.0% (annual) | 23.7% (1Q25) | 25.0% to 26.0% (annual) |
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Werner Enterprises Inc. published this content on April 29, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2025 at 01:25 UTC.