WERNER ENTERPRISES INC SEC 10-Q Report
Werner Enterprises Inc., a leading transportation and logistics company, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant financial improvements and operational developments, reflecting the company's strategic initiatives and market conditions.
Financial Highlights
Operating Revenues: $753.1 million, a decrease of 1.0% for the three months ended June 30, 2025, compared to the same period of the prior year.
Operating Income: $66.3 million, a significant increase from $19.6 million in the second quarter of 2024, with an operating margin percentage increase to 8.8% from 2.6%.
Net Income: $43.6 million, an increase of 374.2% compared to $9.2 million in the second quarter of 2024.
Net Income Attributable to Werner: $44.1 million, an increase of 365.5% compared to $9.5 million in the second quarter of 2024.
Income Before Income Taxes: $59.1 million, an increase of 387.1% compared to $12.1 million in the second quarter of 2024.
Income Tax Expense: $15.5 million, an increase of 427.7% compared to $2.9 million in the second quarter of 2024, due to higher pre-tax income and an increase in the effective income tax rate.
Operating Income (TTS Segment): $64.1 million, an increase from $21.0 million in the second quarter of 2024, with an operating margin percentage increase to 12.4% from 3.9%.
Operating Income (Werner Logistics Segment): $4.3 million, an increase from $0.5 million in the second quarter of 2024, with an operating margin percentage increase to 2.0% from 0.3%.
Business Highlights
Revenue Segments: The company operates two main segments: TTS (Truckload Transportation Services) and Werner Logistics. TTS segment revenues are generated from Dedicated and One-Way Truckload operations, with revenues typically generated on a per-mile basis. Werner Logistics segment revenues are derived from Truckload Logistics, Intermodal, and Final Mile divisions, with Truckload Logistics accounting for 77% of total Werner Logistics revenues.
Operational Performance: The TTS segment experienced a 1.8% decrease in the average number of tractors in service, impacting trucking revenues. However, TTS average revenues per tractor per week, net of fuel surcharge, increased by 0.3% due to a 2.7% increase in One-Way Truckload revenues per total mile.
Werner Logistics Growth: Werner Logistics revenues increased by 5.9% in the second quarter of 2025 compared to the same period in 2024, driven by a 9% increase in Truckload Logistics revenues. The Power Only solution, which uses third-party carriers, contributed to this growth with a 17% increase in revenues.
Dedicated Fleet Expansion: The company is expanding its Dedicated fleets, with new contracts awarded in the second quarter of 2025. Implementation of these fleets began in the latter half of the second quarter and is expected to continue into the third quarter.
Future Outlook: The company anticipates that One-Way Truckload fleet average revenues per total mile, net of fuel surcharge, will remain flat or increase up to 3% in the third quarter of 2025 compared to the third quarter of 2024. Dedicated average revenues per tractor per week are also expected to remain flat or increase up to 3% in 2025 compared to 2024.
Driver and Equipment Management: The company is focusing on driver recruitment and retention, offering competitive pay and modern equipment. The average age of the tractor fleet is 2.4 years, and the average age of trailers is 5.5 years, indicating a relatively young fleet.
Fuel Management: The company employs measures to improve fuel efficiency, such as installing auxiliary power units and optimizing equipment specifications. Despite lower average diesel fuel prices, the company continues to focus on fuel management to mitigate cost impacts.
Insurance and Claims: A favorable decision related to a lawsuit resulted in a $45.7 million liability reversal, positively impacting the TTS segment's operating results. The company renewed its liability insurance policies with slightly higher premiums for the policy year beginning August 1, 2025.
Capital Expenditures: The company is adjusting its full-year 2025 net capital expenditures guidance to a range of $145 million to $185 million, reflecting a shift to a more asset-light operational mix and a higher-than-normal inventory of new tractors ready to support growth.
SEC Filing: WERNER ENTERPRISES INC [ WERN ] - 10-Q - Aug. 11, 2025