Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [Mark one] ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 0-14690 WERNER ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Nebraska 47-0648386 (State or other jurisdiction of incorpo ...

Werner Enterprises, Inc. (WERN) reported disappointing first-quarter 2025 results wherein both the top and the bottom lines lagged the Zacks Consensus Estimate. The company incurred a quarterly loss per share of 12 cents in contrast to the Zacks Consensus Estimate of earnings of 12 cents per share. The bottom line declined more than 100% on a year-over-year basis.Total revenues of $712.11 million lagged the Zacks Consensus Estimate of $746.8 million and dipped 7% on a year-over-year basis due to a $49.3 mil ...

Werner Enterprises (WERN) Q1 2025 Earnings Call April 29, 2025 10:16 PM ET Speaker0 Good afternoon, and welcome to the Werner Enterprises First Quarter twenty twenty five Earnings Conference Call. All lines are in a listen only mode until after the presentation. Please note that this event is being recorded. I would now like to turn the conference over to Chris Neal, SVP of Pricing and Strategic Planning. Please go ahead. Speaker1 Good afternoon, everyone. Earlier today, we issued our earnings release with ...

Core Insights - Werner Enterprises reported a revenue of $712.11 million for the quarter ended March 2025, reflecting a decline of 7.4% year-over-year and a surprise of -4.65% compared to the Zacks Consensus Estimate of $746.81 million [1] - The company's EPS was -$0.12, a significant drop from $0.14 in the same quarter last year, resulting in an EPS surprise of -200.00% against the consensus estimate of $0.12 [1] Financial Performance Metrics - The operating ratio for Truckload Transportation Services was reported at 100.2%, exceeding the three-analyst average estimate of 96.5% [4] - Average trucks in service for Dedicated services were 4,783, below the two-analyst average estimate of 5,044 [4] - Year-over-year revenue change for One-Way Truckload in total miles per truck per week was -3.5%, compared to an estimated -0.5% by two analysts [4] - Revenues from Werner Logistics were $195.56 million, lower than the three-analyst average estimate of $204.15 million, marking a year-over-year decline of -3.4% [4] - Truckload Transportation Services reported revenues of $501.88 million, which was below the $530.15 million average estimate, representing an 8.9% year-over-year decline [4] - Trucking revenues, net of fuel surcharge, were $433.07 million, compared to the average estimate of $458.51 million, indicating a -7.8% change year-over-year [4] - Non-trucking and other revenues increased by 35.1% year-over-year, reaching $11.16 million, surpassing the average estimate of $9.90 million [4] - Dedicated trucking revenues, net of fuel surcharge, were $278.65 million, below the average estimate of $299.14 million, reflecting a -7.4% year-over-year change [4] - One-Way Truckload trucking revenues, net of fuel surcharge, were $154.42 million, compared to the estimated $164.13 million, showing an -8.5% change year-over-year [4] Stock Performance - Over the past month, shares of Werner have returned -4.3%, while the Zacks S&P 500 composite experienced a -0.8% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

1Q25 EARNINGS PRESENTATION April 29, 2025 1 DISCLOSURE STATEMENT This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on information presently available to the Company's management and are current only as ...

Company Performance - Werner Enterprises reported a quarterly loss of $0.12 per share, matching the Zacks Consensus Estimate, and down from earnings of $0.14 per share a year ago, indicating an earnings surprise of -200% [1] - The company posted revenues of $712.11 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.65% and down from $769.08 million year-over-year [2] - Over the last four quarters, Werner has not surpassed consensus EPS or revenue estimates [2] Stock Outlook - Werner shares have declined approximately 21.9% since the beginning of the year, compared to a -6% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $779.05 million, and for the current fiscal year, it is $1.11 on revenues of $3.13 billion [7] Industry Context - The Transportation - Truck industry, to which Werner belongs, is currently in the bottom 5% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Werner's stock performance [5][6]

Exhibit 99.1 Werner Enterprises Reports First Quarter 2025 Results First Quarter 2025 Highlights (all metrics compared to first quarter 2024) 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 ...

Financial Performance - Operating revenues for the year ended December 31, 2024, were $3,030,258, a decrease of 7.7% compared to $3,283,499 in 2023[193]. - Net income attributable to Werner for 2024 was $34,233, down 69.5% from $112,382 in 2023[193]. - Comprehensive income attributable to Werner for 2024 was $25,480, down from $113,990 in 2023[196]. - Net income for 2024 was $33,570,000, down from $112,290,000 in 2023, representing a decrease of about 70%[201]. - Basic earnings per share for 2024 were $0.55, down from $1.77 in 2023, a decline of 68.9%[230]. - Total consolidated revenues for the year ended December 31, 2024, were $3.030 billion, a decrease from $3.283 billion in 2023[314][315]. Operating Expenses - Total operating expenses decreased to $2,964,110 in 2024 from $3,107,083 in 2023, reflecting a reduction of 4.6%[193]. - Fuel expenses decreased significantly to $275,413 in 2024 from $345,001 in 2023, a reduction of 20.2%[193]. - Operating expenses for the reportable segments were $2,891,439, with significant costs in salaries, wages, and benefits totaling $990,060[317]. Assets and Liabilities - Total current assets decreased from $634,628,000 in 2023 to $541,773,000 in 2024, a decline of approximately 14.6%[199]. - Total liabilities decreased slightly from $1,590,990,000 in 2023 to $1,558,361,000 in 2024, a decrease of about 2%[199]. - Total stockholders' equity decreased from $1,528,339,000 in 2023 to $1,455,932,000 in 2024, a decline of about 4.7%[199]. - Outstanding debt totaled $650.0 million as of December 31, 2024, slightly up from $648.8 million in 2023[280]. Cash Flow - Net cash provided by operating activities was $329,734,000 in 2024, down from $474,366,000 in 2023, a decline of approximately 30.5%[201]. - Cash and cash equivalents decreased from $61,723,000 in 2023 to $40,752,000 in 2024, a reduction of approximately 34%[201]. Customer Concentration - The company's ten largest customers accounted for 48% of total revenues in 2024, with Dollar General being the largest customer at 11% of total revenues[207]. - The largest customer, Dollar General, accounted for 11% of total revenues in 2024, down from 14% in 2022[320]. Acquisitions - The company acquired ReedTMS for a total purchase price of $108.6 million, with an additional cash payment of $1.5 million based on performance goals achieved[235]. - The acquisition of Baylor was completed for $89.0 million, with potential future contingent earnout payments ranging from $0 to $15.0 million based on performance[237]. Equity and Stock Repurchase - The company repurchased $67,069,000 of common stock in 2024, compared to no repurchases in 2023[201]. - Dividends on common stock increased slightly from $34,208,000 in 2023 to $35,066,000 in 2024[201]. - Dividends on common stock increased to $0.56 per share in 2024 from $0.55 per share in 2023, totaling $34,843,000 in dividends paid[203]. Foreign Currency and Translation - Foreign currency translation losses were $7.4 million for the year ended December 31, 2024, compared to gains of $6.1 million in 2023[176]. - Comprehensive income for the year ended December 31, 2024, included foreign currency translation adjustment losses of $17.4 million[231]. Debt and Interest - The interest expense increased to $39,212 in 2024 from $33,535 in 2023, an increase of 16.1%[193]. - The company had $355.0 million of variable interest rate debt outstanding at December 31, 2024, with an effective interest rate fixed at 5.97%[177]. Segment Performance - Truckload Transportation Services revenue was $2,138.3 million in 2024, down from $2,310.8 million in 2023, reflecting a decline of 7.4%[239]. - Werner Logistics revenue decreased to $831.3 million in 2024 from $910.4 million in 2023, a decline of 8.7%[239]. - The reportable segment operating income for Truckload Transportation Services in 2024 was $75.166 million, while Werner Logistics reported an operating loss of $881,000[314]. Other Financial Metrics - Non-cash equity compensation expense for 2024 was $8,856,000, reflecting an increase from previous years[203]. - The company recognized a net interest expense of $129 thousand in 2024, up from $70 thousand in 2023[286]. - The total unrecognized compensation cost related to non-vested equity compensation awards was approximately $10.4 million as of December 31, 2024[289].

Werner Enterprises, Inc. (WERN) reported disappointing fourth-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate. Quarterlyearnings per share (EPS) of 8 cents lagged the Zacks Consensus Estimate of 21 cents and declined 79.4% on a year-over-year basis.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Total revenues of $754.7 million lagged the Zacks Consensus Estimate of $772 million and dipped 8.2% on a year-over-year basisdue to a $52.8 million ...

Financial Data and Key Metrics Changes - In Q4 2024, revenues totaled $755 million, down 8% year-over-year [30] - Adjusted EPS was $0.08, a decrease of $0.31 compared to the previous year [30] - Adjusted operating margin was 1.6%, a decrease of 320 basis points [30] Business Line Data and Key Metrics Changes - Truckload Transportation Services (TTS) revenue for the quarter was $527 million, down 9% [31] - TTS adjusted operating income was $14.6 million, 61% lower year-over-year [32] - Logistics revenue was $213 million, representing 28% of total revenues, down 6% year-over-year but up 3% sequentially [43] Market Data and Key Metrics Changes - One-way rates improved over 300 basis points year-over-year [36] - Average fleet size for TTS was 7,495 trucks, down 7% year-over-year [38] - Dedicated revenue per truck per week increased 1.1%, growing 27% of the last 28 quarters [39] Company Strategy and Development Direction - The company is focused on driving growth in core business, operational excellence, and capital efficiency [20][24] - The strategy includes expanding TTS and logistics operating income margins, increasing one-way rates, and growing the dedicated fleet [20] - The company anticipates a challenging but improving environment as it enters 2025 [11][24] Management's Comments on Operating Environment and Future Outlook - Management noted that the freight recession has persisted, but there are signs of improvement, including higher spot rates and strong customer sentiment [8][10] - The company expects truckload fundamentals to gradually improve throughout 2025, with rates trending positively [25][26] - Management emphasized the importance of controlling costs and maintaining operational excellence to navigate the current environment [12][21] Other Important Information - The company achieved over $50 million in cost savings in 2024, offsetting rate and inflationary pressures [46] - Free cash flow for the full year was $95 million, up 44% year-over-year [50] - The company has a strong balance sheet with $41 million in cash and cash equivalents and $460 million in total liquidity [50] Q&A Session Summary Question: Insights on Mexico's tariff situation - Management indicated ongoing conversations with shippers regarding tariff threats, noting that there hasn't been significant change in shipping patterns [72][74] - The company's exposure to Mexico is slightly above 10% of total revenues, encompassing various segments [79][80] Question: Attractiveness of dedicated services - Management highlighted a robust pipeline for dedicated opportunities, emphasizing the importance of selecting true dedicated contracts that ensure high retention rates [90][91] Question: Pricing trends and rate increases - Management reported a year-over-year increase of just over 3% in one-way rates, indicating a positive trend in pricing discipline [96][97] - Customer sentiment is improving, with more willingness to engage in rate adjustments [100] Question: Margin trajectory and operating ratio - Management acknowledged that Q1 is typically a tougher quarter, with expectations of a 35% to 40% drop in operating income from Q4 to Q1 [142] - The focus remains on maintaining production improvements and enhancing service quality to support margin recovery [136][140]