Werner Enterprises(US:WERN)2025-11-07 21:06Financial Performance - Operating revenues for Q3 2025 were $771,499,000, an increase from $745,701,000 in Q3 2024, representing a growth of 3.4%[12] - Net loss for Q3 2025 was $(20,575,000), compared to a net income of $6,565,000 in Q3 2024, indicating a significant decline[12] - Total operating expenses increased to $784,520,000 in Q3 2025 from $728,106,000 in Q3 2024, a rise of 7.8%[12] - For the three months ended September 30, 2025, Werner Enterprises reported a net loss attributable to the company of $20,575,000, compared to a net income of $6,565,000 for the same period in 2024, indicating a significant decline in performance[20]. - The company reported a net loss of $20.575 million for the three months ended September 30, 2025, compared to a net income of $6.565 million for the same period in 2024[85] - Total revenues for the three months ended September 30, 2025, were $771.5 million, an increase from $745.7 million in the same period of 2024, representing a growth of 3.9%[32] - For the nine months ended September 30, 2025, total revenues were $2.24 billion, compared to $2.28 billion for the same period in 2024, indicating a decrease of 1.8%[32] Cash Flow and Liquidity - The company reported a net cash provided by operating activities of $119,539,000 for the nine months ended September 30, 2025, down from $258,700,000 in the same period of 2024[19] - Cash and cash equivalents at the end of Q3 2025 were $50,984,000, an increase from $40,752,000 at the end of 2024[16] - The company paid dividends of $25.7 million during the nine months ended September 30, 2025, compared to $26.4 million in the same period of 2024[159] - The company has committed to property and equipment purchases totaling approximately $82.1 million as of September 30, 2025[77] Debt and Financing - Long-term debt increased to $725,000,000 as of September 30, 2025, compared to $630,000,000 at the end of 2024[16] - The company entered into a $1.075 billion unsecured credit facility scheduled to mature on December 20, 2027[63] - The maximum funding available under the Loan Security Agreement (LSA) was $300 million, which increased to $325 million after an amendment on October 7, 2025[69] - Outstanding debt increased to $725.0 million as of September 30, 2025, with net borrowings of $75.0 million during the nine months ended September 30, 2025[159] Shareholder Equity and Stock Activity - The total stockholders' equity as of September 30, 2025, was $1,395,587,000, down from $1,448,557,000 as of September 30, 2024, reflecting a decrease of approximately 3.7% year-over-year[21]. - The company repurchased 2,113,007 shares of common stock during the nine months ended September 30, 2025, at a total cost of $55,562,000[21]. - A new stock repurchase program was approved on August 7, 2025, allowing the company to repurchase up to 5,000,000 shares of common stock[161] Operating Segments Performance - The Werner Logistics segment reported operating revenues of $232,585 thousand for the three months ended September 30, 2025, up from $206,774 thousand in 2024, marking a 12.5% increase[111] - Reportable segment operating income (loss) for Truckload Transportation Services was $(13.832) million, while Werner Logistics reported an operating income of $3.014 million for the three months ended September 30, 2025[92] - The TTS segment experienced an operating loss of $13,832 thousand for the three months ended September 30, 2025, compared to an operating income of $21,607 thousand in the same period of 2024[109] - Operating income for the Werner Logistics segment was $3,014 thousand for the three months ended September 30, 2025, compared to a loss of $345 thousand in 2024[111] Expenses and Cost Management - Salaries, wages, and benefits increased by $10.4 million (4.0%) in Q3 2025, influenced by an $18.0 million litigation settlement[120] - Insurance and claims expenses rose by $10.4 million (37.5%) in Q3 2025, reflecting higher costs for small and large dollar liability claims[129] - Rent and purchased transportation expense increased by $31.4 million, or 14.9%, in Q3 2025 compared to Q3 2024, rising to 85.8% of Werner Logistics revenues from 85.2%[134] Taxation - The effective income tax rate increased to 48.2% for the nine months ended September 30, 2025, up from 26.7% in 2024, primarily due to return to provision adjustments of $4.7 million[76] - The company recorded a provision for income taxes of $4.7 million due to changes in deferred tax assets and liabilities for certain acquired entities[76] Future Outlook and Strategic Plans - The company expects the adoption of ASU 2023-09 to impact disclosures but not the results of operations, cash flows, and financial condition, effective for the annual period ending December 31, 2025[27] - The company plans to adopt ASU 2025-06 for the fiscal year beginning January 1, 2028, and does not expect a material effect upon adoption[30][31] - Operating results for the three and nine months ended September 30, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025[25]