Werner Q2 Earnings and Revenues Top Estimates, Decrease Year Over Year

Core Insights - Werner Enterprises, Inc. (WERN) reported second-quarter 2025 earnings per share (EPS) of 11 cents, exceeding the Zacks Consensus Estimate of 5 cents but down 36% from the same quarter last year [1][10]. Financial Performance - Total revenues reached $753.14 million, surpassing the Zacks Consensus Estimate of $736.7 million, but decreased by 1% year-over-year due to a $19.4 million (4%) decline in Truckload Transportation Services (TTS) revenues, partially offset by a $12.3 million (6%) increase in Logistics revenues [2][10]. - Adjusted operating income was $16.55 million, a 22% decline year-over-year, with an adjusted operating margin of 2.2%, down 60 basis points from the previous year [3][10]. Segment Performance - TTS segment revenues fell 4% year-over-year to $517.64 million, with adjusted operating income down 45% to $12.77 million, impacted by an $8.5 million increase in insurance and claims expenses and lower fuel surcharge revenues [5]. - Logistics revenues totaled $221.17 million, up 6% year-over-year, with adjusted operating income rising to $5.87 million from $1.69 million in the prior year, and adjusted operating margin increasing by 190 basis points to 2.7% [6]. Management Commentary - The CEO highlighted significant improvement over the first quarter, with operational and strategic progress, particularly in Dedicated services and Logistics, driven by cost management and increased volumes [4]. Liquidity and Capital Expenditure - As of June 30, 2025, cash and cash equivalents were $51.42 million, with long-term debt totaling $725 million. The company generated $46 million in cash from operations during the quarter, with net capital expenditure at $65.6 million [7]. Share Repurchase - During the second quarter, WERN repurchased 2.1 million shares for $55 million, leaving 1.8 million shares remaining under its repurchase authorization as of June 30, 2025 [8]. Outlook - For 2025, WERN anticipates TTS truck growth to improve in the range of 1-4%, with net capital expenditure estimated between $145-$185 million. The company projects dedicated revenues per truck per week to rise from breakeven to 3% [11].