Core Insights - Werner Enterprises, Inc. reported disappointing fourth-quarter 2025 results, with both earnings and revenues missing estimates and declining year over year [1] Financial Performance - Quarterly earnings per share were 5 cents, missing the Zacks Consensus Estimate of 9 cents per share, and down from 8 cents per share in the year-ago quarter [2] - Total revenues were $737.6 million, missing the Zacks Consensus Estimate of $770 million and falling 2.3% year over year, attributed to a 3% decrease in Truckload Transportation Services (TTS) revenues and a 3% decline in Werner Logistics revenues [2][10] - Adjusted operating income was $11.3 million, down 8% year over year, with an adjusted operating margin of 1.5%, declining 10 basis points from the previous year [3] Segment Performance - TTS segment revenues fell 3% year over year to $512.64 million, with adjusted operating income down 13% to $12.7 million and an adjusted operating margin of 2.5%, declining 30 basis points [4] - Logistics revenues totaled $207.54 million, also down 3% year over year, with adjusted operating income falling 60% to $957 million and an adjusted operating margin decreasing 60 basis points to 0.5% [4] Liquidity and Capital Expenditure - As of December 31, 2025, cash and cash equivalents were $59.92 million, up from $50.98 million in the prior quarter, while long-term debt increased to $752 million from $725 million [5] - The company generated $62.3 million in cash from operations in the fourth quarter, with net capital expenditure amounting to $69.4 million [5] Share Repurchase and Future Outlook - No shares were repurchased in the fourth quarter of 2025, with 5.0 million shares remaining under the share repurchase authorization as of December 31, 2025 [6] - For 2026, Werner anticipates TTS truck growth in the range of 23-28% and net capital expenditure estimated between $185-$225 million [7][10] - The company projects dedicated revenues per truck per week to decline from 1% to grow by 2% in 2026, with a full-year tax rate anticipated to be between 25.5%-26.5% [7]

Core Viewpoint - Werner Enterprises reported a decline in revenue and earnings per share (EPS) for the quarter ended December 2025, indicating potential challenges in its operational performance and market expectations [1]. Financial Performance - Revenue for the quarter was $737.64 million, down 2.3% year-over-year, and below the Zacks Consensus Estimate of $770.01 million, resulting in a surprise of -4.2% [1]. - EPS was reported at $0.05, a decrease from $0.08 in the same quarter last year, reflecting a significant EPS surprise of -45.18% against the consensus estimate of $0.09 [1]. Key Metrics - The operating ratio was reported at 104.9%, significantly higher than the estimated 97.3% by analysts [4]. - Truckload Transportation Services had an operating ratio of 106.4%, compared to the average estimate of 97.1% [4]. - Average trucks in service for Dedicated services were 4,954, exceeding the estimate of 4,851 [4]. - The average percentage of empty miles for One-Way Truckload was 16.2%, slightly above the estimate of 15.7% [4]. - Year-over-year revenue change for One-Way Truckload per total mile was -0.1%, contrasting with the estimated increase of 1.4% [4]. Revenue Breakdown - Werner Logistics generated revenues of $207.54 million, below the average estimate of $232.35 million, marking a -2.6% year-over-year change [4]. - Truckload Transportation Services reported trucking fuel surcharge revenues of $57.4 million, slightly below the estimate of $57.65 million, with a year-over-year change of -0.3% [4]. - Total revenues for Truckload Transportation Services were $512.64 million, compared to the average estimate of $520.65 million, reflecting a -2.8% year-over-year decline [4]. - Non-trucking and other revenues in Truckload Transportation Services were $7.77 million, significantly lower than the estimate of $9.8 million, representing a -29.5% year-over-year change [4]. - Net trucking revenues, excluding fuel surcharge, were $447.47 million, below the estimate of $453.19 million, indicating a -2.5% year-over-year change [4]. - Dedicated trucking revenues net of fuel surcharge were $291.62 million, slightly below the estimate of $296.88 million, showing a +1% year-over-year increase [4]. - One-Way Truckload trucking revenues net of fuel surcharge were $155.85 million, slightly above the estimate of $154.76 million, but represented an -8.3% year-over-year decline [4]. Stock Performance - Over the past month, shares of Werner have returned +17.3%, outperforming the Zacks S&P 500 composite's +0.5% change [3]. - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3].

NEWS RELEASE Werner® Acquires FirstFleet, Inc., Expanding Dedicated Market Leadership 2026-01-28 OMAHA, Neb.--(BUSINESS WIRE)-- Werner Enterprises, Inc. (Nasdaq: WERN), a premier transportation and logistics provider, today announced it has acquired privately owned Dedicated trucking company, First Enterprises, Inc. ("FirstFleet"), for approximately $245 million in cash. Werner will also separately acquire real estate properties directly from FirstFleet. The acquisition establishes Werner as the fth-largest ...

Core Insights - December shipments reached a cycle low, with Cass' multimodal shipments index declining 7.5% year-over-year and a two-year stacked decline of 13.5% [1] - The report attributes the slowdown in volumes to winter storms, while noting that inventories have been drawn down [1][2] Shipment and Expenditure Trends - The shipments dataset fell 7.2% from November, with a seasonally adjusted decline of 3.2% [1] - Cass' expenditures index, which includes total freight spend, decreased by 0.6% year-over-year and was down 4% compared to two years ago, marking the smallest two-year decline since July 2023 [6] - The expenditures subcomponent was down 0.5% in 2025, while shipments were off 6% on average, indicating that freight rates likely increased by 7% year-over-year in December [6] Market Conditions - J.B. Hunt Transport Services reported a tightening market beginning the week before Thanksgiving, with seasonal strength observed at the start of the year without adverse weather [3] - The Van Outbound Rejection Index indicates a tightening truckload market, reflecting the number of dry van loads rejected by carriers [4] - The National Truckload Index showed an increase in spot rates through the peak season, attributed to new constraints on the driver pool [5] - The TL linehaul index increased by 1% from November, marking the fourth consecutive monthly increase, and was up 2.1% year-over-year [8]

Core Insights - Werner Enterprises, Inc. (WERN) reported a third-quarter 2025 loss per share of 3 cents, missing the Zacks Consensus Estimate of earnings of 15 cents per share, compared to earnings of 15 cents per share in the same quarter last year [1][10] Financial Performance - Total revenues for the quarter were $771.5 million, exceeding the Zacks Consensus Estimate of $768.1 million, and reflecting a year-over-year increase of 3.5% driven by a $25.8 million (12%) rise in Logistics revenues, partially offset by a $3.0 million (1%) decline in Truckload Transportation Services (TTS) revenues, with a portion of the TTS decline attributed to a $3.3 million decrease in fuel surcharge revenues [2][10] - Adjusted operating income was reported at $10.91 million, a decrease of 50% year over year, with an adjusted operating margin of 1.4%, down 150 basis points from the previous year [3] - In the TTS segment, revenues fell 1% year over year to $519.78 million, with adjusted operating income dropping 63% to $8.95 million and an adjusted operating margin declining 300 basis points to 1.7%. Conversely, Logistics revenues increased 12% year over year to $232.58 million, with adjusted operating income rising over 100% to $4.16 million and an adjusted operating margin increasing 140 basis points to 1.8% [4][10] Liquidity and Capital Expenditure - As of September 30, 2025, Werner had cash and cash equivalents of $50.98 million, slightly down from $51.42 million at the end of the previous quarter. Long-term debt remained stable at $725 million. The company generated $44.1 million in cash from operations during the third quarter, with net capital expenditure amounting to $35.2 million [5] - No share repurchases were made in the third quarter, with 5.0 million shares remaining under the new share repurchase authorization as of September 30, 2025 [6] Outlook - For 2025, Werner anticipates TTS truck growth to decline from breakeven to 2%, down from a prior estimate of 1-4%. Net capital expenditure is now projected to be between $155 million and $175 million, revised from $145 million to $185 million. The company expects dedicated revenues per truck per week to rise from breakeven to 1.5%, up from a previous estimate of 0-3%. The full-year 2025 tax rate is now expected to be in the range of 26%-27%, revised from 25%-26% [7]

Core Insights - Werner Enterprises reported revenue of $771.5 million for the quarter ended September 2025, marking a year-over-year increase of 3.5% and exceeding the Zacks Consensus Estimate of $768.08 million by 0.45% [1] - The company experienced an EPS of -$0.03, a significant decline from $0.15 a year ago, resulting in an EPS surprise of -120% compared to the consensus estimate of $0.15 [1] Financial Performance Metrics - The operating ratio was reported at 101.7%, significantly higher than the three-analyst average estimate of 97.3% [4] - Truckload Transportation Services had an operating ratio of 102.7%, compared to the average estimate of 96.7% based on three analysts [4] - Werner Logistics generated revenues of $232.59 million, surpassing the estimated $219.2 million by three analysts, reflecting a year-over-year increase of 12.5% [4] - Truckload Transportation Services reported revenues of $519.79 million, slightly below the average estimate of $532.82 million, with a year-over-year change of -0.6% [4] - Trucking fuel surcharge revenues were $59.46 million, lower than the estimated $64.13 million, representing a year-over-year decline of 5.3% [4] - Non-trucking and other revenues in Truckload Transportation Services were $8.37 million, below the average estimate of $10.43 million, showing a year-over-year decrease of 17.9% [4] - Trucking revenues, net of fuel surcharge, were reported at $451.96 million, slightly below the estimate of $458.23 million, with a year-over-year change of 0.5% [4] - Dedicated trucking revenues, net of fuel surcharge, were $292.46 million, compared to the estimate of $296.75 million, reflecting a year-over-year increase of 2.5% [4] - One-Way Truckload trucking revenues were $159.5 million, below the average estimate of $164.09 million, indicating a year-over-year decline of 3.1% [4] Stock Performance - Shares of Werner have returned 3.5% over the past month, slightly underperforming the Zacks S&P 500 composite's return of 3.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Insights - The CEO of Werner Enterprises indicated that ongoing enforcement actions and capacity exits may lead to a more balanced freight market by 2026 [1] - The company reported a third-quarter loss of $20.6 million due to a challenging freight environment and legal settlement costs [1] Industry Overview - The freight market is currently experiencing softness, but enforcement actions against non-domiciled and B-1 visa drivers could significantly reduce the number of operators in the market [2][3] - The enforcement appetite is expected to remain strong, leading to more meaningful capacity exits than previously observed [3] Company Strategy - Technology investments, particularly in automation and AI, are central to Werner's cost-saving strategy, allowing the company to add volume without a proportional increase in operating costs [4] - AI is being utilized across various functions such as recruiting, billing, and collections to enhance efficiency [5] - The company's dedicated fleet pipeline is robust, with new fleet launches primarily deferred to early 2026, focusing on difficult-to-serve, defensible fleets [5][6]

Core Viewpoint - Werner Enterprises has shown a positive trend in its stock performance, with shares increasing by approximately 4.5% since the last earnings report, outperforming the S&P 500. The upcoming earnings release will be crucial in determining if this trend continues or if a pullback is expected [1]. Financial Performance - In Q2 2025, Werner reported earnings per share of 11 cents, exceeding the Zacks Consensus Estimate of 5 cents, but reflecting a 36% decline from the previous year [2]. - 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 4% drop in Truckload Transportation Services (TTS) revenues, partially offset by a 6% increase in Logistics revenues [3]. - Adjusted operating income was $16.55 million, down 22% year-over-year, with an adjusted operating margin of 2.2%, a decline of 60 basis points from the previous year [4]. Segment Results - TTS segment revenues fell by 4% year-over-year to $517.64 million, with adjusted operating income dropping 45% to $12.77 million due to increased insurance and claims expenses and lower fuel surcharge revenues [5]. - Logistics revenues increased by 6% year-over-year to $221.17 million, with adjusted operating income rising to $5.87 million from $1.69 million in the prior year, and an adjusted operating margin increase of 190 basis points to 2.7% [6]. Liquidity and Capital Expenditure - As of June 30, 2025, Werner had cash and cash equivalents of $51.42 million, a slight decrease from $51.95 million in the previous quarter. Long-term debt rose to $725 million from $640 million [7]. - The company generated $46 million in cash from operations in Q2 2025, with net capital expenditure amounting to $65.6 million [7]. Share Repurchase - During Q2, Werner repurchased 2.1 million shares for $55 million, leaving 1.8 million shares remaining under its share repurchase authorization as of June 30, 2025 [8]. Outlook - For 2025, Werner anticipates TTS truck growth to improve in the range of 1-4%, with net capital expenditure now estimated between $145-$185 million [9]. - The company projects dedicated revenues per truck per week to rise from breakeven to 3% in 2025, with a full-year tax rate expected to be between 25%-26% [9]. Estimate Trends - There has been a downward trend in estimates for Werner, with a consensus estimate shift of -15.3% noted [10][11]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [13]. Industry Comparison - Werner operates within the Zacks Transportation - Truck industry, where competitor JB Hunt has seen a 1.3% gain over the past month, reporting revenues of $2.93 billion with a year-over-year change of 0% [14].

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].

Core Insights - Werner Enterprises reported revenue of $753.15 million for the quarter ended June 2025, a decrease of 1% year-over-year, with EPS at $0.11 compared to $0.17 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $736.75 million by 2.23%, while the EPS surprised by 120% against the consensus estimate of $0.05 [1] Financial Performance Metrics - Operating Ratio was reported at 91.2%, significantly better than the three-analyst average estimate of 98.3% [4] - Truckload Transportation Services had an Operating Ratio of 87.6%, compared to the average estimate of 97.2% [4] - Average trucks in service for Dedicated segment were 4,855, slightly below the two-analyst average estimate of 4,902 [4] - One-Way Truckload reported an average percentage of empty miles at 15.5%, better than the two-analyst average estimate of 15.8% [4] - Year-over-year revenue change for One-Way Truckload per total mile was +2.7%, compared to the estimated -1.4% [4] Revenue Breakdown - Werner Logistics revenues were $221.18 million, exceeding the average estimate of $204.72 million, representing a year-over-year increase of 5.9% [4] - Truckload Transportation Services' trucking fuel surcharge revenues were $55.2 million, below the average estimate of $58.43 million, reflecting a year-over-year decline of 21.1% [4] - Total revenues for Truckload Transportation Services were $517.65 million, slightly above the average estimate of $517.5 million, marking a year-over-year decrease of 3.6% [4] - Non-trucking and other revenues in Truckload Transportation Services were $11.54 million, surpassing the average estimate of $9.87 million, with a year-over-year increase of 28.8% [4] - Trucking revenues, net of fuel surcharge, were $450.9 million, slightly above the average estimate of $449.23 million, showing a year-over-year decline of 1.6% [4] - Dedicated trucking revenues, net of fuel surcharge, were $286.82 million, below the average estimate of $290.38 million, reflecting a year-over-year decrease of 0.7% [4] - One-Way Truckload trucking revenues, net of fuel surcharge, were $164.08 million, exceeding the average estimate of $156.38 million, with a year-over-year decline of 3.1% [4] Stock Performance - Werner's shares returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]