Werner Enterprises Reports Third Quarter 2025 Results

Total revenues for the third quarter increased to $771.5 million, a rise of $25.8 million compared to the same period last year. This growth was driven primarily by a 12% increase in Logistics revenues, amounting to $25.8 million. However, this was partially offset by a 1% decline in Truckload Transportation Services (TTS) revenues, which decreased by $3.0 million. Notably, TTS revenue was affected by a $3.3 million drop in fuel surcharge revenues. When excluding these surcharge revenues, consolidated total revenues still posted an increase of $29.1 million, or 4%.

Dedicated revenue demonstrated growth both sequentially and year-over-year, bolstered by recent fleet awards. This segment's performance indicates a robust demand for dedicated transportation solutions, which continue to gain traction in the market.

The Logistics segment maintained double-digit topline growth, despite facing pressures on gross margins due to a shift in the business mix. Effective management of operating expenses has been pivotal in sustaining this growth, showcasing Werner's commitment to operational efficiency.

In the One-Way Truckload segment, revenue per total mile saw an increase for the fifth consecutive quarter. However, the segment faced challenges with reduced miles per truck and heightened operating costs, impacting overall performance.

Werner reported an operating loss of $13.0 million, a significant decrease of $30.6 million, or 174%, from the prior year. The operating margin fell to (1.7%), down 410 basis points from 2.4%. On a non-GAAP basis, adjusted operating income was $10.9 million, a decrease of 50%, and the adjusted operating margin dropped to 1.4%, down 150 basis points from 2.9%.

In October 2025, Werner entered into a settlement agreement for $18.0 million concerning a class action lawsuit related to claims of unpaid wages and unauthorized deductions. The company recorded an accrual for this settlement as of September 30, 2025, which is included in the salaries, wages, and benefits expense. Additionally, legal fees of $3.4 million incurred during the third quarter were classified under other operating expenses.

The net loss attributable to Werner was $20.6 million, a stark contrast to the $6.6 million net income reported in the previous year. On a non-GAAP basis, the adjusted net loss attributable to Werner amounted to $2.0 million, compared to an adjusted net income of $9.1 million in the prior year. Diluted loss per share was $0.34, compared to diluted earnings per share of $0.11 in the previous year. On a non-GAAP basis, adjusted diluted loss per share was $0.03, down from adjusted diluted earnings per share of $0.15.

Net interest expense decreased to $8.6 million, a reduction of $0.7 million primarily due to declining average interest rates, despite an increase in average debt outstanding. The effective income tax rate for the quarter dropped significantly to 3.8%, compared to 23.5% in Q3 2024, influenced by various discrete income tax items.

Despite the challenging freight environment and operational pressures, Werner Enterprises remains focused on cost discipline, technology-driven efficiency, and prudent capital allocation. The company continues to maintain a strong liquidity position and a modern fleet, supporting its long-term strategies and positive operating cash flow. As Werner navigates through these complexities, its commitment to improving operational performance and adapting to market dynamics will be pivotal for future growth.