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Werner Enterprises Reports Second Quarter 2025 Results
OMAHA, Neb.--(BUSINESS WIRE)--Werner Enterprises, Inc. (Nasdaq: WERN), a premier transportation and logistics provider, today reported results for the second quarter ended June 30, 2025. 'Second quarter results showed significant improvement over the first quarter, with operational and strategic progress across our business. Strength in Dedicated continued as we implemented new fleets. One-Way Truckload revenue per total mile increased for the fourth consecutive quarter, driven by recent contractual rate changes and consistent mix. Logistics posted year-over-year revenue growth, solid operating income and margin expansion through disciplined cost management and increased volumes,' said Derek Leathers, Chairman and CEO. 'Our cost containment actions in the second quarter delivered measurable savings. We remain committed to growing our core business, expanding margins, and leveraging our investments in technology to enhance productivity and maintain strong operating cash flow." Total revenues for the quarter were $753.1 million, a decrease of $7.7 million compared to the prior year, due to a $19.4 million, or 4%, decrease in Truckload Transportation Services ('TTS') revenues, partially offset by an increase in Logistics revenues of $12.3 million, or 6%. A portion of the TTS revenue decline was due to $14.8 million lower fuel surcharge revenues. Net of trucking fuel surcharge revenues, consolidated total revenues increased $7.1 million, or 1%, during the quarter. Operating income of $66.3 million increased $46.7 million, or 238%, while operating margin of 8.8% increased 620 basis points from 2.6%. On a non-GAAP basis, adjusted operating income of $16.6 million decreased $4.7 million, or 22%. Adjusted operating margin of 2.2% declined 60 basis points from 2.8%. During the quarter, non-GAAP adjustments to operating income included the following: A reversal of a $45.7 million net liability related to the Texas Supreme Court's ruling in Werner's favor, reversing and dismissing a $90 million truck accident verdict from 2018. The reversal included Werner's uninsured portion (retention) and accrued interest. The reversal benefit is included in insurance and claims expense. A reversal of a $7.9 million liability related to an earnout provision for our acquisition of Baylor Trucking in October 2022, which was based on a range of outcomes. During the quarter, we settled on a final payout, resulting in the reversal of the majority of previously accrued amounts. Although the accrued earnout has been included in GAAP results since the date of acquisition, the reversal was classified as a non-GAAP adjustment in the quarter due to the large, one-time nature of the reversal. This reversal benefit is included in other operating expenses. Severance expense of $1.3 million from recent cost actions was also treated as a non-GAAP adjustment. Severance is included in salaries wages and benefits expense. TTS had operating income of $64.1 million, an increase of $43.1 million, and TTS had non-GAAP adjusted operating income of $12.8 million, a decrease of $10.6 million. Logistics had operating income of $4.3 million, an increase of $3.8 million, and Logistics had non-GAAP adjusted operating income of $5.9 million, an increase of $4.2 million. Corporate and Other (including driving schools) had an operating loss of $2.1 million compared to a $1.9 million operating loss for the same quarter last year, which included a net $1.8 million gain on the sale of two parcels of real estate in second quarter 2024. Net interest expense of $7.9 million increased $0.6 million primarily due to an increase in average debt outstanding. The effective income tax rate during the quarter increased to 26.2%, compared to 24.2% in second quarter 2024 due to differences in discrete income tax items. During second quarter 2025 we had net gains on our strategic investments of $0.7 million compared to losses of $0.2 million in prior year. Consistent with prior reporting, increases or decreases to the values of these strategic investments are adjusted out for determining non-GAAP adjusted net income and non-GAAP adjusted earnings per share. Net income attributable to Werner of $44.1 million increased 366%. On a non-GAAP basis, adjusted net income attributable to Werner was $6.6 million decreased 38%. Diluted EPS was $0.72, an increase of 380%. On a non-GAAP basis, adjusted diluted EPS of $0.11 decreased 36%. Truckload Transportation Services (TTS) Segment Revenues of $517.6 million decreased $19.4 million; trucking revenues, net of fuel surcharge, decreased 2% year over year Operating income of $64.1 million increased $43.1 million; non-GAAP adjusted operating income of $12.8 million decreased $10.6 million due entirely to an $8.5 million increase in insurance and claims expense (excluding expense for the reversal of the aforementioned accident lawsuit and verdict from 2018), net impact of change in fuel (surcharges net of fuel expense), and expense associated with implementation of new fleets in Dedicated, partially offset with an increase in gains on sale of property and equipment. Without the impact from elevated insurance, fuel and Dedicated start-ups, TTS adjusted operating income would have increased $2 million Operating margin of 12.4% increased 850 basis points from 3.9%; non-GAAP adjusted operating margin, net of fuel surcharge, of 2.8% decreased 220 basis points from 5.0% of which 280 basis points of decline is from the increase in adjusted insurance, change in fuel and Dedicated start-ups. Without these impact, TTS adjusted operating margin, net of fuel surcharge, would have increased by 50 basis points Average segment trucks in service totaled 7,489, a decrease of 141 trucks year over year, or 1.8%, while segment trucks at quarter end were up 85 trucks or 1.1% Dedicated unit trucks at quarter end totaled 4,890, or 65% of the total TTS segment fleet, compared to 4,825 trucks, or 65%, a year ago Average revenues per truck per week, net of fuel surcharge increased 0.3% for TTS During second quarter 2025, Dedicated experienced net reduction in average trucks, down 0.9% year over year and up 72 trucks, or 1.5%, sequentially. Dedicated quarter-end fleet size was up 1.3% year over year and up 1.1% sequentially driven by implementations of new fleets won in Dedicated in the first quarter 2025, which will continue to be implemented into third quarter. Customer retention is 85%. Dedicated average revenues per truck per week, net of fuel surcharge, increased 0.2%. One-Way revenues per total mile, net of fuel surcharge, increased 2.7% year over year. Three Months Ended Six Months Ended June 30, (In thousands) 2025 2024 Y/Y Change 2025 2024 Y/Y Change Trucking revenues, net of fuel surcharge $ 450,903 $ 458,140 (2 )% $ 883,976 $ 928,019 (5 )% Trucking fuel surcharge revenues 55,201 69,966 (21 )% 112,841 142,949 (21 )% Non-trucking and other revenues 11,543 8,963 29 % 22,705 17,227 32 % Total revenues $ 517,647 $ 537,069 (4 )% $ 1,019,522 $ 1,088,195 (6 )% Operating income $ 64,089 $ 20,998 205 % $ 63,173 $ 41,838 51 % Operating margin 12.4 % 3.9 % 850 bps 6.2 % 3.8 % 240 bps Operating ratio 87.6 % 96.1 % (850) bps 93.8 % 96.2 % (240) bps Adjusted operating income (1) $ 12,775 $ 23,338 (45 )% $ 14,739 $ 46,032 (68 )% Adjusted operating margin (1) 2.5 % 4.3 % (180) bps 1.4 % 4.2 % (280) bps Adjusted operating margin, net of fuel surcharge (1) 2.8 % 5.0 % (220) bps 1.6 % 4.9 % (330) bps Adjusted operating ratio (1) 97.5 % 95.7 % 180 bps 98.6 % 95.8 % 280 bps Adjusted operating ratio, net of fuel surcharge (1) 97.2 % 95.0 % 220 bps 98.4 % 95.1 % 330 bps (1) See attached Reconciliation of Non-GAAP Financial Measures - Truckload Transportation Services (TTS) Segment. Expand Werner Logistics Segment Revenues of $221.2 million increased $12.3 million, or 6% Operating income of $4.3 million increased $3.8 million, or 687%; non-GAAP adjusted operating income of $5.9 million increased $4.2 million, or 246% Operating margin of 2.0% increased 170 basis points from 0.3%; non-GAAP adjusted operating margin of 2.7% increased 190 basis points from 0.8% Truckload Logistics revenues (77% of Logistics revenues) increased $13.9 million, or 9%, driven by an increase in shipments of 7% with gross margin expansion. Revenue from our PowerLink offering was up 17% while traditional brokerage recorded mid-single digit revenue growth. Higher volume was the driving factor with modest rate improvement. Intermodal revenues (13% of Logistics revenues) increased $0.7 million, or 3%, due to 7% more shipments, partially offset by a 4% decrease in revenue per shipment. Second quarter 2025 was our highest operating income quarter in two years for intermodal. Final Mile revenues (10% of Logistics revenues) decreased $2.4 million, or 10%, but increased 7% sequentially. Key Werner Logistics Segment Financial Metrics Cash Flow and Capital Allocation Cash flow from operations in second quarter 2025 was $46.0 million compared to $109.1 million in second quarter 2024, a decrease of 58%. Net capital expenditures in second quarter 2025 were $65.6 million compared to $99.2 million in second quarter 2024, a decrease of 34%. We continue to prioritize business reinvestment in safe and modern equipment, including trucks and trailers, as well as in technology, our terminal network and our talent. The average ages of our truck and trailer fleets were 2.4 years and 5.5 years, respectively, as of June 30, 2025. Maintaining a low-age, modern fleet improves our driver experience and results in more effective equipment maintenance, safety and fuel efficiency. Gains on sales of property and equipment in second quarter 2025 were $5.9 million, or $0.07 per share, compared to $2.7 million, or $0.03 per share, in second quarter 2024. Year over year, we sold 54% and 60% fewer tractors and trailers, respectively, and realized much higher average unit gains on tractors and trailers. Gains on sales of property and equipment are reflected as a reduction of other operating expenses in our income statement. During the quarter, we repurchased 2.1 million shares of common stock for a total cost of $55.0 million, excluding excise taxes, or an average price of $26.05 per share. As of June 30, 2025, we had 1.8 million shares remaining under our share repurchase authorization. As of June 30, 2025, we had $51 million of cash and cash equivalents and $1.4 billion of stockholders' equity. Total debt outstanding was $725 million at June 30, 2025. After considering letters of credit issued, we had available liquidity consisting of cash and cash equivalents and available borrowing capacity as of June 30, 2025 of $695 million. 2025 Guidance Metrics and Assumptions The following table summarizes our updated 2025 guidance assumptions: Call Information Werner Enterprises, Inc. will conduct a conference call to discuss second quarter 2025 earnings today beginning at 4:00 p.m. CT. The news release, live webcast of the earnings conference call, and accompanying slide presentation will be available at in the 'Investors' section under 'News & Events' and then ' Events Calendar.' To participate in the conference call, please dial (844) 701-1165 (domestic) or (412) 504-9718 (international). Please mention to the operator that you are dialing in for the Werner Enterprises call. A replay of the conference call will be available on July 29, 2025 at approximately 6:00 p.m. CT through August 29, 2025 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and using the access code 7769458. A replay of the webcast will also be available at in the 'Investors' section under 'News & Events' and then ' Events Calendar.' About Werner Enterprises Werner Enterprises, Inc. (Nasdaq: WERN) delivers superior truckload transportation and logistics services to customers across the United States, Mexico and Canada. With 2024 revenues of $3.0 billion, a modern truck and trailer fleet, nearly 13,000 talented associates and our innovative Werner EDGE ® technology, we are an essential solutions provider for customers who value the integrity of their supply chain and require safe and exceptional on-time service. Werner® provides Dedicated and One-Way Truckload services as well as Logistics services that include truckload brokerage, freight management, intermodal and final mile. Werner embraces inclusion as a core value and manages key risks and opportunities through a balanced sustainability strategy. This press release 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 of the date made. Actual results could also differ materially from those anticipated as a result of a number of factors, including, but not limited to, those discussed in the Company's latest available Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q. For those reasons, undue reliance should not be placed on any forward-looking statement. The Company assumes no duty or obligation to update or revise any forward-looking statement, although it may do so from time to time as management believes is warranted or as may be required by applicable securities law. Any such updates or revisions may be made by filing reports with the U.S. Securities and Exchange Commission ('SEC'), through the issuance of press releases or by other methods of public disclosure. CONDENSED BALANCE SHEET (In thousands, except share amounts) June 30, 2025 December 31, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 51,420 $ 40,752 Accounts receivable, trade, less allowance of $7,542 and $7,169, respectively 420,538 391,684 Other receivables 22,585 26,137 Inventories and supplies 13,228 14,183 Prepaid expenses 34,282 53,690 Other current assets 35,483 15,327 Total current assets 577,536 541,773 Property and equipment 2,944,012 2,941,495 Less – accumulated depreciation 1,065,906 1,007,259 Property and equipment, net 1,878,106 1,934,236 Goodwill 129,104 129,104 Intangible assets, net 71,372 76,407 Other non-current assets (1) 308,311 370,717 Total assets $ 2,964,429 $ 3,052,237 LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 129,181 $ 112,429 Current portion of long-term debt — 20,000 Insurance and claims accruals 103,189 93,710 Accrued payroll 53,277 54,560 Accrued expenses 17,954 18,745 Other current liabilities 28,072 56,305 Total current liabilities 331,673 355,749 Long-term debt, net of current portion 725,000 630,000 Other long-term liabilities 54,486 66,173 Insurance and claims accruals, net of current portion (1) 114,716 236,923 Deferred income taxes 280,765 269,516 Total liabilities 1,506,640 1,558,361 Temporary equity - redeemable noncontrolling interest 36,865 37,944 Stockholders' equity: Common stock, $.01 par value, 200,000,000 shares authorized; 80,533,536 shares issued; 59,830,317 and 61,850,434 shares outstanding, respectively 805 805 Paid-in capital 139,928 137,889 Retained earnings 1,969,693 1,952,775 Accumulated other comprehensive loss (17,769 ) (18,437 ) Treasury stock, at cost; 20,703,219 and 18,683,102 shares, respectively (671,733 ) (617,100 ) Total stockholders' equity 1,420,924 1,455,932 Total liabilities, temporary equity and stockholders' equity $ 2,964,429 $ 3,052,237 (1) Under the terms of our insurance policies, we were the primary obligor of the damage award in a previously disclosed adverse jury verdict, and as such, we had recorded a $79.2 million receivable from our third-party insurance providers in other non-current assets and a corresponding liability of the same amount in the long-term portion of insurance and claims accruals in the unaudited condensed balance sheets as of December 31,2024. On June 27, 2025, the Texas Supreme Court reversed the verdict and rendered a judgment in our favor, effectively ending the case in our favor. As a result of the Texas Supreme Court's verdict, we reversed the $79.2 million receivable and corresponding liability of the same amount in June 2025. Expand SUPPLEMENTAL INFORMATION (Unaudited) (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Capital expenditures (proceeds), net $ 65,628 $ 99,161 $ 58,062 $ 118,196 Cash flow from operations $ 46,025 $ 109,072 $ 75,395 $ 197,657 Return on assets (annualized) 5.9 % 1.2 % 2.2 % 1.0 % Return on equity (annualized) 11.9 % 2.4 % 4.5 % 2.0 % Expand Segment Financial and Operating Statistics Information SEGMENT INFORMATION (Unaudited) (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues Truckload Transportation Services $ 517,647 $ 537,069 $ 1,019,522 $ 1,088,195 Werner Logistics 221,177 208,912 416,735 411,394 Other (1) 18,439 17,467 36,662 36,420 Corporate 634 613 1,155 1,203 Subtotal 757,897 764,061 1,474,074 1,537,212 Inter-segment eliminations (2) (4,749 ) (3,263 ) (8,812 ) (7,334 ) Total $ 753,148 $ 760,798 $ 1,465,262 $ 1,529,878 Operating Income (Loss) Truckload Transportation Services $ 64,089 $ 20,998 $ 63,173 $ 41,838 Werner Logistics 4,328 550 3,853 (1,779 ) Other (1) (39 ) (966 ) (448 ) (1,175 ) Corporate (2,057 ) (971 ) (6,089 ) (3,685 ) Total $ 66,321 $ 19,611 $ 60,489 $ 35,199 (1) Other includes our driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, and other business activities. (2) Inter-segment eliminations represent transactions between reporting segments that are eliminated in consolidation. Expand OPERATING STATISTICS BY SEGMENT (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Chg 2025 2024 % Chg Truckload Transportation Services segment Average trucks in service 7,489 7,630 (1.8 )% 7,452 7,783 (4.3 )% Average revenues per truck per week (1) $ 4,632 $ 4,619 0.3 % $ 4,563 $ 4,586 (0.5 )% Total trucks (at quarter end) Company 7,215 7,180 0.5 % 7,215 7,180 0.5 % Independent contractor 330 280 17.9 % 330 280 17.9 % Total trucks 7,545 7,460 1.1 % 7,545 7,460 1.1 % Total trailers (at quarter end) 24,660 26,965 (8.5 )% 24,660 26,965 (8.5 )% One-Way Truckload Trucking revenues, net of fuel surcharge (in 000's) $ 164,083 $ 169,283 (3.1 )% $ 318,504 $ 338,120 (5.8 )% Average trucks in service 2,634 2,730 (3.5 )% 2,633 2,758 (4.5 )% Total trucks (at quarter end) 2,655 2,635 0.8 % 2,655 2,635 0.8 % Average percentage of empty miles 15.50 % 14.70 % 5.4 % 15.75 % 14.80 % 6.4 % Average revenues per truck per week (1) $ 4,787 $ 4,770 0.4 % $ 4,650 $ 4,716 (1.4 )% Average % change YOY in revenues per total mile (1) 2.7 % (2.7 )% 1.5 % (4.0 )% Average % change YOY in total miles per truck per week (2.3 )% 10.8 % (2.9 )% 11.1 % Average completed trip length in miles (loaded) 581 589 (1.4 )% 579 590 (1.9 )% Dedicated Trucking revenues, net of fuel surcharge (in 000's) $ 286,820 $ 288,857 (0.7 )% $ 565,472 $ 589,899 (4.1 )% Average trucks in service 4,855 4,901 (0.9 )% 4,819 5,025 (4.1 )% Total trucks (at quarter end) 4,890 4,825 1.3 % 4,890 4,825 1.3 % Average revenues per truck per week (1) $ 4,542 $ 4,534 0.2 % $ 4,512 $ 4,516 (0.1 )% Werner Logistics segment Average trucks in service 28 22 27.3 % 24 24 — % Total trucks (at quarter end) 23 21 9.5 % 23 21 9.5 % Total trailers (at quarter end) 3,650 3,350 9.0 % 3,650 3,350 9.0 % Total containers (at quarter end) 200 — N/A 200 — N/A (1) Net of fuel surcharge revenues Expand Non-GAAP Financial Measures and Reconciliations To supplement our financial results presented in accordance with generally accepted accounting principles in the United States of America ('GAAP'), we provide certain non-GAAP financial measures as defined by the SEC Regulation G, including non-GAAP adjusted operating income; non-GAAP adjusted operating margin; non-GAAP adjusted operating margin, net of fuel surcharge; non-GAAP adjusted net income (loss) attributable to Werner; non-GAAP adjusted diluted earnings (loss) per share; non-GAAP adjusted operating revenues, net of fuel surcharge; non-GAAP adjusted operating revenues, less purchased transportation expense; non-GAAP adjusted operating expenses; non-GAAP adjusted operating expenses, net of fuel surcharge; non-GAAP adjusted operating ratio; and non-GAAP adjusted operating ratio, net of fuel surcharge. We believe these non-GAAP financial measures provide a more useful comparison of our performance from period to period because they exclude the effect of items that, in our opinion, do not reflect our core operating performance. Our non-GAAP financial measures are not meant to be considered in isolation or as substitutes for their comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. There are limitations to using non-GAAP financial measures. Although we believe that they improve comparability in analyzing our period to period performance, they could limit comparability to other companies in our industry if those companies define these measures differently. Because of these limitations, our non-GAAP financial measures should not be considered measures of income generated by our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis. The following tables present reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure as required by SEC Regulation G. In addition, information regarding each of the excluded items as well as our reasons for excluding them from our non-GAAP results is provided below. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Non-GAAP Adjusted Net Income (Loss) Attributable to Werner and Non-GAAP Adjusted Diluted Earnings (Loss) Per Share (1) $ Diluted EPS $ Diluted EPS $ Diluted EPS $ Diluted EPS Net income attributable to Werner and diluted earnings per share – (GAAP) $ 44,062 $ 0.72 $ 9,465 $ 0.15 $ 33,964 $ 0.55 $ 15,777 $ 0.25 Non-GAAP adjustments: Insurance and claims (2) (45,662 ) (0.75 ) 971 0.02 (44,151 ) (0.72 ) 1,456 0.02 Amortization of intangible assets, net of amount attributable to noncontrolling interest (3) 2,345 0.04 2,345 0.04 4,691 0.08 4,691 0.08 Contingent consideration adjustment (4) (7,921 ) (0.13 ) — — (7,921 ) (0.13 ) — — Severance expense (5) 1,300 0.02 — — 1,300 0.02 — — Gain on sale of real estate (6) — — (1,830 ) (0.03 ) — — (1,830 ) (0.03 ) Loss on investments in equity securities (7) 33 — 52 — 35 — 190 — Loss (earnings) from equity method investment (8) (719 ) (0.01 ) 141 — (842 ) (0.01 ) 274 — Income tax effect of above adjustments (9) 13,162 0.22 (476 ) (0.01 ) 12,191 0.20 (1,355 ) (0.02 ) Non-GAAP adjusted net income (loss) attributable to Werner and non-GAAP adjusted diluted earnings (loss) per share $ 6,600 $ 0.11 $ 10,668 $ 0.17 $ (733 ) $ (0.01 ) $ 19,203 $ 0.30 Expand RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (unaudited) (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Non-GAAP Adjusted Operating Income and Non-GAAP Adjusted Operating Margin (1) $ % of Op. Rev. $ % of Op. Rev. $ % of Op. Rev. $ % of Op. Rev. Operating income and operating margin – (GAAP) $ 64,089 12.4 % $ 20,998 3.9 % $ 63,173 6.2 % $ 41,838 3.8 % Non-GAAP adjustments: Insurance and claims (2) (45,662 ) (8.8 )% 971 0.2 % (44,151 ) (4.3 )% 1,456 0.1 % Amortization of intangible assets (3) 1,369 0.3 % 1,369 0.2 % 2,738 0.2 % 2,738 0.3 % Contingent consideration adjustment (4) (7,921 ) (1.5 )% — — % (7,921 ) (0.8 )% — — % Severance expense (5) 900 0.1 % — — % 900 0.1 % — — % Non-GAAP adjusted operating income and non-GAAP adjusted operating margin $ 12,775 2.5 % $ 23,338 4.3 % $ 14,739 1.4 % $ 46,032 4.2 % Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Non-GAAP Adjusted Operating Expenses and Non- GAAP Adjusted Operating Ratio (1) $ % of Op. Rev. $ % of Op. Rev. $ % of Op. Rev. $ % of Op. Rev. Operating expenses and operating ratio – (GAAP) $ 453,558 87.6 % $ 516,071 96.1 % $ 956,349 93.8 % $ 1,046,357 96.2 % Non-GAAP adjustments: Insurance and claims (2) 45,662 8.8 % (971 ) (0.2 )% 44,151 4.3 % (1,456 ) (0.1 )% Amortization of intangible assets (3) (1,369 ) (0.3 )% (1,369 ) (0.2 )% (2,738 ) (0.2 )% (2,738 ) (0.3 )% Contingent consideration adjustment (4) 7,921 1.5 % — — % 7,921 0.8 % — — % Severance expense (5) (900 ) (0.1 )% — — % (900 ) (0.1 )% — — % Non-GAAP adjusted operating expenses and non-GAAP adjusted operating ratio $ 504,872 97.5 % $ 513,731 95.7 % $ 1,004,783 98.6 % $ 1,042,163 95.8 % Expand Three Months Ended June 30, Six Months Ended June 30, Non-GAAP Adjusted Operating Revenues, Net of Fuel Surcharge; Non-GAAP Adjusted Operating Expenses, Net of Fuel Surcharge; Non-GAAP Adjusted Operating Margin, Net of Fuel Surcharge; and Non-GAAP Adjusted Operating Ratio, Net of Fuel Surcharge (1) 2025 2024 2025 2024 $ $ $ $ Operating revenues – (GAAP) $ 517,647 $ 537,069 $ 1,019,522 $ 1,088,195 Less: Trucking fuel surcharge (10) (55,201 ) (69,966 ) (112,841 ) (142,949 ) Operating revenues, net of fuel surcharge – (Non-GAAP) 462,446 467,103 906,681 945,246 Operating expenses – (GAAP) 453,558 516,071 956,349 1,046,357 Non-GAAP adjustments: Trucking fuel surcharge (10) (55,201 ) (69,966 ) (112,841 ) (142,949 ) Insurance and claims (2) 45,662 (971 ) 44,151 (1,456 ) Amortization of intangible assets (3) (1,369 ) (1,369 ) (2,738 ) (2,738 ) Contingent consideration adjustment (4) 7,921 — 7,921 — Severance expense (5) (900 ) — (900 ) — Non-GAAP adjusted operating expenses, net of fuel surcharge 449,671 443,765 891,942 899,214 Non-GAAP adjusted operating income $ 12,775 $ 23,338 $ 14,739 $ 46,032 Non-GAAP adjusted operating margin, net of fuel surcharge 2.8 % 5.0 % 1.6 % 4.9 % Non-GAAP adjusted operating ratio, net of fuel surcharge 97.2 % 95.0 % 98.4 % 95.1 % Expand RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – WERNER LOGISTICS SEGMENT (unaudited) (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Non-GAAP Adjusted Operating Revenues, Less Purchased Transportation Expense (1) $ % of Op. Rev. $ % of Op. Rev. $ % of Op. Rev. $ % of Op. Rev. Operating revenues – (GAAP) $ 221,177 100.0 % $ 208,912 100.0 % $ 416,735 100.0 % $ 411,394 100.0 % Non-GAAP adjustment: Purchased transportation expense (11) (188,326 ) (85.1 )% (177,066 ) (84.8 )% (355,484 ) (85.3 )% (349,553 ) (85.0 )% Non-GAAP adjusted operating revenues, less purchased transportation expense $ 32,851 14.9 % $ 31,846 15.2 % $ 61,251 14.7 % $ 61,841 15.0 % Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Non-GAAP Adjusted Operating Income and Non-GAAP Adjusted Operating Margin (1) $ % of Op. Rev. $ % of Op. Rev. $ % of Op. Rev. $ % of Op. Rev. Operating income (loss) and operating margin – (GAAP) $ 4,328 2.0 % $ 550 0.3 % $ 3,853 0.9 % $ (1,779 ) (0.4 )% Non-GAAP adjustments: Amortization of intangible assets (3) 1,148 0.5 % 1,148 0.5 % 2,297 0.6 % 2,297 0.5 % Severance expense (5) 400 0.2 % — — % 400 0.1 % — — % Non-GAAP adjusted operating income and non-GAAP adjusted operating margin $ 5,876 2.7 % $ 1,698 0.8 % $ 6,550 1.6 % $ 518 0.1 % Expand (1) Non-GAAP adjusted operating income; non-GAAP adjusted operating margin; non-GAAP adjusted operating margin, net of fuel surcharge; non-GAAP adjusted net income (loss) attributable to Werner; non-GAAP adjusted diluted earnings (loss) per share; non-GAAP adjusted operating revenues, net of fuel surcharge; non-GAAP adjusted operating revenues, less purchased transportation expense; non-GAAP adjusted operating expenses; non-GAAP adjusted operating expenses, net of fuel surcharge; non-GAAP adjusted operating ratio; and non-GAAP adjusted operating ratio, net of fuel surcharge should be considered in addition to, rather than as substitutes for, GAAP operating income; GAAP operating margin; GAAP net income (loss) attributable to Werner; GAAP diluted earnings (loss) per share; GAAP operating revenues; GAAP operating expenses; and GAAP operating ratio, which are their most directly comparable GAAP financial measures. (2) Prior to second quarter 2025, we accrued pre-tax insurance and claims expense for interest related to a previously disclosed excess adverse jury verdict rendered on May 17, 2018 in a lawsuit arising from a December 2014 accident. Additional information about the accident was included in our Current Report on Form 8-K dated May 17, 2018. Under our insurance policies in effect on the date of this accident, our maximum liability for this accident was $10.0 million (plus pre-judgment and post-judgment interest) with premium-based insurance coverage that exceeded the jury verdict amount. We continued to accrue pre-tax insurance and claims expense for interest at $0.5 million per month (excluding months where the plaintiffs requested an extension of time to respond to our petition for review) until our appeal was finalized in second quarter 2025. Management believes excluding the effect of this item provides a more useful comparison of our performance from period to period. This item is included in our Truckload Transportation Services segment. (3) Amortization expense related to intangible assets acquired in our business acquisitions is excluded because management does not believe it is indicative of our core operating performance. This item is included in our Truckload Transportation Services and Werner Logistics segments. (4) Contingent consideration, also referred to as earnout, adjustments related to our business acquisitions are excluded because management does not believe these adjustments are indicative of our core operating performance. The adjustments are recorded in other operating expenses in our Income Statement and are included in our Truckload Transportation Services segment. (5) Severance expense is excluded because management does not believe it is indicative of our core operating performance. This item is included in salaries, wages and benefits in our Income Statement and is included in our Truckload Transportation Services and Werner Logistics segments. (6) During second quarter 2024, we sold two parcels of real estate which resulted in a $1.8 million net pre-tax gain on sale. Management believes excluding the effect of these unusual and infrequent items provides a more useful comparison of our performance from period to period. These items are included in our Corporate segment. (7) Represents non-operating mark-to-market adjustments for gains/losses on our minority equity investments, which we account for under Accounting Standards Codification ('ASC') 321, Investments – Equity Securities. Management believes excluding the effect of gains/losses on our investments in equity securities provides a more useful comparison of our performance from period to period. We record changes in the value of our investments in equity securities in other expense (income) in our Income Statement. (8) Represents earnings/losses from our equity method investment, which we account for under ASC 323, Investments - Equity Method and Joint Ventures. Management believes excluding the effect of earnings/losses from our equity method investment provides a more useful comparison of our performance from period to period. We record earnings/losses from our equity method investment in other expense (income) in our Income Statement. (9) The income tax effect of the non-GAAP adjustments is calculated using the incremental income tax rate excluding discrete items, and the income tax effect for 2024 has been updated to reflect the annual incremental income tax rate. (10) Fluctuating fuel prices and fuel surcharge revenues impact the total company operating ratio and the TTS segment operating ratio when fuel surcharges are reported on a gross basis as revenues versus netting the fuel surcharges against fuel expenses. Management believes netting fuel surcharge revenues, which are generally a more volatile source of revenue, against fuel expenses provides a more consistent basis for comparing the results of operations from period to period. (11) Management believes excluding purchased transportation expense from Werner Logistics operating revenues provides a useful measurement of our ability to source and sell services provided by third parties. Expand
Yahoo
16-07-2025
- Automotive
- Yahoo
Werner loses again on issue of deaf driver, but dollar amounts are a lot lower
Werner Enterprises has lost on appeal in a case that at one point saw it facing a $36 million penalty for not hiring a deaf driver–later reduced by a federal court–who had gone through a company training program. The financial stakes in the case brought by the Equal Employment Opportunity Commission under the provisions of the Americans with Disabilities Act are now about $335,000, a far cry from a jury's decision in 2023 to award deaf truck driver Victor Robinson about 107 times that figure. The unanimous decision last week from an Eighth Circuit Court of Appeals three-judge panel fully affirmed all the September 2023 decisions from both a jury trial in the U.S. District Court for Nebraska and later decisions handed down from the bench over post-trial motions. The affirmation includes a reduction in the original punitive damages awarded by the jury. That reduction came after the court ruled that EEOC awards are capped at $300,000. The EEOC was the plaintiff in the case on behalf of Victor defendants along with Werner (NASDAQ: WERN) included Drivers Management LLC, which is Werner's training subsidiary. Werner made several points on appeal, all of which were rejected by the appellate court. A recap of the case in the recent appellate court decision noted that Robinson had a 'medical variance' from the Federal Motor Carrier Safety Administration (FMCSA). That waiver is needed for a deaf driver to obtain a CDL. It was obtained in 2015. With the variance in hand, Robinson enrolled in Roadmaster, the driving school owned by Werner. His training involved not just a regular trainer but also an interpreter for the deaf, 'who communicated with Robinson from the backseat of the vehicle throughout the process,' according to the court's recap of the case's history. In September 2016, Robinson completed the training and received his CDL. But soon after, according to the recap of the case by the appellate court, Werner Vice President of Safety and Compliance Jamie Hamm told him on a call, 'I'm sorry, we can't hire you because of your deafness.' The call took place, according to the court, after Robinson had been told he had been preapproved for employment by recruiter Erin Marsh in an email. After calling Marsh–using a relay service for the phone call–the two talked about, according to the court, ''the job, the orientation, providing interpreting services,' and other general matters.' The district court's decision in January 2024 to award back pay to Robinson of about $35,000 lists several driving jobs Robinson had after not being hired at Werner, none of which lasted very long; only one, with Stan Koch Trucking, reached 12 months. Other jobs on his record included with J.B. Hunt (NASDAQ: JBHT) and U.S. Xpress, now part of Knight Swift (NYSE: KNX). The roughly $335,000 award is a combination of the punitive damages, capped at $300,000, and the backpay. In a May 2024 series of decisions on post-trial motions in the case, the district court summed up the basis for the jury's decision against Werner. 'The jury determined that Robinson was qualified to perform the job to which he applied, he could have safely performed the essential functions of the job with a reasonable accommodation, and Werner's refusal to hire Robinson was not based on business necessity,' District Court Judge John Gerrard wrote. There were multiple issues raised by Werner in its appeal over events in the trial. They included the question of 'causation' and whether Robinson's dismissal was because of his deafness; whether Robinson's overall driving record (which included several accidents) could be introduced to the jury; Werner objections to the admission of emails sent between Werner executives on the decision-making to deny Robinson employment; whether hiring a deaf driver would provide 'undue hardship' for Werner; and whether the FMCSA waiver meant Werner could not deny Robinson employment on the basis of his deafness. Ultimately, the appellate court did not side with Werner on any of the points made in its appeal. An email to Werner seeking comment had not been responded to by publication time. More articles by John Kingston At a conference of mostly green investors, AlFleet pushes marriage of AI and trucking Another broker liability case knocks at Supreme Court door, this one involving C.H. Robinson XPO rating cut by S&P, agency cites continuing weak freight market The post Werner loses again on issue of deaf driver, but dollar amounts are a lot lower appeared first on FreightWaves.
Local Sweden
16-07-2025
- Health
- Local Sweden
Sweden's new gender change law 'one less thing to worry about'
At the beginning of July, Sweden removed some of the restrictions for changing gender legally and how it appears on official documents. How has this affected people in the country wanting to change gender? Advertisement After four years of waiting, Jenny Leonor Werner sees the light at the end of the tunnel, able to legally switch gender following a recent change to Swedish law. "It just feels good ‒ one less thing to worry about," Werner, 22, who was declared male at birth but identifies as female, told AFP. Now all that is needed to change is a medical certificate stating that a person's gender identity does not align with the one indicated on their birth certificate. Healthcare professionals have to evaluate whether the change better reflects the person's gender identity and must ensure that the person can live with their new gender identity for the foreseeable future. The minimum age to make the change has also been lowered from 18 to 16 years, although people under 18 need permission from their legal guardian. A week after the law came into effect, 106 people had submitted applications, according to Sweden's National Board of Health and Welfare. Previously, individuals wanting to change their legal gender had to undergo a lengthy evaluation process in order to obtain a diagnosis of gender dysphoria. That is a condition where a person experiences distress as a result of a mismatch between the sex they were assigned at birth and the gender they identify themselves as having. Werner had received this diagnosis in 2024 after a four-year process and could have already requested the legal change. But healthcare staff advised her "to wait for the new law, as the process should be faster". Advertisement Gender dysphoria rise Access to surgical procedures is also simplified under the new law ‒ the requirement to first change one's legal gender has been removed. Before the law was passed in April of last year, it was preceded by intense debates in parliament, with the right-wing ruling coalition government divided. The Moderates and Liberals were in favour of the text but government partner the Christian Democrats opposed it, as did the anti-immigration Sweden Democrats, which is propping up the government. "This law is a major step forward. The separation of law and medicine in the new law makes things much easier," Frank Berglund, a policy expert at the Swedish Association for Sexuality Education (RFSU), told AFP. Berglund, 30, legally changed his gender at the age of 19. Like Werner, it took him about four years to obtain the gender dysphoria diagnosis. Advertisement Currently, the waiting time to even begin an evaluation can stretch to several years, according to the National Board of Health and Welfare. The health agency has also noted a sharp increase in cases of gender dysphoria, particularly among 13- to 17-year-olds who were declared female at birth. The agency reported a 1,500-percent jump between 2008 and 2018. Following the rapid increase and citing a need for caution, Swedish authorities decided in 2022 to halt hormone therapy for minors except in very rare cases. They also limited mastectomies for teenagers wanting to transition. Berglund said the new law would help "reduce waiting lists in healthcare to some extent". He also welcomed the possibility of making the legal change before the age of 18, saying it was absurd that he had been able to complete the entire medical procedure before 18 but not the legal process. "I had already changed my name, started hormone treatment and received the diagnosis," he said. Werner recounted being asked: "Is this you?" when showing her identification card. "Now I can get a new ID card that I'm really happy with," she said. "I've never been satisfied with the ID cards and passports I've had before." With the new law, Sweden is amending its gender identity legislation for the first time since it was first adopted in 1972. Back then, the Nordic country became a world pioneer by allowing people to legally change their gender. But campaigners want Sweden to go further and allow people to change their legal gender without requiring a medical certificate, as is the case in all other Nordic countries. By AFP's Agnes Johanna Wästfelt
Eyewitness News
16-07-2025
- Health
- Eyewitness News
Sweden cuts red tape for changing legal gender
STOCKHOLM - After four years of waiting, Jenny Leonor Werner sees the light at the end of the tunnel, able to legally switch gender following a recent change to Swedish law. As of July 1, Sweden has removed some of the restrictions for changing gender legally and how it appears on official documents. "It just feels good -- one less thing to worry about," Werner, 22, who was declared male at birth but identifies as female, told AFP. Now all that is needed to change is a medical certificate stating that a person's gender identity does not align with the one indicated on their birth certificate. Healthcare professionals have to evaluate whether the change better reflects the person's gender identity and must ensure that the person can live with their new gender identity for the foreseeable future. The minimum age to make the change has also been lowered from 18 to 16 years, although people under 18 need permission from their legal guardian. A week after the law came into effect, 106 people had submitted applications, according to Sweden's National Board of Health and Welfare. Previously, individuals wanting to change their legal gender had to undergo a lengthy evaluation process in order to obtain a diagnosis of gender dysphoria. That is a condition where a person experiences distress as a result of a mismatch between the sex they were assigned at birth and the gender they identify themselves as having. Werner had received this diagnosis in 2024 after a four-year process and could have already requested the legal change. But healthcare staff advised her "to wait for the new law, as the process should be faster". GENDER DYSPHORIA RISE Access to surgical procedures is also simplified under the new law -- the requirement to first change one's legal gender has been removed. Before the law was passed in April of last year, it was preceded by intense debates in parliament, with the right-wing ruling coalition government divided. The Moderates and Liberals were in favour of the text but government partner the Christian Democrats opposed it, as did the anti-immigration Sweden Democrats, which is propping up the government. "This law is a major step forward. The separation of law and medicine in the new law makes things much easier," Frank Berglund, a policy expert at the Swedish Association for Sexuality Education (RFSU), told AFP. Berglund, 30, legally changed his gender at the age of 19. Like Werner, it took him about four years to obtain the gender dysphoria diagnosis. Currently, the waiting time to even begin an evaluation can stretch to several years, according to the National Board of Health and Welfare. The health agency has also noted a sharp increase in cases of gender dysphoria, particularly among 13- to 17-year-olds who were "assigned female at birth". The agency reported a 1,500-percent jump between 2008 and 2018. Following the rapid increase and citing a need for caution, Swedish authorities decided in 2022 to halt hormone therapy for minors except in very rare cases. They also limited mastectomies for teenagers wanting to transition. SHORTER WAITING LISTS Berglund said the new law would help "reduce waiting lists in healthcare to some extent". He also welcomed the possibility of making the legal change before the age of 18, saying it was absurd that he had been able to complete the entire medical procedure before 18 but not the legal process. "I had already changed my name, started hormone treatment and received the diagnosis," he said. Werner recounted being asked: "Is this you?" when showing her identification card. "Now I can get a new ID card that I'm really happy with," she said. "I've never been satisfied with the ID cards and passports I've had before." With the new law, Sweden is amending its gender identity legislation for the first time since it was first adopted in 1972. Back then, the Nordic country became a world pioneer by allowing people to legally change their gender. But campaigners want Sweden to go further and allow people to change their legal gender without requiring a medical certificate, as is the case in all other Nordic countries.
Straits Times
16-07-2025
- Health
- Straits Times
Sweden cuts red tape for legal change to gender
Find out what's new on ST website and app. Healthcare professionals have to evaluate whether the change better reflects the person's gender identity. STOCKHOLM - After four years of waiting, Ms Jenny Leonor Werner sees the light at the end of the tunnel, able to legally switch gender following a recent change to Swedish law. As of July 1, Sweden has removed some of the restrictions for changing gender legally and how it appears on official documents. 'It just feels good – one less thing to worry about,' said Ms Werner, 22, who was declared male at birth but identifies as female, told AFP. Now all that is needed to change is a medical certificate stating that a person's gender identity does not align with the one indicated on their birth certificate. Healthcare professionals have to evaluate whether the change better reflects the person's gender identity and must ensure that the person can live with their new gender identity for the foreseeable future. The minimum age to make the change has also been lowered from 18 to 16 years, although people under 18 need permission from their legal guardian. A week after the law came into effect, 106 people had submitted applications, according to Sweden's National Board of Health and Welfare. Previously, individuals wanting to change their legal gender had to undergo a lengthy evaluation process in order to obtain a diagnosis of gender dysphoria. That is a condition where a person experiences distress as a result of a mismatch between the sex they were assigned at birth and the gender they identify themselves as having. Ms Werner had received this diagnosis in 2024 after a four-year process and could have already requested the legal change. But healthcare staff advised her 'to wait for the new law, as the process should be faster'. Gender dysphoria rise Access to surgical procedures is also simplified under the new law – the requirement to first change one's legal gender has been removed. Before the law was passed in April of 2024, it was preceded by intense debates in parliament, with the right-wing ruling coalition government divided. The Moderates and Liberals were in favour of the text but government partner the Christian Democrats opposed it, as did the anti-immigration Sweden Democrats, which is propping up the government. 'This law is a major step forward. The separation of law and medicine in the new law makes things much easier,' Mr Frank Berglund, a policy expert at the Swedish Association for Sexuality Education (RFSU), told AFP. Mr Berglund, 30, legally changed his gender at the age of 19. Like Ms Werner, it took him about four years to obtain the gender dysphoria diagnosis. Currently, the waiting time to even begin an evaluation can stretch to several years, according to the National Board of Health and Welfare. The health agency has also noted a sharp increase in cases of gender dysphoria, particularly among 13- to 17-year-olds who were 'assigned female at birth'. The agency reported a 1,500 per cent jump between 2008 and 2018. Following the rapid increase and citing a need for caution, Swedish authorities decided in 2022 to halt hormone therapy for minors except in very rare cases. They also limited mastectomies for teenagers wanting to transition. Shorter waiting lists Mr Berglund said the new law would help 'reduce waiting lists in healthcare to some extent'. He also welcomed the possibility of making the legal change before the age of 18, saying it was absurd that he had been able to complete the entire medical procedure before 18 but not the legal process. 'I had already changed my name, started hormone treatment and received the diagnosis,' he said. Ms Werner recounted being asked: 'Is this you?' when showing her identification card. 'Now I can get a new ID card that I'm really happy with,' she said. 'I've never been satisfied with the ID cards and passports I've had before.' With the new law, Sweden is amending its gender identity legislation for the first time since it was first adopted in 1972. Back then, the Nordic country became a world pioneer by allowing people to legally change their gender. But campaigners want Sweden to go further and allow people to change their legal gender without requiring a medical certificate, as is the case in all other Nordic countries. AFP
