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Werner Q2 Earnings and Revenues Top Estimates, Decrease Year Over Year
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Key Takeaways
{\"0\":\"WERN\'s Q2 EPS of $0.11 beat estimates but fell 36% Y/Y; revenue dipped 1% to $753.14M.\",\"1\":\"WERN\'s Q2 revenues were hurt by weakness across TTS segment, partially offset by growth in Logistics segment.\",\"2\":\"Logistics revenue rose 6% with operating margin up 190 bps, while TTS margin fell 180 bps.\"}
Werner Enterprises, Inc. (WERN - Free Report) reported second-quarter 2025 earnings per share (EPS) of 11 cents, which surpassed the Zacks Consensus Estimate of 5 cents but declined 36% from the year-ago reported quarter figure.
Total revenues of $753.14 million beat the Zacks Consensus Estimate of $736.7 million but dipped 1% on a year-over-year basis dueto 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.
WERN reported adjusted operating income of $16.55 million, down 22% year over year. Adjusted operating margin of 2.2% declined 60 basis points from the year-ago reported quarter.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
Derek Leathers, WERN’s chairman and chief executive officer, stated, “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.”
Leathers further added, “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."
WERN’s Q2 Segmental Results
Revenues in the TTS segment fell 4% on a year-over-year basis to $517.64 million due to lower fuel surcharge revenues. Adjusted operating income of $12.77 million fell 45% year over year owing 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 by an increase in gains on sale of property and equipment. Adjusted operating margin of 2.5% declined 180 basis points.
Logistics’ revenues totaled $221.17 million, up 6% year over year. Adjusted operating income rose to $5.87 million in the second quarter from $1.69 million in the year-ago quarter. Adjusted operating margin increased 190 basis points year over year to 2.7%.
Liquidity
As of June 30, 2025, Werner had cash and cash equivalents of $51.42 million compared with $51.95 million at the prior-quarter end. Long-term debt (net of current portion) totaled $725 million at the end of the reported quarter compared with $640 million at the prior-quarter end.
The company generated $46 million of cash from operations in second-quarter 2025. Net capital expenditure amounted to $65.6 million.
During the second quarter, WERN repurchased 2.1 million shares for $55 million. As of June 30, 2025, WERN had 1.8 million shares remaining under its share repurchase authorization.
WERN’s Outlook
For 2025, Werner now anticipates TTS truck growth to improve in the range of 1-4% (prior view: 1-5%). Net capital expenditure is now estimated to be in the range of $145-$185 million (prior view: $185-$235 million).
Under the TTS guidance, WERN continues to project dedicated revenues per truck per week to rise from breakeven to 3% in 2025. The full-year 2025 tax rate is anticipated to be in the range of 25%-26%.
Delta Air Lines (DAL - Free Report) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.
Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.
Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.
UAL's second-quarter 2025 adjusted earnings per share of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.
Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.
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Werner Q2 Earnings and Revenues Top Estimates, Decrease Year Over Year
Key Takeaways
Werner Enterprises, Inc. (WERN - Free Report) reported second-quarter 2025 earnings per share (EPS) of 11 cents, which surpassed the Zacks Consensus Estimate of 5 cents but declined 36% from the year-ago reported quarter figure.
Total revenues of $753.14 million beat the Zacks Consensus Estimate of $736.7 million but dipped 1% on a year-over-year basis dueto 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.
WERN reported adjusted operating income of $16.55 million, down 22% year over year. Adjusted operating margin of 2.2% declined 60 basis points from the year-ago reported quarter.
Werner Enterprises, Inc. Price, Consensus and EPS Surprise
Werner Enterprises, Inc. price-consensus-eps-surprise-chart | Werner Enterprises, Inc. Quote
Derek Leathers, WERN’s chairman and chief executive officer, stated, “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.”
Leathers further added, “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."
WERN’s Q2 Segmental Results
Revenues in the TTS segment fell 4% on a year-over-year basis to $517.64 million due to lower fuel surcharge revenues. Adjusted operating income of $12.77 million fell 45% year over year owing 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 by an increase in gains on sale of property and equipment. Adjusted operating margin of 2.5% declined 180 basis points.
Logistics’ revenues totaled $221.17 million, up 6% year over year. Adjusted operating income rose to $5.87 million in the second quarter from $1.69 million in the year-ago quarter. Adjusted operating margin increased 190 basis points year over year to 2.7%.
Liquidity
As of June 30, 2025, Werner had cash and cash equivalents of $51.42 million compared with $51.95 million at the prior-quarter end. Long-term debt (net of current portion) totaled $725 million at the end of the reported quarter compared with $640 million at the prior-quarter end.
The company generated $46 million of cash from operations in second-quarter 2025. Net capital expenditure amounted to $65.6 million.
During the second quarter, WERN repurchased 2.1 million shares for $55 million. As of June 30, 2025, WERN had 1.8 million shares remaining under its share repurchase authorization.
WERN’s Outlook
For 2025, Werner now anticipates TTS truck growth to improve in the range of 1-4% (prior view: 1-5%). Net capital expenditure is now estimated to be in the range of $145-$185 million (prior view: $185-$235 million).
Under the TTS guidance, WERN continues to project dedicated revenues per truck per week to rise from breakeven to 3% in 2025. The full-year 2025 tax rate is anticipated to be in the range of 25%-26%.
Currently, Werner carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.
Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.
Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.
UAL's second-quarter 2025 adjusted earnings per share of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.
Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.