Werner Posts Q4 Declines in Profit, Revenue
[Stay on top of transportation news: Get TTNews in your inbox.]
Werner Enterprises reported year-over-year income and revenue declines during the fourth quarter of 2024.
The Omaha, Neb.-based freight carrier and logistics company Feb. 6 posted net income attributable to itself of $11.9 million, or 19 cents a diluted share, for the three months ending Dec. 31. That compared with $23.6 million, 37 cents, during the same time the previous year. Total revenue decreased by 8% to $754.7 million compared with $821.9 million.
“There’s a saying that everyone has a plan until they get punched in the mouth,” Werner CEO Derek Leathers said during a call with investors. “In 2024, it’s pretty clear that the whole industry took it on the chin as everyone continued to fight through what many have stated as the worst freight recession in their careers.”
Leathers added that supply and demand imbalances resulted in a second consecutive year of depressed rate levels. This was coupled with ongoing inflationary cost pressures and lower resale values for used equipment. He noted that capacity has been leaving the market slowly but that he also has seen positive signs emerge throughout the year indicating improvement.
“One-way rates turned favorable in the second half, and West Coast imports remained strong,” Leathers said. “Peak season was better than expected, with higher rates at double the peak volume versus last year. Post-peak season, we have seen additional green shoots that fuel optimism, such as tender rejection rates that remain seasonally elevated.
“Spot rates are off the bottom and at a two-year high. Customer sentiment remains positive, while consumers remain resilient.”
Werner noted in the earnings report that it incurred $49.5 million of insurance and claims expense. That included $19 million resulting from unfavorable development on large-dollar claims. The company attributed this to an ongoing rise in verdicts and litigation settlements across the industry. This despite its own its safety metrics remaining near record lows.
“During this downturn, we have focused on controlling what we can by investing in ourselves and making strategic decisions that position us to excel in the future,” Leathers said. “Our portfolio of solutions is more diversified now than at any time in our history. We have invested in maintaining a modern fleet, made operational improvements toward a leaner, more nimble organization through discipline around cost, operational innovation and M&A integration.”
Werner’s overall Q4 results missed expectations from investment analysts on Wall Street, who had been looking for EPS of 21 cents per share and quarterly revenue of $772 million, according to Zacks Consensus Estimate.
TD Cowen credited the earnings miss to the insurance claims.
“Off improved bid cycle, dedicated pricing to remain stable and one-way uptick to intensify in 2H25 and into ’26 as expected,” Cowen analyst Jason Seidl wrote in a report. “Structural cost out and back-half weighted used equipment price recovery to support margins. Broad tariff overhang remains though direct cross-border exposure is limited.”
For Q4, revenue in Werner’s Truckload Transportation Services segment decreased 9% to $527.3 million compared with $580.1 million the previous year. Operating income fell 66% to $11.7 million compared with $34.3 million. The company noted that the pipeline opportunities remained strong despite a highly competitive environment.
The company’s Dedicated operations experienced a net reduction in average trucks of 7.7% year over year. One-Way Truckload volumes were seasonally stronger than prior-year levels with more than double the number of premium-rated peak shipments along with improved rates, Werner said.
Host Seth Clevenger and TT's Connor Wolf discuss CES 2025 and the emerging technologies that could push the trucking industry forward. Tune in above or by going to RoadSigns.ttnews.com.
Revenue in the Logistics segment decreased 6% to $213.2 million compared with $227 million the prior year. Operating income decreased 73% to $1.24 million from $4.58 million. Truckload logistics revenue fell 6% due to a decline in revenue per shipment and a decrease in shipments. Brokerage volumes decreased year over year while power-only volumes increased over 21%.
For Q4, revenue in the Intermodal segment increased 2%, driven by an increase in shipments that was partially offset by lower revenue per shipment. Final-mile revenue decreased 12% because of lower volumes in the furniture and appliance verticals, Werner said.
For the full year, Werner reported net income of $34.2 million, 55 cents, on revenue of $3.03 billion, compared with net income of $112.4 million, $1.76 a share, on revenue of $3.28 billion in 2023.
Werner ranks No. 16 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 30 on the TT Top 100 list of the largest logistics companies.
Werner’s overall Q4 results missed expectations from investment analysts on Wall Street, who had been looking for EPS of 21 cents per share and quarterly revenue of $772 million, according to Zacks Consensus Estimate.
“The fourth quarter included several puts and takes that are more one-time in nature,” Leathers said. “While our fourth-quarter insurance expense was elevated due to unfavorable development on large-dollar claims, our safety metrics remain near record low levels. During this downturn, we have focused on controlling what we can by investing in ourselves and making strategic decisions that position us favorably for creating long-term value for our shareholders as conditions improve.”
For Q4, revenue in Werner’s Truckload Transportation Services segment decreased 9% to $527.3 million compared with $580.1 million the previous year. Operating income fell 66% to $11.7 million compared with $34.3 million. The company noted that the pipeline opportunities remained strong despite a highly competitive environment.
The company’s Dedicated operations experienced a net reduction in average trucks of 7.7% year over year. One-Way Truckload volumes were seasonally stronger than prior-year levels with more than double the number of premium-rated peak shipments along with improved rates, Werner said.
Want more news? Listen to today's daily briefing above or go here for more info
Revenue in the Logistics segment decreased 6% to $213.2 million compared with $227 million the prior year. Operating income decreased 73% to $1.24 million from $4.58 million. Truckload logistics revenue fell 6% due to a decline in revenue per shipment and a decrease in shipments. Brokerage volumes decreased year over year while power-only volumes increased over 21%.
For Q4, revenue in the Intermodal segment increased 2%, driven by an increase in shipments that was partially offset by lower revenue per shipment. Final-mile revenue decreased 12% because of lower volumes in the furniture and appliance verticals, Werner said.
For the full year, Werner reported net income of $34.2 million, 55 cents, on revenue of $3.03 billion, compared with net income of $112.4 million, $1.76 a share, on revenue of $3.28 billion in 2023.
Werner ranks No. 16 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 30 on the TT Top 100 list of the largest logistics companies.
