Werner Enterprises Inc. has recently released its 10-Q report, disclosing its operations in transporting truckload shipments of general commodities in the United States, Mexico, and internationally. The company operates a fleet of medium-to-long-haul vans, expedited fleet, regional short-haul fleet, and temperature-controlled fleet. Additionally, it provides non-asset-based transportation and logistics services, including truckload logistics, intermodal, and final mile deliveries.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), Werner Enterprises Inc. highlights that it has two reportable segments, TTS and Werner Logistics, operating in the truckload and logistics sectors of the transportation industry. The company's success is dependent on efficiently managing resources to deliver truckload transportation and logistics services to customers, with resource requirements varying with customer demand, subject to seasonal or general economic conditions.
The company's operating revenues for the three months ended June 30, 2025, decreased by 1.0% compared to the same period in the prior year. The TTS segment's operating revenues decreased by 3.6%, while Werner Logistics segment's revenues increased by 5.9%. However, Werner Enterprises Inc. reported an operating income of $66.3 million in the second quarter of 2025, a significant increase from $19.6 million in the second quarter of 2024, with its operating margin percentage rising to 8.8% in the second quarter of 2025 from 2.6% in the second quarter of 2024.
The company's trucking revenues, net of fuel surcharge, decreased by 1.6% in the second quarter of 2025 compared to the same period in 2024, primarily due to a decrease in the average number of tractors in service. Despite this, the TTS segment's operating income increased to $64.1 million in the second quarter of 2025 from $21.0 million in the second quarter of 2024, with an operating margin percentage of 12.4% in the second quarter of 2025 compared to 3.9% in the second quarter of 2024.
Werner Enterprises Inc. continues to adapt to changes in customer transportation requirements and expects its Dedicated average revenues per tractor per week, net of fuel surcharge, to remain flat or increase up to 3% in 2025 compared to 2024. The company also anticipates One-Way Truckload fleet average revenues per total mile, net of fuel surcharge, to remain flat or increase up to 3% in the third quarter of 2025 compared to the third quarter of 2024. As a result of these announcements, the company's shares have moved -2.1% on the market, and are now trading at a price of $26.04. For more information, read the company's full 10-Q submission here.
