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1. Company Snapshot

1.a. Company Description

Werner Enterprises, Inc., a transportation and logistics company, engages in transporting truckload shipments of general commodities in interstate and intrastate commerce in the United States, Mexico, and internationally.It operates through Truckload Transportation Services and Werner Logistics segments.The Truckload Transportation Services segment operates medium-to-long-haul van fleet that transports various consumer nondurable products and other commodities in truckload quantities using dry van trailers; the expedited fleet, which offers time-sensitive truckload services using driver teams; regional short-haul fleet that provides comparable truckload van service in the United States; and temperature controlled fleet, which offers truckload services for temperature sensitive products using temperature-controlled trailers.


It transports retail store merchandise, consumer products, food and beverage products, and manufactured products.The Werner Logistics segment provides non-asset-based transportation and logistics services, including truck brokerage; logistics management services and solutions; rail transportation through alliances with rail and drayage providers; and residential and commercial deliveries of large or heavy items using liftgate straight truck.As of December 31, 2021, the company had a fleet of 8,340 trucks, which included 8,050 company-operated, as well as 290 owned and operated by independent contractors;27,225 company-owned trailers that comprised dry vans, flatbeds, temperature-controlled, and other trailers; and 55 intermodal drayage trucks.


Werner Enterprises, Inc.was founded in 1956 and is headquartered in Omaha, Nebraska.

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1.b. Last Insights on WERN

Werner Enterprises' recent performance was positively driven by growth in its Logistics segment, which maintained double-digit topline growth. The company also secured new fleet awards, supporting dedicated revenue growth. Additionally, Werner's commitment to sustainability was highlighted through its 2025 Sustainability Brief, showcasing progress in fleet decarbonization and operational excellence. The company also received recognition for its military-friendly employer status and was honored with the Lee Anderson Veteran and Military Spouse Employment Award.

1.c. Company Highlights

2. Werner Enterprises' Q3 2025 Earnings Report: A Mixed Bag

Werner Enterprises reported revenues of $771 million, up 3% year-over-year, with adjusted operating income of $10.9 million and an adjusted operating margin of 1.4%. However, adjusted EPS was negative $0.03, missing estimates of $0.15. The company's Truckload segment revenue was $520 million, down 1% year-over-year, while Logistics revenue increased 12% to $233 million.

Publication Date: Nov -18

📋 Highlights
  • Dedicated Fleet Growth Momentum: Secured new fleet awards with a robust pipeline, driving momentum in new end markets (30% of Q3 revenues from Logistics).
  • Logistics Double-Digit Growth: Revenue surged 12% YoY, with 5% sequential growth, driven by 13% increase in Truckload Logistics and gross margin expansion.
  • Cost Savings Progress: Achieved $36 million of $45 million target in savings, 80% of goal, with $725 million debt flat sequentially and $695 million liquidity.
  • Financial Performance: Q3 revenues rose 3% ($771 million), adjusted EPS at -$0.03, and adjusted operating margin of 1.4% despite higher tax rate impacts.
  • Market Outlook Adjustments: Revised full-year fleet guidance to -2% to flat due to One-Way fleet declines, while Dedicated revenue per truck grew 1.3% YoY.

Segment Performance

The Dedicated segment continued to show momentum, with revenue per truck per week increasing 1.3% year-over-year. The Logistics segment also performed well, with revenue growth of 12% and gross margin expansion. However, the One-Way trucking segment faced challenges, with revenue per total mile increasing for the fifth consecutive quarter, but still below expectations.

Operational Highlights

Werner Enterprises continued to focus on operational excellence, with a culture of safety and service driving improvements in DOT preventable accidents per million miles. The company's cost savings program is also progressing well, with $36 million in savings achieved towards a goal of $45 million.

Outlook and Guidance

The company's near-term market outlook is cautious, with demand in Q3 below normal seasonality. However, Werner expects improvement in One-Way trucking demand through September and October. The company has adjusted its full-year fleet guidance range to down 2% to flat, due to declines in the One-Way fleet. Analysts estimate next year's revenue growth at 4.7%.

Valuation Metrics

Werner Enterprises' current valuation metrics are mixed, with a P/E Ratio of 57.13 and a P/S Ratio of 0.47. The company's Net Debt / EBITDA ratio is 1.86, indicating a relatively healthy debt position. The EV/EBITDA ratio is 5.78, which is reasonable for the industry. As Derek Leathers noted, "the industry needs a lot of price to get back on a favorable margin trajectory," which may impact Werner's future performance.

Conclusion

Overall, Werner Enterprises' Q3 2025 earnings report was a mixed bag, with revenue growth and operational improvements offset by EPS misses. The company's outlook is cautious, but analysts expect revenue growth in the coming year. Werner's valuation metrics are mixed, reflecting the challenges and opportunities in the trucking industry.

3. NewsRoom

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Military Times Ranks Werner No. 41 on 2025 Best for Vets Employers List

Dec -04

Source: businesswire.com

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Werner Enterprises, Inc. (WERN) Presents at UBS Global Industrials and Transportation Conference Transcript

Dec -02

Source: seekingalpha.com

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Werner® Publishes 2025 Sustainability Brief, Highlighting Progress in Fleet Decarbonization and Operational Excellence

Nov -24

Source: businesswire.com

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Dragonfly Energy to Supply Werner Enterprises with Advanced Idle-Reduction Power Systems

Nov -24

Source: globenewswire.com

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Werner® Wins Prestigious Lee Anderson Veteran and Military Spouse Employment Award From Hiring Our Heroes

Nov -21

Source: businesswire.com

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Werner® Earns Top Military Friendly® Rankings for 2026, Upholding Commitment to Veterans and Military Families

Nov -12

Source: businesswire.com

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Werner Earnings Fall Short of Estimates in Q3, Revenues Increase Y/Y

Nov -06

Source: zacks.com

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Werner Enterprises to Participate in Four Investment Conferences

Nov -04

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.66%)

6. Segments

Truckload Transportation Services

Expected Growth: 4%

Werner Enterprises' Truckload Transportation Services growth is driven by increasing demand for e-commerce and online shopping, resulting in higher freight volumes. Additionally, the company's investments in digitalization, such as its Werner EDGE platform, have improved operational efficiency and attracted more customers. Furthermore, the ongoing driver shortage has led to increased pricing power for carriers like Werner, contributing to revenue growth.

Werner Logistics

Expected Growth: 3%

Werner Logistics' 3% growth is driven by increasing demand for dedicated transportation services, strategic fleet expansion, and investments in digital freight matching technology. Additionally, the company's focus on operational efficiency, cost savings, and customer retention also contribute to its growth momentum.

Other

Expected Growth: 2%

Werner Enterprises' 'Other' segment growth is driven by increased demand for logistics and transportation services, expansion of its final mile delivery network, and strategic acquisitions. Additionally, growth in e-commerce and the need for efficient supply chain management solutions also contribute to this segment's growth.

Inter-segment Eliminations

Expected Growth: 0%

Werner Enterprises' Inter-segment Eliminations with 0% growth is driven by stagnant freight volumes, flat fuel prices, and stable operating expenses, indicating a neutral market environment. The lack of growth is also attributed to the company's diversified business model, which offsets gains in one segment with losses in another, resulting in no net change.

Corporate

Expected Growth: 1%

Werner Enterprises, Inc.'s corporate segment growth is driven by increasing demand for logistics and transportation services, strategic acquisitions, and investments in technology and digitalization. Additionally, the company's focus on operational efficiency, cost savings, and customer relationships contributes to its growth. Furthermore, the rising e-commerce trend and growing need for supply chain management solutions also support the segment's growth.

7. Detailed Products

Truckload Services

Werner Enterprises provides truckload services, offering one-way, round-trip, and dedicated truckload solutions to meet customers' unique needs.

Dedicated Services

Werner's dedicated services offer customized transportation solutions, including dedicated fleets, warehousing, and distribution services.

Intermodal Services

Werner's intermodal services combine truck and rail transportation to provide efficient and cost-effective solutions for long-haul shipments.

Logistics Services

Werner's logistics services provide comprehensive supply chain management solutions, including freight brokerage, warehousing, and distribution services.

Final Mile Delivery

Werner's final mile delivery services provide last-mile delivery solutions for businesses, including same-day, next-day, and two-day delivery options.

Freight Brokerage

Werner's freight brokerage services connect shippers with qualified carriers, providing access to a vast network of transportation providers.

8. Werner Enterprises, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Werner Enterprises, Inc. is medium due to the availability of alternative transportation services, but the company's strong brand and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to Werner Enterprises, Inc.'s large customer base and diversified revenue streams, making it difficult for individual customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on fuel suppliers, but Werner Enterprises, Inc.'s large scale of operations and long-term contracts mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the trucking industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the trucking industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.80%
Debt Cost 6.80%
Equity Weight 70.20%
Equity Cost 8.25%
WACC 7.82%
Leverage 42.45%

11. Quality Control: Werner Enterprises, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.57$

Current Price

29.57$

Potential

-0.00%

Expected Cash-Flows