Werner Enterprises Reports 7.7% Revenue Decline and 70.1% Drop in Net Income for Fiscal Year 2024

Werner Enterprises, Inc. reported a decline in financial performance for the fiscal year ending December 31, 2024, with total operating revenues of $3.03 billion, a decrease of 7.7% from $3.28 billion in 2023. The company's net income also fell significantly, dropping to $33.57 million from $112.29 million in the previous year, marking a 70.1% decline. The operating income decreased by 62.5% to $66.15 million, resulting in an operating margin of 2.2%, down from 5.4% in 2023. The decrease in revenues was attributed to a combination of reduced freight volumes and pricing pressures, particularly in the Truckload Transportation Services (TTS) segment, which saw a revenue drop of 7.5%.

In terms of operational metrics, Werner's TTS segment, which includes Dedicated and One-Way Truckload services, experienced a reduction in the average number of tractors in service, decreasing by 8.5% to 7,619. Despite this, the average revenue per tractor per week increased by 3.0%, indicating improved pricing discipline. The Werner Logistics segment also faced challenges, with revenues declining by 8.7% to $831.34 million, primarily due to decreased shipments and revenue per shipment. The company continues to focus on maintaining customer relationships, with its largest customer, Dollar General, accounting for 11% of total revenues.

Strategically, Werner has been active in acquisitions, having acquired Reed Transport Services and Baylor Trucking in 2022, which have contributed to expanding its logistics capabilities. The company remains open to further acquisitions that align with its growth strategy. Additionally, Werner has invested in technology and safety initiatives, including a new telematics solution and advanced collision mitigation systems, to enhance operational efficiency and driver safety.

Looking ahead, Werner anticipates a challenging but improving environment in 2025, with expectations of modest revenue growth driven by pricing discipline and operational improvements. The company plans to increase its TTS segment fleet size by 1% to 5% by the end of 2025, contingent on market conditions and driver availability. Werner's financial position remains strong, with available liquidity of $460 million and a commitment to continue paying dividends, reflecting its focus on shareholder returns amidst a competitive and evolving market landscape.