Werner Posts Q4 Declines in Profit, Revenue
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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.
“While the freight market continues to present challenges, fourth quarter provided early signs of an improving environment,” Werner CEO Derek Leathers said. “One-Way revenue per total mile increased year-over-year for the second consecutive quarter. Peak season was better than expected with peak volumes that were two times last year at higher rates.”
Leathers continued, “Dedicated average fleet size grew sequentially, and we are proud of the numerous Carrier of the Year awards during 2024 from Dedicated customers. Our Logistics division reported adjusted operating income that improved sequentially and represented the best quarter of the year.”
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.
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%.
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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.
