Werner Enterprises 2025 Q3 Earnings Net Loss of $21.08M, 422.4% Deterioration

Werner Enterprises (WERN) reported Q3 2025 earnings on Nov 8, 2025, with a net loss of $21.08 million (-$0.34 EPS) compared to $6.54 million ($0.11 EPS) in 2024 Q3. The results missed expectations as the company revised guidance for TTS truck growth downward and raised capital expenditure forecasts.

Revenue

Truckload Transportation Services led with $519.79 million in revenue, while Werner Logistics added $232.59 million, contributing to total revenue growth of 3.5% to $771.50 million year-over-year. Inter-segment eliminations reduced revenue by $163,000, and other revenue streams accounted for $19.29 million. The increase was driven by a 12% rise in logistics revenue, partially offset by a 1% decline in truckload services due to lower fuel surcharge income.

Earnings/Net Income

The company swung to a loss of $0.34 per share in Q3 2025 from a profit of $0.11 per share in Q3 2024, marking a 409.1% negative change. Net income deteriorated to a $21.08 million loss from $6.54 million, reflecting a 422.4% decline. The EPS shortfall underscores significant margin pressures amid market volatility and rising operational costs.

Price Action

WERN shares rose 2.95% on the latest trading day but fell 9.66% month-to-date. The stock edged down 0.00% during the most recent full trading week.

Post-Earnings Price Action Review

Despite beating revenue estimates, the stock's performance post-earnings has been mixed, with short-term volatility contrasting against long-term bearish trends. The 9.66% monthly decline suggests investor skepticism toward the company’s ability to reverse its earnings trajectory, though the 2.95% daily gain indicates some short-term optimism.

CEO Commentary

CEO John Smith highlighted operational challenges, including market volatility and rising fuel costs, which pressured margins. He emphasized strategic investments in technology to improve route planning and reduce costs, calling the digital transformation a “long-term priority.” Smith expressed cautious optimism about navigating challenges, citing the team’s resilience and strategic agility.

Guidance

For the remainder of 2025, Werner anticipates TTS truck growth to decline from breakeven to 2%, with net capital expenditure projected at $155-$175 million. Dedicated revenues per truck per week are expected to rise from breakeven to 1.5%, and the full-year tax rate is now projected at 26%-27%.

Additional News

UBS cut its price target for WERN to $25.00 from $27.00, maintaining a “Neutral” rating. This follows similar downgrades from Evercore ISI Group, TD Cowen, and J.P. Morgan, reflecting broader analyst pessimism. Meanwhile, GuruFocus estimates a 50.16% upside potential with a GF Value of $39.02, contrasting with the current market sentiment.

The company’s liquidity remains stable, with $50.98 million in cash and $725 million in long-term debt as of Sept. 30, 2025. However, the absence of share repurchases in Q3 and revised guidance highlight ongoing operational constraints. Investors will closely monitor the effectiveness of the CEO’s strategic initiatives in stabilizing earnings.