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Werner Enterprises (WERN)
NASDAQ:WERN
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Werner Enterprises (WERN) AI Stock Analysis

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WERN

Werner Enterprises

(NASDAQ:WERN)

Rating:64Neutral
Price Target:
$31.00
▲(7.56% Upside)
Werner Enterprises' overall stock score is primarily influenced by its stable financial structure and positive earnings call highlights, such as sequential growth and a favorable legal ruling. However, challenges in profitability, cash flow management, and valuation concerns due to a high P/E ratio weigh on the score.
Positive Factors
Earnings
Werner reported 2Q25 adjusted EPS of $0.11, ahead of conservative estimates and Street consensus.
Legal Rulings
The Texas Supreme Court ruled in WERN’s favor, tossing a 2018 truck accident verdict, allowing Werner to reverse a $45.7 million liability in its financial statements.
Logistics Performance
Logistics outperformed expectations on new business wins and momentum to continue, with 90% of segment volumes increasing year-over-year.
Negative Factors
Margin Pressure
Current margin levels are not sustainable and more improvement is needed before excitement can build.
Market Conditions
The backdrop for trucking remains highly challenged with sluggish demand and slow orders from shippers.
Start-up Costs
Start-up costs and competitive pricing pressure are expected to limit profit upside for WERN in the near-term.

Werner Enterprises (WERN) vs. SPDR S&P 500 ETF (SPY)

Werner Enterprises Business Overview & Revenue Model

Company DescriptionWerner 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.
How the Company Makes MoneyWerner Enterprises generates revenue primarily through its Truckload segment, which accounts for a significant portion of its earnings by transporting goods for shippers under various contracts and spot market arrangements. The company also earns income from its Logistics segment by providing supply chain management services, including freight brokerage and dedicated contract carriage. Additionally, Werner Global Logistics contributes to revenue by managing international freight forwarding and logistics services. Key partnerships with major retailers and manufacturers enhance the company's revenue potential, while its investment in technology and fleet optimization helps improve operational efficiency and reduce costs, ultimately contributing to its profitability.

Werner Enterprises Earnings Call Summary

Earnings Call Date:Jul 28, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as sequential financial improvement, growth in the logistics segment, and a favorable legal ruling. However, challenges such as revenue decline, high insurance expenses, and pressure in the one-way truckload segment were also discussed.
Q2-2025 Updates
Positive Updates
Sequential Financial Improvement
The company saw sequential growth in revenue, TTS fleet, and one-way revenue per total mile. It also achieved gains from the sale of used equipment, TTS operating income, and logistics gross margin.
Dedicated Segment Growth
Dedicated revenue per truck per week increased 0.2% year-over-year and has increased 28 of the last 30 quarters. The implementation of new dedicated fleets signed last quarter is progressing well.
Logistics Division Success
Logistics revenue increased 6% year-over-year, driven by truckload brokerage and intermodal volumes. Logistics adjusted operating margin improved by 190 basis points.
Texas Supreme Court Ruling
The Texas Supreme Court ruled in Werner's favor, reversing a previous $90 million verdict. This led to the reversal of a $45.7 million net liability.
Share Repurchase Program
The company repurchased $55 million worth of shares at an average price of $26.05, providing accretive value to shareholders.
Negative Updates
Revenue Decline
Second quarter revenues totaled $753 million, down 1% year-over-year.
Insurance and Claims Expenses
Consolidated insurance and claims expense for the quarter, excluding the benefit from the Texas Supreme Court ruling, was $38.9 million, a drag on operating income.
Startup Costs Impact
Start-up costs for new dedicated fleets totaled approximately $1 million and were a headwind to TTS adjusted operating income margin by about 40 basis points.
One-Way Truckload Segment Pressure
One-Way trucking revenue net of fuel decreased by 3%, and average truck count declined 3.5% year-over-year.
Company Guidance
During the Werner Enterprises Second Quarter 2025 Earnings Conference Call, the company reported several key metrics indicating positive performance and growth. Revenue net of fuel surcharge grew year-over-year for the first time in six quarters, and there was sequential growth in revenue, TTS fleet size, One-Way revenue per mile, and logistics gross margin. The company also highlighted a 0.3% increase in TTS revenue per truck per week net of fuel and a 2.7% increase in One-Way revenue per total mile. Additionally, logistics revenue saw a 6% year-over-year increase. Werner's adjusted EPS was $0.11, with an adjusted operating margin of 2.2% and a TTS adjusted operating margin of 2.8% net of fuel surcharges. The company also achieved $55 million in share repurchases and reported a net debt to adjusted EBITDA ratio of 1.7x. Werner plans to continue investing in trucks, trailers, terminals, technology, and talent while managing equipment spend and leveraging a strong balance sheet.

Werner Enterprises Financial Statement Overview

Summary
Werner Enterprises maintains a stable balance sheet with a conservative leverage profile, but faces challenges in profitability and cash flow management. Declining profit margins and negative free cash flow impact overall financial health, necessitating strategic measures to improve efficiency and profitability.
Income Statement
62
Positive
Werner Enterprises shows moderate performance with consistent revenue generation, but recent periods indicate challenges in maintaining profit margins. The TTM shows a Gross Profit Margin of 11.04% and a Net Profit Margin of 0.60%, reflecting pressure on profitability. Revenue growth has been inconsistent, with a decline from 2023 to 2024. The EBIT and EBITDA margins have also been under strain, suggesting cost management issues.
Balance Sheet
70
Positive
The company maintains a stable balance sheet with a Debt-to-Equity Ratio of 0.45 in TTM, indicating a conservative approach to leverage. The Return on Equity is relatively low at 1.24% in TTM, reflecting limited efficiency in generating returns. However, the Equity Ratio of 48.10% suggests a solid capital structure with a significant equity base supporting its assets.
Cash Flow
55
Neutral
Cash flow management presents challenges, as indicated by negative Free Cash Flow in TTM, at -$114.42 million. The Operating Cash Flow to Net Income Ratio of 13.53 in TTM shows robust cash generation relative to net income, yet Free Cash Flow growth and net income alignment are areas for improvement. The company must address capital expenditure levels to enhance cash flow stability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.97B3.03B3.28B3.29B2.73B2.37B
Gross Profit598.77M338.63M423.65M521.59M477.93M460.89M
EBITDA343.73M372.10M480.82M616.54M517.92M479.45M
Net Income17.82M34.23M112.38M241.26M259.05M169.08M
Balance Sheet
Total Assets2.99B3.05B3.16B3.10B2.59B2.16B
Cash, Cash Equivalents and Short-Term Investments51.95M40.75M61.72M107.24M54.20M29.33M
Total Debt688.91M701.76M648.75M693.75M427.50M200.00M
Total Liabilities1.51B1.56B1.59B1.61B1.23B961.64M
Stockholders Equity1.44B1.46B1.53B1.44B1.33B1.20B
Cash Flow
Free Cash Flow-108.56M-84.06M-124.42M-58.54M-38.03M32.84M
Operating Cash Flow270.52M329.73M474.37M448.71M332.82M445.91M
Investing Cash Flow-219.67M-241.45M-434.94M-514.33M-397.30M-263.27M
Financing Cash Flow-55.48M-105.72M-87.07M118.03M89.67M-185.96M

Werner Enterprises Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.82
Price Trends
50DMA
28.19
Positive
100DMA
27.61
Positive
200DMA
31.02
Negative
Market Momentum
MACD
0.24
Negative
RSI
54.38
Neutral
STOCH
39.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WERN, the sentiment is Positive. The current price of 28.82 is above the 20-day moving average (MA) of 28.20, above the 50-day MA of 28.19, and below the 200-day MA of 31.02, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 54.38 is Neutral, neither overbought nor oversold. The STOCH value of 39.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WERN.

Werner Enterprises Risk Analysis

Werner Enterprises disclosed 18 risk factors in its most recent earnings report. Werner Enterprises reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Werner Enterprises Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$4.28B34.304.20%1.56%2.20%7.86%
69
Neutral
$7.16B42.952.33%1.59%-2.54%144.49%
69
Neutral
$1.66B10.8312.50%0.66%-6.42%25.72%
64
Neutral
$1.71B33.283.65%1.97%-6.43%-13.76%
64
Neutral
$10.73B15.657.61%2.01%2.80%-14.92%
53
Neutral
$2.64B-27.96%46.41%-1113.24%
49
Neutral
$647.91M-4.42%0.95%-16.42%-49.44%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WERN
Werner Enterprises
28.82
-6.56
-18.54%
HTLD
Heartland Express
8.58
-3.10
-26.54%
KNX
Knight Transportation
44.11
-5.44
-10.98%
ARCB
ArcBest
74.43
-24.09
-24.45%
SNDR
Schneider National
24.78
-1.50
-5.71%
RXO
RXO, Inc.
16.36
-10.36
-38.77%

Werner Enterprises Corporate Events

Business Operations and Strategy
Werner Enterprises to Attend Morgan Stanley Conference
Neutral
Aug 21, 2025

On August 21, 2025, Werner Enterprises announced its participation in the Morgan Stanley 13th Annual Laguna Conference scheduled for September 10, 2025, in Laguna Beach, California. The event will feature a fireside chat presentation by key executives, and a live webcast will be available on the company’s website. This participation underscores Werner’s commitment to engaging with investors and stakeholders, potentially enhancing its visibility and industry positioning.

Stock BuybackDividends
Werner Enterprises Announces New Stock Repurchase Program
Positive
Aug 11, 2025

On August 7, 2025, Werner Enterprises‘ Board of Directors approved a new stock repurchase program authorizing the repurchase of up to 5 million shares, replacing the previous program with 1.8 million shares remaining. Additionally, the Board declared a regular quarterly cash dividend of $0.14 per share, to be paid on October 22, 2025, continuing a tradition of quarterly dividends since 1987.

Business Operations and Strategy
Werner Enterprises to Attend Key Investment Conferences
Neutral
Aug 5, 2025

On August 5, 2025, Werner Enterprises announced its participation in two upcoming investment conferences: the Susquehanna Virtual Industrials, Energy & Travel Conference on August 8, 2025, and the Deutsche Bank 2025 Transportation Conference on August 12, 2025. The participation in these conferences, which includes investor meetings and a fireside chat presentation, is part of Werner’s efforts to engage with investors and stakeholders, potentially impacting its market positioning and stakeholder relations.

Legal ProceedingsFinancial Disclosures
Texas Supreme Court Favors Werner Enterprises in Verdict
Positive
Jun 27, 2025

On June 27, 2025, the Texas Supreme Court ruled in favor of Werner Enterprises by reversing and dismissing a $90 million jury verdict from 2018 related to a 2014 truck accident in Texas. The court determined that Werner and its driver were not at fault, attributing the accident solely to the other vehicle’s unexpected entry into oncoming traffic. This decision allows Werner to reverse significant financial liabilities in its 2025 financial statements, alleviating potential implications for the company’s operations and industry standing.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 05, 2025