Werner Q2 Earnings Lifted by Texas Nuclear Verdict Reversal
[Stay on top of transportation news: .]
A pair of favorable financial outcomes tied to legal and business proceedings helped lift Werner Enterprises’ bottom-line results in the second quarter of 2025, the company reported July 29.
The Omaha, Neb.-based freight and logistics company posted net income attributable to itself of $44.1 million, or 72 cents a diluted share, for the three months ending June 30. That compared with $9.47 million, 15 cents, during the same time the previous year. Total revenue decreased by 1% to $753.1 million from $760.8 million.
The increase in net income was primarily driven by a favorable ruling by the Texas Supreme Court that reversed a $45.7 million net liability tied to a yearslong legal dispute. The company also reported the reversal of a $7.9 million liability related to an earnout provision for the earlier acquisition of Baylor Trucking. And the logistics segment reported growth that helped spur overall growth.
The overall Q2 jump in profit represented a 366% year-over-year increase.
“We generated solid results during the second quarter and are encouraged by the sequential improvement in financial performance relative to Q1,” Werner CEO Derek Leathers said during a call with investors. “The freight marketplace faces ongoing uncertainty related to shifting global trade policy and regulatory issues. We remain focused on providing superior and diversified solutions to our customers by investing in our future through technology and structurally improving our business with a commitment to delivering value.”
The company said its Werner Drive business improvement strategy remained a focus as it continued to pursue core business growth, operational excellence and capital efficiency. Leathers noted that key priorities on which leadership has been focused began to bear fruit during the quarter.
Tim Haynes of Penske Transportation Solutions discusses how AI is being applied to fleet management, from predictive maintenance to route optimization. Tune in above or by going to .
“Our professional drivers have greater technology tools, improving their situational awareness while on the road, and providing mobile ease of access to important information when off the road,” Leathers said. “I’m proud of the efforts of our technology team and the willingness of our associates to lead. These changes are benefiting all of our stakeholders, including our customers, while further securing our IT infrastructure and cloud environments.”
Leathers stressed that the company is focused on disciplined and return-oriented investments. Those efforts have included share repurchase authorization that allowed the company to buy back $55 million worth of shares. He also noted that Werner’s strong balance sheet is helping it navigate tariffs.
“We are generating positive cash flow and, supporting this, we are maximizing value on the sale of used equipment, tightening our full-year guide on equipment gains to the upper end of the prior range,” Leathers said. “Regarding [capital expenditures], we’ll continue to invest in the five Ts: trucks, trailers, terminals, technology and talent. This year, however, we decided to moderate our equipment spend. With a modern and low-age fleet, we have assets in place to support growth through the rest of this year.”
Segment Breakdown
- Werner’s Truckload Transportation Services segment revenue for Q2 decreased 2% to $517.6 million from $537.1 million, while operating income increased to $64.1 million from $21 million. These results were driven by an $8.5 million increase in insurance and claims expense net the impact of fuel surcharges and expense associated with implementation of new dedicated capacity. This was partially offset by an increase in gains on the sale of property and equipment. The company’s average revenue per truck per week increased 0.3% during the quarter.
- Logistics segment revenue increased 6% to $221.2 million from $208.9 million, as operating income increased 246% to $4.3 million from $550,000.
- Truckload logistics revenue increased 9% due to an increase in shipments, which lifted gross margin expansion.
- Intermodal revenue increased 3% to $700,000 due to an increase in shipments that was partially offset by a decrease in revenue per shipment.
- Final-mile revenue decreased 10%.
Werner ranks No. 18 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and is No. 8 on the truckload sector list. Also, Werner ranks No. 32 on the TT Top 100 list of the largest logistics companies.
Want more news? Listen to today's daily briefing below or go here for more info:
