Third Quarter 2025 Highlights (all metrics compared to third quarter 2024)

• Total revenues of $771.5 million, increased $25.8 million, or 3%
• Operating loss was $13.0 million compared to $17.6 million operating income in the prior year; non-GAAP adjusted operating income of $10.9 million, down $10.7 million, or 50%
• Operating margin of (1.7)%, decreased 410 basis points from 2.4%; non-GAAP adjusted operating margin of 1.4%, decreased 150 basis points from 2.9%
• Diluted loss per share was $0.34 compared to diluted earnings per share of $0.11 in the prior year; non-GAAP adjusted diluted loss per share was $0.03 compared to non-GAAP adjusted diluted earnings per share of $0.15 in the prior year

Werner Enterprises, Inc. (Nasdaq: WERN), a premier transportation and logistics provider, today reported results for the third quarter ended September 30, 2025.

Third quarter results reflected a more challenging freight environment, with mixed results across our business segments. Dedicated revenue grew both sequentially and year-over-year, supported by recent new fleet awards. Logistics maintained its double-digit topline growth while continuing to manage operating expenses effectively, although gross margin was pressured by a change in business mix. In One-Way Truckload, revenue per total mile rose for the fifth consecutive quarter, but reduced miles per truck and elevated operating costs impacted performance. Despite the softer operating backdrop, we remain focused on cost discipline, technology-driven efficiency, and capital allocation, while maintaining strong liquidity and a modern fleet. These efforts continue to support our long-term strategy and positive operating cash flow.

Total revenues for the quarter were $771.5 million, an increase of $25.8 million compared to the prior year, due to an increase in Logistics revenues of $25.8 million, or 12%, partially offset by a $3.0 million, or 1%, decrease in Truckload Transportation Services (“TTS”) revenues. A portion of the TTS revenue decline was due to $3.3 million lower fuel surcharge revenues. Net of trucking fuel surcharge revenues, consolidated total revenues increased $29.1 million, or 4%, during the quarter.

Operating loss of $13.0 million decreased $30.6 million, or 174%, while operating margin of (1.7)% declined 410 basis points from 2.4%. On a non-GAAP basis, adjusted operating income of $10.9 million decreased $10.7 million, or 50%. Adjusted operating margin of 1.4% declined 150 basis points from 2.9%.

In October 2025, we entered into an agreement for $18.0 million to settle a class action lawsuit with respect to claims brought by a group of plaintiffs alleging unpaid wages, unauthorized deductions, and other items. An accrual for this settlement was recorded as of September 30, 2025, and is included in salaries, wages and benefits expense. We also incurred legal fees of $3.4 million related to this litigation during third quarter 2025, which is recorded in other operating expenses. These items are included as non-GAAP adjustments to operating income during the quarter.

TTS had an operating loss of $13.8 million compared to $21.6 million operating income in the prior year, and TTS had non-GAAP adjusted operating income of $9.0 million, a decrease of $15.5 million. Logistics had operating income of $3.0 million compared to $0.3 million operating loss in the prior year, and Logistics had non-GAAP adjusted operating income of $4.2 million, an increase of $3.4 million. Corporate and Other (including driving schools) operating loss improved $1.5 million.

Net interest expense of $8.6 million decreased $0.7 million primarily due to a decrease in average interest rates, partially offset by an increase in average debt outstanding. The effective income tax rate during the quarter decreased to 3.8%, compared to 23.5% in third quarter 2024 due to differences in discrete income tax items.

During third quarter 2025 we had net losses on our strategic investments of $0.3 million compared to net gains of $0.3 million in the prior year. Consistent with prior reporting, increases or decreases to the values of these strategic investments are adjusted out for determining non-GAAP adjusted net income (loss) and non-GAAP adjusted earnings (loss) per share.

Net loss attributable to Werner was $20.6 million compared to $6.6 million net income attributable to Werner in the prior year. On a non-GAAP basis, adjusted net loss attributable to Werner was $2.0 million compared to $9.1 million adjusted net income attributable to Werner in the prior year. Diluted loss per share was $0.34 compared to diluted earnings per share of $0.11 in the prior year. On a non-GAAP basis, adjusted diluted loss per share was $0.03 compared to adjusted diluted earnings per share of $0.15 in the prior year.

Key Consolidated Financial Metrics

Truckload Transportation Services (TTS) Segment

• Revenues of $519.8 million decreased $3.0 million; trucking revenues, net of fuel surcharge, remained flat year over year
• Operating loss of $13.8 million compared to $21.6 million operating income in the prior year; non-GAAP adjusted operating income of $9.0 million decreased $15.5 million mostly due to a $9.2 million increase in insurance and claims expense, net impact of change in fuel (surcharges net of fuel expense), and expense associated with implementation of new fleets in Dedicated
• Operating margin of (2.7)% decreased 680 basis points from 4.1%; non-GAAP adjusted operating margin, net of fuel surcharge, of 1.9% decreased 340 basis points from 5.3%, of which 250 basis points of decline is from the increase in insurance and Dedicated start-ups
• Average segment trucks in service totaled 7,503, an increase of 89 trucks year over year, or 1.2%, while segment trucks at quarter end remained flat
• Dedicated unit trucks at quarter end totaled 4,965, or 67% of the total TTS segment fleet, compared to 4,905 trucks, or 66%, a year ago
• Average revenues per truck per week, net of fuel surcharge decreased 0.7% for TTS

During third quarter 2025, Dedicated experienced a net increase in average trucks in service, up 56 trucks or 1.2% year over year, and up 10 trucks sequentially. Dedicated quarter-end fleet size was up 1.2% year over year and up 1.5% sequentially driven by implementations of new fleets won in Dedicated in the first quarter 2025. Dedicated average revenues per truck per week, net of fuel surcharge, increased 1.3%. One-Way revenues per total mile, net of fuel surcharge, increased 0.4% year over year.

Key Truckload Transportation Services Segment Financial Metrics

Werner Logistics Segment

• Revenues of $232.6 million increased $25.8 million, or 12%
• Operating income of $3.0 million compared to $0.3 million operating loss in the prior year; non-GAAP adjusted operating income of $4.2 million increased $3.4 million, or 418%
• Operating margin of 1.3% increased 150 basis points from (0.2%); non-GAAP adjusted operating margin of 1.8% increased 140 basis points from 0.4%

Truckload Logistics revenues (75% of Logistics revenues) increased $19.8 million, or 13%, driven by an increase in shipments of 12%. Revenue from our PowerLink offering was up 26% while traditional brokerage recorded mid-single digit revenue growth. Higher volume drove the majority of the revenue increase.

Intermodal revenues (15% of Logistics revenues) increased $6.4 million, or 23%, due to 22% more shipments, and relatively stable revenue per shipment.

Final Mile revenues (10% of Logistics revenues) decreased $0.3 million, or 1%, but increased 4% sequentially.

Key Werner Logistics Segment Financial Metrics

Cash Flow and Capital Allocation

Cash flow from operations in third quarter 2025 was $44.1 million compared to $61.0 million in third quarter 2024, a decrease of 28%.

Net capital expenditures in third quarter 2025 were $35.2 million compared to $87.9 million in third quarter 2024, a decrease of 60%. We continue to prioritize business reinvestment in safe and modern equipment, including trucks and trailers, as well as in technology, our terminal network and our talent. The average ages of our truck and trailer fleets were 2.5 years and 5.5 years, respectively, as of September 30, 2025. Maintaining a low-age, modern fleet improves our driver experience and results in more effective equipment maintenance, safety and fuel efficiency.

Gains on sales of property and equipment in third quarter 2025 were $4.5 million, or $0.06 per share, compared to $2.6 million, or $0.03 per share, in third quarter 2024. Year over year, we sold 66% and 78% fewer tractors and trailers, respectively, and realized much higher average unit gains on tractors and trailers. Gains on sales of property and equipment are reflected as a reduction of other operating expenses in our income statement.

We did not repurchase shares of our common stock in third quarter 2025. As of September 30, 2025, we had 5.0 million shares remaining under our new share repurchase authorization approved by the Board of Directors in August 2025.

As of September 30, 2025, we had $51 million of cash and cash equivalents and $1.4 billion of stockholders’ equity. Total debt outstanding was $725 million at September 30, 2025. After considering letters of credit issued, we had available liquidity consisting of cash and cash equivalents and available borrowing capacity as of September 30, 2025 of $695 million.

2025 Guidance Metrics and Assumptions

The following table summarizes our updated 2025 guidance assumptions:

Call Information

Werner Enterprises, Inc. will conduct a conference call to discuss third quarter 2025 earnings today beginning at 4:00 p.m. CT. The news release, live webcast of the earnings conference call, and accompanying slide presentation will be available at werner.com in the “Investors” section under “News & Events” and then “Events Calendar.” To participate in the conference call, please dial (844) 701-1165 (domestic) or (412) 504-9718 (international). Please mention to the operator that you are dialing in for the Werner Enterprises call.

A replay of the conference call will be available on October 30, 2025 at approximately 6:00 p.m. CT through November 30, 2025 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and using the access code 1151015. A replay of the webcast will also be available at werner.com in the “Investors” section under “News & Events” and then “Events Calendar.”

About Werner Enterprises

Werner Enterprises, Inc. (Nasdaq: WERN) delivers superior truckload transportation and logistics services to customers across the United States, Mexico and Canada. With 2024 revenues of $3.0 billion, a modern truck and trailer fleet, over 12,500 talented associates and our innovative Werner EDGE^® technology, we are an essential solutions provider for customers who value the integrity of their supply chain and require safe and exceptional on-time service. Werner® provides Dedicated and One-Way Truckload services as well as Logistics services that include truckload brokerage, freight management, intermodal and final mile. Werner embraces inclusion as a core value and manages key risks and opportunities through a balanced sustainability strategy.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on information presently available to the Company’s management and are current only as of the date made. Actual results could also differ materially from those anticipated as a result of a number of factors, including, but not limited to, those discussed in the Company’s latest available Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q.

For those reasons, undue reliance should not be placed on any forward-looking statement. The Company assumes no duty or obligation to update or revise any forward-looking statement, although it may do so from time to time as management believes is warranted or as may be required by applicable securities law. Any such updates or revisions may be made by filing reports with the U.S. Securities and Exchange Commission (“SEC”), through the issuance of press releases or by other methods of public disclosure.

Consolidated Financial Information

Segment Financial and Operating Statistics Information

Non-GAAP Financial Measures and Reconciliations

To supplement our financial results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we provide certain non-GAAP financial measures as defined by the SEC Regulation G, including non-GAAP adjusted operating income; non-GAAP adjusted operating margin; non-GAAP adjusted operating margin, net of fuel surcharge; non-GAAP adjusted net income (loss) attributable to Werner; non-GAAP adjusted diluted earnings (loss) per share; non-GAAP adjusted operating revenues, net of fuel surcharge; non-GAAP adjusted operating revenues, less purchased transportation expense; non-GAAP adjusted operating expenses; non-GAAP adjusted operating expenses, net of fuel surcharge; non-GAAP adjusted operating ratio; and non-GAAP adjusted operating ratio, net of fuel surcharge. We believe these non-GAAP financial measures provide a more useful comparison of our performance from period to period because they exclude the effect of items that, in our opinion, do not reflect our core operating performance. Our non-GAAP financial measures are not meant to be considered in isolation or as substitutes for their comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. There are limitations to using non-GAAP financial measures. Although we believe that they improve comparability in analyzing our period to period performance, they could limit comparability to other companies in our industry if those companies define these measures differently. Because of these limitations, our non-GAAP financial measures should not be considered measures of income generated by our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.

The following tables present reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure as required by SEC Regulation G. In addition, information regarding each of the excluded items as well as our reasons for excluding them from our non-GAAP results is provided below.