Werner Enterprises, Inc. · NASDAQ:WERN
Werner Enterprises — Q1 2025 Earnings Presentation
26 slides from Werner Enterprises's earnings presentation, Apr 29, 2025
Slide 1: 1Q25 Earnings Presentation
1Q25 EARNINGS PRESENTATION April 29, 2025 1
Slide 2: Disclosure Statement
DISCLOSURE STATEMENT This presentation 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 Lit
Slide 3: Business Overview
BUSINESS OVERVIEW DEREK LEATHERS Chairman and Chief Executive Officer
Slide 4: Werner Overview (WERN)
WERNER OVERVIEW (WERN) 6TH 69 2,297 TOTAL DRIVERS IN COMPANY YEARS IN OMAHA, NE LARGEST HISTORY WITH ONE MILLION OR MORE SAFE DRIVING BUSINESS HEADQUARTERS DEDICATED CARRIER IN U.S.3 MILES WITH WERNER 4,835 DEDICATED 4 > 87% DEDICATED CUSTOMER 2,605 ONE-WAY TRUCKLOAD 4 $1.7B 2.0% 1 1 2 2 13,016 305
Slide 5: 1Q25 Financial Highlights
1Q25 FINANCIAL HIGHLIGHTS 1Q25 Y/Y Change HIGHLIGHTS Revenues $712M • Dedicated continued to display resiliency; growing revenue per (7)% truck 27 of 29 quarters and adding recent new fleet wins for implementation in Q2 & Q3. GAAP EPS $(0.16) (264)% • One–Way Trucking revenue per total mile up for t
Slide 6: DriveSM Strategy Supports 2025 Strategic Priorities
DRIVESM STRATEGY SUPPORTS 2025 STRATEGIC PRIORITIES WERNER DRIVESM BUILDING ON 5Ts AND SHAPING OUR FUTURE DRIVING GROWTH IN CORE BUSINESS • Expanding TTS & Logistics adjusted operating income margin • Increasing One-Way rates • Growing Dedicated fleet size DRIVING OPERATIONAL EXCELLENCE • Resolute f
Slide 7: Financial Results
FINANCIAL RESULTS CHRIS WIKOFF Executive Vice President, Treasurer and Chief Financial Officer
Slide 8: 1Q25 Results
1Q25 RESULTS ADJUSTED OPERATING INCOME1 ($M) TOTAL REVENUES ($M) AND ADJUSTED OPERATING MARGIN1 ADJUSTED EPS1 $84 0 $833 $0.60 $57.5 $83 0 $0. 55 $82 0 $81 0 $80 0 $55 .0 55. 0% $769 $0. 45 $79 0 $78 0 $77 0 $45 .0 45. 0% $76 0 $0. 35 $75 0 $74 0 $35 .0 35. 0% $73 0 $72 0 $712 $0. 25 $71 0 $70 0 $25
Slide 9: 1Q25 Truckload Transportation Services (TTS) Results
1Q25 TRUCKLOAD TRANSPORTATION SERVICES (TTS) RESULTS 1Q23 1Q24 1Q25 1Q25 vs. 1Q24 Revenues ($M) $588.3 $551.1 $501.9 (9)% Revenues, net FSC ($M) $500.0 $478.1 $444.2 (7)% Adjusted Operating Income1 ($M) $53.7 $22.7 $2.0 (91)% Adjusted Operating Margin1, 2 10.7% 4.7% 0.4% (430) bps Adjusted Operating
Slide 10: TTS Fleet Metrics Update
TTS1 FLEET METRICS UPDATE TTS FLEET DOWN 5% Y/Y TO 7,440 AT QUARTER END; RPTPW DOWN 1%; INCREASED 23 OUT OF LAST 29 QUARTERS TRUCKING REVENUES2 ($M) AVERAGE TRUCKS REVENUES / TRUCK / WEEK2 DEDICATED TRUCKLOAD $310 $301 $4,441 $4,497 $4,482 $279 5,370 5,149 4,783 1Q23 1Q24 1Q25 1Q23 1Q24 1Q25 1Q23 1Q
Slide 11: 1Q25 Werner Logistics Results
1Q25 WERNER LOGISTICS RESULTS 1Q23 1Q24 1Q25 1Q25 vs. 1Q24 Revenues ($M) $228.7 $202.5 $195.6 (3)% Revenues, less purchased $40.2 $30.0 $28.4 (5)% transportation expense ($M)1 Adjusted Operating Income (loss) ($M)1 $6.4 $(1.2) $0.7 157% Adjusted Operating Margin1 2.8% (0.6)% 0.3% 90 bps Y/Y COMMENTA
Slide 12: Actions in Place to Generate Additional Cost Savings in 2025
ACTIONS IN PLACE TO GENERATE ADDITIONAL COST SAVINGS IN 2025 $40M+ COST CONTAINMENT 2025 Target FOCUS & DISCIPLINE 2023 $40M+ • >60% structural and sustainable Projected Savings • Disciplined approach through: ➢ Operational Innovation ➢ Leveraging Technology ➢ M&A Integration $8M Savings Achieved Sa
Slide 13: Strong Capital & Cash Flow Generation
STRONG CAPITAL & CASH FLOW GENERATION CASH FLOW LIQUIDITY1 ($ millions) ($ millions) $474 Cash, $446 $449 $409 $52 $333 $318 $330 $266 $235 $193 $777 $180 Total Liquidity $140 $131 $95 Available $66 Credit, $725 2020 2021 2022 2023 2024 2 Op. CF Net CapEx FCF SOLID CASH FLOW & LIQUIDITY • Free Cash
Slide 14: Flexible Debt and Low Leverage
FLEXIBLE DEBT AND LOW LEVERAGE DEBT MATURITY SCHEDULE NET DEBT TO LTM EBITDA1 ($ millions) 1.7x 1.6x $640 1.2x 1.0x 0.6x 2025 2026 2027 2028 2029 12/31/21 12/31/22 12/31/23 12/31/24 3/31/25 HEALTHY BALANCE SHEET • $640M Debt; down $10M sequentially and up 7% Y/Y • 55% effectively-fixed rate debt • L
Slide 15: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION STRATEGIC PRIORITIES CAPEX REINVESTMENT FOR GROWTH Reinvestment for Long-Term Growth 2025 Net CapEx Priorities: • Reinvestments to maintain low-age, safe and modern trucks and trailers • Ongoing strategic reinvestment, although lower than historical ranges • Growth inv
Slide 16: 2025 Guidance Metrics and Assumptions
2025 GUIDANCE METRICS AND ASSUMPTIONS Prior 2025 Current 2025 Guidance Actual Guidance Commentary (as of 2/6/25) (as of 3/31/25) (as of 4/29/25) 2025 GUIDANCE TTS Truck Count from BoY to EoY 1% to 5% (0.1)% 1% to 5% Dedicated trending towards sequential fleet growth (annual) (1Q25) (annual) in Q2 an
Slide 17: Appendix
APPENDIX
Slide 18: Revenues Snapshot
REVENUES SNAPSHOT 2024 REVENUES 2024 REVENUES 2024 REVENUES BY SEGMENT BY VERTICAL BY CUSTOMER Top 50 Customers 2% Retail 62% Top 5 36% 27% 28% $3.0B Manufacturing TOTAL 16% Top 10 48% REVENUES 70% & Industrial 71% Food & Top 25 14% 65% Beverage Truckload Transportation Services (TTS) Logistics & 8%
Slide 19: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (Unaudited) (In thousands, except per share amounts) Non-GAAP Adjusted Operating Income (Loss) and Non-GAAP Adjusted Operating Margin (1) Quarter Ended March 31, 2023 2024 2025 % of Op. % of Op. % of Op. $ Rev. $ Rev. $ Rev. Operating inco
Slide 20: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (Unaudited) (In thousands, except per share amounts) Non-GAAP Free Cash Flow (1), (7) YTD Year Ended December 31, March 31, 2020 2021 2022 2023 2024 2025 $ $ $ $ $ $ Net cash provided by operating activities — (GAAP) $ 445,909 $ 332,819 $
Slide 21: Reconciliation of Non-GAAP Financial Measures – Consolidated
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED (Unaudited) (In thousands, except per share amounts) Non-GAAP Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA); Non-GAAP Net Debt; and Non-GAAP Net Debt to EBITDA Ratio (1), (8) LTM Year Ended December 31, March 31,
Slide 22: Reconciliation of Non-GAAP Financial Measures – TTS Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (Unaudited) (In thousands) Non-GAAP Adjusted Operating Income and Non-GAAP Adjusted Operating Margin (1) Quarter Ended March 31, 2023 2024 2025 % of Op. % of Op. % of Op. $ Rev. $ Rev. $ Rev. Operating in
Slide 23: Reconciliation of Non-GAAP Financial Measures – TTS Segment (Continued)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT (Continued) (Unaudited) (In thousands) Non-GAAP Adjusted Operating Revenues, Net of Fuel Surcharge; Non-GAAP Adjusted Operating Expenses, Net of Fuel Surcharge; Non-GAAP Adjusted Operating Margin, Net of
Slide 24: Reconciliation of Non-GAAP Financial Measures – Werner Logistics Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – WERNER LOGISTICS SEGMENT (Unaudited) (In thousands) Non-GAAP Adjusted Operating Revenues, Less Purchased Transportation Expense (1) Quarter Ended March 31, 2023 2024 2025 $ $ $ Operating revenues — (GAAP) $ 228,669 $ 202,482 $ 195,558 Non-GAAP adjustme
Slide 25: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1) Non-GAAP adjusted operating income (loss); 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;
Slide 26: For More Information, Visit Werner.com
FOR MORE INFORMATION, VISIT WERNER.COM