Werner Enterprises reported its operating income dropped 65% year over year in Q4 to $13.4 million, its lowest amount in a quarter for that metric in 2024.
While weekly revenue per truck increased in the quarter for both the company’s dedicated and one-way fleets, its operating income plummet came as total revenue dipped to $755 million, down from $822 million in Q4 2023.
"The challenging operating environment of 2023 persisted into and throughout 2024," Chairman and CEO Derek Leathers said on a Q4 earnings call Thursday.
But Werner believes the industry is in the early stages of a positive upturn.
“The worst is behind us, and incremental improvements are seen across the industry,” Leathers said.
Carriers such as Marten Transport and ABF Freight reported similar plummets, while others in the industry such as Knight-Swift Transportation Holdings and XPO saw Q4 operating incomes rise significantly year over year.
Freight volume and market conditions are stronger than expected in Q1 2025 thus far, but those positive forces are being hit by interest expense and lower gains on used equipment, Werner EVP and CFO Chris Wikoff said on the call.
In the company’s predominantly dedicated mix, opportunities remain strong, and “customers are more engaging on real bids, seeking capacity, rather than simply pricing the market,” he said.
Werner’s dedicated revenue per truck per week guidance range is flat to 3% growth for the year, according to the company. Meanwhile, one-way truckload revenue per total mile guidance is between 1% and 4% for the first half of 2025 YoY.
