First look: Liability claims sink Werner’s Q4
Werner Enterprises reported a big earnings miss in the 2024 fourth quarter due to outsize insurance claims. The post First look: Liability claims sink Werner’s Q4 appeared first on FreightWaves.
Werner (NASDAQ: WERN) reported fourth-quarter adjusted earnings per share of 8 cents, well shy of the 22-cent consensus estimate and 31 cents lower year over year. The number included a $19 million hit, or 22 cents per share, from unfavorable changes in liability claims.
“This is a reflection of the ongoing unprecedented rise in verdicts and litigation settlements across the industry, particularly for larger carriers,” a Thursday news release stated. “In contrast to these trends, in 2024 we produced near 20-year record lows in U.S. Department of Transportation preventable accidents per million miles, trailing only 2023.”
The adjusted EPS result excluded nonrecurring items like acquisition-related expenses, costs from an insurance claim that has been appealed and gains from equity and other investments.
Click for full report – “Werner optimistic after tough Q4”
Truckload revenue fell 9% y/y to $527 million, as average trucks in service declined by a high-single-digit percentage in both its dedicated and one-way segments. Revenue per truck per week (excluding fuel surcharges) was 5.1% higher in the one-way segment and 1.1% higher in dedicated.
The TL unit reported a 96.9% adjusted operating ratio (inverse of operating margin), 440 basis points worse y/y.
Management’s guidance calls for dedicated revenue per truck per week to be flat to up 3% y/y for full-year 2025, and one-way revenue per total mile to increase by 1% to 4% in the first half of the year.
The company’s logistics unit, which includes truck brokerage, reported a 6% y/y revenue decline and a 1.1% adjusted operating margin, 20 bps worse y/y.
Werner will host a conference call to discuss fourth-quarter results at 5 p.m. EST on Thursday.
Click for full report – “Werner optimistic after tough Q4”
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The post First look: Liability claims sink Werner’s Q4 appeared first on FreightWaves.
