v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
We have two reportable segments – Truckload Transportation Services (“TTS”) and Werner Logistics.
The TTS reportable segment consists of two operating segments, Dedicated and One-Way Truckload. These operating segments are aggregated because they have similar economic characteristics and meet the other aggregation criteria described in the accounting guidance for segment reporting. Dedicated provides truckload services dedicated to a specific customer, generally for a retail distribution center or manufacturing facility, utilizing either dry van or specialized trailers. One-Way Truckload is comprised of the following operating fleets: (i) the medium-to-long-haul van (“Van”) fleet transports a variety of consumer nondurable products and other commodities in truckload quantities over irregular routes using dry van trailers, including Mexico cross-border routes; (ii) the expedited (“Expedited”) fleet provides time-sensitive truckload services utilizing driver teams; (iii) the regional short-haul (“Regional”) fleet provides comparable truckload van service within geographic regions across the United States; and (iv) the Temperature Controlled fleet provides truckload services for temperature sensitive products over irregular routes utilizing temperature-controlled trailers. Revenues for the TTS segment include a small amount of non-trucking revenues which consist primarily of the intra-Mexico portion of cross-border shipments delivered to or from Mexico where we utilize a third-party capacity provider.
The Werner Logistics segment provides non-asset-based transportation and logistics services. Werner Logistics provides services throughout North America and generates the majority of our non-trucking revenues through three divisions. These three Werner Logistics divisions are as follows: (i) Truckload Logistics, which uses contracted carriers to complete shipments for brokerage customers and freight management customers for which we offer a full range of single-source logistics management services and solutions; (ii) the Intermodal (“Intermodal”) division offers rail transportation through alliances with rail and drayage providers as an alternative to truck transportation; and (iii) Werner Final Mile (“Final Mile”) offers residential and commercial deliveries of large or heavy items using third-party agents, independent contractors, and Company employees with two-person delivery teams operating a liftgate straight truck.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies contained in our 2024 Form 10-K. Inter-segment transactions between reporting segments have been recorded at amounts approximating market and are eliminated in consolidation.
The chief operating officer of the Company is our chief operating decision maker (“CODM”). Our CODM evaluates the operating results of each individual segment, using monthly divisional financial statements, to asses performance and to allocate resources to each segment. Our divisional financial statements detail the revenues and operating expenses of each individual segment netting to operating income (loss) that allows the CODM to make operational decisions regarding each individual segment.
We do not prepare separate balance sheets by segment and, as a result, assets are not separately identifiable by segment. Based on our operations, certain revenue-generating assets (primarily tractors and trailers) are interchangeable between segments. Depreciation for these interchangeable assets is allocated to segments based on the actual number of units utilized by the segment during the period. Other depreciation and amortization is allocated to segments based on specific identification or as a percentage of a metric such as average number of tractors.
The following tables summarize our segment information (in thousands):
Three Months Ended June 30, 2025
Truckload Transportation ServicesWerner LogisticsTotal
Revenues from external customers$512,898 $221,177 $734,075 
Inter-segment revenues4,749 — 4,749 
Reportable segment revenues517,647 221,177 738,824 

Reconciliation of revenues:
Other revenues (1)
19,073 
Elimination of inter-segment revenues(4,749)
Consolidated revenues$753,148 

Less operating expenses: (2)
Salaries, wages and benefits (3)
225,123 18,044 243,167 
Fuel59,731 338 60,069 
Supplies and maintenance53,710 2,916 56,626 
Taxes and licenses22,662 244 22,906 
Insurance and claims (4)
(7,555)506 (7,049)
Depreciation and amortization65,207 3,868 69,075 
Rent and purchased transportation40,110 190,293 230,403 
Communications and utilities3,107 228 3,335 
Gains on sales of property and equipment(5,799)(420)(6,219)
Other segment items (5)
(2,738)832 (1,906)
Reportable segment operating expenses453,558 216,849 670,407 
Reportable segment operating income$64,089 $4,328 $68,417 

Reconciliation of operating income:
Other operating loss (1)
(2,096)
Consolidated operating income$66,321 
Three Months Ended June 30, 2024
Truckload Transportation ServicesWerner LogisticsTotal
Revenues from external customers$533,806 $208,912 $742,718 
Inter-segment revenues3,263 — 3,263 
Reportable segment revenues537,069 208,912 745,981 

Reconciliation of revenues:
Other revenues (1)
18,080 
Elimination of inter-segment revenues(3,263)
Consolidated revenues$760,798 

Less operating expenses: (2)
Salaries, wages and benefits231,640 20,486 252,126 
Fuel71,232 402 71,634 
Supplies and maintenance53,654 1,989 55,643 
Taxes and licenses25,099 228 25,327 
Insurance and claims30,501 1,400 31,901 
Depreciation and amortization65,572 3,745 69,317 
Rent and purchased transportation33,783 178,819 212,602 
Communications and utilities3,267 465 3,732 
Gains on sales of property and equipment(1,466)(265)(1,731)
Other segment items (5)
2,789 1,093 3,882 
Reportable segment operating expenses516,071 208,362 724,433 
Reportable segment operating income$20,998 $550 $21,548 

Reconciliation of operating income:
Other operating loss (1)
(1,937)
Consolidated operating income$19,611 
Six Months Ended June 30, 2025
Truckload Transportation ServicesWerner LogisticsTotal
Revenues from external customers$1,010,710 $416,735 $1,427,445 
Inter-segment revenues8,812 — 8,812 
Reportable segment revenues1,019,522 416,735 1,436,257 

Reconciliation of revenues:
Other revenues (1)
37,817 
Elimination of inter-segment revenues(8,812)
Consolidated revenues$1,465,262 

Less operating expenses: (2)
Salaries, wages and benefits (3)
442,826 36,300 479,126 
Fuel122,164 698 122,862 
Supplies and maintenance105,048 5,589 110,637 
Taxes and licenses44,619 467 45,086 
Insurance and claims (4)
35,519 1,128 36,647 
Depreciation and amortization128,253 7,560 135,813 
Rent and purchased transportation78,563 359,512 438,075 
Communications and utilities6,715 585 7,300 
Gains on sales of property and equipment(9,087)(719)(9,806)
Other segment items (5)
1,729 1,762 3,491 
Reportable segment operating expenses956,349 412,882 1,369,231 
Reportable segment operating income$63,173 $3,853 $67,026 

Reconciliation of operating income:
Other operating loss (1)
(6,537)
Consolidated operating income$60,489 
Six Months Ended June 30, 2024
Truckload Transportation ServicesWerner LogisticsTotal
Revenues from external customers$1,080,861 $411,394 $1,492,255 
Inter-segment revenues7,334 — 7,334 
Reportable segment revenues1,088,195 411,394 1,499,589 

Reconciliation of revenues:
Other revenues (1)
37,623 
Elimination of inter-segment revenues(7,334)
Consolidated revenues$1,529,878 

Less operating expenses: (2)
Salaries, wages and benefits468,171 41,796 509,967 
Fuel148,106 840 148,946 
Supplies and maintenance107,784 3,873 111,657 
Taxes and licenses49,875 468 50,343 
Insurance and claims65,535 2,629 68,164 
Depreciation and amortization132,505 7,412 139,917 
Rent and purchased transportation66,278 352,985 419,263 
Communications and utilities6,901 1,232 8,133 
Gains on sales of property and equipment(5,931)(484)(6,415)
Other segment items (5)
7,133 2,422 9,555 
Reportable segment operating expenses1,046,357 413,173 1,459,530 
Reportable segment operating income (loss)$41,838 $(1,779)$40,059 

Reconciliation of operating income:
Other operating loss (1)
(4,860)
Consolidated operating income$35,199 
(1) Revenues and operating income or loss from segments below the quantitative thresholds for determining reportable segments. Those segments include driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, other business activities, and corporate related items which are incidental to our activities and are not attributable to any of our operating segments.
(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Inter-segment expenses are included within the amounts shown.
(3) During the three and six months ended June 30, 2025, salaries, wages and benefits for the TTS and Werner Logistics segments included severance costs of $0.9 million and $0.4 million, respectively, related to recent cost saving initiatives.
(4) During the three and six months ended June 30, 2025, insurance and claims expense for the TTS segment was offset by a $45.7 million liability reversal as a result of a favorable decision related to a lawsuit arising from a December 2014 accident. For additional information regarding this lawsuit, see Note 8 – Commitments and Contingencies.
(5) Other segment items for each reportable segment primarily includes costs for professional services. During the three and six months ended June 30, 2025, other segment items for the TTS segment were partially offset by a net favorable change of $7.9 million and $7.8 million, respectively, to the contingent earnout liability related to the Baylor Trucking, Inc. acquisition. For additional information regarding this contingent consideration arrangement, see Note 5 – Fair Value.