false 2025 Q1 0000793074 December 31 http://fasb.org/us-gaap/2024#OtherAssetsNoncurrent http://fasb.org/us-gaap/2024#OtherAssetsNoncurrent http://fasb.org/us-gaap/2024#OtherLiabilitiesCurrent http://fasb.org/us-gaap/2024#OtherLiabilitiesCurrent http://fasb.org/us-gaap/2024#OtherLiabilitiesNoncurrent http://fasb.org/us-gaap/2024#OtherLiabilitiesNoncurrent http://fasb.org/us-gaap/2024#Revenues http://fasb.org/us-gaap/2024#Revenues xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure wern:segment wern:operatingUnit 0000793074 2025-01-01 2025-03-31 0000793074 2025-05-01 0000793074 2024-01-01 2024-03-31 0000793074 2025-03-31 0000793074 2024-12-31 0000793074 2023-12-31 0000793074 2024-03-31 0000793074 us-gaap:CommonStockMember 2024-12-31 0000793074 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0000793074 us-gaap:RetainedEarningsMember 2024-12-31 0000793074 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-12-31 0000793074 us-gaap:TreasuryStockCommonMember 2024-12-31 0000793074 us-gaap:RetainedEarningsMember 2025-01-01 2025-03-31 0000793074 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-01-01 2025-03-31 0000793074 us-gaap:AdditionalPaidInCapitalMember 2025-01-01 2025-03-31 0000793074 us-gaap:TreasuryStockCommonMember 2025-01-01 2025-03-31 0000793074 us-gaap:CommonStockMember 2025-03-31 0000793074 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0000793074 us-gaap:RetainedEarningsMember 2025-03-31 0000793074 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-31 0000793074 us-gaap:TreasuryStockCommonMember 2025-03-31 0000793074 us-gaap:CommonStockMember 2023-12-31 0000793074 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0000793074 us-gaap:RetainedEarningsMember 2023-12-31 0000793074 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-31 0000793074 us-gaap:TreasuryStockCommonMember 2023-12-31 0000793074 us-gaap:RetainedEarningsMember 2024-01-01 2024-03-31 0000793074 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-01-01 2024-03-31 0000793074 us-gaap:TreasuryStockCommonMember 2024-01-01 2024-03-31 0000793074 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-03-31 0000793074 us-gaap:CommonStockMember 2024-03-31 0000793074 us-gaap:AdditionalPaidInCapitalMember 2024-03-31 0000793074 us-gaap:RetainedEarningsMember 2024-03-31 0000793074 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-31 0000793074 us-gaap:TreasuryStockCommonMember 2024-03-31 0000793074 us-gaap:OperatingSegmentsMember wern:TruckloadTransportationServicesSegmentMember 2025-01-01 2025-03-31 0000793074 us-gaap:OperatingSegmentsMember wern:TruckloadTransportationServicesSegmentMember 2024-01-01 2024-03-31 0000793074 us-gaap:OperatingSegmentsMember wern:WernerLogisticsMember 2025-01-01 2025-03-31 0000793074 us-gaap:OperatingSegmentsMember wern:WernerLogisticsMember 2024-01-01 2024-03-31 0000793074 us-gaap:IntersegmentEliminationMember 2025-01-01 2025-03-31 0000793074 us-gaap:IntersegmentEliminationMember 2024-01-01 2024-03-31 0000793074 wern:TransportationServicesMember 2025-01-01 2025-03-31 0000793074 wern:TransportationServicesMember 2024-01-01 2024-03-31 0000793074 wern:OtherrevenuerecognitionsegmentsMember 2025-01-01 2025-03-31 0000793074 wern:OtherrevenuerecognitionsegmentsMember 2024-01-01 2024-03-31 0000793074 country:US 2025-01-01 2025-03-31 0000793074 country:US 2024-01-01 2024-03-31 0000793074 country:MX 2025-01-01 2025-03-31 0000793074 country:MX 2024-01-01 2024-03-31 0000793074 country:CA 2025-01-01 2025-03-31 0000793074 country:CA 2024-01-01 2024-03-31 0000793074 us-gaap:CustomerRelationshipsMember 2025-03-31 0000793074 us-gaap:CustomerRelationshipsMember 2024-12-31 0000793074 us-gaap:TradeNamesMember 2025-03-31 0000793074 us-gaap:TradeNamesMember 2024-12-31 0000793074 srt:MinimumMember 2025-03-31 0000793074 srt:MaximumMember 2025-03-31 0000793074 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember wern:PayFixedInterestRateSwapsMember 2025-03-31 0000793074 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember wern:PayFixedInterestRateSwapsMember 2024-12-31 0000793074 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2025-03-31 0000793074 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2024-12-31 0000793074 us-gaap:FairValueMeasurementsRecurringMember 2025-03-31 0000793074 us-gaap:FairValueMeasurementsRecurringMember 2024-12-31 0000793074 us-gaap:FairValueInputsLevel3Member us-gaap:OtherCurrentLiabilitiesMember us-gaap:FairValueMeasurementsRecurringMember 2025-03-31 0000793074 us-gaap:FairValueInputsLevel3Member us-gaap:OtherCurrentLiabilitiesMember us-gaap:FairValueMeasurementsRecurringMember 2024-12-31 0000793074 us-gaap:FairValueInputsLevel3Member us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:FairValueMeasurementsRecurringMember 2025-03-31 0000793074 us-gaap:FairValueInputsLevel3Member us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:FairValueMeasurementsRecurringMember 2024-12-31 0000793074 wern:MasteryLogisticsSystemsIncMember 2025-03-31 0000793074 wern:MasteryLogisticsSystemsIncMember 2024-12-31 0000793074 wern:OtherEquityInvestmentsWithoutReadilyDeterminableFairValuesMember 2025-03-31 0000793074 wern:OtherEquityInvestmentsWithoutReadilyDeterminableFairValuesMember 2024-12-31 0000793074 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2025-01-01 2025-03-31 0000793074 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2024-01-01 2024-03-31 0000793074 wern:AutotechFundMember 2023-01-31 0000793074 wern:AutotechFundMember 2025-03-31 0000793074 wern:AutotechFundMember 2024-12-31 0000793074 wern:AutotechFundMember 2025-01-01 2025-03-31 0000793074 wern:AutotechFundMember 2024-01-01 2024-03-31 0000793074 wern:A2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2022-12-20 0000793074 wern:A2022CreditAgreementMember us-gaap:LetterOfCreditMember us-gaap:UnsecuredDebtMember 2022-12-20 0000793074 wern:A2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember wern:FederalFundsRateMember 2022-12-20 2022-12-20 0000793074 wern:A2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember wern:OneMonthSecuredOvernightFinancingRateSOFRMember 2022-12-20 2022-12-20 0000793074 wern:A2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember wern:OneMonthSecuredOvernightFinancingRateSOFRMember srt:MinimumMember 2022-12-20 2022-12-20 0000793074 wern:A2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember wern:OneMonthSecuredOvernightFinancingRateSOFRMember srt:MaximumMember 2022-12-20 2022-12-20 0000793074 wern:A2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember us-gaap:SecuredOvernightFinancingRateSofrMember 2022-12-20 2022-12-20 0000793074 wern:A2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember us-gaap:SecuredOvernightFinancingRateSofrMember srt:MinimumMember 2022-12-20 2022-12-20 0000793074 wern:A2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember us-gaap:SecuredOvernightFinancingRateSofrMember srt:MaximumMember 2022-12-20 2022-12-20 0000793074 wern:SwinglineLoans2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember us-gaap:BaseRateMember srt:MinimumMember 2022-12-20 2022-12-20 0000793074 wern:SwinglineLoans2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember us-gaap:BaseRateMember srt:MaximumMember 2022-12-20 2022-12-20 0000793074 wern:A2022CreditAgreementMember us-gaap:StandbyLettersOfCreditMember us-gaap:UnsecuredDebtMember srt:MinimumMember 2022-12-20 2022-12-20 0000793074 wern:A2022CreditAgreementMember us-gaap:StandbyLettersOfCreditMember us-gaap:UnsecuredDebtMember srt:MaximumMember 2022-12-20 2022-12-20 0000793074 wern:A2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember srt:MinimumMember 2022-12-20 2022-12-20 0000793074 wern:A2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember srt:MaximumMember 2022-12-20 2022-12-20 0000793074 wern:LoanSecurityAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember 2025-03-27 0000793074 wern:LoanSecurityAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember wern:OneMonthSecuredOvernightFinancingRateSOFRMember 2025-03-27 2025-03-27 0000793074 wern:A2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2025-03-31 0000793074 wern:A2022CreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2024-12-31 0000793074 wern:LoanSecurityAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember 2025-03-31 0000793074 wern:LoanSecurityAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:SecuredDebtMember 2024-12-31 0000793074 wern:LineOfCreditFacilityInterestRateSwapMatureDateAtJulyTwoThousandTwentyFiveMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2025-03-31 0000793074 wern:LineOfCreditFacilityInterestRateSwapMatureDateAtJulyTwoThousandTwentySixMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2025-03-31 0000793074 wern:LineOfCreditFacilityInterestRateSwapMatureDateAtAprilTwoThousandTwentySevenMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2025-03-31 0000793074 wern:LineOfCreditFacilityInterestRateSwapMatureDateAtMayTwoThousandTwentySevenMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2025-03-31 0000793074 wern:LineOfCreditFacilityInterestRateSwapMatureDateAtAugustTwoThousandTwentyEightMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2025-03-31 0000793074 us-gaap:SubsequentEventMember us-gaap:RevolvingCreditFacilityMember 2025-04-01 2025-05-09 0000793074 us-gaap:RevolvingCreditFacilityMember 2025-03-31 0000793074 wern:A2022CreditAgreementMember us-gaap:StandbyLettersOfCreditMember us-gaap:UnsecuredDebtMember 2025-03-31 0000793074 wern:LoanSecurityAgreementMember us-gaap:SecuredDebtMember 2025-03-31 0000793074 wern:May172018VerdictMember 2018-07-30 2018-07-30 0000793074 wern:May172018VerdictMember 2018-07-30 0000793074 wern:May172018VerdictMember 2025-03-31 0000793074 wern:May172018VerdictMember 2024-12-31 0000793074 wern:TruckloadTransportationServicesSegmentMember 2025-01-01 2025-03-31 0000793074 wern:WernerLogisticsMember 2025-01-01 2025-03-31 0000793074 us-gaap:IntersegmentEliminationMember wern:TruckloadTransportationServicesSegmentMember 2025-01-01 2025-03-31 0000793074 us-gaap:IntersegmentEliminationMember wern:WernerLogisticsMember 2025-01-01 2025-03-31 0000793074 us-gaap:OperatingSegmentsMember 2025-01-01 2025-03-31 0000793074 us-gaap:CorporateNonSegmentMember 2025-01-01 2025-03-31 0000793074 us-gaap:MaterialReconcilingItemsMember 2025-01-01 2025-03-31 0000793074 wern:TruckloadTransportationServicesSegmentMember 2024-01-01 2024-03-31 0000793074 wern:WernerLogisticsMember 2024-01-01 2024-03-31 0000793074 us-gaap:IntersegmentEliminationMember wern:TruckloadTransportationServicesSegmentMember 2024-01-01 2024-03-31 0000793074 us-gaap:IntersegmentEliminationMember wern:WernerLogisticsMember 2024-01-01 2024-03-31 0000793074 us-gaap:OperatingSegmentsMember 2024-01-01 2024-03-31 0000793074 us-gaap:CorporateNonSegmentMember 2024-01-01 2024-03-31 0000793074 us-gaap:MaterialReconcilingItemsMember 2024-01-01 2024-03-31
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

[Mark | one]
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025
OR

☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 0-14690

WERNER ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)

Nebraska |  | 47-0648386
(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)
14507 Frontier Road |  |
Post Office Box 45308 |  |
Omaha | , | Nebraska |  | 68145-0308
(Address of principal executive offices) |  | (Zip Code)

(402) 895-6640
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class |  | Trading Symbol(s) |  | Name of each exchange on which registered
Common Stock, $0.01 Par Value |  | WERN |  | The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer |  | ☒ |  | Accelerated filer |  | ☐
Non-accelerated filer |  | ☐ |  | Smaller reporting company |  | ☐
|  |  |  | Emerging growth company |  | ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of May 1, 2025, 61,751,914 shares of the registrant’s common stock, par value $0.01 per share, were outstanding.

Table of Contents
WERNER ENTERPRISES, INC.
INDEX

|  | PAGE
PART I – FINANCIAL INFORMATION |
| Cautionary Note Regarding Forward-Looking Statements | 3
Item 1. | Financial Statements: | 4
| Consolidated Statements of Income for the Three Months Ended March 31, 2025 and 2024 | 4
| Consolidated Statements of Comprehensive Income for the Three Months Ended March 3 1, 202 5 and 202 4 | 5
| Consolidated Condensed Balance Sheets as of March 3 1, 202 5 and December 31, 202 4 | 6
| Consolidated Statements of Cash Flows for the Three Months Ended March 3 1, 202 5 and 202 4 | 7
| Consolidated Statements of Stockholders’ Equity and Temporary Equity - Redeemable Noncontrolling Interest for the Three Months Ended March 3 1, 202 5 and 202 4 | 8
| Notes to Consolidated Financial Statements (Unaudited) as of March 3 1, 202 5 | 9
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 21
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 29
Item 4. | Controls and Procedures | 30
PART II – OTHER INFORMATION |
Item 1. | Legal Proceedings | 30
Item 1A. | Risk Factors | 30
Item 2. | Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities | 30
Item 5. | Other Information | 31
Item 6. | Exhibits | 32

2

Table of Contents
PART I
FINANCIAL INFORMATION
Cautionary Note Regarding Forward-Looking Statements:
This Quarterly Report on Form 10-Q contains historical information and forward-looking statements based on information currently available to our management. The forward-looking statements in this report, including those made in Item 2 (Management’s Discussion and Analysis of Financial Condition and Results of Operations) of Part I, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These safe harbor provisions encourage reporting companies to provide prospective information to investors. Forward-looking statements can be identified by the use of certain words, such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project” and other similar terms and language. We believe the forward-looking statements are reasonable based on currently available information. However, forward-looking statements involve risks, uncertainties and assumptions, whether known or unknown, that could cause our actual results, business, financial condition and cash flows to differ materially from those anticipated in the forward-looking statements. A discussion of important factors relating to forward-looking statements is included in Part I, Item 1A (Risk Factors) of our Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”). Readers should not unduly rely on the forward-looking statements included in this Form 10-Q because such statements speak only to the date they were made. Unless otherwise required by applicable securities laws, we undertake no obligation or duty to update or revise any forward-looking statements contained herein to reflect subsequent events or circumstances or the occurrence of unanticipated events.
3

Table of Contents
Item 1. Financial Statements.
WERNER ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

| Three Months Ended March 31, |  |
(In thousands, except per share amounts) | 2025 |  | 2024 |  |  |  |
Operating revenues | $ | 712,114 |  |  | $ | 769,080 |  |  |  |  |
Operating expenses: |  |  |  |  |  |  |
Salaries, wages and benefits | 243,225 |  |  | 265,403 |  |  |  |  |
Fuel | 63,092 |  |  | 77,622 |  |  |  |  |
Supplies and maintenance | 60,040 |  |  | 61,775 |  |  |  |  |
Taxes and licenses | 22,344 |  |  | 25,164 |  |  |  |  |
Insurance and claims | 43,777 |  |  | 36,362 |  |  |  |  |
Depreciation and amortization | 70,049 |  |  | 74,270 |  |  |  |  |
Rent and purchased transportation | 206,142 |  |  | 203,925 |  |  |  |  |
Communications and utilities | 4,357 |  |  | 4,706 |  |  |  |  |
Other | 4,920 |  |  | 4,265 |  |  |  |  |
Total operating expenses | 717,946 |  |  | 753,492 |  |  |  |  |
Operating income (loss) | (5,832) |  |  | 15,588 |  |  |  |  |
Other expense (income): |  |  |  |  |  |  |
Interest expense | 9,537 |  |  | 7,948 |  |  |  |  |
Interest income | (1,492) |  |  | (1,685) |  |  |  |  |
Loss on investments in equity securities | 2 |  |  | 138 |  |  |  |  |
Loss (earnings) from equity method investment | (123) |  |  | 133 |  |  |  |  |
Other | (368) |  |  | (261) |  |  |  |  |
Total other expense, net | 7,556 |  |  | 6,273 |  |  |  |  |
Income (loss) before income taxes | (13,388) |  |  | 9,315 |  |  |  |  |
Income tax expense (benefit) | (3,167) |  |  | 3,067 |  |  |  |  |
Net income (loss) | (10,221) |  |  | 6,248 |  |  |  |  |
Net loss attributable to noncontrolling interest | 123 |  |  | 64 |  |  |  |  |
Net income (loss) attributable to Werner | $ | (10,098) |  |  | $ | 6,312 |  |  |  |  |
Earnings (loss) per share: |  |  |  |  |  |  |
Basic | $ | (0.16) |  |  | $ | 0.10 |  |  |  |  |
Diluted | $ | (0.16) |  |  | $ | 0.10 |  |  |  |  |
Weighted-average common shares outstanding: |  |  |  |  |  |  |
Basic | 61,890 |  |  | 63,472 |  |  |  |  |
Diluted | 61,890 |  |  | 63,727 |  |  |  |  |

See Notes to Consolidated Financial Statements (Unaudited).
4

Table of Contents
WERNER ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

| Three Months Ended March 31, |  |
(In thousands) | 2025 |  | 2024 |  |  |  |
Net income (loss) | $ | (10,221) |  |  | $ | 6,248 |  |  |  |  |
Other comprehensive income (loss): |  |  |  |  |  |  |
Foreign currency translation adjustments | (62) |  |  | 502 |  |  |  |  |
Change in fair value of interest rate swaps, net of tax | (1,434) |  |  | 116 |  |  |  |  |
Other comprehensive income (loss) | (1,496) |  |  | 618 |  |  |  |  |
Comprehensive income (loss) | (11,717) |  |  | 6,866 |  |  |  |  |
Comprehensive loss attributable to noncontrolling interest | 123 |  |  | 64 |  |  |  |  |
Comprehensive income (loss) attributable to Werner | $ | (11,594) |  |  | $ | 6,930 |  |  |  |  |

See Notes to Consolidated Financial Statements (Unaudited).
5

Table of Contents
WERNER ENTERPRISES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands, except share amounts) | March 31, 2025 |  | December 31, 2024
| (Unaudited) |  |
ASSETS |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | 51,951 |  |  | $ | 40,752 |
Accounts receivable, trade, less allowance of $7,502 and $7,169, respectively | 387,075 |  |  | 391,684 |
Other receivables | 24,683 |  |  | 26,137 |
Inventories and supplies | 12,984 |  |  | 14,183 |
Prepaid expenses | 47,632 |  |  | 53,690 |
Other current assets | 14,371 |  |  | 15,327 |
Total current assets | 538,696 |  |  | 541,773 |
Property and equipment, at cost | 2,893,125 |  |  | 2,941,495 |
Less – accumulated depreciation | 1,026,277 |  |  | 1,007,259 |
Property and equipment, net | 1,866,848 |  |  | 1,934,236 |
Goodwill | 129,104 |  |  | 129,104 |
Intangible assets, net | 73,889 |  |  | 76,407 |
Other non-current assets | 378,112 |  |  | 370,717 |
Total assets | $ | 2,986,649 |  |  | $ | 3,052,237 |
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY |  |  |
Current liabilities: |  |  |
Accounts payable | $ | 113,360 |  |  | $ | 112,429 |
Current portion of long-term debt | — |  |  | 20,000 |
Insurance and claims accruals | 101,911 |  |  | 93,710 |
Accrued payroll | 49,086 |  |  | 54,560 |
Accrued expenses | 13,887 |  |  | 18,745 |
Other current liabilities | 45,377 |  |  | 56,305 |
Total current liabilities | 323,621 |  |  | 355,749 |
Long-term debt, net of current portion | 640,000 |  |  | 630,000 |
Other long-term liabilities | 54,582 |  |  | 66,173 |
Insurance and claims accruals, net of current portion | 237,039 |  |  | 236,923 |
Deferred income taxes | 257,353 |  |  | 269,516 |
Total liabilities | 1,512,595 |  |  | 1,558,361 |
Commitments and contingencies |  |  |
Temporary equity - redeemable noncontrolling interest | 37,821 |  |  | 37,944 |
Stockholders’ equity: |  |  |
Common stock, $0.01 par value, 200,000,000 shares authorized; 80,533,536 shares issued; 61,924,797 and 61,850,434 shares outstanding, respectively | 805 |  |  | 805 |
Paid-in capital | 137,867 |  |  | 137,889 |
Retained earnings | 1,934,007 |  |  | 1,952,775 |
Accumulated other comprehensive loss | (19,933) |  |  | (18,437) |
Treasury stock, at cost; 18,608,739 and 18,683,102 shares, respectively | (616,513) |  |  | (617,100) |
Total stockholders’ equity | 1,436,233 |  |  | 1,455,932 |
Total liabilities, temporary equity and stockholders’ equity | $ | 2,986,649 |  |  | $ | 3,052,237 |

See Notes to Consolidated Financial Statements (Unaudited).
6

Table of Contents
WERNER ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

| Three Months Ended March 31,
(In thousands) | 2025 |  | 2024
Cash flows from operating activities: |  |  |
Net income (loss) | $ | (10,221) |  |  | $ | 6,248 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
Depreciation and amortization | 70,049 |  |  | 74,270 |
Deferred income taxes | (11,612) |  |  | 2,828 |
Gain on disposal of property and equipment | (2,843) |  |  | (3,568) |
Non-cash equity compensation | 2,444 |  |  | 2,250 |
Insurance and claims accruals, net of current portion | 117 |  |  | (4,015) |
Loss on investments in equity securities, net | 2 |  |  | 138 |
Loss (earnings) from equity method investment | (123) |  |  | 133 |
Other | (14,617) |  |  | (3,141) |
Changes in certain working capital items: |  |  |
Accounts receivable, net | 4,609 |  |  | 27,481 |
Other current assets | 9,540 |  |  | 7,139 |
Accounts payable | (4,373) |  |  | (5,274) |
Other current liabilities | (13,602) |  |  | (15,904) |
Net cash provided by operating activities | 29,370 |  |  | 88,585 |
Cash flows from investing activities: |  |  |
Additions to property and equipment | (23,513) |  |  | (58,235) |
Proceeds from sales of property and equipment | 31,079 |  |  | 39,200 |
Investment in equity securities | (6,011) |  |  | (11) |
Payments to acquire equity method investment | — |  |  | (1,060) |
Collections of notes receivable | 816 |  |  | 696 |
Net cash provided by (used in) investing activities | 2,371 |  |  | (19,410) |
Cash flows from financing activities: |  |  |
Repayments of short-term debt | (10,000) |  |  | (21,250) |
Proceeds from issuance of short-term debt | 10,000 |  |  | 20,000 |
Repayments of long-term debt | (260,000) |  |  | (50,000) |
Proceeds from issuance of long-term debt | 250,000 |  |  | — |
Dividends on common stock | (8,659) |  |  | (8,882) |
Repurchases of common stock | — |  |  | (6,550) |
Tax withholding related to net share settlements of restricted stock awards | (1,879) |  |  | (4,087) |
Net cash used in financing activities | (20,538) |  |  | (70,769) |
Effect of exchange rate fluctuations on cash | (4) |  |  | 208 |
Net increase (decrease) in cash and cash equivalents | 11,199 |  |  | (1,386) |
Cash and cash equivalents, beginning of period | 40,752 |  |  | 61,723 |
Cash and cash equivalents, end of period | $ | 51,951 |  |  | $ | 60,337 |
Supplemental disclosures of cash flow information: |  |  |
Interest paid | $ | 14,422 |  |  | $ | 9,328 |
Income taxes paid | 21,057 |  |  | 1,165 |
Supplemental schedule of non-cash investing and financing activities: |  |  |
Notes receivable issued upon sale of property and equipment | $ | 440 |  |  | $ | 402 |
Change in fair value of interest rate swaps | (1,434) |  |  | 116 |
Property and equipment acquired included in accounts payable | 6,373 |  |  | 19,765 |
Dividends accrued but not yet paid at end of period | 8,670 |  |  | 8,878 |

See Notes to Consolidated Financial Statements (Unaudited).
7

Table of Contents
WERNER ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND
TEMPORARY EQUITY - REDEEMABLE NONCONTROLLING INTEREST
(Unaudited)

| Three Months Ended March 31, 2025
(In thousands, except share and per share amounts) | Common Stock |  | Paid-In Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Loss |  | Treasury Stock |  | Total Stockholders’ Equity |  | Temporary Equity - Redeemable Noncontrolling Interest
BALANCE, December 31, 2024 | $ | 805 |  |  | $ | 137,889 |  |  | $ | 1,952,775 |  |  | $ | (18,437) |  |  | $ | (617,100) |  |  | $ | 1,455,932 |  |  | $ | 37,944 |
Net loss attributable to Werner | — |  |  | — |  |  | (10,098) |  |  | — |  |  | — |  |  | (10,098) |  |  | — |
Net loss attributable to noncontrolling interest | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (123) |
Other comprehensive loss | — |  |  | — |  |  | — |  |  | (1,496) |  |  | — |  |  | (1,496) |  |  | — |
Dividends on common stock ($0.14 per share) | — |  |  | — |  |  | (8,670) |  |  | — |  |  | — |  |  | (8,670) |  |  | — |
Common stock issued for stock-based compensation, including tax effects, 74,363 shares | — |  |  | (2,466) |  |  | — |  |  | — |  |  | 587 |  |  | (1,879) |  |  | — |
Non-cash equity compensation expense | — |  |  | 2,444 |  |  | — |  |  | — |  |  | — |  |  | 2,444 |  |  | — |
BALANCE, March 31, 2025 | $ | 805 |  |  | $ | 137,867 |  |  | $ | 1,934,007 |  |  | $ | (19,933) |  |  | $ | (616,513) |  |  | $ | 1,436,233 |  |  | $ | 37,821 |

| Three Months Ended March 31, 2024
(In thousands, except share and per share amounts) | Common Stock |  | Paid-In Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Loss |  | Treasury Stock |  | Total Stockholders’ Equity |  | Temporary Equity - Redeemable Noncontrolling Interest
BALANCE, December 31, 2023 | $ | 805 |  |  | $ | 134,894 |  |  | $ | 1,953,385 |  |  | $ | (9,684) |  |  | $ | (551,061) |  |  | $ | 1,528,339 |  |  | $ | 38,607 |
Net income attributable to Werner | — |  |  | — |  |  | 6,312 |  |  | — |  |  | — |  |  | 6,312 |  |  | — |
Net loss attributable to noncontrolling interest | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (64) |
Other comprehensive income | — |  |  | — |  |  | — |  |  | 618 |  |  | — |  |  | 618 |  |  | — |
Purchases of 167,818 shares of common stock | — |  |  | — |  |  | — |  |  | — |  |  | (6,550) |  |  | (6,550) |  |  | — |
Dividends on common stock ($0.14 per share) | — |  |  | — |  |  | (8,878) |  |  | — |  |  | — |  |  | (8,878) |  |  | — |
Common stock issued for stock-based compensation, including tax effects, 135,970 shares | — |  |  | (4,422) |  |  | — |  |  | — |  |  | 335 |  |  | (4,087) |  |  | — |
Non-cash equity compensation expense | — |  |  | 2,250 |  |  | — |  |  | — |  |  | — |  |  | 2,250 |  |  | — |
BALANCE, March 31, 2024 | $ | 805 |  |  | $ | 132,722 |  |  | $ | 1,950,819 |  |  | $ | (9,066) |  |  | $ | (557,276) |  |  | $ | 1,518,004 |  |  | $ | 38,543 |

See Notes to Consolidated Financial Statements (Unaudited).

8

Table of Contents
WERNER ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(1) Basis of Presentation and Recent Accounting Pronouncements
Basis of Presentation
The accompanying unaudited interim consolidated financial statements include the accounts of Werner Enterprises, Inc. and its subsidiaries (collectively, the “Company” or “Werner”). Redeemable noncontrolling interest on the consolidated condensed balance sheets represents the portion of a consolidated entity in which we do not have a direct equity ownership. In these notes, the terms “we,” “us,” or “our” refer to Werner Enterprises, Inc. and its subsidiaries. All significant intercompany accounts and transactions relating to these entities have been eliminated.
These consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) instructions to Form 10-Q and, in the opinion of management, reflect all adjustments, which are all of normal recurring nature, necessary to present fairly the financial condition, results of operations and cash flows for the periods presented in conformity with U.S. generally accepted accounting principles (“GAAP”). These consolidated financial statements do not include all information and footnotes required by GAAP for complete financial statements; although in management’s opinion, the disclosures are adequate so that the information presented is not misleading.
Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. In the opinion of management, the information set forth on the accompanying consolidated condensed balance sheets is fairly stated in all material respects in relation to the consolidated balance sheets from which it has been derived.
These consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and accompanying notes contained in our 2024 Form 10-K.
Recently Issued Accounting Pronouncements, Not Yet Effective
In December 2023, FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures, with the objective of enhancing the transparency and decision usefulness of income tax information through income tax disclosure improvements, primarily related to the rate reconciliation and income taxes paid information. The provisions of this update are effective for annual periods beginning after December 15, 2024, using a prospective approach. Retrospective application is permitted. We are evaluating the impact of adopting ASU 2023-09, and we expect this ASU to impact our disclosures but not our results of operations, cash flows, and financial condition.
In November 2024, the FASB issued ASU 2024-03 Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public business entities to disclose additional information about specific expense categories in the notes to the financial statements at interim and annual reporting periods, including purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The provisions of this update are effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, using either a prospective or retrospective approach. We are evaluating the impact of adopting ASU 2024-03, and we expect this ASU to impact our disclosures but not our results of operations, cash flows, and financial condition.
9

Table of Contents
(2) Revenue
Revenue Recognition
Revenues are recognized over time as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services.
The following table presents our revenues disaggregated by revenue source (in thousands):

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Truckload Transportation Services | $ | 501,875 |  |  | $ | 551,126 |  |  |  |  |
Werner Logistics | 195,558 |  |  | 202,482 |  |  |  |  |
Inter-segment eliminations | (4,063) |  |  | (4,071) |  |  |  |  |
Transportation services | 693,370 |  |  | 749,537 |  |  |  |  |
Other revenues | 18,744 |  |  | 19,543 |  |  |  |  |
Total revenues | $ | 712,114 |  |  | $ | 769,080 |  |  |  |  |

The following table presents our revenues disaggregated by geographic areas in which we conduct business (in thousands):

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
United States | $ | 675,242 |  |  | $ | 721,861 |  |  |  |  |
Mexico | 33,612 |  |  | 39,119 |  |  |  |  |
Canada | 3,260 |  |  | 8,100 |  |  |  |  |
Total revenues | $ | 712,114 |  |  | $ | 769,080 |  |  |  |  |

Operating revenues for foreign countries include revenues for (i) shipments with an origin or destination in that country and (ii) other services provided in that country. If both the origin and destination are in a foreign country, the revenues are attributed to the country of origin.
Contract Balances and Accounts Receivable
A receivable is an unconditional right to consideration and is recognized when shipments have been completed and the related performance obligation has been fully satisfied. At March 31, 2025 and December 31, 2024, the accounts receivable, trade, net, balance was $387.1 million and $391.7 million, respectively. Contract assets represent a conditional right to consideration in exchange for goods or services and are transferred to receivables when the rights become unconditional. At March 31, 2025 and December 31, 2024, the balance of contract assets was $7.0 million and $6.3 million, respectively. We have recognized contract assets within the other current assets financial statement caption on the consolidated condensed balance sheets. These contract assets are considered current assets as they will be settled in less than 12 months.
Contract liabilities represent advance consideration received from customers and are recognized as revenues over time as the related performance obligation is satisfied. A t March 31, 2025 and December 31, 2024, t he balance o f contract liabilities was $2.0 million and $1.4 million, respectively. The amount of revenues recognized in the three months ended March 31, 2025 that was included in the December 31, 2024 contract liability balance was $1.4 million. We have recognized contract liabilities within the accounts payable and other current liabilities financial statement captions on the consolidated condensed balance sheets. These contract liabilities are considered current liabilities as they will be settled in less than 12 months.
Performance Obligations
We have elected to apply the practical expedient in Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts With Customers, to not disclose the value of remaining performance obligations for contracts with an original expected length of one year or less. Remaining performance obligations represent the transaction price allocated to future reporting periods for freight shipments started but not completed at the reporting date that we expect to recognize as revenue in the period subsequent to the reporting date; transit times generally average approximately 3 days.
During the three months ended March 31, 2025 and 2024, revenues recognized from performance obligations related to prior periods (for example, due to changes in transaction price) were not material.
10

Table of Contents
(3) Goodwill and Intangible Assets
Goodwill represents the excess of cost over the fair value of net identifiable tangible and intangible assets acquired in business combinations. There were no changes in the carrying amount of goodwill by segment for the three months ended March 31, 2025.

The following table presents acquired intangible assets (in thousands):

| March 31, 2025 |  | December 31, 2024
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Customer relationships | $ | 80,200 |  |  | $ | (24,015) |  |  | $ | 56,185 |  |  | $ | 80,200 |  |  | $ | (22,009) |  |  | $ | 58,191 |
Trade names | 24,600 |  |  | (6,896) |  |  | 17,704 |  |  | 24,600 |  |  | (6,384) |  |  | 18,216 |
Total intangible assets | $ | 104,800 |  |  | $ | (30,911) |  |  | $ | 73,889 |  |  | $ | 104,800 |  |  | $ | (28,393) |  |  | $ | 76,407 |

Amortization expense on intangible assets was $2.5 million for the three months ended March 31, 2025 and 2024, and is reported in depreciation and amortization on the consolidated statements of income. As of March 31, 2025, we estimate future amortization expense for intangible assets will be $7.6 million for the remainder of 2025, and $10.1 million for each of the five succeeding fiscal years.
(4) Leases
We have entered into operating leases primarily for real estate. The leases have terms which range from 2 years to 18 years, and some include options to renew. Renewal terms are included in the lease term when it is reasonably certain that we will exercise the option to renew.
Operating leases are included in other non-current assets, other current liabilities and other long-term liabilities on the consolidated condensed balance sheets. These assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date, using our incremental borrowing rate because the rate implicit in each lease is not readily determinable. We have certain contracts for real estate that may contain lease and non-lease components which we have elected to treat as a single lease component. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Lease expense is reported in rent and purchased transportation on the consolidated statements of income.
The following table presents balance sheet and other operating lease information (dollars in thousands):

| March 31, 2025 |  | December 31, 2024
Right-of-use assets (recorded in other non-current assets) | $ | 46,717 |  |  | $ | 49,599 |
Current lease liabilities (recorded in other current liabilities) | $ | 15,460 |  |  | $ | 15,352 |
Long-term lease liabilities (recorded in other long-term liabilities) | 33,454 |  |  | 36,406 |
Total operating lease liabilities | $ | 48,914 |  |  | $ | 51,758 |
Weighted-average remaining lease term for operating leases | 4.63 years |  | 4.75 years
Weighted-average discount rate for operating leases | 5.0 | % |  | 5.0 | %

11

Table of Contents
The following table presents the maturities of operating lease liabilities as of March 31, 2025 (in thousands):

2025 (remaining) | $ | 13,135 |
2026 | 16,164 |
2027 | 8,400 |
2028 | 6,654 |
2029 | 3,823 |
Thereafter | 5,748 |
Total undiscounted operating lease payments | $ | 53,924 |
Less: Imputed interest | (5,010) |
Present value of operating lease liabilities | $ | 48,914 |

Cash Flows
During the three months ended March 31, 2025 and 2024, right-of-use assets of $1.2 million and $1.9 million, respectively, were recognized as non-cash asset additions that resulted from new operating lease liabilities. Cash paid for amounts included in the present value of operating lease liabilities was $4.5 million and $2.7 million for the three months ended March 31, 2025 and 2024, respectively, and are included in operating cash flows.
Operating Lease Expense
Operating lease expense was $6.6 million and $4.4 million for the three months ended March 31, 2025 and 2024, respectively. This expense included $4.5 million and $2.7 million for long-term operating leases for the three months ended March 31, 2025 and 2024, respectively, with the remainder for variable and short-term lease expense.
Lessor Operating Leases
We are the lessor of tractors and trailers (revenue equipment) under operating leases with initial terms of 1 year to 10 years. At times, we also lease or sublease real estate to third parties. We recognize revenue for such leases on a straight-line basis over the term of the lease. Revenues were $2.6 million and $2.4 million for the three months ended March 31, 2025 and 2024, respectively.
The following table presents information about the maturities of these operating leases as of March 31, 2025 (in thousands):

2025 (remaining) | $ | 6,421 |
2026 | 1,693 |
2027 | 71 |
2028 | — |
2029 | — |
Thereafter | — |
Total | $ | 8,185 |

The owned assets underlying our leases as lessor primarily consist of revenue equipment. As of March 31, 2025 and December 31, 2024, the gross carrying value of such revenue equipment underlying these leases was $59.9 million and $61.8 million, respectively, and accumulated depreciation was $25.4 million and $26.7 million, respectively. Depreciation expense for these assets was $1.9 million and $1.8 million for the three months ended March 31, 2025 and 2024, respectively.
(5) Fair Value
Fair Value Measurement — Definition and Hierarchy
ASC 820-10, Fair Value Measurement, defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date.
ASC 820-10 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs reflect our own assumptions about the assumptions
12

Table of Contents
market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances.
The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows:
Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access.
Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Such inputs include quoted prices in markets that are not active, quoted prices for similar assets and liabilities in active and inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 — Unobservable inputs for the asset or liability, where there is little, if any, observable market activity or data for the asset or liability.
In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value. This pricing methodology applies to our Level 1 assets and liabilities. If quoted prices in active markets for identical assets and liabilities are not available to determine fair value, then we use quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. This pricing methodology would apply to Level 2 assets and liabilities.
The following table presents the fair value hierarchy for our assets and liabilities measured at fair value on a recurring basis (in thousands):

|  | Level in Fair Value Hierarchy |  | Fair Value
|  |  | March 31, 2025 |  | December 31, 2024
Assets: |  |  |  |  |  |
Other non-current assets: |  |  |  |  |  |
Pay-fixed interest rate swaps (1) |  | 2 |  | $ | 165 |  |  | $ | 1,162 |
Equity securities (2) |  | 1 |  | 140 |  |  | 141 |
Total other non-current assets |  |  |  | $ | 305 |  |  | $ | 1,303 |
Liabilities: |  |  |  |  |  |
Other current liabilities: |  |  |  |  |  |
Pay-fixed interest rate swaps (1) |  | 2 |  | $ | 70 |  |  | $ | 134 |
Contingent consideration associated with acquisition |  | 3 |  | 9,421 |  |  | — |
Total other current liabilities |  |  |  | 9,491 |  |  | 134 |
Other long-term liabilities: |  |  |  |  |  |
Pay-fixed interest rate swaps (1) |  | 2 |  | 3,434 |  |  | 2,420 |
Contingent consideration associated with acquisition |  | 3 |  | — |  |  | 9,315 |
Total other long-term liabilities |  |  |  | 3,434 |  |  | 11,735 |
Total liabilities at fair value |  |  |  | $ | 12,925 |  |  | $ | 11,869 |

(1) Pay-fixed interest rate swaps are measured on a recurring basis by netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves. See Note 7 – Debt and Credit Facilities for further information on our interest rate swaps.
(2) Represents our investment in an autonomous technology company. For additional information regarding the valuation of this equity security, see Note 6 – Investments.
13

Table of Contents
The following table presents changes in the fair value of our contingent earnout liabilities (in thousands):

|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
Balance at beginning of period |  | $ | 9,315 |  |  | $ | 8,896 |  |  |  |  |
Change in fair value |  | 106 |  |  | 102 |  |  |  |  |
Balance at end of period |  | $ | 9,421 |  |  | $ | 8,998 |  |  |  |  |

The estimated fair values of our contingent consideration arrangements are based upon probability-adjusted inputs for each acquired entity. Additionally, as the liability is stated at present value, the passage of time alone will increase the estimated fair value of the liability each reporting period. Change in fair value is recorded in other operating expenses on the consolidated statements of income.
We have ownership interests in investments, primarily Mastery Logistics Systems, Inc. (“MLSI”), which do not have readily determinable fair values and are accounted for using the measurement alternative in ASC 321, Investments - Equity Securities. Our ownership interest in Autotech Fund III, L.P. (the “Autotech Fund”) is accounted for under ASC 323, “Investments - Equity Method and Joint Ventures.” For additional information regarding the valuation of these investments, see Note 6 – Investments.
Fair Value of Financial Instruments Not Recorded at Fair Value
Cash and cash equivalents, accounts receivable trade, and accounts payable are short-term in nature and accordingly are carried at amounts that approximate fair value. The carrying amount of our variable-rate long-term debt approximates fair value due to the duration of our credit arrangements and the variable interest rates.
(6) Investments
Equity Investments without Readily Determinable Fair Values
Our strategic equity investments without readily determinable fair values primarily consist of our investment in MLSI, a transportation management systems company. MLSI has developed a cloud-based transportation management system using its SaaS technology, and we have obtained a license. Our investments are being accounted for under ASC 321 using the measurement alternative and are recorded in other noncurrent assets on the consolidated condensed balance sheets. We record changes in the values of our investments based on events that occur that would indicate the values have changed, in loss (gain) on investments in equity securities on the consolidated statements of income. As of March 31, 2025 and December 31, 2024, the value of our investment in MLSI was $109.9 million and $103.9 million, respectively, and the value of our other equity investments without readily determinable fair values was $369 thousand and $358 thousand, respectively. No gains or losses were recorded for the three months ended March 31, 2025 and 2024.
The following table summarizes the activity related to our equity investments without readily determinable fair values during the periods presented (in thousands):

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Investment in equity securities | $ | 6,011 |  |  | $ | — |  |  |  |  |

As of March 31, 2025, cumulative upward adjustments on our equity securities without readily determinable fair values totaled $64.9 million.
Equity Investments with Readily Determinable Fair Values
We own a strategic minority equity investment in an autonomous technology company, which is being accounted for under ASC 321 and is recorded in other noncurrent assets on the consolidated condensed balance sheets. As of March 31, 2025 and December 31, 2024, the value of this investment was $0.1 million. We recognized a loss of $2 thousand and $138 thousand on this investment for the three months ended March 31, 2025 and 2024, respectively. For additional information regarding the fair value of this equity investment, see Note 5 – Fair Value.
Equity Method Investment
In January 2023, we committed to make a $20.0 million investment in the Autotech Fund pursuant to a limited partnership agreement. The Autotech Fund is managed by Autotech Ventures, a venture capital firm focused on ground transportation technology. Our interest, which represents an ownership percentage of less than 20%, is being accounted for under ASC 323, “Investments - Equity Method and Joint Ventures.” As a limited partner, we will make periodic capital contributions toward this
14

Table of Contents
total commitment amount. As of March 31, 2025 and December 31, 2024, the value of our investment in the Autotech Fund was $6.8 million and $6.7 million, respectively, and is recorded in other noncurrent assets on the consolidated condensed balance sheets. The carrying amount of the Autotech Fund as of March 31, 2025 was updated using operating results through December 31, 2024, as this is the most recent information available to us at this time.
The following table summarizes the activity related to our equity method investment during the periods presented (in thousands):

|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |
Capital contributions |  | $ | — |  |  | $ | 1,060 |  |  |  |  |
Loss (earnings) from equity method investment |  | $ | (123) |  |  | $ | 133 |  |  |  |  |

As of March 31, 2025, our cumulative capital contributions in the Autotech Fund were $7.2 million.
(7) Debt and Credit Facilities
On December 20, 2022, we entered into a $1.075 billion unsecured credit facility with a group of lenders (the “2022 Credit Agreement”), replacing our previous credit facilities. The 2022 Credit Agreement is scheduled to mature on December 20, 2027, and has a $100.0 million maximum limit for the aggregate amount of letters of credit issued.
Revolving credit loans drawn under the 2022 Credit Agreement bear interest, at our option, at (i) the Base Rate (the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50%, or (c) the one-month Term Secured Overnight Financing Rate (“SOFR”) plus 1.10%), plus a margin ranging between 0.125% and 0.750%, or (ii) Term SOFR plus 0.10% and a margin ranging between 1.125% and 1.750%. Swingline loans drawn under the 2022 Credit Agreement bear interest at the Base Rate, as defined above, plus a margin ranging between 0.125% and 0.750%. The 2022 Credit Agreement also requires us to pay quarterly (i) a letter of credit commission on the daily amount available to be drawn under such standby letters of credit at rates ranging between 1.125% and 1.750% per annum and (ii) a nonrefundable commitment fee on the average daily unused amount of the commitment at rates ranging between 0.125% and 0.250% per annum. The margin, letter of credit commission, and commitment fee rates are based on our ratio of net funded debt to earnings before interest, income taxes, depreciation and amortization (“EBITDA”). There are no scheduled principal payments due on the 2022 Credit Agreement until the maturity date, and interest is payable in arrears at periodic intervals not to exceed three months.
Availability of such funds under the 2022 Credit Agreement is conditional upon various customary terms and covenants. Such covenants include, among other things, two financial covenants requiring us (i) not to exceed a maximum ratio of net funded debt to EBITDA and (ii) to exceed a minimum ratio of EBITDA to interest expense. As of March 31, 2025, we were in compliance with these covenants.
We have entered into variable-for-fixed interest rate swap agreements in order to limit our exposure to increases in interest rates on a portion of our variable-rate indebtedness. Under the terms of our interest rate swap agreements, we receive monthly variable-rate interest payments based on one-month Term SOFR and make monthly fixed-rate interest payments as specified in the interest rate swap agreements. We have designated our interest rate swap agreements as cash flow hedges. Changes in fair value of outstanding derivatives in cash flow hedges are recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income until earnings are impacted by the hedged transactions. For additional information regarding the valuation of our interest rate swaps, see Note 5 – Fair Value.
On March 27, 2025, the Company and Werner Receivables Company, LLC (“WRC”), a newly-formed wholly-owned subsidiary of the Company, entered into a Loan Security Agreement (“LSA”) with various lenders. The LSA is scheduled to terminate on March 27, 2028, unless extended by the parties and is subject to earlier termination as provided in the LSA. The LSA is a secured borrowing that is collateralized by eligible receivables, for which the Company is the servicing agent. WRC is a bankruptcy remote, special purpose entity and the borrower under the LSA. The Company has contributed and from time to time sells a designated pool of eligible accounts receivables to WRC which, in turn, may borrow funds under the LSA on a revolving basis. The collateral is available to satisfy the claims related to the lenders’ interests in the receivables and unavailable to satisfy claims of the Company and its subsidiaries. The LSA does not qualify for sale treatment. Accordingly, the Company’s eligible receivables remain on our condensed consolidated balance sheets in accounts receivable, trade, less allowance.
Subject to eligible receivables, the maximum amount of funding available to WRC is $300.0 million, which may increase to $350.0 million upon WRC’s request and acceptance by the lenders. Borrowings under the LSA bear interest at (i) a commercial
15

Table of Contents
paper rate or (ii) one-month Term SOFR, plus 0.10%. The LSA also requires us to pay nonrefundable drawn and undrawn fees on the average daily used and unused amounts of the commitment, respectively.
The LSA is subject various affirmative and negative covenants, representations and warranties, and default and termination provisions customary for facilities of this type, including a minimum borrower’s net worth covenant. As of March 31, 2025, we were in compliance with these covenants.
The following table presents total debt (in thousands):

| March 31, 2025 |  | December 31, 2024
Current portion of long-term debt |  |  |
2022 Credit Agreement (1) | $ | — |  |  | $ | 20,000 |
Long-term debt, net of current portion |  |  |
2022 Credit Agreement (1) | 390,000 |  |  | 630,000 |
LSA (weighted average interest rate of 5.17% at March 31, 2025) | 250,000 |  |  | — |
Total long-term debt, net of current portion | 640,000 |  |  | 630,000 |
Total debt | $ | 640,000 |  |  | $ | 650,000 |

(1) As of March 31, 2025, our outstanding revolving credit loan balance under the 2022 Credit Agreement consisted of:
•$35.0 million at a weighted average variable interest rate of 5.92%;
•$40.0 million which is effectively fixed at 6.45% with interest rate swap agreements through July 2025;
•$90.0 million which is effectively fixed at 6.12% with interest rate swap agreements through July 2026;
•$75.0 million which is effectively fixed at 6.23% with an interest rate swap agreement through April 2027;
•$75.0 million which is effectively fixed at 6.09% with an interest rate swap agreement through May 2027; and
•$75.0 million which is effectively fixed at 5.14% with an interest rate swap agreement through August 2028.
Subsequent to the end of the quarter through the date of the filing, we had net borrowings of $35.0 million under our credit facilities. Our total available borrowing capacity was $725.3 million as of March 31, 2025, consisting of $679.1 million under the 2022 Credit Agreement after considering $5.9 million in stand-by letters of credit under which we are obligated and $46.2 million under the LSA.
Availability under the LSA is calculated as follows (in thousands):

| March 31, 2025 |  |
Borrowing base, based on eligible receivables | $ | 296,243 |  |  |
Less: outstanding borrowings (1) | (250,000) |  |  |
Availability under LSA | $ | 46,243 |  |  |

(1) Outstanding borrowings are included in long-term debt, net of current portion on the condensed consolidated balance sheets.
For information regarding the fair value of our debt, see Note 5 – Fair Value.
At March 31, 2025, the aggregate maturities of future debt principal payments are as follows (in thousands):

2025 (remaining) | $ | — |
2026 | — |
2027 | 390,000 |
2028 | 250,000 |
Total | $ | 640,000 |

(8) Commitments and Contingencies
We have committed to property and equipment purchases of approximately $94.4 million at March 31, 2025.
We are involved in certain claims and pending litigation, including those described herein, arising in the ordinary course of business. The majority of these claims relate to bodily injury, property damage, cargo and workers’ compensation incurred in the transportation of freight, as well as certain class action litigation related to personnel and employment matters. We accrue for the uninsured portion of contingent losses from these and other pending claims when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on the knowledge of the facts, management believes the resolution of claims and pending litigation, taking into account existing reserves, will not have a material adverse
16

Table of Contents
effect on our consolidated financial statements. Moreover, the results of complex legal proceedings are difficult to predict, and our view of these matters may change in the future as the litigation and related events unfold.
On May 17, 2018, in Harris County District Court in Houston, Texas, a jury rendered an adverse verdict against the Company in a lawsuit arising from a December 30, 2014 accident between a Werner tractor-trailer and a passenger vehicle. On July 30, 2018, the court entered a final judgment against Werner for $92.0 million, including pre-judgment interest.
The Company has premium-based liability insurance to cover the potential outcome from this jury verdict. Under the Company’s insurance policies in effect on the date of this accident, the Company’s maximum liability for this accident is $10.0 million (plus pre-judgment and post-judgment interest) with premium-based coverage that exceeds the jury verdict amount. As a result of this jury verdict, the Company had recorded a liability of $45.8 million as of March 31, 2025, and $44.4 million as of December 31, 2024. Under the terms of the Company’s insurance policies, the Company is the primary obligor of the verdict, and as such, the Company has also recorded a $79.2 million receivable from its third-party insurance providers in other non-current assets and a corresponding liability of the same amount in the long-term portion of insurance and claims accruals on the consolidated condensed balance sheets as of March 31, 2025 and December 31, 2024.
The Company pursued an appeal of this verdict, and on May 18, 2023, the Texas Court of Appeals overruled Werner’s appeal and affirmed the trial court’s judgment. The Company filed a Petition for Review with the Texas Supreme Court and, on August 30, 2024 the Texas Supreme Court granted the Company’s Petition for Review. Oral argument of the appeal was held on December 3, 2024. No assurances can be given regarding the outcome of the review.
We are also involved in certain class action litigation in which the plaintiffs allege claims for failure to provide meal and rest breaks, unpaid wages, unauthorized deductions and other items. Based on the knowledge of the facts, management does not currently believe the outcome of this class action is likely to have a material adverse effect on our financial position or results of operations. However, the final disposition of these matters and the impact of such final dispositions cannot be determined at this time.
(9) Earnings (Loss) Per Share
Basic earnings (loss) per share is computed by dividing net income (loss) attributable to Werner by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) attributable to Werner by the weighted average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding restricted stock awards. Performance awards are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. Since the Company had a net loss for the three months ended March 31, 2025, diluted loss per share is the same as basic loss per share as the inclusion of potential common shares outstanding would have been antidilutive. The potential shares of common stock that were excluded from the computation of diluted loss per share for the three months ended March 31, 2025, were 182,000 shares. There are no differences in the numerators of our computations of basic and diluted earnings (loss) per share for any periods presented.
The computation of basic and diluted earnings (loss) per share is shown below (in thousands, except per share amounts).

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Net income (loss) attributable to Werner | $ | (10,098) |  |  | $ | 6,312 |  |  |  |  |
Weighted average common shares outstanding | 61,890 |  |  | 63,472 |  |  |  |  |
Dilutive effect of stock-based awards | — |  |  | 255 |  |  |  |  |
Shares used in computing diluted earnings (loss) per share | 61,890 |  |  | 63,727 |  |  |  |  |
Basic earnings (loss) per share | $ | (0.16) |  |  | $ | 0.10 |  |  |  |  |
Diluted earnings (loss) per share | $ | (0.16) |  |  | $ | 0.10 |  |  |  |  |

(10) 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
17

Table of Contents
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 operating units. These three Werner Logistics operating units 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”) unit 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.
18

Table of Contents
The following tables summarize our segment information (in thousands):

| Three Months Ended March 31, 2025
| Truckload Transportation Services |  | Werner Logistics |  | Total
Revenues from external customers | $ | 497,812 |  |  | $ | 195,558 |  |  | $ | 693,370 |
Inter-segment revenues | 4,063 |  |  | — |  |  | 4,063 |
Reportable segment revenues | 501,875 |  |  | 195,558 |  |  | 697,433 |
Reconciliation of revenues: |  |  |  |  |
Other revenues (1) |  |  |  |  | 18,744 |
Elimination of inter-segment revenues |  |  |  |  | (4,063) |
Consolidated revenues |  |  |  |  | $ | 712,114 |
Less operating expenses: (2) |  |  |  |  |
Salaries, wages and benefits | 217,703 |  |  | 18,256 |  |  | 235,959 |
Fuel | 62,433 |  |  | 360 |  |  | 62,793 |
Supplies and maintenance | 51,338 |  |  | 2,673 |  |  | 54,011 |
Taxes and licenses | 21,957 |  |  | 223 |  |  | 22,180 |
Insurance and claims | 43,074 |  |  | 622 |  |  | 43,696 |
Depreciation and amortization | 63,046 |  |  | 3,692 |  |  | 66,738 |
Rent and purchased transportation | 38,453 |  |  | 169,219 |  |  | 207,672 |
Communications and utilities | 3,608 |  |  | 357 |  |  | 3,965 |
Gains on sales of property and equipment | (3,288) |  |  | (299) |  |  | (3,587) |
Other segment items (3) | 4,467 |  |  | 930 |  |  | 5,397 |
Reportable segment operating expenses | 502,791 |  |  | 196,033 |  |  | 698,824 |
Reportable segment operating loss | $ | (916) |  |  | $ | (475) |  |  | $ | (1,391) |
Reconciliation of operating loss: |  |  |  |  |
Other operating loss (1) |  |  |  |  | (4,441) |
Consolidated operating loss |  |  |  |  | $ | (5,832) |

19

Table of Contents

| Three Months Ended March 31, 2024
| Truckload Transportation Services |  | Werner Logistics |  | Total
Revenues from external customers | $ | 547,055 |  |  | $ | 202,482 |  |  | $ | 749,537 |
Inter-segment revenues | 4,071 |  |  | — |  |  | 4,071 |
Reportable segment revenues | 551,126 |  |  | 202,482 |  |  | 753,608 |
Reconciliation of revenues: |  |  |  |  |
Other revenues (1) |  |  |  |  | 19,543 |
Elimination of inter-segment revenues |  |  |  |  | (4,071) |
Consolidated revenues |  |  |  |  | $ | 769,080 |
Less operating expenses: (2) |  |  |  |  |
Salaries, wages and benefits | 236,531 |  |  | 21,310 |  |  | 257,841 |
Fuel | 76,874 |  |  | 438 |  |  | 77,312 |
Supplies and maintenance | 54,130 |  |  | 1,884 |  |  | 56,014 |
Taxes and licenses | 24,776 |  |  | 240 |  |  | 25,016 |
Insurance and claims | 35,034 |  |  | 1,229 |  |  | 36,263 |
Depreciation and amortization | 66,933 |  |  | 3,667 |  |  | 70,600 |
Rent and purchased transportation | 32,495 |  |  | 174,166 |  |  | 206,661 |
Communications and utilities | 3,634 |  |  | 767 |  |  | 4,401 |
Gains on sales of property and equipment | (4,465) |  |  | (219) |  |  | (4,684) |
Other segment items (3) | 4,344 |  |  | 1,329 |  |  | 5,673 |
Reportable segment operating expenses | 530,286 |  |  | 204,811 |  |  | 735,097 |
Reportable segment operating income (loss) | $ | 20,840 |  |  | $ | (2,329) |  |  | $ | 18,511 |
Reconciliation of operating income: |  |  |  |  |
Other operating loss (1) |  |  |  |  | (2,923) |
Consolidated operating income |  |  |  |  | $ | 15,588 |

(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) Other segment items for each reportable segment primarily includes costs for professional services.
20

Table of Contents
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Management’s Discussion and Analysis of Financial Condition and Results of Operations (the “MD&A”) summarizes the financial statements from management’s perspective with respect to our financial condition, results of operations, liquidity and other factors that may affect actual results. The MD&A is organized in the following sections:
•Overview
•Results of Operations
•Liquidity and Capital Resources
•Regulations
•Critical Accounting Estimates
The MD&A should be read in conjunction with our 2024 Form 10-K.
Overview:
We have two reportable segments, TTS and Werner Logistics, and we operate in the truckload and logistics sectors of the transportation industry. In the truckload sector, we focus on transporting consumer nondurable products that generally ship more consistently throughout the year. In the logistics sector, besides managing transportation requirements for individual customers, we provide additional sources of truck capacity, alternative modes of transportation, a North American delivery network and systems analysis to optimize transportation needs. Our success depends on our ability to efficiently and effectively manage our resources in the delivery of truckload transportation and logistics services to our customers. Resource requirements vary with customer demand, which may be subject to seasonal or general economic conditions. Our ability to adapt to changes in customer transportation requirements is essential to efficiently deploy resources and make capital investments in tractors and trailers (with respect to our TTS segment) or obtain qualified third-party capacity at a reasonable price (with respect to our Werner Logistics segment). We may also be affected by our customers’ financial failures or loss of customer business.
Revenues for the operating segments (Dedicated and One-Way Truckload) within our TTS reportable segment are typically generated on a per-mile basis and also include revenues such as stop charges, loading and unloading charges, equipment detention charges and equipment repositioning charges. To mitigate our risk to fuel price increases, we recover additional fuel surcharge revenues from our customers that generally recoup a majority of the increased fuel costs; however, we cannot assure that current recovery levels will continue in future periods. Because fuel surcharge revenues fluctuate in response to changes in fuel costs, we identify them separately and exclude them from the statistical calculations to provide a more meaningful comparison between periods. The key statistics used to evaluate trucking revenues, net of fuel surcharge, are (i) average revenues per tractor per week, (ii) One-Way Truckload average revenues per total mile, (iii) average percentage of empty miles (miles without trailer cargo), (iv) average trip length (in loaded miles) and (v) average number of tractors in service. General economic conditions, seasonal trucking industry freight patterns and industry capacity are important factors that impact these statistics. Our TTS segment also generates a small amount of revenues categorized as non-trucking revenues, which consist primarily of the intra-Mexico portion of cross-border shipments delivered to or from Mexico where the TTS segment utilizes a third-party capacity provider. We exclude such revenues from the statistical calculations.
Our most significant resource requirements are company drivers, independent contractors, tractors, and trailers with respect to our TTS segment and qualified third-party capacity providers with respect to our Werner Logistics segment. Independent contractors supply their own tractors and drivers and are responsible for their operating expenses. Our financial results are affected by company driver and independent contractor availability and the markets for new and used revenue equipment. We are self-insured for a significant portion of bodily injury, property damage and cargo claims; workers’ compensation claims; and associate health claims (supplemented by premium-based insurance coverage above certain dollar levels). For that reason, our financial results may also be affected by driver safety, medical costs, weather, legal and regulatory environments and insurance coverage costs to protect against catastrophic losses.
The operating ratio is a common industry measure used to evaluate our profitability and that of our TTS segment operating fleets. The operating ratio consists of operating expenses expressed as a percentage of operating revenues. The most significant variable expenses that impact the TTS segment are driver salaries and benefits, fuel, fuel taxes (included in taxes and licenses expense), payments to independent contractors (included in rent and purchased transportation expense), supplies and maintenance and insurance and claims. As discussed further in the comparison of operating results for first quarter 2025 to first quarter 2024, several industry-wide issues have caused, and could continue to cause, costs to increase in future periods. These issues include shortages of drivers or independent contractors, changing fuel prices, changing used truck and trailer pricing, compliance with new or proposed regulations and tightening of the commercial truck liability insurance market. Our main fixed costs include depreciation expense for tractors and trailers and non-driver salaries, wages and benefits. The TTS segment requires substantial cash expenditures for tractor and trailer purchases. We fund these purchases with net cash from operations and financing available under our existing credit facilities, as management deems necessary.
21

Table of Contents
We provide non-trucking services primarily through the three operating units within our Werner Logistics segment (Truckload Logistics, Intermodal, and Final Mile). Unlike our TTS segment, the Werner Logistics segment is less asset-intensive and is instead dependent upon qualified associates, information systems and qualified third-party capacity providers. The largest expense item related to the Werner Logistics segment is the cost of purchased transportation we pay to third-party capacity providers. This expense item is recorded as rent and purchased transportation expense. Other operating expenses consist primarily of salaries, wages and benefits, as well as depreciation and amortization, supplies and maintenance, and other general expenses. We evaluate the Werner Logistics segment’s financial performance by reviewing operating expenses and operating income expressed as a percentage of revenues. Purchased transportation expenses as a percentage of revenues can be impacted by the rates charged to customers and the costs of securing third-party capacity. We have a mix of contracted long-term rates and variable rates for the cost of third-party capacity, and we cannot assure that our operating results will not be adversely impacted in the future if our ability to obtain qualified third-party capacity providers changes or the rates of such providers increase.
Results of Operations:
The following table sets forth the consolidated statements of income in dollars and as a percentage of total operating revenues and the percentage increase or decrease in the dollar amounts of those items compared to the prior year.

| Three Months Ended (3ME) March 31, |  |  | Percentage Change in Dollar Amounts
| 2025 |  | 2024 |  |  |  |  | 3ME |
(in thousands) | $ | % |  | $ | % |  |  |  |  |  |  | % |
Operating revenues | $ | 712,114 |  | 100.0 |  |  | $ | 769,080 |  | 100.0 |  |  |  |  |  |  |  | (7.4) |  |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries, wages and benefits | 243,225 |  | 34.2 |  |  | 265,403 |  | 34.5 |  |  |  |  |  |  |  | (8.4) |  |
Fuel | 63,092 |  | 8.9 |  |  | 77,622 |  | 10.1 |  |  |  |  |  |  |  | (18.7) |  |
Supplies and maintenance | 60,040 |  | 8.4 |  |  | 61,775 |  | 8.0 |  |  |  |  |  |  |  | (2.8) |  |
Taxes and licenses | 22,344 |  | 3.1 |  |  | 25,164 |  | 3.3 |  |  |  |  |  |  |  | (11.2) |  |
Insurance and claims | 43,777 |  | 6.2 |  |  | 36,362 |  | 4.7 |  |  |  |  |  |  |  | 20.4 |  |
Depreciation and amortization | 70,049 |  | 9.8 |  |  | 74,270 |  | 9.7 |  |  |  |  |  |  |  | (5.7) |  |
Rent and purchased transportation | 206,142 |  | 28.9 |  |  | 203,925 |  | 26.5 |  |  |  |  |  |  |  | 1.1 |  |
Communications and utilities | 4,357 |  | 0.6 |  |  | 4,706 |  | 0.6 |  |  |  |  |  |  |  | (7.4) |  |
Other | 4,920 |  | 0.7 |  |  | 4,265 |  | 0.6 |  |  |  |  |  |  |  | 15.4 |  |
Total operating expenses | 717,946 |  | 100.8 |  |  | 753,492 |  | 98.0 |  |  |  |  |  |  |  | (4.7) |  |
Operating income (loss) | (5,832) |  | (0.8) |  |  | 15,588 |  | 2.0 |  |  |  |  |  |  |  | (137.4) |  |
Total other expense, net | 7,556 |  | 1.1 |  |  | 6,273 |  | 0.8 |  |  |  |  |  |  |  | 20.5 |  |
Income (loss) before income taxes | (13,388) |  | (1.9) |  |  | 9,315 |  | 1.2 |  |  |  |  |  |  |  | (243.7) |  |
Income tax expense (benefit) | (3,167) |  | (0.5) |  |  | 3,067 |  | 0.4 |  |  |  |  |  |  |  | (203.3) |  |
Net income (loss) | (10,221) |  | (1.4) |  |  | 6,248 |  | 0.8 |  |  |  |  |  |  |  | (263.6) |  |
Net loss attributable to noncontrolling interest | 123 |  | — |  |  | 64 |  | — |  |  |  |  |  |  |  | 92.2 |  |
Net income (loss) attributable to Werner | $ | (10,098) |  | (1.4) |  |  | $ | 6,312 |  | 0.8 |  |  |  |  |  |  |  | (260.0) |  |

22

Table of Contents
The following tables set forth the operating revenues, operating expenses and operating income (loss) for the TTS segment and certain statistical data regarding our TTS segment operations, as well as statistical data for One-Way Truckload and Dedicated operations within TTS.

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
TTS segment (in thousands) | $ |  | % |  | $ |  | % |  |  |  |  |  |  |  |
Trucking revenues, net of fuel surcharge | $ | 433,073 |  |  |  |  | $ | 469,879 |  |  |  |  |  |  |  |  |  |  |
Trucking fuel surcharge revenues | 57,640 |  |  |  |  | 72,983 |  |  |  |  |  |  |  |  |  |  |
Non-trucking and other operating revenues | 11,162 |  |  |  |  | 8,264 |  |  |  |  |  |  |  |  |  |  |
Operating revenues | 501,875 |  |  | 100.0 |  |  | 551,126 |  |  | 100.0 |  |  |  |  |  |  |  |  |
Operating expenses | 502,791 |  |  | 100.2 |  |  | 530,286 |  |  | 96.2 |  |  |  |  |  |  |  |  |
Operating income (loss) | $ | (916) |  |  | (0.2) |  |  | $ | 20,840 |  |  | 3.8 |  |  |  |  |  |  |  |  |

| Three Months Ended March 31, |  |  |  |  |  |
TTS segment | 2025 |  | 2024 |  | % Change |  |  |  |  |  |
Average tractors in service | 7,415 |  |  | 7,935 |  |  | (6.6) | % |  |  |  |  |  |
Average revenues per tractor per week (1) | $ | 4,493 |  |  | $ | 4,555 |  |  | (1.4) | % |  |  |  |  |  |
Total tractors (at quarter end) |  |  |  |  |  |  |  |  |  |  |
Company | 7,135 |  |  | 7,535 |  |  | (5.3) | % |  |  |  |  |  |
Independent contractor | 305 |  |  | 275 |  |  | 10.9 | % |  |  |  |  |  |
Total tractors | 7,440 |  |  | 7,810 |  |  | (4.7) | % |  |  |  |  |  |
Total trailers (at quarter end) | 24,930 |  |  | 27,650 |  |  | (9.8) | % |  |  |  |  |  |
One-Way Truckload |  |  |  |  |  |  |  |  |  |  |
Trucking revenues, net of fuel surcharge (in 000’s) | $ | 154,421 |  |  | $ | 168,837 |  |  | (8.5) | % |  |  |  |  |  |
Average tractors in service | 2,632 |  |  | 2,786 |  |  | (5.5) | % |  |  |  |  |  |
Total tractors (at quarter end) | 2,605 |  |  | 2,730 |  |  | (4.6) | % |  |  |  |  |  |
Average percentage of empty miles | 16.01 | % |  | 14.90 | % |  | 7.4 | % |  |  |  |  |  |
Average revenues per tractor per week (1) | $ | 4,513 |  |  | $ | 4,661 |  |  | (3.2) | % |  |  |  |  |  |
Average % change in revenues per total mile (1) | 0.3 | % |  | (5.1) | % |  |  |  |  |  |  |  |
Average % change in total miles per tractor per week | (3.5) | % |  | 11.3 | % |  |  |  |  |  |  |  |
Average completed trip length in miles (loaded) | 576 |  |  | 591 |  |  | (2.5) | % |  |  |  |  |  |
Dedicated |  |  |  |  |  |  |  |  |  |  |
Trucking revenues, net of fuel surcharge (in 000’s) | $ | 278,652 |  |  | $ | 301,042 |  |  | (7.4) | % |  |  |  |  |  |
Average tractors in service | 4,783 |  |  | 5,149 |  |  | (7.1) | % |  |  |  |  |  |
Total tractors (at quarter end) | 4,835 |  |  | 5,080 |  |  | (4.8) | % |  |  |  |  |  |
Average revenues per tractor per week (1) | $ | 4,482 |  |  | $ | 4,497 |  |  | (0.3) | % |  |  |  |  |  |

(1)Net of fuel surcharge revenues.
23

The following tables set forth the Werner Logistics segment’s revenues, purchased transportation expense, other operating expenses (primarily salaries, wages and benefits expense), total operating expenses, and operating income (loss), as well as certain statistical data regarding the Werner Logistics segment.

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Werner Logistics segment (in thousands) | $ |  | % |  | $ |  | % |  |  |  |  |  |  |  |
Operating revenues | $ | 195,558 |  |  | 100.0 |  |  | $ | 202,482 |  |  | 100.0 |  |  |  |  |  |  |  |  |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchased transportation expense | 167,158 |  |  | 85.5 |  |  | 172,487 |  |  | 85.2 |  |  |  |  |  |  |  |  |
Other operating expenses | 28,875 |  |  | 14.7 |  |  | 32,324 |  |  | 16.0 |  |  |  |  |  |  |  |  |
Total operating expenses | 196,033 |  |  | 100.2 |  |  | 204,811 |  |  | 101.2 |  |  |  |  |  |  |  |  |
Operating income (loss) | $ | (475) |  |  | (0.2) |  |  | $ | (2,329) |  |  | (1.2) |  |  |  |  |  |  |  |  |

| Three Months Ended March 31, |  |  |  |  |  |
Werner Logistics segment | 2025 |  | 2024 |  | % Change |  |  |  |  |  |
Average tractors in service | 20 |  |  | 26 |  |  | (23.1) | % |  |  |  |  |  |
Total tractors (at quarter end) | 22 |  |  | 21 |  |  | 4.8 | % |  |  |  |  |  |
Total trailers (at quarter end) | 3,200 |  |  | 3,115 |  |  | 2.7 | % |  |  |  |  |  |
Total containers (at quarter end) | 200 |  |  | — |  |  | N/A |  |  |  |  |  |

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
Operating Revenues and Operating Profitability
Operating reve nues decreased 7.4% for the three months ended March 31, 2025, comp ared to the same period of the prior year. When comparing first quarter 2025 to first quarter 2024, TTS segment reven ues decreased $49.3 million, or 8.9%, and Werner Logistics revenues decreased $6.9 million, or 3.4%. We had an operating loss of $5.8 million in first quarter 2025 compared to $15.6 million operating income in first quarter 2024, and our operating margin percentage decreased to (0.8)% in first quarter 2025 from 2.0% in first quarter 2024. First quarter 2025 operating results were negatively impacted by elevated insurance costs and claims, extreme weather conditions in areas in which we operate, more elevated costs to progress our technology strategy and transformation, and isolated operating inefficiencies and lower utilization stemming from select customer decisions and stop-and-go activity from tariff-induced uncertainties.
Dedicated customer retention remains strong and interest in our Dedicated solutions from new customers is increasing. We were awarded several fleet contracts from new and existing customers during first quarter 2025, representing over 200 tractors that are scheduled to be implemented in late second quarter or early third quarter 2025. In first quarter 2025, One-Way Truckload freight conditions were more stable early in the quarter, but weakened in March, as trade policy resulted in a more uncertain and cautious environment. Weaker One-Way Truckload volumes continued in April 2025. One-Way Truckload retention has been good thus far, as we have secured new business with some of our largest customers. Werner Logistics revenues and profitability were impacted by lower volumes in Truckload Logistics.
Trucking revenues, net of fuel surcharge, decreased 7.8% in first quart er 2025 compared to first quarter 2024 due to a 6.6% decrease in the average number of tractors in service. TTS average revenues per tractor per week, net of fuel surcharge, decreased 1.4%, due primarily to a 3.5% decrease in One-Way Truckload average total miles per tractor per week, which was negatively impacted by adverse weather conditions in first quart er 2025. During first quarter 2025, One-Way Truckload average revenues per total mile, net of fuel su rcharge, increased 0.3% and One-Way Truckload average tractors in service decreased 5.5%. Due to higher freight volatility caused by tariff related uncertainties, we are slightly lowering our expectation for the One-Way Truckload fleet average revenues per total mile, net of fuel surcharge, to remain flat or increase up to 3% in second quarter 2025 compared to second quarter 2024. Dedicated average revenues per tractor per week, net of fuel surcharge, decreased 0.3% and was impacted by one fewer business day in first quarter 2025 compared to first quarter 2024. We continue to expect Dedicated average revenues per tractor per week, net of fuel surcharge, will remain flat or increase up to 3% in 2025 compared to 2024. TTS had an operating loss of $0.9 million in first quarter 2025 compared to $20.8 million operating income in first quarter 2024, and its operating margin percentage decreased to (0.2)% in first quarter 2025 from 3.8% in first quarter 2024. First quarter 2025 TTS results were negatively impacted by elevated insurance costs and claims, extreme weather conditions, elevated technology costs, and tariff-induced uncertainties.
24

Table of Contents
The average number of tractors in service in the TTS segment decreased 6.6% to 7,415 in first qu arter 2025 from 7,935 in first quarter 2024. W e ended first quarter 2025 wi th 7,440 tractors in the TTS segment, a year-over-year decrease of 370 tractors compared to the e nd of first quarter 2024, and a sequential decrease of 10 tractors compared to the end of fourth quarter 2024. Within TTS, Dedicated ended first quarter 2025 with 4,835 tractors (or 65% of our total TTS segment fleet) compared to 5,080 tractors (or 65%) a year ago. We continue to expect our TTS segment fleet size at the end of 2025 to increase in a range of 1% to 5% when compared to the fleet size at the end of 2024, as we implement new dedicated contracts in late second quarter and early third quarter 2025. We cannot predict whether future driver shortages, if any, would have a further adverse effect on our fleet size. If such a driver market shortage were to occur, it could result in further fleet size reductions, and our results of operations could be adversely affected.
Trucking fuel surcharge revenues decreased 21.0% to $57.6 million in first quarter 2025 from $73.0 million in first quarter 2024 due primarily to lower average diesel fuel prices and the impact of 18.6 million fewer company tractor miles. These revenues represent collections from customers for the increase in fuel and fuel-related expenses, including the fuel component of our independent contractor cost (recorded as rent and purchased transportation expense) and fuel taxes (recorded in taxes and licenses expense), when diesel fuel prices rise. Conversely, when fuel prices decrease, fuel surcharge revenues decrease. To lessen the effect of fluctuating fuel prices on our margins, we collect fuel surcharge revenues from our customers for the cost of diesel fuel and taxes in excess of specified base fuel price levels according to terms in our customer contracts. Fuel surcharge rates generally adjust weekly based on an independent U.S. Department of Energy fuel price survey which is released every Monday. Our fuel surcharge programs are designed to (i) recoup higher fuel costs from customers when fuel prices rise and (ii) provide customers with the benefit of lower fuel costs when fuel prices decline. These programs generally enable us to recover a majority, but not all, of the fuel price increases. The remaining portion is generally not recoverable because it results from empty and out-of-route miles (which are not billable to customers) and tractor idle time. Fuel prices that change rapidly in short time periods also impact our recovery because the surcharge rate in most programs only changes once per week.
Werner Logistics revenues are generated by its three operating units. Werner Logistics recorded revenue and brokered freight expense of $4.1 million in first quarter 2025 and 2024 for certain shipments performed by the TTS segment (also recorded as trucking revenue by the TTS segment), and these transactions between reporting segments are eliminated in consolidation. In first quarter 2025, Werner Logistics revenues decreased $6.9 million, or 3.4%, compared to first quarter 2024. Truckload Logistics revenues (75% of total Werner Logistics segment revenues) decreased $7.6 million, or 5%, in first quarter 2025, driven by a decrease in shipments and a decline in revenue per shipment. The Power Only solution, which utilizes third-party carriers who provide only a driver and a tractor, represented a growing portion of the Truckload Logistics volume in first quarter 2025, as Power Only volumes increased over 8% in first quarter 2025 compared to first quarter 2024. Intermodal revenues (14% of total Werner Logistics segment revenues) increased $3.5 million, or 14%, in first quarter 2025, due to an increase in shipments, partially offset by lower revenue per shipment. Final Mile revenues (11% of total Werner Logistics segment revenues) decreased $2.8 million, or 12%, in first quarter 2025, due to lower volumes in furniture and appliance vertical. Werner Logistics had operating losses of $0.5 million and $2.3 million in first quarter 2025 and 2024, respectively, and its operating margin percentage increased to (0.2)% in first quarter 2025 from (1.2)% in first quarter 2024. The competitive operating environment continued to pressure Werner Logistics operating margin for most of first quarter 2025, but improved in March 2025.
Operating Expenses
Our operating ratio (operati ng expenses expressed as a percentage of ope rating revenues) was 100.8% in first quarter 2025 compared to 98.0% in first quarter 2024. Expense items that impacted the overall operating ratio are described on the following pages. The tables on pages 22 through 24 show the consolidated statements of income in dollars and as a percentage of total operating revenues and the percentage increase or decrease in the dollar amounts of those items compared to the same period of the prior year, as well as the operating ratios, operating margins, and certain statistical information for our two reportable segments, TTS and Werner Logistics.
Salaries, wages and benefits decreased $22.2 million or 8.4% in first quarter 2025 compared to first quarter 2024 and decreased 0.3% as a percentage of operating revenues. The lower dollar amount of salaries, wages and benefits expense in the first quarter of 2025 was due primarily to the impact of 18.6 million fewer company tractor miles, decreased non-driver pay, and lower benefit costs. The decrease in non-driver pay was due primarily to a smaller average number of non-driver employees. Non-driver salaries, wages and benefits in our non-trucking Werner Logistics segment decreased 14% in first quarter 2025 compared to first quarter 2024.
We renewed our workers’ compensation insurance coverage on April 1, 2025. Our coverage levels are the same as the prior policy year. We continue to maintain a self-insurance retention of $2.0 million per claim. Our workers’ compensation insurance premiums for the policy year beginning April 2025 are $0.1 million lower than the previous policy year.
25

Table of Contents
While we currently believe the driver recruiting and retention market may be less difficult in the near term, a competitive driver market presents labor challenges for customers and carriers alike. Several factors impacting the driver market include a declining number of, and increased competition for, driver training school graduates, aging truck driver demographics and increased truck safety regulations. We continue to take significant actions to strengthen our driver recruiting and retention as we strive to be the truckload employer of choice, including competitive driver pay, providing a modern tractor and trailer fleet with the latest safety equipment and technology, investing in our driver training school network and offering a wide variety of driving positions including daily and weekly home time opportunities. We are unable to predict whether we will experience future driver shortages or maintain our current driver retention rates. If such a driver shortage were to occur and driver pay rate increases became necessary to attract and retain drivers, our results of operations would be negatively impacted to the extent that we could not obtain corresponding freight rate increases.
Fuel decreased $14.5 million or 18.7% in first quarter 2025 compared to first quarter 2024 and decreased 1.2% as a percentage of operating revenues, due to lower average diesel fuel prices and 18.6 million fewer company tractor miles in first quarter 2025. Average diesel fuel prices were 30 cents per gallon lower in first quarter 2025 than in first quarter 2024 and were 12 cents per gallon higher than in fourth quarter 2024.
We continue to employ measures to improve our fuel mpg such as (i) limiting tractor engine idle time by installing auxiliary power units, (ii) optimizing the speed, weight and specifications of our equipment and (iii) implementing mpg-enhancing equipment changes to our fleet including new tractors, more aerodynamic tractor features, idle reduction systems, trailer tire inflation systems, trailer skirts and automated manual transmissions to reduce our fuel gallons purchased. However, fuel savings from mpg improvement is partially offset by higher depreciation expense and the additional cost of diesel exhaust fluid. Although our fuel management programs require significant capital investment and research and development, we intend to continue these and other environmentally conscious initiatives, including our active participation as a U.S. Environmental Protection Agency (“EPA”) SmartWay Transport Partner. The SmartWay Transport Partnership is a national voluntary program developed by the EPA and freight industry representatives to reduce greenhouse gases and air pollution and promote cleaner, more efficient ground freight transportation.
For April 2025, the average diesel fuel price per gallon was approximately 47 cents lower than the average diesel fuel price per gallon in April 2024 and approximately 31 cents lower than in second quarter 2024.
Shortages of fuel, increases in fuel prices and petroleum product rationing can have a material adverse effect on our operations and profitability. We are unable to predict whether fuel price levels will increase or decrease in the future or the extent to which fuel surcharges will be collected from customers. As of March 31, 2025, we had no derivative financial instruments to reduce our exposure to fuel price fluctuations.
Supplies and maintenance decreased $1.7 million or 2.8% in first quarter 2025 compared to first quarter 2024 and increased 0.4% as a percentage of operating revenues. Supplies and maintenance expense decreased due primarily to lower costs for over-the-road tractor and trailer maintenance and the impact of 18.6 million fewer company tractor miles in first quarter 2025. These decreases were partially offset by higher costs for tires.
Taxes and licenses decreased $2.8 million or 11.2% in first quarter 2025 compared to first quarter 2024 and decreased 0.2% as a percentage of operating revenues due primarily to lower costs for fuel taxes. The decrease in fuel tax expense in the first quarter of 2025 was impacted by lower average diesel fuel prices and 18.6 million fewer company tractor miles.
Insurance and claims increased $7.4 million or 20.4% in first quarter 2025 compared to first quarter 2024 and increased 1.5% as a percentage of operating revenues. We had higher expense for large dollar liability claims, due primarily to a higher amount of unfavorable reserve development and higher expense for new claims. The higher amount of unfavorable reserve development was due primarily to one adverse verdict late in first quarter 2025 related to a 2019 incident, which we plan to appeal. We also had higher expense for small dollar liability claims, resulting primarily from unfavorable reserve development in first quarter 2025 compared to favorable reserve development in first quarter 2024, partially offset by lower expense for new claims. Expense for new claims was impacted by decreased cost per claim in first quarter 2025 compared to first quarter 2024. We also incurred insurance and claims expense of $1.5 million in first quarter 2025 and $0.5 million for first quarter 2024 for accrued interest related to a previously-disclosed adverse jury verdict rendered on May 17, 2018, which we are continuing to defend. Interest is accrued at $0.5 million per month until such time as the outcome of the litigation is finalized, excluding months where the plaintiffs requested an extension of time to respond to our petition to review. For additional information related to this lawsuit, see Note 8 in the Notes to Consolidated Financial Statements (Unaudited) set forth in Part I of this report. The majority of our insurance and claims expense results from our claim experience and claim development under our self-insurance program; the remainder results from insurance premiums for claims in excess of our self-insured limits. Our elevated insurance and claims expense is a reflection of the ongoing unprecedented rise in verdicts and litigation settlements across the industry, particularly for larger carriers.
26

Table of Contents
We ren ewed our liability insurance policies on August 1, 2024, and are responsible for the first $15.0 million per claim on all claims with an annual $7.5 million aggregate for claims between $15.0 million and $20.0 million. For the policy year that began August 1, 2023, we were responsible for the first $10.0 million per claim on all claims with an annual $12.5 million aggregate for claims between $10.0 million and $20.0 million. We maintain liability insurance coverage with insurance carriers in excess of the $15.0 million per claim. Our liability insurance premiums for the policy year that began August 1, 2024 are lower than premiums for the previous policy year as a result of changes in our retention level and aggregate insurance limits.
Depreciation and amortization expense decreased $4.2 million or 5.7% in first quarter 2025 compared to first quarter 2024 and increased 0.1% as a percentage of operating revenues due primarily to a decrease in depreciation of tractors, as we had fewer average tractors in service.
The average age of our tractor fleet remains low by industry standards and was 2.2 years as of March 31, 2025, and the average age of our trailers was 5.4 years. We are continuing to invest in new tractors and trailers, technology, and our terminal network in 2025 to improve our driver experience, increase operational efficiency and more effectively manage our maintenance, safety and fuel costs.
Rent and purchased transportation expense increased $2.2 million or 1.1% in first quarter 2025 compared to first quarter 2024, and increased 2.4% as a percentage of operating revenues. Rent and purchased transportation expense consists mostly of payments to third-party capacity providers in the Werner Logistics segment and other non-trucking operations, payments to independent contractors in the TTS segment, and cloud-based technology fees. The payments to third-party capacity providers generally vary depending on changes in the volume of services generated by the Werner Logistics segment. Werner Logistics recorded revenue and brokered freight expense of $4.1 million in first quarter 2025 and 2024 for certain shipments performed by the TTS segment (also recorded as trucking revenue by the TTS segment), and these transactions between reporting segments are eliminated in consolidation. Werner Logistics purchased transportation expense decreased $5.3 million in first quarter 2025 as a result of lower logistics revenues, but increased to 85.5% as a percentage of Werner Logistics revenues in first quarter 2025 from 85.2% in first quarter 2024.
Rent and purchased transportation expense for the TTS segment increased $6.0 million in first quarter 2025 compared to first quarter 2024 due primarily to more independent contractor miles, higher technology-related costs, and additional operational facility costs. These increases were partially offset by lower reimbursements to independent contractors because of lower average diesel fuel prices in first quarter 2025. Independent contractor miles increased approximately 1.6 million miles in first quarter 2025 and as a percentage of total miles were 5.6% in first quarter 2025 compared to 4.3% in first quarter 2024. Because independent contractors supply their own tractors and drivers and are responsible for their operating expenses, the increase in independent contractor miles as a percentage of total miles shifted costs from other expense categories, including (i) salaries, wages and benefits, (ii) fuel, (iii) depreciation, (iv) supplies and maintenance and (v) taxes and licenses to the rent and purchased transportation category.
Challenging operating conditions continue to make independent contractor recruitment and retention difficult. Such conditions include inflationary cost increases that are the responsibility of independent contractors and a shortage of financing available to independent contractors for equipment purchases. Historically, we have been able to add company tractors and recruit additional company drivers to offset any decrease in the number of independent contractors. If a shortage of independent contractors and company drivers were to occur, increases in per-mile settlement rates (for independent contractors) and driver pay rates (for company drivers) may become necessary to attract and retain these drivers. These increased expenses could negatively affect our results of operations to the extent that we would not be able to obtain corresponding freight rate increases.
Other operating expenses increased $0.7 million in first quarter 2025 compared to first quarter 2024 and increased 0.1% as a percentage of operating revenues due primarily to lower gains on sales of property and equipment (primarily used tractors and trailers) and increased bad debt expense, partially offset by decreased costs associated with general professional services. Gains on sales of property and equipment are reflected as a reduction of other operating expenses and are reported net of sales-related expenses (which include costs to prepare the equipment for sale). Gains on sales of property and equipment were $2.8 million in first quarter 2025 compared to $3.6 million in first quarter 2024. We sold fewer tractors and trailers in first quarter 2025 compared to first quarter 2024 and realized lower average gains per tractor and improved average gains per trailer. Recently, we have seen increased values on used revenue equipment as pricing on new equipment is fluid and is being influenced by tariff uncertainties. While this is a positive development, it is too early to predict the impact this will have on our used equipment gains for the remainder of the year. We continue to expect gains on our used equipment to range between $8 million and $18 million in 2025.
Other Expense (Income)
Other expense, net of other income, increased $1.3 million in first quarter 2025 compared to first quarter 2024, due primarily to a $1.8 million increase in net interest expense, partially offset by a $0.4 million increase in the amount of net earnings
27

Table of Contents
recognized from our investments (see Note 6 in the Notes to Consolidated Financial Statements (Unaudited) set forth in Part I of this report for information regarding our investments). Net interest expense increased due to the impact of replacing lower-cost debt and interest rate swaps with higher-cost debt and interest rate swaps upon certain maturities in second quarter 2024 and an increase in average debt outstanding. During the first quarter 2025, we entered into a LSA, which bears interest at a lower rate than the 2022 Credit Agreement (see Note 7 in the Notes to Consolidated Financial Statements (Unaudited) set forth in Part I of this report for information regarding our credit facilities and interest rate swaps). We continue to expect net interest expense for full-year 2025 to be flat-to-down compared to 2024, higher in the first half and lower in the second half of the year, as we start to benefit from lower interest rates under the LSA.
Income Tax Expense (Benefit)
We had an income tax benefit of $3.2 million in first quarter 2025 compared to income tax expense of $3.1 million in first quarter 2024. Our effective income tax rate (income taxes expressed as a percentage of income (loss) before income taxes) was 23.7% in first quarter 2025 compared to 32.9% in first quarter 2024. The lower effective income tax rate in first quarter 2025 is attributed primarily to a higher amount of unfavorable discrete income tax items in the first quarter 2024. We continue to estimate our full year 2025 effective income tax rate to be approximately 25.0% to 26.0%, as we expect an elevated effective income tax rate in future quarters.
Liquidity and Capital Resources:
We closely manage our liquidity and capital resources. Our liquidity requirements depend on key variables, including the level of investment needed to support business strategies, the performance of the business, capital expenditures, borrowing arrangements, and working capital management. Capital expenditures, business acquisitions, stock repurchases, and dividend payments are components of our cash flow and capital management strategy, which to a large extent, can be adjusted in response to economic and other changes in the business environment. Management’s approach to capital allocation focuses on investing in key priorities that support our business and growth strategies and providing stockholder returns, while funding ongoing operations.
Management believes our financial position at March 31, 2025 is strong. As of March 31, 2025, we had $52.0 million of cash and cash equivalents and $1.4 billion of stockholders’ equity. Cash is invested primarily in short-term money market funds. In addition, we have a maximum borrowing capacity of $1.375 billion under our credit facilities, for which our total available borrowing capacity was $725.3 million as of March 31, 2025 (see Note 7 in the Notes to Consolidated Financial Statements (Unaudited) set forth in Part I of this report for information regarding our credit facilities). We believe the six commercial banks in our $1.075 billion syndicated credit facility all have strong tier-one capital ratios and good loan-to-deposit ratios. We believe our liquid assets, cash generated from operating activities, and borrowing capacity under our existing credit facilities will provide sufficient funds to meet our cash requirements and our planned stockholder returns for the foreseeable future.
Item 7 of Part II of our 2024 Form 10-K includes our disclosure of material cash requirements as of December 31, 2024. There were no material changes in the nature of these items during the three months ended March 31, 2025.
Cash Flows
During the three months ended March 31, 2025, we generated cash flow from operations of $29.4 million, a 66.8% or $59.2 million decrease in cash flows compared to the same three-month period a year ago. The decrease in net cash provided by operating activities was due primarily to working capital changes and a $16.5 million decrease in earnings for the three-month period ended March 31, 2025. We were able to make net capital expenditures, repay debt, make strategic investments, and pay dividends with the net cash provided by operating activities and existing cash balances.
Net investing activities provided $2.4 million for the three-month period ended March 31, 2025, and used $19.4 million during the same period in 2024. Net proceeds from the sales of property and equipment (primarily revenue equipment) were $7.6 million for the three-month period ended March 31, 2025, compared to net property and equipment additions of $19.0 million during the same period of 2024. We continue to estimate net capital expenditures (primarily revenue equipment) in 2025 to be in the range of $185 million to $235 million, compared to net capital expenditures in 2024 of $234.9 million. Tariffs on equipment will have an impact on our capital expenditure decisions, including the timing of our purchases for the remainder of the year. In the event tariffs continue, we expect low single digit percent increases to the cost of equipment and parts, but with favorable offsets due to growing demand and improved resale values for our used revenue equipment, which we saw as an early development in April 2025. We intend to fund these net capital expenditures through cash flows from operations and financing available under our existing credit facilities, if necessary. As of March 31, 2025, we were committed to property and equipment purchases of approximately $94.4 million.
Net financing activities used $20.5 million during the three months ended March 31, 2025 compared to $70.8 million during the same period in 2024. We had net repayments on our debt of $10.0 million during the three months ended March 31, 2025,
28

Table of Contents
decreasing our outstanding debt to $640.0 million at March 31, 2025. We had net repayments on our debt of $51.3 million during the three months ended March 31, 2024. We paid dividends of $8.7 million during the three months ended March 31, 2025 and $8.9 million during the same period in 2024. We currently plan to continue paying a quarterly dividend.
We did not repurchase any shares of common stock during the three months ended March 31, 2025. Financing activities for the same period in 2024 included common stock repurchases of 167,818 shares at a cost of $6.5 million. As of March 31, 2025, the Company had purchased 1,103,651 shares pursuant to our current Board of Directors repurchase authorization and had 3,896,349 shares remaining available for repurchase. The Company has repurchased, and may continue to repurchase, shares of the Company’s common stock. The timing and amount of such purchases depend upon economic and stock market conditions and other factors.
Regulations:
Item 1 of Part I of our 2024 Form 10-K includes a discussion of pending proposed regulations that may have an effect on our operations if they become adopted and effective as proposed. There have been no material changes in the status of the proposed regulations previously disclosed in the 2024 Form 10-K.
Critical Accounting Estimates:
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the (i) reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and (ii) reported amounts of revenues and expenses during the reporting period. We evaluate these estimates on an ongoing basis as events and circumstances change, utilizing historical experience, consultation with experts and other methods considered reasonable in the particular circumstances. Actual results could differ from those estimates and may significantly impact our results of operations from period to period. It is also possible that materially different amounts would be reported if we used different estimates or assumptions.
Information regarding our Critical Accounting Estimates can be found in our 2024 Form 10-K. Estimates of accrued liabilities for insurance and claims for bodily injury and property damage is a critical accounting estimate that requires us to make significant judgments and estimates and affects our financial statements.
There have been no material changes to this critical accounting estimate from that discussed in our 2024 Form 10-K.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
We are exposed to market risk from changes in commodity prices, foreign currency exchange rates, and interest rates.
Commodity Price Risk
The price and availability of diesel fuel are subject to fluctuations attributed to changes in the level of global oil production, refining capacity, regulatory changes, seasonality, weather and other market factors. Historically, we have recovered a majority, but not all, of fuel price increases from customers in the form of fuel surcharges. We implemented customer fuel surcharge programs with most of our customers to offset much of the higher fuel cost per gallon. However, we do not recover all of the fuel cost increase through these surcharge programs. As of March 31, 2025, we had no derivative financial instruments to reduce our exposure to fuel price fluctuations.
Foreign Currency Exchange Rate Risk
We conduct business in foreign countries, primarily in Mexico. To date, most foreign revenues are denominated in U.S. Dollars, and we receive payment for foreign freight services primarily in U.S. Dollars to reduce direct foreign currency risk. Assets and liabilities maintained by a foreign subsidiary company in the local currency are subject to foreign exchange gains or losses. Foreign currency translation gains and losses primarily relate to changes in the value of revenue equipment owned by a subsidiary in Mexico, whose functional currency is the Peso. Foreign currency translation losses were $0.1 million for first quarter 2025 and gains were $0.5 million for first quarter 2024. These gains and losses were recorded in accumulated other comprehensive loss within stockholders’ equity on the consolidated condensed balance sheets.
Interest Rate Risk
We manage interest rate exposure through a mix of variable interest rate debt and interest rate swap agreements. We had $355.0 million of variable interest rate debt outstanding at March 31, 2025, for which the interest rate is effectively fixed at 5.97% with interest rate swap agreements to reduce our exposure to interest rate increases. In addition, we had $285.0 million of variable interest rate debt outstanding at March 31, 2025. Interest on our credit facilities is based on variable rates, including the Secured Overnight Financing Rate (“SOFR”) and commercial paper rate. See Note 7 in the Notes to Consolidated Financial Statements
29

Table of Contents
(Unaudited) set forth in Part I of this report for further detail of our debt and interest rate swaps. Assuming this level of borrowing, a hypothetical one-percentage point increase in the SOFR and commercial paper rate would increase our interest expense by approximately $3.1 million for the next 12-month period.
Item 4. Controls and Procedures.
As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 15d-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”). Our disclosure controls and procedures are designed to provide reasonable assurance of achieving the desired control objectives. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective at a reasonable assurance level in enabling us to record, process, summarize and report information required to be included in our periodic filings with the SEC within the required time period and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Management, under the supervision of and with the participation of our Chief Executive Officer and Chief Financial Officer, concluded that no changes in our internal control over financial reporting occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
We have confidence in our internal controls and procedures. Nevertheless, our management, including the Chief Executive Officer and Chief Financial Officer, does not expect that the internal controls or disclosure procedures and controls will prevent all errors or intentional fraud. An internal control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of such internal controls are met. Further, the design of an internal control system must reflect that resource constraints exist, and the benefits of controls must be evaluated relative to their costs. Because of the inherent limitations in all internal control systems, no evaluation of controls can provide absolute assurance that all control issues, misstatements and instances of fraud, if any, have been prevented or detected.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings.
For information regarding legal proceedings, see Note 8 in the Notes to Consolidated Financial Statements (Unaudited) set forth in Part I of this report.
Item 1A. Risk Factors.
In addition to the other information set forth in this report, you should carefully consider the factors discussed under Item 1A (Risk Factors) in our 2024 Form 10-K, which could materially affect our business, financial condition, and future results of operations. The risks described in our 2024 Form 10‑K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and results of operations.
There have been no material changes from the risk factors disclosed in our 2024 Form 10-K.
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.
On May 15, 2024, we announced a new stock repurchase program under which the Company is authorized to repurchase up to 5,000,000 shares of its common stock. As of March 31, 2025, the Company had purchased 1,103,651 shares pursuant to this authorization and had 3,896,349 shares remaining available for repurchase. The Company may purchase shares from time to time depending on market, economic, and other factors. The authorization will continue unless withdrawn by the Board of Directors.
No shares of common stock were repurchased during first quarter 2025 by eit her the Company or any “affiliated purchaser,” as defined by Rule 10b-18 of the Exchange Act.
30

Table of Contents
Item 5. Other Information
Director and Officer Trading Arrangements
During first quarter 2025, no Company director or officer adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as such terms are defined in Item 408(a) of Regulation S-K.
31

Table of Contents
Item 6. Exhibits.

Exhibit No. |  | Exhibit |  | Incorporated by Reference to:
3(i) |  | Restated Articles of Incorporation of Werner Enterprises, Inc. |  | Exhibit 3(i) to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007
3(ii) |  | Revised and Restated By-Laws of Werner Enterprises, Inc. |  | Exhibit 3(ii) to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024
10.1 |  | Named Executive Officer Compensation |  | Item 5.02 of the Company’s Current Report on Form 8-K dated February 13, 2025
10.2 |  | First Amendment to Credit Agreement dated as of March 21, 2025 by and among Werner Enterprises, Inc., the Lenders party hereto and Wells Fargo Bank, National Association, in its capacities as the Administrative Agent, the Swingline Lender and an Issuing Lender |  | Filed herewith
10.3 |  | Loan and Security Agreement dated as of March 27, 2025 by and among Werner Receivables Company, LLC as Borrower, the Persons From Time to Time Party Hereto, as Lenders and as Group Agents, The Toronto-Dominion Bank as Administrative Agent, and Werner Enterprises, Inc. as Initial Servicer |  | Exhibit 10.1 to the Company’s Current Report on Form 8-K dated March 27, 2025
31.1 |  | Certification of the Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934 (Section 302 of the Sarbanes-Oxley Act of 2002) |  | Filed herewith
31.2 |  | Certification of the Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934 (Section 302 of the Sarbanes-Oxley Act of 2002) |  | Filed herewith
32.1 |  | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002) |  | Furnished herewith
32.2 |  | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002) |  | Furnished herewith
101 |  | The following unaudited financial information from Werner Enterprises’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, formatted in iXBRL (Inline Extensible Business Reporting Language) includes: (i) Consolidated Statements of Income for the three months ended March 31, 2025 and 2024, (ii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2025 and 2024, (iii) Consolidated Condensed Balance Sheets as of March 31, 2025 and December 31, 2024, (iv) Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024, (v) Consolidated Statements of Stockholders’ Equity and Temporary Equity - Redeemable Noncontrolling Interest for the three months ended March 31, 2025 and 2024, and (vi) the Notes to Consolidated Financial Statements (Unaudited) as of March 31, 2025. |  |
104 |  | The cover page from this Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, formatted in Inline XBRL (included as Exhibit 101). |  |

32

Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

| WERNER ENTERPRISES, INC.
Date: May 9, 2025 | By: |  | /s/ Christopher D. Wikoff
|  |  | Christopher D. Wikoff
|  |  | Executive Vice President, Treasurer and Chief Financial Officer
Date: May 9, 2025 | By: |  | /s/ James L. Johnson
|  |  | James L. Johnson
|  |  | Executive Vice President and Chief Accounting Officer

33