Werner Enterprises reported a cost-heavy fourth quarter that came in just shy of estimates, even after adjusting for non-recurring items.
Werner (NASDAQ:WERN) reported an overall fourth-quarter net loss of $27.8 million, or 46 cents per share, Thursday after the market closed. However, the figure included $44.2 million in restructuring and impairment charges, most of which were non-cash items. Excluding those charges and other exceptional items, adjusted net income was $3.3 million, or 5 cents per share. Adjusted EPS was 5 cents below consensus and 3 cents lower year-over-year.
The company said it began restructuring its one-way truck freight unit during the quarter to improve fleet utilization, eliminate unprofitable freight transportation and return the segment to profitability.
Consolidated revenue of $738 million was 2% lower year-over-year and less than a consensus estimate of $761 million.
TL’s total revenue decreased 3% year-on-year to $513 million. The segment reported an adjusted operating ratio of 97.2% (inverse of operating margin), which was 30 basis points worse year-over-year.
Average one-way trucks in service decreased by 10% year over year and revenue per truck per week increased by 2%, resulting in a revenue decline of 8%. Truck miles per week improved 2%, but revenue per total mile decreased slightly.
Dedicated revenue increased 1% year over year, as a 2% increase in average trucks was partially offset by a 1% decrease in revenue per truck per week.
The company issued guidance calling for total one-way revenue per mile to remain stable up 3% year over year in the first half of 2026. Revenue per truck per week in dedicated vehicles is expected to decline 1% to 2% year over year for the full year 2026.
Werner will host a call on Thursday at 5:00 pm EST to discuss fourth quarter results.
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