Earlier today we issued our earnings release with our second quarter results. Please see the disclosure statement on slide 2 of the presentation as well as the disclaimers in our earnings release related to forward-looking statements. A reconciliation to the most directly comparable GAAP measures is included in the tables attached to the earnings release and in the appendix of the slide presentation. One-way rates are increasing and we realize year-over-year growth in overall combined miles across our one-way tractor assets and PowerLink trailer-only offering.
Within logistics, we are back to mid-single-digit growth driven by Truckload Brokerage and Intermodal Services volumes. We are maximizing value on the sale of used equipment, tightening our full year guide on equipment gains to the upper end of the prior range. We have assets in place to support growth through the rest of this year. With a strong balance sheet inclusive of low leverage, we are focused on disciplined return-oriented investments.
Revenues net of fuel increased 1%, adjusted EPS was $0.11, adjusted operating margin was 2.2%, and adjusted TTS operating margin was 2.8% net of fuel surcharges. One-way revenue per total mile growth, cost containment, discipline and action, higher volumes in truckload logistics, particularly in brokerage at stable gross margins, and increased gains on equipment both sequentially and year-over-year. Additional fleets were awarded in the quarter and the opportunity pipeline remains strong. Our dedicated expertise is a competitive advantage that has and will continue to drive growth over the long run.
| Metric | Period | Current guidance |
|---|---|---|
| TTS fleet growth | FY2025 | Up 1%-4% (Narrowed (lowered top end)) |
| Net CapEx | FY2025 | $145M-$185M (Lowered) |
| Equipment gains | FY2025 | $12M-$18M (Raised (to upper end)) |
| Cost savings target | FY2025 | Greater than $45 million (Raised) |
| One-Way revenue per total mile (vs prior-year period) | Q3 2025 | Flat to up 3% (reissued) (Unchanged) |
| Dedicated revenue per truck per week | FY2025 | 0%-3% (Unchanged) |
| Effective tax rate | FY2025 | 25%-26% (Unchanged) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | -1% ($753 million) | Lower fuel surcharges and one-way trucking revenue, partially offset by logistics growth |
| Adjusted EPS | -$0.06 (to $0.11) | Higher insurance and claims expense and dedicated startup costs, partially offset by cost containment and equipment gains |
| TTS adjusted operating margin (net of fuel) | -220 bps (to 2.8%) | 150 bps from higher insurance and claims expense plus dedicated fleet startup costs |
| Logistics revenue | +6% (+13% sequentially) | Truckload brokerage and intermodal volume growth with gross margin expansion |
| Equipment gains | +>2x (to $5.9 million) | Elevated used-tractor values driven by trade policy, despite fewer units sold |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Freight cycle recovery | Prolonged downturn | Stable truckload fundamentals expected through year-end; supply-driven upcycle anticipated via capacity attrition | Improving |
| Capacity attrition / ELP enforcement | — | Over 1,500 ELP out-of-service violations; bankruptcies and repossessions rising, expected to accelerate exits | Increasing |
| Dedicated fleet growth | Strong retention, 28 of last 30 quarters of RPTW growth | New fleets in new verticals signed and ramping, with startup headwinds near term but strong pipeline | Improving |
| Technology / Werner EDGE & AI | — | Two-thirds of one-way and over half of dedicated volume on EDGE; 20% brokerage productivity gain; conversational AI calling scaling | Expanding |
| Insurance and tort reform | $90M 2018 verdict outstanding | Texas Supreme Court reversed the verdict; insurance still elevated as percent of revenue, more state-level reform needed | Improving but still pressured |
| Fleet age / capital discipline | Lower fleet age range | Average truck age 2.4 years; moderating equipment spend amid tariff/EPA uncertainty, shifting to asset-light mix | — |