During Tuesday’s conference call, Werner Enterprises CEO Derek Leathers highlighted signs of a potential turnaround in the freight market, although he emphasized that it’s not yet at an inflection point. The freight demand remains steady but competitive, with conditions in Werner’s One Way segment showing improvement midway through the quarter.
Leathers noted that the recent International Roadcheck led to tighter conditions, enhancing spot rates, which have sustained. Additionally, seasonal freight trends, especially on the West Coast, indicate a possible market bottom. Werner has also reduced its fleet size significantly, with the Dedicated Truckload segment averaging 4,901 trucks, down from 5,276 a year ago. The company’s disciplined approach aims to keep the fleet age optimized and financially efficient, ensuring strategic capital allocation.
Financially, Werner’s Q2 revenues fell 6% to $760.8 million, with operating income down 58%. However, sequential improvements in operating income and margins were observed.