WERNER ENTERPRISES INCWERN
WERNER ENTERPRISES INC Segments Disclosure
SEGMENT INFORMATION
We generate substantially all of our revenues within the United States or from North American shipments with origins or destinations in the United States. Our largest customer, Dollar General, accounted for 11%, 11%, and 10% of our total revenues in 2025, 2024, and 2023, respectively. Revenues generated by Dollar General are reported in both of our reportable operating segments.
We have two reportable segments – TTS and Werner Logistics.
The TTS reportable segment consists of two operating segments, Dedicated and One-Way Truckload. These operating segments are aggregated because they have similar economic characteristics and meet the other aggregation criteria described in the accounting guidance for segment reporting. Dedicated provides truckload services dedicated to a specific customer, generally for a retail distribution center or manufacturing facility, utilizing either dry van or specialized trailers. One-Way Truckload is comprised of the following operating fleets: (i) the medium-to-long-haul van (“Van”) fleet transports a variety of consumer nondurable products and other commodities in truckload quantities over irregular routes using dry van trailers, including Mexico cross-border routes; (ii) the Expedited fleet provides time-sensitive truckload services utilizing driver teams;
(iii) the regional short-haul (“Regional”) fleet provides comparable truckload van service within geographic regions across the United States; and (iv) the Temperature Controlled fleet provides truckload services for temperature sensitive products over irregular routes utilizing temperature-controlled trailers. Revenues for the TTS segment include a small amount of non-trucking revenues which consist primarily of the intra-Mexico portion of cross-border shipments delivered to or from Mexico where we utilize a third-party capacity provider.
The Werner Logistics segment provides non-asset-based transportation and logistics services. Werner Logistics provides services throughout North America and generates the majority of our non-trucking revenues through three divisions. These three Werner Logistics divisions are as follows: (i) Truckload Logistics, which uses contracted carriers to complete shipments for brokerage customers and freight management customers for which we offer a full range of single-source logistics management services and solutions; (ii) the Intermodal (“Intermodal”) division offers rail transportation through alliances with rail and drayage providers as an alternative to truck transportation; and (iii) Werner Final Mile (“Final Mile”) offers residential and commercial deliveries of large or heavy items using third-party agents, independent contractors, and Company employees with two-person delivery teams operating a liftgate straight truck.
The accounting policies of the segments are the same as those described in Note 1 - Summary of Significant Accounting Policies. Inter-segment transactions between reporting segments have been recorded at amounts approximating market and are eliminated in consolidation.
The chief operating officer of the Company is our chief operating decision maker (“CODM”). Our CODM evaluates the operating results of each individual segment, using monthly divisional financial statements, to asses performance and to allocate resources to each segment. Our divisional financial statements detail the revenues and operating expenses of each individual segment netting to operating income (loss) that allows the CODM to make operational decisions regarding each individual segment.
We do not prepare separate balance sheets by segment and, as a result, assets are not separately identifiable by segment. Based on our operations, certain revenue-generating assets (primarily tractors and trailers) are interchangeable between segments. Depreciation for these interchangeable assets is allocated to segments based on the actual number of units utilized by the segment during the period. Other depreciation and amortization is allocated to segments based on specific identification or as a percentage of a metric such as average number of tractors.
The following tables summarize our segment information (in thousands):
| Year Ended December 31, 2025 | |||||||||||||||||
| Truckload Transportation Services | Werner Logistics | Total | |||||||||||||||
| Revenues from external customers | $ | 2,042,647 | $ | 856,863 | $ | 2,899,510 | |||||||||||
| Inter-segment revenues | 9,297 | — | 9,297 | ||||||||||||||
| Reportable segment revenues | 2,051,944 | 856,863 | 2,908,807 | ||||||||||||||
Reconciliation of revenues: | |||||||||||||||||
Other revenues (1) | 74,886 | ||||||||||||||||
| Elimination of inter-segment revenues | (9,297) | ||||||||||||||||
| Consolidated revenues | $ | 2,974,396 | |||||||||||||||
Less operating expenses: (2) | |||||||||||||||||
Salaries, wages and benefits (3) | 901,277 | 70,845 | 972,122 | ||||||||||||||
| Fuel | 245,228 | 1,377 | 246,605 | ||||||||||||||
| Supplies and maintenance | 214,101 | 11,881 | 225,982 | ||||||||||||||
| Taxes and licenses | 88,846 | 901 | 89,747 | ||||||||||||||
Insurance and claims (4) | 112,271 | 3,005 | 115,276 | ||||||||||||||
| Depreciation and amortization | 262,074 | 15,805 | 277,879 | ||||||||||||||
| Rent and purchased transportation | 158,746 | 742,934 | 901,680 | ||||||||||||||
| Communications and utilities | 13,485 | 1,120 | 14,605 | ||||||||||||||
| Gains on sales of property and equipment | (17,058) | (1,254) | (18,312) | ||||||||||||||
Other segment items (5) | 56,548 | 3,573 | 60,121 | ||||||||||||||
| Reportable segment operating expenses | 2,035,518 | 850,187 | 2,885,705 | ||||||||||||||
| Reportable segment operating income | $ | 16,426 | $ | 6,676 | $ | 23,102 | |||||||||||
Reconciliation of operating income: | |||||||||||||||||
Other operating loss (1) | (11,445) | ||||||||||||||||
| Consolidated operating income | $ | 11,657 | |||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||
| Truckload Transportation Services | Werner Logistics | Total | |||||||||||||||
| Revenues from external customers | $ | 2,123,864 | $ | 831,337 | $ | 2,955,201 | |||||||||||
| Inter-segment revenues | 14,429 | — | 14,429 | ||||||||||||||
| Reportable segment revenues | 2,138,293 | 831,337 | 2,969,630 | ||||||||||||||
Reconciliation of revenues: | |||||||||||||||||
Other revenues (1) | 75,057 | ||||||||||||||||
| Elimination of inter-segment revenues | (14,429) | ||||||||||||||||
| Consolidated revenues | $ | 3,030,258 | |||||||||||||||
Less operating expenses: (2) | |||||||||||||||||
| Salaries, wages and benefits | 922,921 | 81,565 | 1,004,486 | ||||||||||||||
| Fuel | 272,570 | 1,575 | 274,145 | ||||||||||||||
| Supplies and maintenance | 211,847 | 9,602 | 221,449 | ||||||||||||||
| Taxes and licenses | 95,541 | 983 | 96,524 | ||||||||||||||
| Insurance and claims | 141,654 | 3,438 | 145,092 | ||||||||||||||
| Depreciation and amortization | 261,170 | 15,176 | 276,346 | ||||||||||||||
| Rent and purchased transportation | 139,848 | 714,385 | 854,233 | ||||||||||||||
| Communications and utilities | 13,884 | 1,983 | 15,867 | ||||||||||||||
| Gains on sales of property and equipment | (10,993) | (1,090) | (12,083) | ||||||||||||||
Other segment items (5) | 14,685 | 4,601 | 19,286 | ||||||||||||||
| Reportable segment operating expenses | 2,063,127 | 832,218 | 2,895,345 | ||||||||||||||
| Reportable segment operating income (loss) | $ | 75,166 | $ | (881) | $ | 74,285 | |||||||||||
Reconciliation of operating income: | |||||||||||||||||
Other operating loss (1) | (8,137) | ||||||||||||||||
| Consolidated operating income | $ | 66,148 | |||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
| Truckload Transportation Services | Werner Logistics | Total | |||||||||||||||
| Revenues from external customers | $ | 2,293,120 | $ | 910,433 | $ | 3,203,553 | |||||||||||
| Inter-segment revenues | 17,690 | — | 17,690 | ||||||||||||||
| Reportable segment revenues | 2,310,810 | 910,433 | 3,221,243 | ||||||||||||||
Reconciliation of revenues: | |||||||||||||||||
Other revenues (1) | 79,946 | ||||||||||||||||
| Elimination of inter-segment revenues | (17,690) | ||||||||||||||||
| Consolidated revenues | $ | 3,283,499 | |||||||||||||||
Less operating expenses: (2) | |||||||||||||||||
| Salaries, wages and benefits | 951,712 | 89,401 | 1,041,113 | ||||||||||||||
| Fuel | 341,126 | 2,336 | 343,462 | ||||||||||||||
| Supplies and maintenance | 224,988 | 7,933 | 232,921 | ||||||||||||||
| Taxes and licenses | 101,149 | 1,099 | 102,248 | ||||||||||||||
| Insurance and claims | 134,319 | 3,895 | 138,214 | ||||||||||||||
| Depreciation and amortization | 271,245 | 15,395 | 286,640 | ||||||||||||||
| Rent and purchased transportation | 130,076 | 768,793 | 898,869 | ||||||||||||||
| Communications and utilities | 13,908 | 3,636 | 17,544 | ||||||||||||||
| Gains on sales of property and equipment | (45,453) | (1,497) | (46,950) | ||||||||||||||
Other segment items (5) | 18,410 | 3,563 | 21,973 | ||||||||||||||
| Reportable segment operating expenses | 2,141,480 | 894,554 | 3,036,034 | ||||||||||||||
| Reportable segment operating income | $ | 169,330 | $ | 15,879 | $ | 185,209 | |||||||||||
Reconciliation of operating income: | |||||||||||||||||
Other operating loss (1) | (8,793) | ||||||||||||||||
| Consolidated operating income | $ | 176,416 | |||||||||||||||
(1) Revenues and operating income or loss from segments below the quantitative thresholds for determining reportable segments. Those segments include driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, other business activities, and corporate related items which are incidental to our activities and are not attributable to any of our operating segments.
(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Inter-segment expenses are included within the amounts shown.
(3) During 2025, salaries, wages and benefits for the TTS segment included costs of $18.0 million related to the consolidated class action lawsuits entitled Abarca et al. v. Werner. For additional information regarding legal proceedings, see Note 12 – Commitments and Contingencies. During 2025, salaries, wages and benefits for the TTS and Werner Logistics segments included severance costs of $0.9 million and $0.4 million, respectively, related to cost saving initiatives.
(4) During 2025, insurance and claims expense for the TTS segment was offset by a $45.7 million liability reversal as a result of a favorable decision related to a lawsuit arising from a December 2014 accident. For additional information regarding legal proceedings, see Note 12 – Commitments and Contingencies.
(5) Other segment items for each reportable segment primarily includes costs for professional services. During 2025 and 2023, other segment items for the TTS and Logistics segments, respectively, were partially offset by net favorable changes of $7.8 million and $2.7 million, respectively, to the contingent earnout liabilities related to the Baylor Trucking, Inc. and ReedTMS acquisitions, respectively. During 2025, the TTS segment incurred legal fees of $3.4 million related to the Abarca et al. v. Werner litigation discussed above and $44.2 million of restructuring and impairment costs, see Note 13 – Restructuring and Impairment Costs.
Information about the geographic areas in which we conduct business is summarized below (in thousands). 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.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenues | |||||||||||||||||
| United States | $ | 2,839,773 | $ | 2,854,184 | $ | 3,089,205 | |||||||||||
| Foreign countries | |||||||||||||||||
| Mexico | 120,380 | 147,761 | 159,170 | ||||||||||||||
| Canada | 14,243 | 28,313 | 35,124 | ||||||||||||||
| Total foreign countries | 134,623 | 176,074 | 194,294 | ||||||||||||||
| Total | $ | 2,974,396 | $ | 3,030,258 | $ | 3,283,499 | |||||||||||
Long-lived Assets | |||||||||||||||||
| United States | $ | 1,770,263 | $ | 1,912,997 | $ | 1,948,039 | |||||||||||
| Foreign countries | |||||||||||||||||
| Mexico | 20,181 | 21,165 | 24,818 | ||||||||||||||
| Canada | 60 | 74 | 99 | ||||||||||||||
| Total foreign countries | 20,241 | 21,239 | 24,917 | ||||||||||||||
| Total | $ | 1,790,504 | $ | 1,934,236 | $ | 1,972,956 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.