On this page of StockholderLetter.com we present the latest annual shareholder letter from WERNER ENTERPRISES INC — ticker symbol WERN. Reading current and past WERN letters to shareholders can bring important insights into the investment thesis.

Dedicated revenue per truck grew for the ninth year out of the last 10, and
Dedicated operating margin performed within long-term TTS target range
Named a Lead Independent Director
to our Board of Directors
Recognized as one of Newsweek   s America   s
Greatest Workplaces for Diversity, Parents
and Families
Executed cost structural changes across
organization, yielding $43M in savings
Disciplined investments in 2023; transitioning
truckload brokerage, including Reed, and
Intermodal business, to our cloud-based Werner
EDGE   TMS solution to drive profitable growth
Dear Shareholders,
As we reflect on 2023, despite the continuation of a prolonged and arduous operating environment, the Werner team showcased resilience. We
also made a concerted effort to drive structural improvements that will result in long-term value creation for all stakeholders. While our results
this year were not up to our standards, we believe the operational improvements we made will result in profitable growth generation for years
to come.
In 2023, our Dedicated business proved to be durable and resilient, growing full-year revenue net of fuel surcharges and revenue per truck. The
business also generated solid margins despite the challenging backdrop. Our One-Way trucking business    rate per mile decline was more
favorable than industry benchmarks, and through operational excellence, we significantly increased mileage production throughout the year. In
addition, our Logistics division saw notable growth in both volume and revenue.
Revenues for 2023 were $3.3 billion and our operating income was $176 million, or a 5.4% operating margin. Our diluted earnings per share
was $1.76, down 53%, driven largely by market dynamics including lower equipment gains, inflationary headwinds and rate pressure in One-Way.
Our leadership team and nearly 14,000 talented Werner team members stayed the course, executing on our strategy, upholding the Werner brand
and reputation, putting safety at the forefront of everything we do, and providing superior service to our highly valued customers.
Our Werner DRIVE SM strategy continues to serve as the North Star for our decisions and actions. In addition to showing Durability and topline
growth, we executed on meaningful cost improvements, aiding our Results by offsetting rate pressure, cost inflation and declining resale values
of equipment. Separately, our record operating cash flow supported deliberate elevated reinvestment in the business. As a result of this strategy,
we lowered the average age of our tractor fleet closer to our two year goal. We also lowered our debt and returned capital to shareholders through
an 8% dividend increase.
We made significant advancements in Innovation by further modernizing our equipment and moving our business onto one platform. We
transitioned truckload brokerage, including Reed, and Intermodal business, to our new cloud-based Werner EDGE   TMS solution. This will remain
a priority for us in 2024 as we continue to transfer all our businesses onto this platform.
Relative to our core Values and ESG, we were proud to be recognized in 2023 as one of Newsweek   s America   s Greatest Workplaces for Diversity,
Parents and Families. We also realized a 19-year low in our preventable accident rating, which is a testament to our professional drivers,
mechanics and safety associates, as well as our safety-first culture. We continued to give back to our community through our Blue Brigade
volunteer hours. Finally, we bolstered our governance by naming a Lead Independent Director to our Board of Directors. We remain committed
to leveraging Werner DRIVE SM as we look toward the future.
While being cautiously optimistic about 2024, we acknowledge both near-term market challenges and latter-half opportunities on the horizon.
We look to drive growth in our core businesses, including Dedicated, Mexico cross-border and Logistics. We will continue our production gains in
One-Way and expand earnings through meaningful cost savings initiatives. We will use our strong cash flow to advance our technology roadmap
and invest for long-term value creation. Last, but certainly not least, the safety of our workforce will always be at the top of our core values.
Our effective execution of these objectives will position us favorably to navigate near-term challenges and capitalize on the opportunities that lie
ahead in an improved freight market. On behalf of the entire team, I extend my sincere gratitude to our shareholders for their continued support
and confidence in our company.
March 12, 2024
Derek J. Leathers
Chairman and Chief Executive Officer
 • shareholder letter icon 4/2/2024 Letter Continued (Full PDF)
 • stockholder letter icon 3/31/2023 WERN Stockholder Letter
 • stockholder letter icon More "Trucking" Category Stockholder Letters
 • Benford's Law Stocks icon WERN Benford's Law Stock Score = 25


WERN Shareholder/Stockholder Letter Transcript:


Dedicated revenue per truck grew for the ninth year out of the last 10, and
Dedicated operating margin performed within long-term TTS target range
Named a Lead Independent Director
to our Board of Directors
Recognized as one of Newsweek   s America   s
Greatest Workplaces for Diversity, Parents
and Families
Executed cost structural changes across
organization, yielding $43M in savings
Disciplined investments in 2023; transitioning
truckload brokerage, including Reed, and
Intermodal business, to our cloud-based Werner
EDGE   TMS solution to drive profitable growth

Dear Shareholders,
As we reflect on 2023, despite the continuation of a prolonged and arduous operating environment, the Werner team showcased resilience. We
also made a concerted effort to drive structural improvements that will result in long-term value creation for all stakeholders. While our results
this year were not up to our standards, we believe the operational improvements we made will result in profitable growth generation for years
to come.
In 2023, our Dedicated business proved to be durable and resilient, growing full-year revenue net of fuel surcharges and revenue per truck. The
business also generated solid margins despite the challenging backdrop. Our One-Way trucking business    rate per mile decline was more
favorable than industry benchmarks, and through operational excellence, we significantly increased mileage production throughout the year. In
addition, our Logistics division saw notable growth in both volume and revenue.
Revenues for 2023 were $3.3 billion and our operating income was $176 million, or a 5.4% operating margin. Our diluted earnings per share
was $1.76, down 53%, driven largely by market dynamics including lower equipment gains, inflationary headwinds and rate pressure in One-Way.
Our leadership team and nearly 14,000 talented Werner team members stayed the course, executing on our strategy, upholding the Werner brand
and reputation, putting safety at the forefront of everything we do, and providing superior service to our highly valued customers.
Our Werner DRIVE SM strategy continues to serve as the North Star for our decisions and actions. In addition to showing Durability and topline
growth, we executed on meaningful cost improvements, aiding our Results by offsetting rate pressure, cost inflation and declining resale values
of equipment. Separately, our record operating cash flow supported deliberate elevated reinvestment in the business. As a result of this strategy,
we lowered the average age of our tractor fleet closer to our two year goal. We also lowered our debt and returned capital to shareholders through
an 8% dividend increase.
We made significant advancements in Innovation by further modernizing our equipment and moving our business onto one platform. We
transitioned truckload brokerage, including Reed, and Intermodal business, to our new cloud-based Werner EDGE   TMS solution. This will remain
a priority for us in 2024 as we continue to transfer all our businesses onto this platform.
Relative to our core Values and ESG, we were proud to be recognized in 2023 as one of Newsweek   s America   s Greatest Workplaces for Diversity,
Parents and Families. We also realized a 19-year low in our preventable accident rating, which is a testament to our professional drivers,
mechanics and safety associates, as well as our safety-first culture. We continued to give back to our community through our Blue Brigade
volunteer hours. Finally, we bolstered our governance by naming a Lead Independent Director to our Board of Directors. We remain committed
to leveraging Werner DRIVE SM as we look toward the future.
While being cautiously optimistic about 2024, we acknowledge both near-term market challenges and latter-half opportunities on the horizon.
We look to drive growth in our core businesses, including Dedicated, Mexico cross-border and Logistics. We will continue our production gains in
One-Way and expand earnings through meaningful cost savings initiatives. We will use our strong cash flow to advance our technology roadmap
and invest for long-term value creation. Last, but certainly not least, the safety of our workforce will always be at the top of our core values.
Our effective execution of these objectives will position us favorably to navigate near-term challenges and capitalize on the opportunities that lie
ahead in an improved freight market. On behalf of the entire team, I extend my sincere gratitude to our shareholders for their continued support
and confidence in our company.
March 12, 2024
Derek J. Leathers
Chairman and Chief Executive Officer



shareholder letter icon 4/2/2024 Letter Continued (Full PDF)
 

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