Werner Enterprises (WERN) risk factors, FY2025 10-K

Risks Related to our Business and Industry

1. 01Our business is subject to overall economic and geopolitical conditions that could have a material adverse effect on our results of operations and financial condition40% rewritten
2. 02Labor and employment matters, including difficulty in recruiting and retaining experienced drivers, recent driver training school graduates and independent contractors, could impact our results of operations and financial condition
3. 03Increases in fuel prices and shortages of fuel can have a material adverse effect on the results of operations and profitability
4. 04We operate in a highly competitive industry, which may limit growth opportunities and reduce profitability
5. 05The seasonal shipping pattern generally experienced in the trucking industry may affect our periodic results during traditional slower shipping periods and winter months
6. 06We depend on key customers, the loss or financial failure of which may have a material adverse effect on our operations and profitability
7. 07We depend on the services of third-party capacity providers, the availability of which could affect our profitability and limit growth in our Werner Logistics segment
8. 08If we cannot effectively manage the challenges associated with doing business internationally, our revenues and profitability may suffer
9. 09We rely on the services of key personnel, the loss of which could impact our future success
10. 10Difficulty in obtaining, or increased costs of, materials, equipment, goods, and services from our vendors and suppliers could adversely affect our business
11. 11A public health crisis, such as an epidemic, pandemic, or similar outbreak may have an adverse impact on our business, as well as the operations of our customers and suppliers

Risks Related to Legal, Regulatory and Environmental, Social and Governance (“ESG”) Matters

1. 12We operate in a highly regulated industry. Compliance with changing transportation, emission, fuel efficiency or other regulations, or violations of existing or future regulations, could adversely affect our operations and profitability
2. 13Scrutiny from investors and other stakeholders regarding ESG related matters may have a negative impact on our business

Risks Related to Financial Matters

1. 14Our earnings could be reduced by increases in the number of insurance claims, cost per claim, costs of insurance premiums, availability of insurance coverage, or a significant uninsured liability
2. 15Decreased demand for our used revenue equipment could result in lower unit sales and resale values