Werner Enterprises, Inc.

What they do

Werner transports truckload shipments of general commodities, mainly consumer nondurable products, across the 48 contiguous states plus Canada and Mexico. Its Truckload Transportation Services segment has Dedicated (4,850 trucks at year-end 2025) and One-Way Truckload (2,250 trucks) fleets, with a total TTS fleet of 7,100 trucks at the end of 2025. Werner Logistics is non-asset-based and runs Truckload Logistics brokerage, Intermodal, and Final Mile, operating 27 drayage trucks and 170 Final Mile delivery trucks at the end of 2025.

Revenue drivers

• Dedicated (TTS) — Truckload services dedicated to a specific customer, generally a retail distribution center or manufacturing facility, using dry van or specialized trailers; 4,850 trucks at December 31, 2025. FirstFleet's truckload revenues are reported here.
• One-Way Truckload (TTS) — Irregular-route van, expedited team, regional short-haul and temperature-controlled truckload service; 2,250 trucks at December 31, 2025, with per-mile pricing plus stop, loading and detention charges.
• Werner Logistics — Non-asset-based services through Truckload Logistics brokerage and freight management, Intermodal rail alliances with drayage providers, and Final Mile residential and commercial delivery of large or heavy items using third-party agents and two-person liftgate teams.

Recent performance

Second quarter 2026 total revenues rose 24% to $933.9 million from $753.1 million, with TTS revenues up 36% to $702.6 million and Werner Logistics revenues down 4% to $211.7 million. Operating income fell 74% to $16.9 million and operating margin fell to 1.8% from 8.8%, mainly because the prior-year quarter included $53.6 million of favorable liability reversals; non-GAAP adjusted operating income rose 67% to $27.6 million. Diluted EPS was $0.11 versus prior-year levels, while non-GAAP adjusted diluted EPS was $0.22, up 178.0%. Net income attributable to Werner was $6.4 million, down 86%, and TTS adjusted operating income was $32.3 million, up 153%, while Werner Logistics posted a $3.9 million operating loss.

Strategy

Management cited organic Dedicated growth, the FirstFleet acquisition driving margin improvement ahead of schedule, and a strategic restructuring in One-Way Truckload that produced the strongest revenue per truck growth in a decade. Werner acquired FirstFleet on January 27, 2026 for $245.0 million, including a maximum $35.0 million earnout, plus $37.8 million for related real estate, adding about 2,400 tractors, 11,000 trailers and 37 properties near 130 customer sites. The company funded the transactions with cash on hand and its revolving credit facility and assumed $57.2 million of finance lease liabilities. The 10-K states Werner remains open to acquisitions in North American truckload and logistics that are additive and accretive to earnings.

Risks

• Freight demand and economic conditions — The 10-K states results are sensitive to customer shipping volumes, industry freight demand and truck capacity, and can be affected by factors including employment, interest rates, fuel costs and public health crises.
• Tariffs and trade policy — The 10-K notes the February 20, 2026 U.S. Supreme Court ruling that the government cannot use the International Emergency Economic Powers Act to impose tariffs, creating supply-chain uncertainty, and warns tariffs or trade regulations may affect cost or availability of materials, equipment, goods and fuel.
• Fuel surcharge recovery — Werner recovers fuel surcharges that generally recoup most increased fuel costs, but the 10-K states it cannot assure current recovery levels will continue in future periods.
• Insurance and claims exposure — Werner is self-insured for a significant portion of bodily injury, property damage and cargo claims, workers' compensation and associate health claims, so results can be affected by driver safety, medical costs and catastrophic losses.

Outlook

Chairman and CEO Derek Leathers said Second Quarter 2026 results reflect actions to adapt to a capacity tightening market and that FirstFleet is driving margin improvement ahead of schedule. Management reported favorable safety metrics and insurance and claims costs for a second consecutive quarter and said Werner is well-positioned to drive accelerated earnings power throughout the year. The earnings release also notes organic Dedicated growth and the One-Way Truckload restructuring.