Werner Enterprises Reports Third Quarter 2026 Results
WERNER ENTERPRISES INC (WERN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Werner Enterprises Reports Third Quarter 2026 Results Third Quarter 2026 Highlights (all metrics compared to third quarter 2025 ) • Total revenues of $950.5 million, increased $179.0 million, or 23% • Operating income of $17.0 million compared to an operating loss of
How this was made
The 30-second read
Why it matters
The earnings beat and margin expansion provide a fresh catalyst for short‑term price movement.
Market read
First‑report earnings with material beat, likely to influence trader positioning in logistics equities.
What to watch
Higher tax rate and net interest expense may temper net profit sustainability.
Werner Enterprises Reports Third Quarter 2026 Results
Total revenues increased 23%, GAAP operating income returned to $ 16,988 (in thousands), and adjusted operating income increased 92%, but Werner Logistics revenue declined 7% and recorded an operating loss, cash flow from operations declined 51%, and current 2026 net capital expenditure guidance was reduced.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| TTS average truck count growth | 16% to 18% (2026 vs. 2025) | 15.8% (YTD26 vs. 2025) | below |
| Dedicated RPTPW growth | 3% to 5% (2026 vs. 2025) | 4.0% (YTD26 vs. YTD25) | in line |
| One-Way Truckload RPTM growth | 10% to 13% (3Q26 vs. 3Q25) | 9.7% (3Q26 vs. 3Q25) | below |
| Net capital expenditures | $215M to $250M (2026) | $29M (YTD) | below |
| Effective income tax rate (GAAP) | 25.5% to 26.5% (2026) | 17.0% (YTD) | below |
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $950.5M | – | 23 % |
| Total revenues, nine months ended September 30, 2026GAAP | $2.69B | – | 20 % |
| Operating income (loss), three months ended September 30, 2026GAAP | $16.99M | – | 230 % |
| Operating margin, three months ended September 30, 2026GAAP | 1.8 % | – | 350 bps |
| Operating income (loss), nine months ended September 30, 2026GAAP | $37.90M | – | (20) % |
| Operating margin, nine months ended September 30, 2026GAAP | 1.4 % | – | (70) bps |
| Net income (loss) attributable to Werner, three months ended September 30, 2026GAAP | $6.59M | – | 132 % |
| Diluted earnings (loss) per share, three months ended September 30, 2026GAAP | $ 0.11 | – | 132 % |
| Net income (loss) attributable to Werner, nine months ended September 30, 2026GAAP | $8.68M | – | (35) % |
| Diluted earnings (loss) per share, nine months ended September 30, 2026GAAP | $ 0.14 | – | (34) % |
| Adjusted operating income, three months ended September 30, 2026non-GAAP | $20.98M | – | 92 % |
| Adjusted operating margin, three months ended September 30, 2026non-GAAP | 2.2 % | – | 80 bps |
| Adjusted net income (loss) attributable to Werner, three months ended September 30, 2026non-GAAP | $9.49M | – | 571 % |
| Adjusted diluted earnings (loss) per share, three months ended September 30, 2026non-GAAP | $ 0.16 | – | 567 % |
| Adjusted operating income, nine months ended September 30, 2026non-GAAP | $60.50M | – | 136 % |
| Adjusted operating margin, nine months ended September 30, 2026non-GAAP | 2.2 % | – | 110 bps |
| Adjusted net income (loss) attributable to Werner, nine months ended September 30, 2026non-GAAP | $25.13M | – | 685 % |
| Adjusted diluted earnings (loss) per share, nine months ended September 30, 2026non-GAAP | $ 0.42 | – | 693 % |
| Salaries, wages and benefits, three months ended September 30, 2026GAAP | 318.6M | – | – |
| Fuel, three months ended September 30, 2026GAAP | 130.3M | – | – |
| Supplies and maintenance, three months ended September 30, 2026GAAP | 85.47M | – | – |
| Insurance and claims, three months ended September 30, 2026GAAP | 39.56M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | 76.86M | – | – |
| Rent and purchased transportation, three months ended September 30, 2026GAAP | 254.6M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | 933.5M | – | – |
| Total other expense, net, three months ended September 30, 2026GAAP | 9.39M | – | – |
| Effective income tax rate, three months ended September 30, 2026GAAP | 13.2% | – | – |
| Cash flow from operations, three months ended September 30, 2026GAAP | $21.46M | – | 51% decrease |
| Capital expenditures, net, three months ended September 30, 2026GAAP | $37.27M | – | – |
| Cash flow from operations, nine months ended September 30, 2026GAAP | $188.7M | – | – |
| Capital expenditures, net, nine months ended September 30, 2026GAAP | $28.65M | – | – |
| Return on assets (annualized), three months ended September 30, 2026GAAP | 0.8 % | – | – |
| Return on equity (annualized), three months ended September 30, 2026GAAP | 1.9 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Truckload Transportation ServicesTrucking revenues, net of fuel surcharge, increased $ 127,644 (in thousands), or 28 %; trucking fuel surcharge revenues were $ 125,231 (in thousands), up 111 %; average trucks in service increased 15.5 % to 8,668. | $714.0M | – | 37 % |
| Werner LogisticsTruckload Logistics revenues decreased $23.2 million, or 13%, driven by a decrease in shipments of 40%, partially offset by a 44% increase in revenue per shipment. Intermodal revenues increased $2.4 million, or 7%, and Final Mile revenues increased $4.1 million, or 18%. | $215.8M | – | (7) % |
| OtherOther includes driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, and other business activities. | $20.07M | – | – |
| CorporateCorporate operating loss was $ (7,311) (in thousands), compared to $ (1,386) (in thousands) in the prior year. | $577K | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- Tax rate24.5% to 25.5% (2026)
- NoteTTS average truck count growth: 16% to 17% (2026 vs. 2025)
- NoteDedicated RPTPW growth: 4% to 5% (2026 vs. 2025)
- NoteOne-Way Truckload RPTM growth: 10% to 13% (4Q26 vs. 4Q25)
- NoteNet capital expenditures: $190M to $205M (2026)
Capital returns
- We did not repurchase shares of our common stock in third quarter 2026.
- As of September 30, 2026, we had 5.0 million shares remaining under our share repurchase authorization.
What drove it
- Total revenues increased $179.0 million, driven by a $194.2 million, or 37%, increase in TTS revenues, partially offset by a $16.8 million decline in Werner Logistics revenues.
- A portion of the TTS revenue increase was due to $65.8 million higher fuel surcharge revenues.
- TTS adjusted operating income increased $15.4 million, or 172%, due to the addition of FirstFleet, lower insurance and claims expense excluding FirstFleet, and higher gains from sale of used equipment.
- One-Way Truckload average revenues per truck per week increased 34.3%, reflecting total miles per truck production gains of 22.4%, rate improvement, and spot-vs-contract mix changes.
- Dedicated average trucks in service increased 2,130 trucks, or 43.8%, year over year, following the FirstFleet acquisition on January 27, 2026.
- Gains on sales of property and equipment were $8.0 million, or $0.10 per share, compared to $4.5 million, or $0.06 per share, in third quarter 2025.
Concerns
- Werner Logistics recorded an operating loss of $ (386) (in thousands), compared with operating income of $ 3,014 (in thousands) in the prior year.
- Werner Logistics adjusted operating income was $ 762 (in thousands), a decrease of 82%, and adjusted operating margin declined 140 basis points to 0.4%.
- Rapidly rising fuel costs and elevated claims temporarily impacted near-term margins, according to the CEO.
- Net interest expense was $9.5 million, an increase of $1.0 million, primarily due to an increase in average debt outstanding.
- Third-quarter cash flow from operations declined 51% to $21.5 million.
- GAAP operating income for the first nine months was $ 37,904 (in thousands), down 20%, and nine-month diluted EPS was $ 0.14, down 34%.
What to watch
- TTS average truck count growth of 16% to 17% for 2026 versus 15.8% year-to-date actual growth.
- Dedicated RPTPW growth guidance of 4% to 5% for 2026 after 4.0% year-to-date growth.
- One-Way Truckload RPTM growth guidance of 10% to 13% for fourth quarter 2026 versus fourth quarter 2025.
- Werner Logistics Truckload Brokerage margin, which improved sequentially by over 600 basis points.
- The planned acceleration of tractor purchases in the fourth quarter of 2026.
- Current 2026 net capital expenditure guidance of $190M to $205M and GAAP effective income tax rate guidance of 24.5% to 25.5%.
Balance sheet and cash flow
- As of September 30, 2026, cash and cash equivalents were $39.2 million.
- Total debt outstanding, including finance lease liabilities of $44.4 million, was $847.4 million at September 30, 2026.
- Stockholders’ equity was $1.4 billion as of September 30, 2026.
- Available liquidity, consisting of cash and cash equivalents and available borrowing capacity after considering letters of credit issued, was $654.3 million as of September 30, 2026.
- On October 5, 2026, Werner entered into a new $1.1 billion unsecured credit facility and terminated its existing $1.075 billion unsecured credit facility.
- On October 5, 2026, Werner borrowed $465 million under the 2026 Credit Agreement and used $431.7 million to pay off outstanding balances, accrued interest, and fees under the 2022 Credit Agreement.
- Outstanding debt on credit facilities totaled $840 million as of October 5, 2026, and remaining borrowing capacity was $603.1 million.
- Cash flow from operations in third quarter 2026 was $21.5 million compared to $44.1 million in third quarter 2025.
- Net capital expenditures in third quarter 2026 were $37.3 million compared to $35.2 million in third quarter 2025.
Analysis
Third-quarter results showed a sharp recovery in reported profitability alongside strong revenue growth. Total revenues were $ 950,508 (in thousands), up 23 %, while GAAP operating income was $ 16,988 (in thousands), compared with a $ (13,021) (in thousands) operating loss a year earlier. GAAP operating margin improved to 1.8 % from (1.7) %, and adjusted operating income increased 92 % to $ 20,983 (in thousands). The prior-year comparison includes $21.4 million of litigation costs that did not recur.
TTS supplied the growth and profit recovery. Segment revenue rose 37 % to $ 714,002 (in thousands), including a 28 % increase in trucking revenues net of fuel surcharge and 111 % growth in fuel surcharge revenues. TTS GAAP operating income was $ 23,243 (in thousands), versus a $ (13,832) (in thousands) loss last year, while adjusted operating income increased 172 % to $ 24,318 (in thousands). FirstFleet expanded Dedicated average trucks in service by 2,130 trucks, or 43.8 %, and One-Way Truckload revenue per truck per week increased 34.3 % as total miles per truck production, rates, and spot-versus-contract mix improved.
Werner Logistics remained the principal offset. Revenue declined 7 % to $ 215,827 (in thousands), and the segment posted a $ (386) (in thousands) operating loss versus $ 3,014 (in thousands) of prior-year operating income. Truckload Logistics revenue declined $23.2 million as shipments declined 40%, although revenue per shipment increased 44%. The segment's adjusted operating margin was 0.4%, down 140 basis points year over year, but adjusted operating margin calculated on operating revenues less purchased transportation was 14.4%, up 210 basis points sequentially from 12.3%.
Cash conversion and leverage warrant attention. Third-quarter cash flow from operations was $21.5 million, down 51%, while net capital expenditures were $37.3 million. The company held $39.2 million of cash and total debt outstanding of $847.4 million at September 30, 2026. It subsequently replaced its $1.075 billion unsecured credit facility with a $1.1 billion unsecured credit facility and reported $603.1 million of remaining borrowing capacity as of October 5, 2026. No shares were repurchased during the quarter.
The updated 2026 framework narrows TTS average truck count growth to 16% to 17% and raises Dedicated RPTPW growth to 4% to 5%. One-Way Truckload RPTM guidance is 10% to 13% for fourth quarter 2026 versus fourth quarter 2025 after third-quarter growth of 9.7%. The company reduced net capital expenditure guidance to $190M to $205M from $215M to $250M and reduced GAAP effective tax rate guidance to 24.5% to 25.5% from 25.5% to 26.5%.
Management, verbatim
“Werner’s third-quarter results demonstrate strong top-line momentum, highlighted by a 28% increase in freight revenue and double-digit Truckload Transportation Services (“TTS”) revenue per truck growth,”
Derek Leathers, Chairman and CEO
“While rapidly rising fuel costs and elevated claims temporarily impacted near-term margins, our underlying strategy is working, driving a near-doubling of adjusted operating income.”
Derek Leathers, Chairman and CEO
“We remain confident in our trajectory and our ability to capitalize on the early stages of this freight upcycle.”
Derek Leathers, Chairman and CEO
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Free cash flow was not reported.
- Dividend amount and dividend declaration were not reported.
- Prior-quarter consolidated revenue, operating income, net income, and EPS were not reported.
- A forward revenue guidance figure was not reported.
- A forward gross margin guidance figure was not reported.
- A forward operating expense guidance figure was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a standard SEC Form 8‑K Item 2.02 earnings release for Werner Enterprises.
Ticker impact
Werner Enterprises reported Q3 2026 results with revenue up 23% YoY and a swing to $0.11 EPS, marking a material earnings beat.
likely upward pressure as market prices in the earnings beat and margin improvement
The company posted a profit after a loss year‑over‑year, with operating income turning positive and revenue growth, which typically drives short‑term buying.
Market effects
Positive earnings may lift the transportation and logistics sector.
U.S. logistics stocks could see modest gains.
Limited to North American freight markets.
Counterpoint
If fuel cost inflation persists, margins could compress despite revenue growth.
Key entities
- CompanyWerner Enterprises
Transportation and logistics provider reporting Q3 2026 results.
