WERN · Werner Enterprises, Inc.

Werner Enterprises delivered a strong Q1 2026 earnings turnaround, posting total revenues of $808.6 million, up 14% year-over-year, primarily fueled by an 18% surge in Truckload Transportation Services (TTS) revenues to $594.3 million. This growth stemmed from the January 27, 2026 acquisition of FirstFleet, which added significant scale to the Dedicated segment, increasing average trucks in service by 32.4% YoY to support a 46.4% rise in quarter-end Dedicated fleet to 7,080 trucks (78% of TTS fleet). TTS swung to GAAP operating income of $13.9 million from a $0.9 million loss, with adjusted operating margin expanding 250 basis points to 2.9% net of fuel surcharge, aided by lower insurance costs, One-Way restructuring yielding 9.6% higher revenue per truck per week, and equipment sale gains. Werner Logistics revenues held flat at $195.8 million, but margins deteriorated with a $2.0 million operating loss versus $0.5 million prior, as Truckload Logistics shipments fell 9% despite 5% higher revenue per shipment, offset partially by Intermodal (+18%) and Final Mile (+8%) gains. Consolidated GAAP operating income reached $4.0 million (0.5% margin) from a $5.8 million loss, with adjusted figures at $11.9 million (1.5% margin); net loss narrowed to $4.3 million ($0.07 diluted EPS) from $10.1 million ($0.16), and adjusted net income turned positive at $1.3 million ($0.02 EPS). CEO Derek Leathers highlighted strategic positioning, Dedicated growth, One-Way improvements, 95% customer retention, and cost discipline amid tightening markets. Cash flow from operations soared 204% to $89.2 million, supporting low net capex of $2.0 million while maintaining a modern fleet (trucks 2.9 years average age). Balance sheet shows $61.5 million cash, $931.8 million debt post-FirstFleet funding ($282.8 million total), and $512.7 million liquidity. No share repurchases occurred, with 5.0 million shares authorized. Updated 2026 guidance reaffirms TTS truck count growth of 23-28%, raises Dedicated revenue per truck per week to flat-3%, and sets One-Way Q2 revenue per total mile at 1-4% growth, signaling confidence in sustained momentum.