Werner sees adjusted earnings of $0.15 to $0.16 a share amid cost pressures
Key Facts
Werner Enterprises announced preliminary results expectations for the third quarter of 2026, projecting adjusted diluted earnings per share of $0.15 to $0.16 as higher costs weigh on earnings. The company said in an official statement filed with the U.S. Securities and Exchange Commission that it expects revenue of between $946 million and $951 million for the period. It put diluted earnings per share under U.S. generally accepted accounting principles at $0.10 to $0.11, below its announced adjusted earnings range. Werner described the results as "preliminary and unaudited," ahead of its full quarterly report. The update points to higher revenue than in the previous quarter, but lower adjusted earnings per share.
Werner reported actual revenue of $933.9 million in the second quarter of 2026, according to its earnings release for that period, below the lower end of the new preliminary revenue range. Adjusted diluted earnings per share, however, were $0.22, above the upper end of the expected third-quarter range. The second-quarter adjusted operating margin was 3.0%, according to the same disclosure, which detailed the company's performance before the quarter covered by the update. The comparison between the periods thus shows two different trends: higher expected revenue and lower adjusted earnings per share. The previous quarter's figures are reported results, while the third-quarter estimates remain subject to completion of the results the company described as preliminary.
Werner attributed the pressure on earnings to costs with a combined negative impact of about $0.18 per share compared with the second quarter, according to its preliminary results statement. It cited the rapid rise in fuel prices among the causes, alongside spending on recruiting and retaining drivers during the quarter. The company used the phrase "recruiting and retention" to describe its driver-related investments in explaining the change in costs from the previous period. Adding to these pressures was an insurance reserve adjustment made near the end of the quarter relating to prior claims. The combined impact disclosed by the company covers these factors together, linking fuel costs, driver investment and the insurance adjustment in its explanation of the pressure on earnings for the period.
Werner's guidance issued in July had projected revenue per mile in its One-Way Truckload business to grow between 10% and 13% in the third quarter of 2026 compared with the third quarter of 2025. The company excluded fuel surcharges from this measure, according to the second-quarter earnings release that included the guidance. That earlier growth range relates to revenue per mile in the specified business, while the new preliminary revenue range relates to the company's revenue for the quarter. The July guidance also uses a year-on-year comparison, whereas Werner measured the combined negative impact of cost pressures against the previous quarter. The revenue-per-mile growth expectations were part of guidance issued before the company announced higher fuel costs, driver spending and the insurance reserve adjustment.
As background to the year's results, Werner announced in January 2026 the acquisition of FirstFleet for about $245 million in cash, according to the official transaction statement. The announcement included a separate purchase of real estate, meaning the disclosed cash consideration for the acquisition excluded those property purchases. When announcing the deal, Werner expected annual benefits from savings and operational integration of about $18 million. The company presented that amount as an annual target for acquisition-related integration benefits within its expectations announced when the deal was struck. Those expectations date to the January announcement, providing earlier context for the preliminary third-quarter update and its revenue and earnings ranges and cost pressures.
Werner plans to release its full third-quarter results on Tuesday, October 27, 2026, according to its official earnings date announcement. The company said it would publish the results after the market closes that day and hold a call to discuss the period's performance. The call is scheduled to begin at 4:00 p.m. U.S. Central Time, according to the timetable announced to investors. The full results will follow the update that outlined revenue and earnings-per-share ranges, alongside the reasons the company identified for cost pressures. Werner will use the call scheduled for the same day as the announcement to discuss third-quarter results after publishing the full figures for the period covered by its preliminary disclosure.