Werner Revenue Rises 23% to $950.5 Million, Adjusted EPS Reaches $0.16

Key Facts

Werner Enterprises reported revenue of $950.5 million in the third quarter ended September 30, 2026, up $179 million, or 23%, year over year, and adjusted diluted earnings per share of $0.16. The company said in its results statement that GAAP earnings per share were $0.11, compared with a loss of $0.34 in the same period a year earlier. Operating income also turned positive at $17 million, after the company posted an operating loss of $13 million a year earlier. The operating margin rose to 1.8% from negative 1.7% in the third quarter of 2025. The final results followed the company's preliminary estimates on October 19 and came ahead of its earnings call scheduled for October 27 at 4:00 p.m. Central time.

Werner said part of the improvement in operating income reflected the absence of $21.4 million in litigation costs recorded in the third quarter of the prior year to settle a class-action lawsuit. That puts the year-over-year operating turnaround in the context of a prior exceptional charge, alongside changes in business performance during the year. For the first nine months of 2026, revenue was $2.693 billion, up 20% from the same period. But operating income for those months fell 20% to $37.9 million. Cumulative revenue growth therefore came alongside lower operating income, despite the third quarter's return to operating profitability.

Truckload Transportation Services led quarterly revenue growth, with revenue of $714 million, up $194.2 million, or 37%, year over year. The company said trucking revenue excluding fuel surcharges increased $127.6 million, or 28%, separating core activity growth from the rise in total segment revenue. Chief Executive Derek Leathers said the results included a "28% increase in freight revenue." He added that the segment's revenue per truck posted double-digit growth, without the statement specifying an additional figure for the metric. The difference between segment revenue growth and revenue growth excluding fuel surcharges reflects the impact of fuel surcharges on the year-over-year comparison.

The average number of trucks in service in Truckload Transportation Services rose to 8,668, an increase of 1,165 trucks, or 15.5%, from a year earlier. In the Dedicated business, the truck count at quarter-end was 7,090, compared with 4,965 at the end of the third quarter of 2025. Werner acquired FirstFleet in January 2026 and said the acquired company generated unaudited revenue of more than $600 million in 2025. The quarter-end figures show the size of the Dedicated fleet, while the 8,668 figure measures average trucks in service across the entire trucking segment during the period. Leathers said the company accelerated investments in recruiting and preparing drivers to meet customer demand and fleet growth.

By contrast, Werner Logistics revenue fell 7% to $215.8 million in the third quarter, and the segment swung to an operating loss of $0.4 million, compared with operating income of $3 million a year earlier. The performance highlights the divergence between growth in trucking and declining logistics revenue. At the company level, the final figures showed adjusted earnings of $0.16 per share, within Werner's pre-results range of $0.15 to $0.16. The company had estimated quarterly revenue of between $946 million and $951 million, while actual revenue was $950.5 million. In its preliminary estimates, it said cost pressures had a negative impact of about $0.18 per share compared with the second quarter.

The company identified three drivers of the cost pressures it disclosed before results: a rapid rise in fuel prices, investment in attracting and retaining drivers, and an insurance reserve adjustment late in the quarter related to prior claims. Leathers said higher fuel costs and claims temporarily weighed on near-term margins, alongside accelerated recruiting and onboarding investments. In the second quarter of 2026, Werner reported revenue of $933.9 million and adjusted earnings of $0.22 per share. Compared with that quarter, revenue rose in the third quarter while adjusted earnings declined. Second-quarter revenue was up 24% year over year, according to the company's quarterly results.

Before the results were announced, an earlier report attributed to Reuters said the company's adjusted earnings estimate of $0.15 to $0.16 per share was below analysts' consensus estimate of $0.36. After the results were released, Werner shares rose 5.28% in after-hours trading to $30.93, after ending the regular session at $29.38, according to coverage attributed to Reuters. That reflects the share price in after-hours trading, not the regular-session closing price. The move did not change the company's reported revenue or earnings-per-share figures. The gap between the earlier estimate and the reported result remains central to assessing the market's reaction to the report.

Werner lowered its expected 2026 net capital expenditures to $190–205 million, from previous guidance of $215 million to $250 million. At the same time, the company forecast fourth-quarter revenue-per-mile growth of between 10% and 13% in its One-Way Truckload business compared with the same period of 2025, excluding fuel surcharges. The guidance provides a specific indicator for the trucking business in the coming quarter, alongside the lower annual capital expenditure range. It follows revenue growth in Truckload Transportation Services and an expansion in its trucks in service, against declining Werner Logistics revenue. Fourth-quarter results are expected to be compared with the same period's figures for 2025, in line with the growth range the company announced.