Werner Swings To A Profit As Truckload Revenue Climbs 37%, But Fuel And Claims Squeeze Margins
The trucker earned $0.11 a share against a year-earlier loss, and it cut its 2026 capital spending outlook.
Werner Enterprises, the Omaha trucking and logistics company, earned $0.11 per share in the third quarter, against a loss of $0.34 a year earlier, as freight demand and its FirstFleet purchase lifted sales, the company said Tuesday. Revenue rose 23% to $950.5 million, but rising fuel costs and elevated claims held margins down.
A freight surge with thin margins
Operating income was $17.0 million, compared with an operating loss of $13.0 million a year earlier, on an operating margin of 1.8%. Adjusted operating income, which strips out items such as acquisition costs and intangible amortization, rose 92% to $21.0 million, and adjusted earnings were $0.16 per share against an adjusted loss of $0.03.
Part of the swing reflects a weak comparison: the prior-year quarter carried $21.4 million of litigation costs tied to an agreement to settle a class action lawsuit.
Chairman and CEO Derek Leathers said "rapidly rising fuel costs and elevated claims temporarily impacted near-term margins," but added: "We remain confident in our trajectory and our ability to capitalize on the early stages of this freight upcycle."
Trucking soars while logistics slips
Werner mainly hauls truckload freight across the United States, with a dedicated-service trucking unit and a logistics unit that arranges shipments through other carriers. Truckload Transportation Services revenue rose 37% to $714.0 million, and $65.8 million of the gain came from higher fuel surcharges. The unit's operating income was $23.2 million, against a $13.8 million loss.
Werner bought FirstFleet on January 27, 2026. Dedicated trucks at quarter end totaled 7,090, or 81% of the segment fleet, compared with 4,965, or 67%, a year ago.
Werner Logistics went the other way. Revenue fell $16.8 million, or 7%, to $215.8 million, and the unit posted a $0.4 million operating loss against $3.0 million of operating income a year earlier.
Lower capital spending outlook
Cash flow from operations fell 51% to $21.5 million. Total debt was $847.4 million at September 30, including $44.4 million of finance lease liabilities. On October 5, Werner signed a new $1.1 billion unsecured credit facility to replace its $1.075 billion one.
The company now expects 2026 net capital spending of $190 million to $205 million, down from $215 million to $250 million in its July guidance. It lowered its expected effective tax rate to 24.5% to 25.5% from 25.5% to 26.5%, and it expects to accelerate tractor purchases in the fourth quarter.
Werner held an earnings call at 4:00 p.m. CT on Tuesday to walk through the quarter.
Sources
- 8-K Filing — WERNER ENTERPRISES INC (WERN) — SEC EDGAR
- Exhibit wern-2026x930xex991.htm — WERNER ENTERPRISES INC 8-K exhibit — SEC EDGAR
- Werner Enterprises Reports Third Quarter 2026 Results — businesswire.com
