Werner Enterprises (WERN) Q2 2026 earnings summary

Executive summary

• Revenues grew 24% year-over-year in Q2 2026 to $934 million, driven by the FirstFleet acquisition, higher fuel surcharges, and improved asset productivity.

• Adjusted operating income rose 67% to $27.6 million, and adjusted EPS increased 178% to $0.22, while GAAP EPS and net income declined sharply due to the absence of prior-year one-time gains and higher expenses.

• Dedicated and One-Way Truckload restructuring led to higher revenue per truck per week and significant margin improvement; FirstFleet integration is ahead of schedule with strong synergy realization.

• Structural market tightening from regulatory enforcement and ELD provider exits is reducing capacity, favoring compliant, high-quality carriers.

• Positioned for sustained earnings growth as market conditions improve and supply-side constraints persist.

Financial highlights

• Q2 revenues reached $934 million, up 24% year-over-year; adjusted operating income rose 67% to $27.6 million; adjusted EPS increased by $0.14 to $0.22; GAAP net income was $6.4 million, down 86% year-over-year.

• Adjusted operating margin was 3%, up 80 basis points; operating margin declined to 1.8% from 8.8% due to prior-year one-time gains.

• TTS revenue was $703 million, up 36%; TTS adjusted operating margin net of fuel was 5.5%, up 270 basis points.

• Operating cash flow was $85 million, up 84% year-over-year; free cash flow was $94 million, or 10% of total revenues.

• Net CapEx for the first half was nearly $66 million lower year-over-year due to asset sales, lower purchases, and reduced tech spending.

Outlook and guidance

• Raised full-year Dedicated revenue per truck per week guidance to up 3%-5%; One-Way Truckload revenue per total mile guidance for Q3 is up 10%-13% year-over-year.

• Revised full-year average truck fleet growth guidance to up 16%-18% (from 23%-28%).

• Increased full-year 2026 net CapEx guidance to $215 million-$250 million to accelerate fleet modernization and pre-buy ahead of 2027 emission standards.

• Effective tax rate guidance set at 25.5%-26.5% for 2026.

• Logistics margins expected to improve in the second half of 2026 as contract rates reset.