Werner Enterprises (WERN) Q3 2026 Earnings Call: Revenue Growth and Updated Guidance
Source Tradingkey
Key Takeaways
- Werner Enterprises reported Q3 2026 revenue of $951 million, up 23% year over year, while adjusted operating income increased 92% to $21 million.
- Adjusted diluted EPS reached $0.16, improving by $0.19 year over year. Fuel volatility, driver investments and unfavorable claim development created an estimated $0.18 sequential EPS drag versus Q2.
- Dedicated revenue excluding fuel surcharges rose 52%, with revenue per truck per week up 5.6%. The Dedicated fleet added 130 net trucks sequentially and represented 81% of TTS trucks at quarter-end.
- One-Way Truckload revenue per truck per week increased 34%, supported by a 22% increase in miles per truck and 10% growth in revenue per total mile. Adjusted operating margin improved by more than 800 basis points year over year.
- FirstFleet performed ahead of acquisition targets. Werner realized nearly $6 million in savings during the first eight months and remains on track for its $18 million total synergy target.
- Management expects a modest sequential improvement in Q4 adjusted EPS from Q3’s $0.16, as most fuel and reserve-development pressure should ease. Continued driver recruitment spending, lower equipment-sale gains, higher interest expense and tax normalization may offset part of the improvement.
Key Financial Data
| Metric | Q3 2026 | Change / Context |
|---|---|---|
| Revenue | $951 million | Up 23% year over year |
| Adjusted operating income | $21 million | Up 92% |
| Adjusted operating margin | 2.2% | Up 80 basis points |
| Adjusted diluted EPS | $0.16 | Up $0.19 year over year |
| TTS revenue | $714 million | Up 37% |
| TTS revenue excluding fuel surcharges | $589 million | Up 28% |
| TTS adjusted operating income | $24.3 million | Nearly 3x the prior-year level |
| TTS adjusted operating margin, net of fuel | 4.1% | Up 220 basis points |
| Logistics revenue | $216 million | Down 7% year over year; up 2% sequentially |
| Logistics adjusted operating margin | 0.4% | Up 170 basis points sequentially |
| Operating cash flow | $21 million | Net of an $18 million Abarca settlement |
| Year-to-date free cash flow | $160 million | 6% of year-to-date revenue |
| Quarter-end liquidity | $654 million | $39 million cash and $615 million facility availability |
| Debt | $847 million | Up $95 million year to date |
| Pro forma net leverage | 1.9x | Includes FirstFleet results and pro forma synergies |
Business and Operating Performance
Dedicated
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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