Revenue Growth
Total Q1 revenues of $809 million, up 14% year-over-year, driven by strength in Truckload Transportation Services (TTS) and Dedicated expansion.
Werner Enterprises
· WERN
April 28th, 2026
Summary
- Earnings Call Date:
- 2026-04-28
- Change Since:
- +19.16%
- Next Earnings Date:
- 2026-08-05
Earnings Call Sentiment
PositiveOverall the call presented a constructive picture: meaningful top-line growth (revenues +14%), strong TTS performance (+18% revenue) and substantial early wins from the FirstFleet acquisition (high customer retention, realized synergies) alongside sharp safety improvements and materially stronger cash flow. Offsetting items include still-pressed consolidated margins (adjusted margin 1.5%), temporary Logistics margin compression, higher debt from the acquisition, and inflation/driver availability headwinds. Management provided concrete operational progress (restructuring benefits, technology/AI rollout, cost savings) and reiterated guidance for fleet growth and improving pricing through bid season, supporting a positive outlook as market fundamentals tighten.
Company Guidance
Werner reaffirmed 2026 guidance and provided updated assumptions: full‑year average truck fleet growth of +23% to +28% (including FirstFleet), net CapEx of $185–225 million, and Dedicated revenue per truck per week guidance revised to flat to +3% (Q1 +0.8% y/y; ~3% pro forma); One‑Way truckload revenue per total mile is guided +1% to +4% for Q2, full‑year effective tax rate is 25.5%–26.5% (Q1 was 24.9%), net interest expense is expected to be $40–45 million, and gains on sale of used equipment are forecast at $8–18 million. Management expects to realize $6 million of synergies this year (>$5M implemented, >$1M realized) and the full $18M of cost synergies by mid‑next year; quarter‑end liquidity was $513 million (cash $62M, $451M available), debt $932M, and covenant‑defined pro forma net leverage ~2x.
Truckload Transportation Services (TTS) Performance
TTS revenue $594 million, up 18% YoY (net of fuel $516 million, up 16% YoY); TTS adjusted operating income $14.8 million and adjusted operating margin net of fuel improved 250 basis points to 2.9%.
FirstFleet Acquisition Integration
FirstFleet integration ahead of schedule: 98% customer renewal across two-thirds of addressed portfolio, realized >$1 million in savings to date, implemented actions representing >$5 million of 2026 $6 million target, and confident in $18 million total cost synergies by mid next year; expect ~300 basis point improvement in FirstFleet operating margin.
Dedicated Fleet Expansion and Pricing Momentum
Dedicated end-of-period tractors up 46% YoY (Dedicated average trucks +32% YoY); Dedicated represented 78% of TTS trucks at quarter end; Dedicated revenue per truck per week +0.8% YoY (legacy +1.8%; pro forma ~3%), with a robust pipeline and improved selectivity.
One-Way Truckload Profitability Improvements
Following One-Way restructuring, miles per truck improved ~6% YoY, revenue per total mile +3.6% YoY, and One-Way revenue per truck per week +9.6% YoY; empty miles decreased 40 basis points YoY and 60 basis points sequentially.
Logistics Momentum in Intermodal and Final Mile
Logistics revenue of $196 million (24% of total); Intermodal revenue +18% driven by 22% increase in load volume; Final Mile revenue +8% YoY; truckload logistics revenue per load +5% despite lower shipments.
Safety and Cost Discipline
DOT preventable accident rate per million miles down 45% YoY; total operating expenses (excl. gains, insurance, fuel, purchase transportation) down 5% YoY; ~ $150 million of cost removed over 3 years; truckload brokerage operating expenses down >25% over two years following EDGE platform implementation.
Strong Cash Generation and Liquidity
Operating cash flow $89 million, up >200% YoY and >40% sequentially; first quarter free cash flow $87 million (10.8% of revenues); cash $62 million and total liquidity $513 million; covenant defined pro forma net leverage ~2x including pro forma synergies.
Updated Guidance and Fleet Growth
Reaffirming full-year average truck fleet guidance up 23%-28%; updating dedicated revenue-per-truck guidance to flat to +3% (from -1% to +2%); Q2 One-Way revenue per total mile guide +1% to +4%; full-year net CapEx guidance $185M–$225M.
Operator
Good afternoon, and welcome to the Werner Enterprises' First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Chris Neil, Senior Vice President of Pricing and Strategic Planning. Please go ahead, sir.
Chris Neil
Good afternoon, everyone. Earlier today, we issued our earnings release with our first quarter results. The release and a supplemental presentation are available in the Investors section of our website at werner.com. Today's webcast is being recorded and will be available for replay later today. Please see the disclosure statement on Slide 2 of the presentation as well as the disclaimers in our earnings release related to forward-looking statements. Today's remarks contain forward-looking statements that may involve risks, uncertainties and other factors that could cause actual results to differ materially. The company reports results using non-GAAP measures, which we believe provides additional information for investors to help facilitate the comparison of past and present performance. A reconciliation to the most directly comparable GAAP measures is included in the tables attached to the earnings release and in the appendix of the slide presentation.
On today's call with me are Derek Leathers, Chairman and CEO; and Chris Wikoff, Executive Vice President, CFO and Treasurer. I will now turn the call over to Derek.
Derek Leathers
Thank you, Chris, and good afternoon, everyone. We appreciate you joining us today as we cover our first quarter results and the state of the market. In summary...
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