Werner Enterprises swings to $6.6M profit in Q3 2026
The updated 2026 net capital expenditure range is $190 million to $205 million, with 10% to 13% fourth-quarter One-Way Truckload revenue-per-total-mile growth guidance.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Werner Enterprises, Inc. reported third-quarter 2026 revenue of $950.5 million, up 23% year over year. GAAP operating income was $17.0 million, versus an operating loss of $13.0 million; net income attributable to Werner was $6.6 million versus a $20.6 million loss. Non-GAAP adjusted operating income was $21.0 million, up 92%, and adjusted diluted earnings per share were $0.16 versus an adjusted loss per share of $0.03.
Truckload Transportation Services revenue rose 37% to $714.0 million. Werner Logistics revenue fell 7% to $215.8 million and posted a $0.4 million operating loss, compared with $3.0 million operating income a year earlier. Operating cash flow declined 51% to $21.5 million. The updated 2026 net capital expenditure range is $190 million to $205 million; current guidance for One-Way Truckload revenue per total mile, net of fuel surcharge, is 10% to 13% growth in fourth quarter 2026 versus fourth quarter 2025.
On October 5, 2026, Werner entered a $1.1 billion unsecured credit facility, borrowed $465 million and used $431.7 million to pay off outstanding balances, accrued interest and fees under its prior facility. Credit-facility debt was $840 million on October 5.
3 points · 0 major0 major · 3 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue grew 23% to $950.5 million.
- Moderate pointAdjusted operating income rose 92% to $21.0 million.
- Moderate pointGAAP operating income reached $17.0 million, versus a $13.0 million loss.
Negative
- Moderate pointThird-quarter cash flow from operations fell 51% to $21.5 million.
- Moderate pointNine-month GAAP operating income declined 20% to $37.9 million.
- Minor pointThird-quarter Werner Logistics had a $0.4 million operating loss versus $3.0 million income.
Filing Explained
For the nine months ended
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Total revenues: $950.5 million; up 23% year over year
Operating income: $17.0 million; compared with a $13.0 million operating loss
Adjusted operating income (non-GAAP): $21.0 million; up 92% year over year
+5 more
8 metrics
Total revenues
$950.5 million; up 23% year over year
Third quarter ended September 30, 2026
Operating income
$17.0 million; compared with a $13.0 million operating loss
Third quarter 2026 versus third quarter 2025
Adjusted operating income (non-GAAP)
$21.0 million; up 92% year over year
Third quarter 2026
Net income attributable to Werner
$6.6 million; compared with a $20.6 million net loss
Third quarter 2026 versus third quarter 2025
Adjusted diluted earnings per share
$0.16 per diluted share
Third quarter 2026; compared with an adjusted diluted loss per share of $0.03 in third quarter 2025
Cash flow from operations
$21.5 million; down 51% from $44.1 million
Third quarter 2026 versus third quarter 2025
Net capital expenditure guidance
$190 million to $205 million
2026 guidance
Unsecured credit facility
$1.1 billion
Entered October 5, 2026
Key Terms
Non-GAAP adjusted operating income, Net capital expenditures, Adjusted operating ratio, net of fuel surcharge, Revolving credit loans, +1 more
5 terms
Non-GAAP adjusted operating income financial
"non-GAAP adjusted operating income of $21.0 million"
Non-GAAP adjusted operating income is a company-reported measure of operating profit that removes or adds back certain items that management considers non-recurring, unusual, or not part of core operations (for example, restructuring costs, stock-based compensation, or acquisition-related expenses). It matters to investors because it aims to show the company’s underlying operating performance, like looking at a car’s regular fuel efficiency after ignoring one-off trips; however, the adjustments vary by company and affect comparability.
Net capital expenditures financial
"Net capital expenditures in third quarter 2026"
Net capital expenditures are the cash a business spends on buying, improving or replacing long-lasting assets (like factories, equipment or buildings) minus any cash it receives from selling similar assets. Think of it as the money a homeowner puts into new appliances and roof repairs after selling an old car — it shows how much a company is investing to maintain or grow its ability to produce future revenue. Investors watch this number because it directly reduces available cash, signals growth or maintenance needs, and helps assess future profitability and the company’s capital intensity.
Adjusted operating ratio, net of fuel surcharge financial
"Adjusted operating ratio, net of fuel surcharge"
Revolving credit loans financial
"$465 million of revolving credit loans"
A revolving credit loan is a line of borrowing that a company can draw from, repay, and draw again up to a preset limit, much like a business credit card. It matters to investors because it provides short-term cash flexibility to run operations or cover surprises without selling assets; the size, cost, and terms affect a company’s liquidity, interest expense and default risk, so they influence financial stability and valuation.
Available borrowing capacity financial
"remaining borrowing capacity of $603.1 million"
Earnings Snapshot
Total revenues: $950.5 million · Guidance included
Three months ended September 30, 2026
Total revenues
$950.5 million
Up 23% year over year from $771.5 million
Operating income (loss)
$17.0 million
Compared with an operating loss of $13.0 million in third quarter 2025
Net income attributable to Werner
$6.6 million
Compared with a net loss of $20.6 million in third quarter 2025
Adjusted operating income (non-GAAP)
$21.0 million
Up 92% year over year
Adjusted diluted earnings per share
$0.16
Compared with an adjusted diluted loss per share of $0.03 in third quarter 2025
Guidance
For 2026, net capital expenditures of $190 million to $205 million; TTS average truck count growth of 16% to 17%; Dedicated revenue per truck per week growth of 4% to 5%; One-Way Truckload revenue per total mile growth of 10% to 13% in fourth quarter 2026 versus fourth quarter 2025; GAAP effective income tax rate of 24.5% to 25.5%.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were WERN's third-quarter 2026 revenue and earnings?
WERN reported third-quarter 2026 revenue of $950.5 million, up 23% from $771.5 million a year earlier. Net income attributable to Werner was $6.6 million, compared with a $20.6 million loss; diluted earnings per share were $0.11 versus a $0.34 loss per share.
How much operating cash flow did WERN generate in third quarter 2026?
WERN generated $21.5 million of cash flow from operations in third quarter 2026, compared with $44.1 million in third quarter 2025, a 51% decrease.
What did WERN do with its new credit facility?
On October 5, 2026, WERN borrowed $465 million under its $1.1 billion unsecured credit facility and used $431.7 million to pay outstanding balances, accrued interest and fees under its former facility. Credit-facility debt was $840 million, with $603.1 million of remaining borrowing capacity on that date.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| , | ||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(402 ) 895-6640
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On October 27, 2026 , the registrant issued a press release regarding, among other things, its financial results for the third quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
In accordance with General Instruction B.2 to the Form 8-K, the information under this Item 2.02 and the press release furnished as Exhibit 99.1 to this Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section 18, nor shall such information and exhibit deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), unless the registrant expressly states that such information and exhibit are to be considered “filed” under the Exchange Act or incorporates such information and exhibit by specific reference in an Exchange Act or Securities Act filing.
The press release furnished as Exhibit 99.1 to this Form 8-K may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on information presently available to the registrant’s management and are current only as of the date made. Actual results could also differ materially from those anticipated as a result of a number of factors, including, but not limited to, those discussed in the registrant’s latest available Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q. For those reasons, undue reliance should not be placed on any forward-looking statement. The registrant assumes no duty or obligation to update or revise any forward-looking statement, although it may do so from time to time as management believes is warranted or as may be required by applicable securities law. Any such updates or revisions may be made by filing reports with the U.S. Securities and Exchange Commission, through the issuance of press releases or by other methods of public disclosure.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
99.1 | Press release issued by the registrant on October 27, 2026, “Werner Enterprises Reports Third Quarter 2026 Results”. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| WERNER ENTERPRISES, INC. | |||||||||||
Date: October 27, 2026 | By: | /s/ Christopher D. Wikoff | |||||||||
| Christopher D. Wikoff | |||||||||||
| Executive Vice President, Chief Financial Officer, and Treasurer | |||||||||||
Date: October 27, 2026 | By: | /s/ Alan G. Colson | |||||||||
| Alan G. Colson | |||||||||||
| Vice President, Controller and Principal Accounting Officer | |||||||||||
Exhibit 99.1
Werner Enterprises Reports Third Quarter 2026 Results
Third Quarter 2026 Highlights (all metrics compared to third quarter 2025)
•Total revenues of $950.5 million, increased $179.0 million, or 23%
•Operating income of $17.0 million compared to an operating loss of $13.0 million in the prior year; non-GAAP adjusted operating income of $21.0 million, increased $10.1 million, or 92%
•Operating margin of 1.8%, increased 350 basis points from (1.7)%; non-GAAP adjusted operating margin of 2.2%, increased 80 basis points from 1.4%
•Diluted earnings per share of $0.11 compared to diluted loss per share of $0.34 in the prior year; non-GAAP adjusted diluted earnings per share of $0.16 compared to non-GAAP diluted loss per share of $0.03 in the prior year
OMAHA, Neb., October 27, 2026 -- Werner Enterprises, Inc. (Nasdaq: WERN), a premier transportation and logistics provider, today reported results for the third quarter ended September 30, 2026.
“Werner’s third-quarter results demonstrate strong top-line momentum, highlighted by a 28% increase in freight revenue and double-digit Truckload Transportation Services (“TTS”) revenue per truck growth,” said Chairman and CEO Derek Leathers. “While rapidly rising fuel costs and elevated claims temporarily impacted near-term margins, our underlying strategy is working, driving a near-doubling of adjusted operating income. We made the deliberate decision to accelerate investments in driver recruiting and onboarding to capture rising customer demand and support fleet expansion as industry capacity tightens. We remain confident in our trajectory and our ability to capitalize on the early stages of this freight upcycle.”
Total revenues for the quarter were $950.5 million, an increase of $179.0 million compared to the prior year, due to a $194.2 million, or 37%, increase in TTS revenues, partially offset by a decline in Werner Logistics revenues of $16.8 million. A portion of the TTS revenue increase was due to $65.8 million higher fuel surcharge revenues.
Operating income was $17.0 million compared to an operating loss of $13.0 million in the prior year, while operating margin of 1.8% increased 350 basis points from (1.7)%. The increase in operating income is partially due to the non-recurrence of litigation costs of $21.4 million recorded in the prior year related to an agreement to settle a class action lawsuit. On a non-GAAP basis, adjusted operating income of $21.0 million increased $10.1 million, or 92%. Adjusted operating margin of 2.2% increased 80 basis points from 1.4%.
TTS had operating income of $23.2 million compared to an operating loss of $13.8 million in the prior year, and TTS had non-GAAP adjusted operating income of $24.3 million, an increase of $15.4 million, or 172%. Werner Logistics had an operating loss of $0.4 million compared to $3.0 million operating income in the prior year, and Werner Logistics had non-GAAP adjusted operating income of $0.8 million, a decrease of $3.4 million, or 82%. Corporate and Other (including driving schools) had an operating loss of $5.9 million compared to a $2.2 million operating loss in the prior year driven primarily by acquisition
Werner Enterprises, Inc. - Release of October 27, 2026
Page 2
expenses, which were excluded for non-GAAP purposes, and lower non-operating gains, partially offset by year-over-year favorability in our driver schools.
Net interest expense of $9.5 million increased $1.0 million primarily due to an increase in average debt outstanding, partially offset by a decrease in average interest rates. The effective income tax rate during the quarter was 13.2%, compared to 3.8% in third quarter 2025 due to differences in discrete income tax items.
Net gain on our strategic investments was $0.3 million compared to a net loss of $0.3 million in the prior year. Consistent with prior reporting, increases or decreases to the values of these strategic investments are adjusted out for determining non-GAAP adjusted net income (loss) and non-GAAP adjusted earnings (loss) per share.
Net income attributable to Werner was $6.6 million compared to a $20.6 million net loss attributable to Werner in the prior year. On a non-GAAP basis, adjusted net income attributable to Werner was $9.5 million compared to a $2.0 million adjusted net loss attributable to Werner in the prior year. Diluted earnings per share was $0.11 compared to diluted loss per share of $0.34 in the prior year. On a non-GAAP basis, adjusted diluted earnings per share was $0.16 compared to adjusted diluted loss per share of $0.03 in the prior year.
Key Consolidated Financial Metrics
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| (In thousands, except per share amounts) | 2026 | 2025 | Y/Y Change | 2026 | 2025 | Y/Y Change | |||||||||||||||||||||||||||||
| Total revenues | $ | 950,508 | $ | 771,499 | 23 | % | $ | 2,693,045 | $ | 2,236,761 | 20 | % | |||||||||||||||||||||||
| Truckload Transportation Services revenues | $ | 714,002 | $ | 519,786 | 37 | % | $ | 2,010,886 | $ | 1,539,308 | 31 | % | |||||||||||||||||||||||
| Werner Logistics revenues | $ | 215,827 | $ | 232,585 | (7) | % | $ | 623,395 | $ | 649,320 | (4) | % | |||||||||||||||||||||||
| Operating income (loss) | $ | 16,988 | $ | (13,021) | 230 | % | $ | 37,904 | $ | 47,468 | (20) | % | |||||||||||||||||||||||
| Operating margin | 1.8 | % | (1.7) | % | 350 bps | 1.4 | % | 2.1 | % | (70) bps | |||||||||||||||||||||||||
| Net income (loss) attributable to Werner | $ | 6,595 | $ | (20,575) | 132 | % | $ | 8,683 | $ | 13,389 | (35) | % | |||||||||||||||||||||||
| Diluted earnings (loss) per share | $ | 0.11 | $ | (0.34) | 132 | % | $ | 0.14 | $ | 0.22 | (34) | % | |||||||||||||||||||||||
Adjusted operating income (1) | $ | 20,983 | $ | 10,910 | 92 | % | $ | 60,504 | $ | 25,662 | 136 | % | |||||||||||||||||||||||
Adjusted operating margin (1) | 2.2 | % | 1.4 | % | 80 bps | 2.2 | % | 1.1 | % | 110 bps | |||||||||||||||||||||||||
Adjusted net income (loss) attributable to Werner (1) | $ | 9,488 | $ | (2,015) | 571 | % | $ | 25,133 | $ | (4,295) | 685 | % | |||||||||||||||||||||||
Adjusted diluted earnings (loss) per share (1) | $ | 0.16 | $ | (0.03) | 567 | % | $ | 0.42 | $ | (0.07) | 693 | % | |||||||||||||||||||||||
(1) See attached Reconciliation of Non-GAAP Financial Measures - Consolidated.
Truckload Transportation Services (TTS) Segment
•Revenues of $714.0 million increased $194.2 million, or 37%; trucking revenues, net of fuel surcharge, increased $127.6 million, or 28% year over year
•Operating income of $23.2 million compared to an operating loss of $13.8 million in the prior year; non-GAAP adjusted operating income of $24.3 million increased $15.4 million, or 172%, due to the addition of FirstFleet, lower insurance and claims expense (excluding FirstFleet), and higher gains from sale of used equipment
•Operating margin of 3.3%, increased 600 basis points from (2.7%); non-GAAP adjusted operating margin, net of fuel surcharge, of 4.1% increased 220 basis points from 1.9%
•Average segment trucks in service totaled 8,668, an increase of 1,165 trucks year over year, or 15.5%, while segment trucks at quarter end increased by 1,295 trucks, or 17.4%. The increase is driven by the FirstFleet acquisition, partially offset by a smaller One-Way Truckload fleet
•Dedicated unit trucks at quarter end totaled 7,090, or 81% of the total TTS segment fleet, compared to 4,965 trucks, or 67%, a year ago
Werner Enterprises, Inc. - Release of October 27, 2026
Page 3
•One-Way Truckload average revenues per truck per week increased 34.3% from total miles per truck production gains of 22.4% following our restructuring efforts earlier this year, plus rate improvement and spot-vs-contract mix changes
•One-Way revenues per total mile, net of fuel surcharge, increased 9.7% year over year
We acquired FirstFleet on January 27, 2026. FirstFleet financial results are reported in our Dedicated operating segment within Truckload Transportation Services. As a result of this acquisition, Dedicated experienced a net increase in average trucks in service, up 2,130 trucks, or 43.8% year over year, and up 19 trucks sequentially. Dedicated quarter-end fleet size was up 42.8% year over year. Dedicated average revenues per truck per week, net of fuel surcharge, increased 5.6%.
Key Truckload Transportation Services Segment Financial Metrics
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | Y/Y Change | 2026 | 2025 | Y/Y Change | |||||||||||||||||||||||||||||
| Trucking revenues, net of fuel surcharge | $ | 579,604 | $ | 451,960 | 28 | % | $ | 1,660,109 | $ | 1,335,936 | 24 | % | |||||||||||||||||||||||
| Trucking fuel surcharge revenues | 125,231 | 59,456 | 111 | % | 324,268 | 172,297 | 88 | % | |||||||||||||||||||||||||||
| Non-trucking and other revenues | 9,167 | 8,370 | 10 | % | 26,509 | 31,075 | (15) | % | |||||||||||||||||||||||||||
| Total revenues | $ | 714,002 | $ | 519,786 | 37 | % | $ | 2,010,886 | $ | 1,539,308 | 31 | % | |||||||||||||||||||||||
| Operating income (loss) | $ | 23,243 | $ | (13,832) | 268 | % | $ | 64,301 | $ | 49,341 | 30 | % | |||||||||||||||||||||||
| Operating margin | 3.3 | % | (2.7) | % | 600 bps | 3.2 | % | 3.2 | % | — bps | |||||||||||||||||||||||||
| Operating ratio | 96.7 | % | 102.7 | % | (600) bps | 96.8 | % | 96.8 | % | — bps | |||||||||||||||||||||||||
Adjusted operating income (1) | $ | 24,318 | $ | 8,950 | 172 | % | $ | 71,431 | $ | 23,689 | 202 | % | |||||||||||||||||||||||
Adjusted operating margin (1) | 3.4 | % | 1.7 | % | 170 bps | 3.6 | % | 1.5 | % | 210 bps | |||||||||||||||||||||||||
Adjusted operating margin, net of fuel surcharge (1) | 4.1 | % | 1.9 | % | 220 bps | 4.2 | % | 1.7 | % | 250 bps | |||||||||||||||||||||||||
Adjusted operating ratio (1) | 96.6 | % | 98.3 | % | (170) bps | 96.4 | % | 98.5 | % | (210) bps | |||||||||||||||||||||||||
Adjusted operating ratio, net of fuel surcharge (1) | 95.9 | % | 98.1 | % | (220) bps | 95.8 | % | 98.3 | % | (250) bps | |||||||||||||||||||||||||
(1) See attached Reconciliation of Non-GAAP Financial Measures - Truckload Transportation Services (TTS) Segment.
Werner Logistics Segment
•Revenues of $215.8 million decreased $16.8 million, or 7%
•Operating loss was $0.4 million compared to $3.0 million operating income in the prior year; non-GAAP adjusted operating income of $0.8 million decreased $3.4 million, or 82%
•Operating margin of (0.2)% decreased 150 basis points from 1.3%; non-GAAP adjusted operating margin of 0.4% decreased 140 basis points from 1.8%; non-GAAP adjusted operating margin, calculated on operating revenues, less purchased transportation, was 14.4%, up 210 basis points sequentially from 12.3%
•Truckload Logistics Brokerage operating margin improved sequentially by over 600 basis points
Truckload Logistics revenues (70% of Werner Logistics revenues) decreased $23.2 million, or 13%, driven by a decrease in shipments of 40%, partially offset by a 44% increase in revenue per shipment.
Intermodal revenues (17% of Werner Logistics revenues) increased $2.4 million, or 7%, due to a 6% increase in revenue per shipment and a 1% increase in shipments.
Final Mile revenues (13% of Werner Logistics revenues) increased $4.1 million, or 18%, and increased 8% sequentially.
Werner Enterprises, Inc. - Release of October 27, 2026
Page 4
Key Werner Logistics Segment Financial Metrics
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | Y/Y Change | 2026 | 2025 | Y/Y Change | |||||||||||||||||||||||||||||
| Total revenues | $ | 215,827 | $ | 232,585 | (7) | % | $ | 623,395 | $ | 649,320 | (4) | % | |||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Purchased transportation expense | 184,722 | 199,616 | (7) | % | 538,996 | 555,100 | (3) | % | |||||||||||||||||||||||||||
| Other operating expenses | 31,491 | 29,955 | 5 | % | 90,660 | 87,353 | 4 | % | |||||||||||||||||||||||||||
| Total operating expenses | 216,213 | 229,571 | (6) | % | 629,656 | 642,453 | (2) | % | |||||||||||||||||||||||||||
| Operating income (loss) | $ | (386) | $ | 3,014 | (113) | % | $ | (6,261) | $ | 6,867 | (191) | % | |||||||||||||||||||||||
| Operating margin | (0.2) | % | 1.3 | % | (150) bps | (1.0) | % | 1.1 | % | (210) bps | |||||||||||||||||||||||||
Adjusted operating income (loss) (1) | $ | 762 | $ | 4,163 | (82) | % | $ | (2,816) | $ | 10,713 | (126) | % | |||||||||||||||||||||||
Adjusted operating margin (1) | 0.4 | % | 1.8 | % | (140) bps | (0.5) | % | 1.6 | % | (210) bps | |||||||||||||||||||||||||
(1) See attached Reconciliation of Non-GAAP Financial Measures - Werner Logistics Segment.
Cash Flow and Capital Allocation
Cash flow from operations in third quarter 2026 was $21.5 million compared to $44.1 million in third quarter 2025, a decrease of 51%. In October 2025, we entered into an $18.0 million agreement to settle a class action lawsuit, for which a full accrual was recorded in third quarter 2025. Following court approval in July 2026, all remaining settlement funds were distributed during the third quarter 2026.
Net capital expenditures in third quarter 2026 were $37.3 million compared to $35.2 million in third quarter 2025. We continue to prioritize business reinvestment in safe and modern equipment, including trucks and trailers, intermodal containers, technology, and our terminal network. The average ages of our truck and trailer fleets were 2.8 years and 6.5 years, respectively, as of September 30, 2026. The average age of our trucks decreased 0.2 years sequentially. We expect further reduction as we accelerate tractor purchases in the fourth quarter of 2026.
Gains on sales of property and equipment in third quarter 2026 were $8.0 million, or $0.10 per share, compared to $4.5 million, or $0.06 per share, in third quarter 2025. Gains on sales of property and equipment are reflected as a reduction of other operating expenses in our income statement.
We did not repurchase shares of our common stock in third quarter 2026. As of September 30, 2026, we had 5.0 million shares remaining under our share repurchase authorization.
As of September 30, 2026, we had $39.2 million of cash and cash equivalents and $1.4 billion of stockholders’ equity. Total debt outstanding, including finance lease liabilities of $44.4 million, was $847.4 million at September 30, 2026. After considering letters of credit issued, we had available liquidity consisting of cash and cash equivalents and available borrowing capacity as of September 30, 2026 of $654.3 million. Subsequent to the end of the quarter, on October 5, 2026, we entered into a new $1.1 billion unsecured credit facility with various lenders (“2026 Credit Agreement”) and terminated our existing $1.075 billion unsecured credit facility (“2022 Credit Agreement”). On October 5, 2026, we borrowed $465 million under the 2026 Credit Agreement and used $431.7 million of these proceeds to pay off the outstanding balances, accrued interest, and fees under the 2022 Credit Agreement. Outstanding debt on our credit facilities totaled $840 million as of October 5, 2026, including $465 million of revolving credit loans under the 2026 Credit Agreement and $375 million under our existing Loan and Security Agreement. Considering outstanding borrowings and stand-by letters of credit of $31.9 million, we have a remaining borrowing capacity of $603.1 million under our credit facilities as of October 5, 2026.
Werner Enterprises, Inc. - Release of October 27, 2026
Page 5
2026 Guidance Metrics and Assumptions
The following table summarizes our updated 2026 guidance assumptions:
| Prior 2026 Guidance (as of 7/28/26) | Actual (as of 9/30/26) | Current 2026 Guidance (as of 10/27/26) | |||||||||
| TTS average truck count growth | 16% to 18% (2026 vs. 2025) | 15.8% (YTD26 vs. 2025) | 16% to 17% (2026 vs. 2025) | ||||||||
Dedicated RPTPW (1) growth | 3% to 5% (2026 vs. 2025) | 4.0% (YTD26 vs. YTD25) | 4% to 5% (2026 vs. 2025) | ||||||||
One-Way Truckload RPTM (1) growth | 10% to 13% (3Q26 vs. 3Q25) | 9.7% (3Q26 vs. 3Q25) | 10% to 13% (4Q26 vs. 4Q25) | ||||||||
| Net capital expenditures | $215M to $250M (2026) | $29M (YTD) | $190M to $205M (2026) | ||||||||
| Assumptions | |||||||||||
| Effective income tax rate (GAAP) | 25.5% to 26.5% (2026) | 17.0% (YTD) | 24.5% to 25.5% (2026) | ||||||||
(1) Net of fuel surcharge revenues
Werner Enterprises, Inc. - Release of October 27, 2026
Page 6
Call Information
Werner Enterprises, Inc. will conduct a conference call to discuss third quarter 2026 earnings today beginning at 4:00 p.m. CT. The news release, live webcast of the earnings conference call, and accompanying slide presentation will be available at werner.com in the “Investors” section under “News & Events” and then “Events Calendar.” To participate in the conference call, please dial (844) 701-1165 (domestic) or (412) 504-9718 (international). Please mention to the operator that you are dialing in for the Werner Enterprises call.
A replay of the conference call will be available on October 27, 2026 at approximately 6:00 p.m. CT through November 27, 2026 by dialing (855) 669-9658 (domestic) or (412) 317-0088 (international) and using the access code 5222855. A replay of the webcast will also be available at werner.com in the “Investors” section under “News & Events” and then “Events Calendar.”
About Werner Enterprises
Werner Enterprises, Inc. (“Werner”) (Nasdaq: WERN) delivers superior truckload transportation and logistics services to customers across the United States, Mexico and Canada. With Werner® 2025 revenues of nearly $3.0 billion, a modern truck and trailer fleet, more than 14,800 talented associates and our innovative Werner EDGE® technology, we are an essential solutions provider for customers who value the integrity of their supply chain and require safe and exceptional on-time service. In January 2026, Werner acquired FirstEnterprises, Inc. (“FirstFleet”), which generated more than $600 million in unaudited 2025 revenues. Werner provides Dedicated and One-Way Truckload services as well as Logistics services that include truckload brokerage, freight management, intermodal and final mile. Werner embraces inclusion as a core value and manages key risks and opportunities through a balanced sustainability strategy.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on information presently available to the Company’s management and are current only as of the date made. Actual results could also differ materially from those anticipated as a result of a number of factors, including, but not limited to, those discussed in the Company’s latest available Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q.
For those reasons, undue reliance should not be placed on any forward-looking statement. The Company assumes no duty or obligation to update or revise any forward-looking statement, although it may do so from time to time as management believes is warranted or as may be required by applicable securities law. Any such updates or revisions may be made by filing reports with the U.S. Securities and Exchange Commission (“SEC”), through the issuance of press releases or by other methods of public disclosure.
Contact:
Christopher D. Wikoff
Executive Vice President, Chief Financial Officer,
and Treasurer
(402) 894-3700
Source: Werner Enterprises, Inc.
Werner Enterprises, Inc. - Release of October 27, 2026
Page 7
Consolidated Financial Information
| INCOME STATEMENT | |||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||||||||||||
| Operating revenues | $ | 950,508 | 100.0 | $ | 771,499 | 100.0 | $ | 2,693,045 | 100.0 | $ | 2,236,761 | 100.0 | |||||||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Salaries, wages and benefits | 318,587 | 33.5 | 268,720 | 34.8 | 909,212 | 33.8 | 762,396 | 34.1 | |||||||||||||||||||||||||||||||||||||||
| Fuel | 130,251 | 13.7 | 64,059 | 8.3 | 332,593 | 12.3 | 187,552 | 8.4 | |||||||||||||||||||||||||||||||||||||||
| Supplies and maintenance | 85,471 | 9.0 | 65,496 | 8.5 | 230,924 | 8.6 | 187,796 | 8.4 | |||||||||||||||||||||||||||||||||||||||
| Taxes and licenses | 24,233 | 2.5 | 23,189 | 3.0 | 70,444 | 2.6 | 68,633 | 3.1 | |||||||||||||||||||||||||||||||||||||||
| Insurance and claims | 39,558 | 4.2 | 38,060 | 4.9 | 122,911 | 4.6 | 75,024 | 3.4 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 76,863 | 8.1 | 72,184 | 9.4 | 231,871 | 8.6 | 212,990 | 9.5 | |||||||||||||||||||||||||||||||||||||||
| Rent and purchased transportation | 254,633 | 26.8 | 243,115 | 31.5 | 724,664 | 26.9 | 677,537 | 30.3 | |||||||||||||||||||||||||||||||||||||||
| Communications and utilities | 4,804 | 0.5 | 3,967 | 0.5 | 14,261 | 0.5 | 12,054 | 0.5 | |||||||||||||||||||||||||||||||||||||||
| Restructuring and impairment | — | — | — | — | 4,094 | 0.2 | — | — | |||||||||||||||||||||||||||||||||||||||
| Other | (880) | (0.1) | 5,730 | 0.8 | 14,167 | 0.5 | 5,311 | 0.2 | |||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 933,520 | 98.2 | 784,520 | 101.7 | 2,655,141 | 98.6 | 2,189,293 | 97.9 | |||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | 16,988 | 1.8 | (13,021) | (1.7) | 37,904 | 1.4 | 47,468 | 2.1 | |||||||||||||||||||||||||||||||||||||||
| Other expense (income): | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 11,037 | 1.2 | 9,935 | 1.3 | 34,361 | 1.3 | 28,825 | 1.3 | |||||||||||||||||||||||||||||||||||||||
| Interest income | (1,489) | (0.2) | (1,362) | (0.2) | (4,561) | (0.2) | (4,341) | (0.2) | |||||||||||||||||||||||||||||||||||||||
| Loss (gain) on investments in equity securities | 30 | — | (38) | — | 15 | — | (3) | — | |||||||||||||||||||||||||||||||||||||||
| Loss (earnings) from equity method investment | (297) | — | 289 | — | (1,033) | — | (553) | (0.1) | |||||||||||||||||||||||||||||||||||||||
| Other | 108 | — | 60 | — | 127 | — | (257) | — | |||||||||||||||||||||||||||||||||||||||
| Total other expense, net | 9,389 | 1.0 | 8,884 | 1.1 | 28,909 | 1.1 | 23,671 | 1.0 | |||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 7,599 | 0.8 | (21,905) | (2.8) | 8,995 | 0.3 | 23,797 | 1.1 | |||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 1,004 | 0.1 | (822) | (0.1) | 1,526 | — | 11,479 | 0.5 | |||||||||||||||||||||||||||||||||||||||
| Net income (loss) | 6,595 | 0.7 | (21,083) | (2.7) | 7,469 | 0.3 | 12,318 | 0.6 | |||||||||||||||||||||||||||||||||||||||
| Net loss attributable to noncontrolling interest | — | — | 508 | — | 1,214 | — | 1,071 | — | |||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Werner | $ | 6,595 | 0.7 | $ | (20,575) | (2.7) | $ | 8,683 | 0.3 | $ | 13,389 | 0.6 | |||||||||||||||||||||||||||||||||||
| Diluted shares outstanding | 60,305 | 59,830 | 60,232 | 61,015 | |||||||||||||||||||||||||||||||||||||||||||
| Diluted earnings (loss) per share | $ | 0.11 | $ | (0.34) | $ | 0.14 | $ | 0.22 | |||||||||||||||||||||||||||||||||||||||
Werner Enterprises, Inc. - Release of October 27, 2026
Page 8
| CONDENSED BALANCE SHEET | |||||||||||
| (In thousands, except share amounts) | |||||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 39,200 | $ | 59,922 | |||||||
Accounts receivable, trade, less allowance of $8,375 and $7,646, respectively | 517,080 | 394,933 | |||||||||
| Other receivables | 17,927 | 20,398 | |||||||||
| Inventories and supplies | 14,622 | 12,104 | |||||||||
| Prepaid expenses | 62,715 | 57,184 | |||||||||
| Assets held for sale | 6,843 | 32,643 | |||||||||
| Other current assets | 37,507 | 35,665 | |||||||||
| Total current assets | 695,894 | 612,849 | |||||||||
| Property and equipment | 2,982,713 | 2,901,984 | |||||||||
| Less – accumulated depreciation | 1,166,563 | 1,111,480 | |||||||||
| Property and equipment, net | 1,816,150 | 1,790,504 | |||||||||
| Finance lease right-of-use assets, net | 44,443 | — | |||||||||
| Goodwill | 138,576 | 129,104 | |||||||||
| Intangible assets, net | 60,721 | 44,603 | |||||||||
| Operating lease right-of-use assets, net | 143,427 | 39,703 | |||||||||
Other non-current assets | 307,378 | 271,911 | |||||||||
| Total assets | $ | 3,206,589 | $ | 2,888,674 | |||||||
| LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 129,053 | $ | 95,084 | |||||||
| Insurance and claims accruals | 114,676 | 99,827 | |||||||||
| Accrued payroll | 77,834 | 51,442 | |||||||||
| Accrued expenses | 18,908 | 16,199 | |||||||||
| Current maturities of finance lease liabilities | 24,574 | — | |||||||||
| Current maturities of operating lease liabilities | 51,703 | 15,451 | |||||||||
| Other current liabilities | 74,089 | 36,781 | |||||||||
| Total current liabilities | 490,837 | 314,784 | |||||||||
| Long-term debt, net of current portion | 803,000 | 752,000 | |||||||||
| Finance lease liabilities, less current maturities | 19,779 | — | |||||||||
| Operating lease liabilities, less current maturities | 95,742 | 26,470 | |||||||||
| Other long-term liabilities | 20,828 | 26,080 | |||||||||
Insurance and claims accruals, net of current portion | 138,316 | 112,126 | |||||||||
| Deferred income taxes | 278,317 | 266,209 | |||||||||
| Total liabilities | 1,846,819 | 1,497,669 | |||||||||
| Temporary equity - redeemable noncontrolling interest | — | 28,113 | |||||||||
| Stockholders’ equity: | |||||||||||
Common stock, $0.01 par value, 200,000,000 shares authorized; 80,533,536 shares issued; 59,977,156 and 59,869,405 shares outstanding, respectively | 805 | 805 | |||||||||
| Paid-in capital | 150,377 | 144,641 | |||||||||
| Retained earnings | 1,888,066 | 1,904,572 | |||||||||
| Accumulated other comprehensive loss | (9,523) | (16,075) | |||||||||
Treasury stock, at cost; 20,556,380 and 20,664,131 shares, respectively | (669,955) | (671,051) | |||||||||
| Total stockholders’ equity | 1,359,770 | 1,362,892 | |||||||||
| Total liabilities, temporary equity and stockholders’ equity | $ | 3,206,589 | $ | 2,888,674 | |||||||
Werner Enterprises, Inc. - Release of October 27, 2026
Page 9
| SUPPLEMENTAL INFORMATION | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Capital expenditures, net | $ | 37,274 | $ | 35,238 | $ | 28,654 | $ | 93,300 | |||||||||||||||
| Cash flow from operations | $ | 21,463 | $ | 44,144 | $ | 188,718 | $ | 119,539 | |||||||||||||||
| Return on assets (annualized) | 0.8 | % | (2.9) | % | 0.4 | % | 0.6 | % | |||||||||||||||
| Return on equity (annualized) | 1.9 | % | (5.8) | % | 1.0 | % | 1.1 | % | |||||||||||||||
Segment Financial and Operating Statistics Information
| SEGMENT INFORMATION | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Truckload Transportation Services | $ | 714,002 | $ | 519,786 | $ | 2,010,886 | $ | 1,539,308 | |||||||||||||||
| Werner Logistics | 215,827 | 232,585 | 623,395 | 649,320 | |||||||||||||||||||
Other (1) | 20,074 | 18,722 | 57,107 | 55,384 | |||||||||||||||||||
| Corporate | 577 | 569 | 1,734 | 1,724 | |||||||||||||||||||
| Subtotal | 950,480 | 771,662 | 2,693,122 | 2,245,736 | |||||||||||||||||||
Inter-segment eliminations (2) | 28 | (163) | (77) | (8,975) | |||||||||||||||||||
| Total | $ | 950,508 | $ | 771,499 | $ | 2,693,045 | $ | 2,236,761 | |||||||||||||||
| Operating Income (Loss) | |||||||||||||||||||||||
| Truckload Transportation Services | $ | 23,243 | $ | (13,832) | $ | 64,301 | $ | 49,341 | |||||||||||||||
| Werner Logistics | (386) | 3,014 | (6,261) | 6,867 | |||||||||||||||||||
Other (1) | 1,442 | (817) | 3,055 | (1,265) | |||||||||||||||||||
| Corporate | (7,311) | (1,386) | (23,191) | (7,475) | |||||||||||||||||||
| Total | $ | 16,988 | $ | (13,021) | $ | 37,904 | $ | 47,468 | |||||||||||||||
(1) Other includes our driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, and other business activities.
(2) Inter-segment eliminations represent transactions between reporting segments that are eliminated in consolidation.
Werner Enterprises, Inc. - Release of October 27, 2026
Page 10
| OPERATING STATISTICS BY SEGMENT | |||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Chg | 2026 | 2025 | % Chg | ||||||||||||||||||||||||||||||
| Truckload Transportation Services segment | |||||||||||||||||||||||||||||||||||
| Average trucks in service | 8,668 | 7,503 | 15.5 | % | 8,611 | 7,469 | 15.3 | % | |||||||||||||||||||||||||||
Average revenues per truck per week (1) | $ | 5,144 | $ | 4,633 | 11.0 | % | $ | 4,943 | $ | 4,585 | 7.8 | % | |||||||||||||||||||||||
| Total trucks (at quarter end) | |||||||||||||||||||||||||||||||||||
| Company | 8,430 | 7,120 | 18.4 | % | 8,430 | 7,120 | 18.4 | % | |||||||||||||||||||||||||||
| Independent contractor | 310 | 325 | (4.6) | % | 310 | 325 | (4.6) | % | |||||||||||||||||||||||||||
| Total trucks | 8,740 | 7,445 | 17.4 | % | 8,740 | 7,445 | 17.4 | % | |||||||||||||||||||||||||||
| Total trailers (at quarter end) | 35,085 | 24,625 | 42.5 | % | 35,085 | 24,625 | 42.5 | % | |||||||||||||||||||||||||||
| One-Way Truckload | |||||||||||||||||||||||||||||||||||
| Trucking revenues, net of fuel surcharge (in 000’s) | $ | 135,774 | $ | 159,501 | (14.9) | % | $ | 410,123 | $ | 478,005 | (14.2) | % | |||||||||||||||||||||||
| Average trucks in service | 1,673 | 2,638 | (36.6) | % | 1,843 | 2,635 | (30.1) | % | |||||||||||||||||||||||||||
| Total trucks (at quarter end) | 1,650 | 2,480 | (33.5) | % | 1,650 | 2,480 | (33.5) | % | |||||||||||||||||||||||||||
| Average percentage of empty miles | 15.96 | % | 15.65 | % | 2.0 | % | 15.50 | % | 15.72 | % | (1.4) | % | |||||||||||||||||||||||
Average revenues per truck per week (1) | $ | 6,244 | $ | 4,649 | 34.3 | % | $ | 5,767 | $ | 4,650 | 24.0 | % | |||||||||||||||||||||||
Average % change YOY in revenues per total mile (1) | 9.7 | % | 0.4 | % | 7.9 | % | 1.2 | % | |||||||||||||||||||||||||||
| Average % change YOY in total miles per truck per week | 22.4 | % | (4.7) | % | 14.7 | % | (3.5) | % | |||||||||||||||||||||||||||
| Average completed trip length in miles (loaded) | 674 | 558 | 20.8 | % | 656 | 572 | 14.7 | % | |||||||||||||||||||||||||||
| Dedicated | |||||||||||||||||||||||||||||||||||
| Trucking revenues, net of fuel surcharge (in 000’s) | $ | 443,830 | $ | 292,459 | 51.8 | % | $ | 1,249,986 | $ | 857,931 | 45.7 | % | |||||||||||||||||||||||
| Average trucks in service | 6,995 | 4,865 | 43.8 | % | 6,768 | 4,834 | 40.0 | % | |||||||||||||||||||||||||||
| Total trucks (at quarter end) | 7,090 | 4,965 | 42.8 | % | 7,090 | 4,965 | 42.8 | % | |||||||||||||||||||||||||||
Average revenues per truck per week (1) | $ | 4,881 | $ | 4,624 | 5.6 | % | $ | 4,729 | $ | 4,549 | 4.0 | % | |||||||||||||||||||||||
| Werner Logistics segment | |||||||||||||||||||||||||||||||||||
| Average trucks in service | 37 | 23 | 60.9 | % | 30 | 24 | 25.0 | % | |||||||||||||||||||||||||||
| Total trucks (at quarter end) | 50 | 23 | 117.4 | % | 50 | 23 | 117.4 | % | |||||||||||||||||||||||||||
| Total trailers (at quarter end) | 2,625 | 4,010 | (34.5) | % | 2,625 | 4,010 | (34.5) | % | |||||||||||||||||||||||||||
| Total containers (at quarter end) | 485 | 375 | 29.3 | % | 412 | 375 | 9.9 | % | |||||||||||||||||||||||||||
(1) Net of fuel surcharge revenues
Non-GAAP Financial Measures and Reconciliations
To supplement our financial results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we provide certain non-GAAP financial measures as defined by the SEC Regulation G, including non-GAAP adjusted operating income (loss); non-GAAP adjusted operating margin; non-GAAP adjusted operating margin, net of fuel surcharge; non-GAAP adjusted net income (loss) attributable to Werner; non-GAAP adjusted diluted earnings (loss) per share; non-GAAP adjusted operating revenues, net of fuel surcharge; non-GAAP adjusted operating revenues, less purchased transportation expense; non-GAAP adjusted operating expenses; non-GAAP adjusted operating expenses, net of fuel surcharge; non-GAAP adjusted operating ratio; and non-GAAP adjusted operating ratio, net of fuel surcharge. We believe these non-GAAP financial measures provide a more useful comparison of our performance from period to period because they exclude the effect of items that, in our opinion, do not reflect our core operating performance. Our non-GAAP financial measures are not meant to be considered in isolation or as substitutes for their comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. There are limitations to using non-GAAP financial measures. Although we believe that they improve comparability in analyzing our period to period performance, they could limit comparability to other companies in our industry if those companies define these measures differently. Because of these limitations, our non-GAAP financial measures should not be considered measures of income generated
Werner Enterprises, Inc. - Release of October 27, 2026
Page 11
by our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.
The following tables present reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure as required by SEC Regulation G. In addition, information regarding each of the excluded items as well as our reasons for excluding them from our non-GAAP results is provided below.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – CONSOLIDATED
(unaudited)
(In thousands, except per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Operating Income and Non-GAAP Adjusted Operating Margin (1) | $ | % of Op. Rev. | $ | % of Op. Rev. | $ | % of Op. Rev. | $ | % of Op. Rev. | |||||||||||||||||||||||||||||||||||||||
| Operating income (loss) and operating margin – (GAAP) | $ | 16,988 | 1.8 | % | $ | (13,021) | (1.7) | % | $ | 37,904 | 1.4 | % | $ | 47,468 | 2.1 | % | |||||||||||||||||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Insurance and claims (2) | — | — | % | — | — | % | — | — | % | (44,151) | (2.0) | % | |||||||||||||||||||||||||||||||||||
Litigation settlement (3) | — | — | % | 21,413 | 2.8 | % | — | — | % | 21,413 | 1.0 | % | |||||||||||||||||||||||||||||||||||
Restructuring and impairment (4) | — | — | % | — | — | % | 4,094 | 0.2 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Amortization of intangible assets (5) | 2,223 | 0.2 | % | 2,518 | 0.3 | % | 6,481 | 0.2 | % | 7,553 | 0.3 | % | |||||||||||||||||||||||||||||||||||
Contingent consideration adjustment (6) | — | — | % | — | — | % | — | — | % | (7,921) | (0.4) | % | |||||||||||||||||||||||||||||||||||
Severance expense (7) | — | — | % | — | — | % | — | — | % | 1,300 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Acquisition expenses (8) | 1,772 | 0.2 | % | — | — | % | 12,025 | 0.4 | % | — | — | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP adjusted operating income and non-GAAP adjusted operating margin | $ | 20,983 | 2.2 | % | $ | 10,910 | 1.4 | % | $ | 60,504 | 2.2 | % | $ | 25,662 | 1.1 | % | |||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Net Income (Loss) Attributable to Werner and Non-GAAP Adjusted Diluted Earnings (Loss) Per Share (1) | $ | Diluted EPS | $ | Diluted EPS | $ | Diluted EPS | $ | Diluted EPS | |||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Werner and diluted earnings (loss) per share – (GAAP) | $ | 6,595 | $ | 0.11 | $ | (20,575) | $ | (0.34) | $ | 8,683 | $ | 0.14 | $ | 13,389 | $ | 0.22 | |||||||||||||||||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Insurance and claims (2) | — | — | — | — | — | — | (44,151) | (0.72) | |||||||||||||||||||||||||||||||||||||||
Litigation settlement (3) | — | — | 21,413 | 0.36 | — | — | 21,413 | 0.35 | |||||||||||||||||||||||||||||||||||||||
Restructuring and impairment, net of amount attributable to noncontrolling interest (4) | — | — | — | — | 4,094 | 0.07 | — | — | |||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets, net of amount attributable to noncontrolling interest (5) | 2,223 | 0.03 | 2,346 | 0.04 | 6,097 | 0.10 | 7,037 | 0.11 | |||||||||||||||||||||||||||||||||||||||
Contingent consideration adjustments (6) | — | — | — | — | — | — | (7,921) | (0.13) | |||||||||||||||||||||||||||||||||||||||
Severance expense (7) | — | — | — | — | — | — | 1,300 | 0.02 | |||||||||||||||||||||||||||||||||||||||
Acquisition expenses (8) | 1,772 | 0.03 | — | — | 12,025 | 0.20 | — | — | |||||||||||||||||||||||||||||||||||||||
Loss (gain) on investments in equity securities (9) | 30 | — | (38) | — | 15 | — | (3) | — | |||||||||||||||||||||||||||||||||||||||
Loss (earnings) from equity method investment (10) | (297) | — | 289 | — | (1,033) | (0.01) | (553) | (0.01) | |||||||||||||||||||||||||||||||||||||||
Income tax effect of above adjustments (11) | (835) | (0.01) | (5,450) | (0.09) | (4,748) | (0.08) | 5,194 | 0.09 | |||||||||||||||||||||||||||||||||||||||
| Non-GAAP adjusted net income (loss) attributable to Werner and non-GAAP adjusted diluted earnings (loss) per share | $ | 9,488 | $ | 0.16 | $ | (2,015) | $ | (0.03) | $ | 25,133 | $ | 0.42 | $ | (4,295) | $ | (0.07) | |||||||||||||||||||||||||||||||
Werner Enterprises, Inc. - Release of October 27, 2026
Page 12
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Non-GAAP Adjusted Operating Revenues, Net of Fuel Surcharge (1) | $ | $ | $ | $ | |||||||||||||||||||
| Operating revenues – (GAAP) | $ | 950,508 | $ | 771,499 | $ | 2,693,045 | $ | 2,236,761 | |||||||||||||||
| Non-GAAP adjustment: | |||||||||||||||||||||||
Trucking fuel surcharge (12) | (125,231) | (59,456) | (324,268) | (172,297) | |||||||||||||||||||
Non-GAAP Adjusted Operating revenues, net of fuel surcharge | $ | 825,277 | $ | 712,043 | $ | 2,368,777 | $ | 2,064,464 | |||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – TRUCKLOAD TRANSPORTATION SERVICES (TTS) SEGMENT
(unaudited)
(In thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Operating Income and Non-GAAP Adjusted Operating Margin (1) | $ | % of Op. Rev. | $ | % of Op. Rev. | $ | % of Op. Rev. | $ | % of Op. Rev. | |||||||||||||||||||||||||||||||||||||||
| Operating income (loss) and operating margin – (GAAP) | $ | 23,243 | 3.3 | % | $ | (13,832) | (2.7) | % | $ | 64,301 | 3.2 | % | $ | 49,341 | 3.2 | % | |||||||||||||||||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Insurance and claims (2) | — | — | % | — | — | % | — | — | % | (44,151) | (2.9) | % | |||||||||||||||||||||||||||||||||||
Litigation settlement (3) | — | — | % | 21,413 | 4.1 | % | — | — | % | 21,413 | 1.4 | % | |||||||||||||||||||||||||||||||||||
Restructuring and impairment (4) | — | — | % | — | — | % | 4,094 | 0.2 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Amortization of intangible assets (5) | 1,075 | 0.1 | % | 1,369 | 0.3 | % | 3,036 | 0.2 | % | 4,107 | 0.3 | % | |||||||||||||||||||||||||||||||||||
Contingent consideration adjustment (6) | — | — | % | — | — | % | — | — | % | (7,921) | (0.5) | % | |||||||||||||||||||||||||||||||||||
Severance expense (7) | — | — | % | — | — | % | — | — | % | 900 | — | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP adjusted operating income and non-GAAP adjusted operating margin | $ | 24,318 | 3.4 | % | $ | 8,950 | 1.7 | % | $ | 71,431 | 3.6 | % | $ | 23,689 | 1.5 | % | |||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Operating Expenses and Non-GAAP Adjusted Operating Ratio (1) | $ | % of Op. Rev. | $ | % of Op. Rev. | $ | % of Op. Rev. | $ | % of Op. Rev. | |||||||||||||||||||||||||||||||||||||||
| Operating expenses and operating ratio – (GAAP) | $ | 690,759 | 96.7 | % | $ | 533,618 | 102.7 | % | $ | 1,946,585 | 96.8 | % | $ | 1,489,967 | 96.8 | % | |||||||||||||||||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Insurance and claims (2) | — | — | % | — | — | % | — | — | % | 44,151 | 2.9 | % | |||||||||||||||||||||||||||||||||||
Litigation settlement (3) | — | — | % | (21,413) | (4.1) | % | — | — | % | (21,413) | (1.4) | % | |||||||||||||||||||||||||||||||||||
Restructuring and impairment (4) | — | — | % | — | — | % | (4,094) | (0.2) | % | — | — | % | |||||||||||||||||||||||||||||||||||
Amortization of intangible assets (5) | (1,075) | (0.1) | % | (1,369) | (0.3) | % | (3,036) | (0.2) | % | (4,107) | (0.3) | % | |||||||||||||||||||||||||||||||||||
Contingent consideration adjustment (6) | — | — | % | — | — | % | — | — | % | 7,921 | 0.5 | % | |||||||||||||||||||||||||||||||||||
Severance expense (7) | — | — | % | — | — | % | — | — | % | (900) | — | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP adjusted operating expenses and non-GAAP adjusted operating ratio | $ | 689,684 | 96.6 | % | $ | 510,836 | 98.3 | % | $ | 1,939,455 | 96.4 | % | $ | 1,515,619 | 98.5 | % | |||||||||||||||||||||||||||||||
Werner Enterprises, Inc. - Release of October 27, 2026
Page 13
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Non-GAAP Adjusted Operating Revenues, Net of Fuel Surcharge; Non-GAAP Adjusted Operating Expenses, Net of Fuel Surcharge; Non-GAAP Adjusted Operating Margin, Net of Fuel Surcharge; and Non-GAAP Adjusted Operating Ratio, Net of Fuel Surcharge (1) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
| Operating revenues – (GAAP) | $ | 714,002 | $ | 519,786 | $ | 2,010,886 | $ | 1,539,308 | |||||||||||||||
Less: Trucking fuel surcharge (12) | (125,231) | (59,456) | (324,268) | (172,297) | |||||||||||||||||||
| Operating revenues, net of fuel surcharge – (Non-GAAP) | 588,771 | 460,330 | 1,686,618 | 1,367,011 | |||||||||||||||||||
| Operating expenses – (GAAP) | 690,759 | 533,618 | 1,946,585 | 1,489,967 | |||||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
Trucking fuel surcharge (12) | (125,231) | (59,456) | (324,268) | (172,297) | |||||||||||||||||||
Insurance and claims (2) | — | — | — | 44,151 | |||||||||||||||||||
Litigation settlement (3) | — | (21,413) | — | (21,413) | |||||||||||||||||||
Restructuring and impairment (4) | — | — | (4,094) | — | |||||||||||||||||||
Amortization of intangible assets (5) | (1,075) | (1,369) | (3,036) | (4,107) | |||||||||||||||||||
Contingent consideration adjustment (6) | — | — | — | 7,921 | |||||||||||||||||||
Severance expense (7) | — | — | — | (900) | |||||||||||||||||||
| Non-GAAP adjusted operating expenses, net of fuel surcharge | 564,453 | 451,380 | 1,615,187 | 1,343,322 | |||||||||||||||||||
| Non-GAAP adjusted operating income | $ | 24,318 | $ | 8,950 | $ | 71,431 | $ | 23,689 | |||||||||||||||
| Non-GAAP adjusted operating margin, net of fuel surcharge | 4.1 | % | 1.9 | % | 4.2 | % | 1.7 | % | |||||||||||||||
| Non-GAAP adjusted operating ratio, net of fuel surcharge | 95.9 | % | 98.1 | % | 95.8 | % | 98.3 | % | |||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES – WERNER LOGISTICS SEGMENT
(unaudited)
(In thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Operating Revenues, Less Purchased Transportation Expense (1) | $ | % of Op. Rev. | $ | % of Op. Rev. | $ | % of Op. Rev. | $ | % of Op. Rev. | |||||||||||||||||||||||||||||||||||||||
| Operating revenues – (GAAP) | $ | 215,827 | 100.0 | % | $ | 232,585 | 100.0 | % | $ | 623,395 | 100.0 | % | $ | 649,320 | 100.0 | % | |||||||||||||||||||||||||||||||
| Non-GAAP adjustment: | |||||||||||||||||||||||||||||||||||||||||||||||
Purchased transportation expense (13) | (184,722) | (85.6) | % | (199,616) | (85.8) | % | (538,996) | (86.5) | % | (555,100) | (85.5) | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP adjusted operating revenues, less purchased transportation expense | $ | 31,105 | 14.4 | % | $ | 32,969 | 14.2 | % | $ | 84,399 | 13.5 | % | $ | 94,220 | 14.5 | % | |||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Operating Revenues, Less Purchased Transportation Expense (1) | $ | % of Op. Rev. | $ | % of Op. Rev. | $ | % of Op. Rev. | $ | % of Op. Rev. | |||||||||||||||||||||||||||||||||||||||
| Operating revenues – (GAAP) | $ | 211,732 | 100.0 | % | $ | 221,177 | 100.0 | % | $ | 407,568 | 100.0 | % | $ | 416,735 | 100.0 | % | |||||||||||||||||||||||||||||||
| Non-GAAP adjustment: | |||||||||||||||||||||||||||||||||||||||||||||||
Purchased transportation expense (13) | (185,744) | (87.7) | % | (188,326) | (85.1) | % | (354,274) | (86.9) | % | (355,484) | (85.3) | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP adjusted operating revenues, less purchased transportation expense | $ | 25,988 | 12.3 | % | $ | 32,851 | 14.9 | % | $ | 53,294 | 13.1 | % | $ | 61,251 | 14.7 | % | |||||||||||||||||||||||||||||||
Werner Enterprises, Inc. - Release of October 27, 2026
Page 14
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Operating Income (Loss) and Non-GAAP Adjusted Operating Margin (1) | $ | % of Op. Rev. | $ | % of Op. Rev. | $ | % of Op. Rev. | $ | % of Op. Rev. | |||||||||||||||||||||||||||||||||||||||
| Operating income (loss) and operating margin – (GAAP) | $ | (386) | (0.2) | % | $ | 3,014 | 1.3 | % | $ | (6,261) | (1.0) | % | $ | 6,867 | 1.1 | % | |||||||||||||||||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets (5) | 1,148 | 0.6 | % | 1,149 | 0.5 | % | 3,445 | 0.5 | % | 3,446 | 0.5 | % | |||||||||||||||||||||||||||||||||||
Severance expense (7) | — | — | % | — | — | % | — | — | % | 400 | — | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP adjusted operating income (loss) and non-GAAP adjusted operating margin | $ | 762 | 0.4 | % | $ | 4,163 | 1.8 | % | $ | (2,816) | (0.5) | % | $ | 10,713 | 1.6 | % | |||||||||||||||||||||||||||||||
(1) Non-GAAP adjusted operating income (loss); non-GAAP adjusted operating margin; non-GAAP adjusted operating margin, net of fuel surcharge; non-GAAP adjusted net income (loss) attributable to Werner; non-GAAP adjusted diluted earnings (loss) per share; non-GAAP adjusted operating revenues, net of fuel surcharge; non-GAAP adjusted operating revenues, less purchased transportation expense; non-GAAP adjusted operating expenses; non-GAAP adjusted operating expenses, net of fuel surcharge; non-GAAP adjusted operating ratio; and non-GAAP adjusted operating ratio, net of fuel surcharge should be considered in addition to, rather than as substitutes for, GAAP operating income (loss); GAAP operating margin; GAAP net income (loss) attributable to Werner; GAAP diluted earnings (loss) per share; GAAP operating revenues; GAAP operating expenses; and GAAP operating ratio, which are their most directly comparable GAAP financial measures.
(2) Represents a reversal of a net liability in second quarter 2025 related to the Texas Supreme Court’s ruling in Werner’s favor, reversing and dismissing a previously disclosed adverse jury verdict rendered on May 17, 2018 in a lawsuit arising from a December 2014 accident. The reversal included Werner's uninsured portion (retention) and accrued interest. Additional information about the accident was included in our Current Report on Form 8-K dated May 17, 2018. Management believes excluding the effect of this item provides a more useful comparison of our performance from period to period. This item is included in our Truckload Transportation Services segment.
(3) In October 2025, we reached an agreement with the plaintiffs in the consolidated class action lawsuits entitled Abarca et al. v. Werner in the United States District Court for the District of Nebraska, to settle these cases for a combined $18 million. The settlement was approved by the court. An accrual for this settlement was recorded in third quarter 2025, and is included in salaries, wages and benefits in our income statement. We also incurred legal fees of $3.4 million related to this litigation during third quarter 2025, which is recorded in other operating expenses in our income statement. Management believes excluding the effect of these items provides a more useful comparison of our performance from period to period. These items are included in our Truckload Transportation Services segment.
(4) Restructuring and impairment expense are excluded because management does not believe these costs are indicative of our core operating performance. These costs are included in our Truckload Transportation Services segment.
(5) Amortization expense related to intangible assets acquired in our business acquisitions is excluded because management does not believe the expense is indicative of our core operating performance. This expense is included in our Truckload Transportation Services and Werner Logistics segments.
(6) Contingent consideration, also referred to as earnout, adjustments related to our business acquisitions are excluded because management does not believe these adjustments are indicative of our core operating performance. The adjustments are recorded in other operating expenses in our Income Statement and are included in our Truckload Transportation Services segment.
(7) Severance expense is excluded because management does not believe it is indicative of our core operating performance. This item is included in salaries, wages and benefits in our Income Statement and is included in our Truckload Transportation Services and Werner Logistics segments.
(8) Represents business acquisition and certain integration-related expenses. These expenses are excluded as management believes they are not representative of the costs of managing our on-going business. These expenses are included within other operating expenses in our income statement and in Corporate operating income in our Segment Information table.
(9) Represents non-operating mark-to-market adjustments for gains/losses on our minority equity investments, which we account for under Accounting Standards Codification (“ASC”) 321, Investments – Equity Securities. Management believes excluding the effect of gains/losses on our investments in equity securities provides a more useful comparison of our performance from period to period. We record changes in the value of our investments in equity securities in other expense (income) in our income statement.
(10) Represents earnings/losses from our equity method investment, which we account for under ASC 323, Investments - Equity Method and Joint Ventures. Management believes excluding the effect of earnings/losses from our equity method investment provides a more useful comparison of our performance from period to period. We record earnings/losses from our equity method investment in other expense (income) in our income statement.
(11) The income tax effect of the non-GAAP adjustments is calculated using the incremental income tax rate excluding discrete items, and the income tax effect for 2025 has been updated to reflect the annual incremental income tax rate.
(12) Fluctuating fuel prices and fuel surcharge revenues impact the total company operating ratio and the TTS segment operating ratio when fuel surcharges are reported on a gross basis as revenues versus netting the fuel surcharges against fuel expenses. Management believes netting fuel surcharge revenues, which are generally a more volatile source of revenue, against fuel expenses provides a more consistent basis for comparing the results of operations from period to period.
(13) Management believes excluding purchased transportation expense from Werner Logistics operating revenues provides a useful measurement of our ability to source and sell services provided by third parties.