Werner Enterprises (WERN) investor relations material

Macro environment and demand trends

• Dedicated and logistics segments showed positive momentum in Q2, with fleet growth and new customer wins across various verticals.

• One-way truckload demand remained steady and seasonal, while logistics returned to mid-single-digit year-over-year growth, driven by brokerage and intermodal volumes.

• Customers have adapted to ongoing tariff volatility, with non-discretionary retail and food and beverage sectors remaining resilient.

• Shippers are increasingly seeking providers with scale and high service, leading to more constructive conversations and dedicated wins.

• Overall trends are positive compared to a year ago, with gradual momentum continuing from Q2.

Segment priorities and growth outlook

• Dedicated Truckload Services and Logistics are prioritized for growth, with logistics being the fastest-growing segment.

• One-way truckload serves as an entry point for new customers and supports nearshoring and cross-border operations.

• Peak season projections are generally positive, with early indicators suggesting stable or increased volumes and rates.

• Logistics growth is supported by new awards, cross-selling, technology, and project freight, with continued top-line and operational efficiency improvements.

• Technology investments in logistics have reduced OpEx and improved scalability, enabling better service at lower cost.

Pricing, capacity, and industry dynamics

• One-way truckload pricing saw a 2.7% year-over-year increase in Q2, with a challenging bid environment expected for 2026.

• Spot rates remain muted, and volume mix is stable; low single-digit contract rate increases are the norm.

• Capacity attrition is ongoing, with increased enforcement of English language proficiency and B1 visa rules removing drivers from the market.

• Enforcement is expanding state by state, with potential for significant driver reductions if trends continue.

• Growth in private fleets during the pandemic has contributed to persistent capacity issues in the for-hire market, but private fleet conversions to dedicated services are increasing.