Werner Enterprises (WERN) Deutsche Bank’s Chicago Industrials Summit summary

Market cycle and supply-side dynamics

• Current market turn is supply-driven, with significant attrition and regulatory enforcement tightening capacity.

• Closure of non-compliant driver schools and stricter electronic logging device (ELD) certification are reducing available capacity.

• Increased cabotage enforcement and government oversight are expected to further tighten supply, especially post-October with potential budget increases.

• Supply tightening is occurring without a major demand uptick, but demand is expected to inflect positively in the latter half of the year.

Demand outlook and customer trends

• Retail inventory levels are lean, with customers in replenishment mode and consumer spending remaining resilient.

• Exposure to discount and value-focused retailers positions the business well for a normalized and potentially stronger peak season.

• Peak season is expected to see both normalized volumes and improved pricing, unlike the previous year.

• Inflation is influencing consumer behavior but not significantly dampening demand for core, non-discretionary goods.

Rate environment, fleet strategy, and operational improvements

• Dedicated revenue per truck per week guidance was raised to 3%-5%, with organic growth closer to 8% year-over-year in Q2.

• Improved asset utilization and density, especially after the FirstFleet acquisition, are driving productivity and margin gains.

• One-Way segment restructuring led to an 18% fleet reduction but resulted in higher revenue per truck and margin expansion.

• The company is now positioned for thoughtful fleet growth, focusing on high-value Dedicated and select One-Way opportunities.