Werner Enterprises (WERN) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $950.5M, up 23.2% YoY; GAAP operating income was $17.0M versus a $13.0M loss, adjusted operating income was $21.0M, up 92%, and adjusted diluted EPS was $0.16.

• FirstFleet contributed $170.7M of Q3 revenue; One-Way restructuring and higher equipment-sale gains supported results, partly offset by recruiting and training spending, fuel and claim costs.

• Management cited rising demand and tightening capacity, while Dedicated growth, One-Way improvement and FirstFleet synergies support a mid-cycle TTS adjusted operating margin target of 10%+.

Financial highlights

• Q3 GAAP diluted EPS was $0.11 versus a $0.34 loss; adjusted diluted EPS was $0.16 versus an adjusted $0.03 loss. Net income attributable was $6.6M versus a $20.6M loss.

• Adjusted operating income was $21.0M, up 92% YoY, with a 2.2% margin, up 80 bps; gains on property and equipment sales were $8.0M, up $3.5M YoY.

• 9M revenue rose 20.4% to $2.693B; operating income was $37.9M versus $47.5M, and net income attributable was $8.7M versus $13.4M.

• Fuel volatility, driver investment and unfavorable reserve development reduced adjusted EPS by $0.18 sequentially; driver investment accounted for $0.06 and fuel and reserve development largely accounted for $0.12.

• Q3 fuel surcharge revenue increased $65.8M YoY, contributing to the $179.0M increase in total revenue; fuel expense rose 103.3% to $130.3M.

Outlook and guidance

• FY2026 TTS average truck-count growth guidance narrowed to 16%–17% from 16%–18%; average trucks were up 15.8% YTD, and the fleet grew in October.

• FY2026 Dedicated revenue per truck per week growth guidance is 4%–5%, versus prior guidance of 3%–5%; YTD growth was 4.0%.

• Q4 One-Way revenue per total mile is expected to rise 10%–13% YoY; FY2026 equipment-sale gains guidance increased to $14M–$16M.

• FY2026 net CapEx guidance fell to $190M–$205M from $215M–$250M due to OEM delivery timing; GAAP tax-rate guidance is 24.5%–25.5%.

• Q4 adjusted EPS is expected to improve modestly from $0.16 as most Q3 fuel and reserve headwinds dissipate; driver investment continues at a measured pace. Net interest expense guidance is $40M–$45M.