Werner Enterprises, Inc., a premier transportation and logistics provider, reported second quarter 2026 results for the period ended June 30, 2026. Total revenues reached $933.9 million, an increase of $180.8 million, or 24%, compared to the prior year quarter. Non-GAAP adjusted diluted earnings per share of $0.22 rose 178.0% year-over-year, while GAAP diluted earnings per share of $0.11 declined 85% due to the non-recurrence of favorable liability reversals recorded in the prior year period. Chairman and CEO Derek Leathers attributed the strong performance to strategic restructuring efforts, the FirstFleet acquisition, and a capacity-tightening market environment.

"Werner's strong second-quarter results reflect the strategic efforts implemented over the last few quarters and our decisive actions to adapt to a capacity tightening market," said Leathers. "Our organic Dedicated business is growing, and the FirstFleet acquisition is driving margin improvement ahead of schedule. The strategic restructuring in One-Way Truckload has delivered the strongest revenue per truck growth in a decade."

Key Consolidated Financial Metrics

The following table summarizes Werner's consolidated financial performance for the three and six months ended June 30:

The decline in GAAP operating income and net income was primarily due to the non-recurrence of favorable liability reversals of $53.6 million recorded in the prior year related to the dismissal of litigation arising from a December 2014 accident and the settlement of the Baylor Trucking, Inc. contingent consideration arrangement. On an adjusted basis, operating income improved significantly, reflecting the benefits of the FirstFleet acquisition, lower insurance and claims costs, and profitability improvement in One-Way Truckload.

Truckload Transportation Services (TTS) Segment

The TTS segment was a key driver of growth, with revenues of $702.6 million increasing $184.9 million, or 36%, year-over-year. Trucking revenues net of fuel surcharge increased $121.3 million, or 27%. Non-GAAP adjusted operating income for TTS reached $32.3 million, an increase of $19.5 million, or 153%, driven by the FirstFleet acquisition, lower insurance and claims expense, and profitability improvement in One-Way Truckload.

Werner acquired FirstFleet on January 27, 2026. As a result, Dedicated experienced a net increase in average trucks in service of 2,121 trucks, or 43.7% year-over-year. Dedicated quarter-end fleet size was up 42.3% year-over-year, with Dedicated unit trucks at quarter end totaling 6,960, or 80% of the total TTS segment fleet. One-Way Truckload average revenues per truck per week increased 27.7% from restructuring efforts, higher spot rates, and contractual rate increases. One-Way revenues per total mile, net of fuel surcharge, increased 10.4% year-over-year.

Werner Logistics Segment

Werner Logistics revenues of $211.7 million decreased $9.4 million, or 4%, year-over-year. The segment reported an operating loss of $3.9 million compared to operating income of $4.3 million in the prior year. Non-GAAP adjusted operating loss was $2.7 million compared to adjusted operating income of $5.9 million in the prior year.

Within Werner Logistics, Truckload Logistics revenues (72% of Werner Logistics revenues) decreased $17.8 million, or 10%, driven by a decrease in shipments of 29%, partially offset by a 26% increase in revenue per shipment. Intermodal revenues (16% of Werner Logistics revenues) increased $5.4 million, or 18%, and Final Mile revenues (12% of Werner Logistics revenues) increased $3.0 million, or 14%.

Cash Flow, Capital Allocation, and Balance Sheet

Cash flow from operations in the second quarter was $84.7 million compared to $46.0 million in the prior year quarter, an increase of 84%. Net capital proceeds in the second quarter were $9.7 million compared to net capital expenditures of $65.6 million in the prior year quarter. Gains on sales of property and equipment were $1.5 million, or $0.02 per share, compared to $5.9 million, or $0.07 per share, in the prior year quarter. The company did not repurchase shares during the quarter, with 5.0 million shares remaining under its share repurchase authorization as of June 30, 2026.

As of June 30, 2026, Werner had $57.0 million of cash and cash equivalents and $1.4 billion of stockholders' equity. Total debt outstanding, including finance lease liabilities of $48.3 million, was $841.3 million. Available liquidity, consisting of cash and available borrowing capacity, was $657.0 million. Subsequent to quarter end, on July 7, 2026, Werner entered into a fourth amendment to its Loan Security Agreement, increasing the maximum funding available for eligible receivables from $350.0 million to $375.0 million, which may increase to $400.0 million upon request and acceptance by the lenders.

Updated 2026 Guidance

Werner updated its 2026 guidance assumptions as summarized below:

Werner is raising its full-year 2026 net capital expenditures guidance to reduce the average age of its tractor fleet. The average ages of the truck and trailer fleets were 3.0 years and 6.3 years, respectively, as of June 30, 2026.

Stifel analyst J. Bruce Chan maintained a Hold rating on Werner Enterprises (NASDAQ: WERN) and raised the price target to $40 from $36. This adjustment follows recent updates from other major firms, including Morgan Stanley and Citigroup, who also revised their outlooks on the stock. The consensus among analysts reflects a mixed but generally optimistic view on the company's future performance potential.

Rating and Price Target Changes

The adjustments from these firms signal varying levels of confidence in the company's trajectory. Stifel's increase to $40 is a modest rise from the previous $36, while Morgan Stanley's target of $55 represents a significant jump from the prior $47. Citigroup's target of $47 is an increase from the earlier $37.