Earlier today, we issued our earnings release with our first quarter results. Please see the disclosure statement on slide two of the presentation, as well as the disclaimers in our earnings release related to forward-looking statements. A reconciliation to the most directly comparable GAAP measures is included in the tables attached to the earnings release and in the appendix of the slide presentation. Throughout this extended freight downturn, we have taken measured steps to position Werner for profitable long-term growth through our operational excellence and our commitment to safety and service.
More specifically, in January, we expanded our dedicated offering through the acquisition of FirstFleet, adding scale, density, and exposure to more resilient customer verticals, including grocery and food and beverage. As the supply and demand dynamic tightens, we are seeing rate lift and early positive momentum in the bid season. Taken together, these actions, including our FirstFleet acquisition, One-Way restructuring, and yield improvements, have strengthened our business and provides a line of sight to earnings growth this year. We remain confident in capturing the full $18 million in cost synergies mid-next year, which we expect will improve FirstFleet's operating margin by approximately 300 basis points.
We are already seeing revenue synergies, including accelerated fleet startups, project opportunities, and increased backhaul. Top-line metrics show positive inflection, with strong improvement in dedicated revenue per truck per week and One-Way trucking revenues per total mile. Strong execution of these initiatives led to One-Way revenue per truck per week increasing 9.6%, reflecting the combined effect of our restructuring and pricing actions. One-Way Truckload revenue per total mile benefited from a smaller, more targeted fleet, intentionality to replace less profitable freight, stronger spot rates, and contractual rate increases secured through bid season.
| Metric | Period | Current guidance |
|---|---|---|
| Average truck fleet growth (full year, incl. FirstFleet) | FY2026 | +23% to +28% (reaffirmed) |
| Dedicated revenue per truck per week growth (full year) | FY2026 | flat to +3% (raised) |
| One-Way Truckload revenue per total mile growth | Q2 2026 | +1% to +4% (new) |
| Net CapEx (full year) | FY2026 | $185M to $225M (unchanged) |
| Effective tax rate (full year, before discrete items) | FY2026 | 25.5% to 26.5% (maintained) |
| Net interest expense (full year) | FY2026 | $40M to $45M (unchanged) |
| Gains on sale of used equipment (full year) | FY2026 | $8M to $18M (unchanged) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +14% to $809M | FirstFleet acquisition, dedicated growth, and improving market |
| TTS total revenue | +18% to $594M | FirstFleet addition and One-Way pricing/production gains |
| TTS adjusted operating margin net of fuel | +250 bps to 2.9% | lower insurance/claims, FirstFleet accretion, One-Way improvement, higher used-equipment gains |
| Dedicated revenue per truck per week | +0.8% (near +3% pro forma) | pricing momentum, partially diluted by FirstFleet mix |
| One-Way revenue per truck per week | +9.6% | restructuring, higher rates, and better production |
| Logistics revenue | flat | intermodal/final-mile growth offset by lower truckload brokerage volumes and margin pressure |
| Operating cash flow | +over 200% to $89M | improved results and a low-CapEx quarter |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Supply-driven capacity attrition | — | Capacity exits accelerating from regulatory enforcement, carrier bankruptcies, and higher fuel; long-haul employment below pre-COVID levels | Intensifying |
| FirstFleet integration and synergies | — | Ahead of schedule; $18M total cost synergies confirmed for mid-next year, ~300 bps margin uplift expected | Improving |
| One-Way restructuring | ongoing over prior two quarters | Actions complete late in Q1; profitability improved, full-quarter benefit expected in Q2 | Improving |
| Dedicated mix and pricing | stable through downturn | 78% of TTS trucks; renewals up with price relief, retention climbed to 95% | Strengthening |
| Technology, AI, and cost discipline | — | Unified EDGE TMS platform enabling AI-driven load planning; ~$150M cost taken out over three years | Advancing |
| Logistics/brokerage margin | — | Pressured by spot-driven PT costs; improving monthly as sell-side rates reset | Recovering |