Earlier today, we issued our earnings release with our second 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. In the second quarter, we delivered 24% revenue growth and 80 basis points of adjusted operating margin expansion.
That plays directly into Werner's strengths, given our strong track record and reputation, and validates our strategic direction. Our ability to anticipate these supply shifts, execute our restructuring plan, and add FirstFleet to our Dedicated business gives us clear line of sight to sustained earnings growth and validates our strategic direction. Revenue per truck per week growth is the strongest we've delivered in the last decade, driven by exceptional productivity improvement, coupled with a double-digit increase in revenue per total mile. As a result, adjusted One-Way truckload OI margins improved over 700 basis points year-over-year.
Revenue per truck per week reached the strongest year-over-year improvement since the third quarter of 2022. Lastly, while the spike in spot rates during the second quarter put further margin pressure on our logistics business, we remain proactively engaged with customers and are focused on resetting to higher contract rates. Before Chris discusses our financial results in more detail, let's move to slide seven to summarize our current market outlook for the remainder of the year. With a predominantly supply-side driven turn to this point, any demand improvement would lead to even greater market momentum.
| Metric | Period | Current guidance |
|---|---|---|
| Dedicated revenue per truck per week growth | FY2026 | +3% to +5% |
| One-Way revenue per total mile | Q3 2026 | +10% to +13% year-over-year (Q2 was +10.4%) |
| Average TTS fleet growth | FY2026 | +16% to +18% (modest sequential growth ahead) |
| FirstFleet synergies | over 18 months | on track to $18M (~$7M realized in 2026, ~half actioned; ~300 bps FirstFleet margin uplift) |
| Full-year net CapEx / free cash flow | FY2026 | higher CapEx (~upper single digits % of revenue) but still free-cash-flow positive; fleet age toward mid-2 years by year-end |
| Consolidated adjusted operating income growth | 2H 2026 | accelerated pace, margin moving toward mid-single digits (similar ~150 bps sequential lift) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | $934M (+24%) | Addition of FirstFleet plus One-Way rate/productivity gains, partly offset by lower One-Way and logistics revenue. |
| Adjusted operating income / margin | $27.6M (+67%); margin 3% (+80 bps) | FirstFleet accretion, One-Way profitability improvement and lower insurance/claims. |
| Adjusted EPS | $0.22 (+$0.14) | Margin expansion, offset by a $0.05 drag from lower equipment gains. |
| TTS revenue | $703M (+36%); net of fuel +26% to $582M | FirstFleet addition and One-Way rate/productivity gains. |
| TTS adjusted operating margin (net of fuel) | 5.5% (+270 bps; +370 bps ex-gains) | FirstFleet accretion, One-Way improvement and lower insurance/claims. |
| Dedicated trucking revenue net of fuel | $434M (+51%); 76% of TTS trucking | FirstFleet added 2,110 trucks (Dedicated average trucks +44% YoY); legacy Dedicated RPTPW +8%. |
| One-Way trucking revenue net of fuel | $138M (-16%) | 34% smaller fleet post-restructuring, offset by strong rate and productivity gains (+700 bps margin). |
| Logistics revenue / margin | $212M (-4% YoY, +8% QoQ); margin -1.3% (-400 bps) | Spot-rate spike and higher purchased transportation pressured truckload brokerage; intermodal +18% and final mile +14% grew. |
| Operating / free cash flow | OCF $85M (+84%); FCF $94M (10% of revenue) | Strong earnings and net CapEx proceeds; net leverage ~2x pro forma. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Structural capacity attrition / supply-driven recovery | Attrition predicted | Playing out via regulatory enforcement (English-language proficiency, non-domiciled CDLs, cabotage), ~1/3 of ELD providers exiting, 27,000+ drivers placed out of service, 550 fraudulent CDL schools shut; management sees this as the ~third inning with more capacity leaving into early 2027, supporting ongoing rate lift. | — |
| One-Way restructuring | Restructuring underway | Concluded (no further restructuring expense expected); fleet cut 34% and reseated into cross-border Mexico, team-expedited and engineered lanes, driving a 700+ bps margin gain, ~28% RPTPW growth and 18% longer length of haul; ~60% of the portfolio repriced with more benefit to come. | — |
| FirstFleet acquisition / Dedicated growth | Recently acquired | Six months in, integration ahead of schedule and accretive (top EPS contributor); Dedicated now 80% of TTS trucks (up from ~64% a year ago) with the highest bid volume since 2020, 95%+ retention and rate increases on renewals; synergies on track to $18M. | — |
| Logistics margin recovery | Spot-rate pressure | Q2 brokerage margins pressured (April/May worst), but June improved and July truckload-brokerage gross margin per load returned to ~year-ago levels (+300-400 bps vs Q2), pointing to ~150-200 bps segment margin lift; intermodal and final mile growing double digits; outsized temperature-controlled exposure a Q2 headwind. | — |
| Nuclear verdicts / asset-backed advantage | Litigation risk rising | The C.H. Robinson Montgomery verdict is pushing shippers to consolidate around larger asset-backed brokers with strong vetting, converting conversations 'from price to quality'; Werner leaned into carrier qualification and trilateral vetting; management worries the environment pressures small carriers/brokers and insurance costs, acting as another lid on capacity. | — |
| Driver market | Tightening | Competition for quality drivers intensifying; Werner leverages its vertically integrated Roadmaster schools, experienced-hire efforts, and premium Dedicated jobs (many paying six figures) with targeted, customer-negotiated pay increases; hiring pace improving in Q3. | — |
| Technology / AI | EDGE TMS build-out | 100% of legacy freight now on the single EDGE TMS platform; AI/automation delivering results in breakdown support, carrier payments and appointment scheduling with more benefits expected into 2027 (late innings on build, early innings on benefit realization). | — |
| Fleet / CapEx / capital allocation | Lower CapEx | Raised CapEx (still ~upper single digits % of revenue, FCF-positive) to lower fleet age toward mid-2 years, mostly replacement with fringe pre-buy ahead of new 2027 engines; exploring owner-operator/fleet-owner growth as an asset-light lever; net leverage ~2x pro forma. | — |