Werner Q3 revenue jumps 23% to $950.5M as FirstFleet lifts dedicated fleet
Adjusted operating income nearly doubled to $21.0 million, but fuel costs and claims squeezed margins. One-way revenue per truck per week rose 34.3%.
Werner Enterprises grew third-quarter revenue 23% to $950.5 million, helped by its January purchase of FirstFleet, the Omaha carrier reported on October 27.
CEO Derek Leathers said rapidly rising fuel costs and elevated claims hit near-term margins. He said Werner chose to speed up spending on driver recruiting and onboarding to meet rising customer demand "as industry capacity tightens."
The quarter at a glance
| Q3 2026 vs Q3 2025 | 2026 | 2025 | |---|---|---| | Total revenue | $950.5M | $771.5M | | Operating income (loss) | $17.0M | ($13.0M) | | Adjusted operating income | $21.0M | $10.9M | | Operating margin | 1.8% | (1.7%) | | Diluted EPS | $0.11 | ($0.34) | | Adjusted diluted EPS | $0.16 | ($0.03) |
Part of the GAAP swing comes from a $21.4 million litigation charge in last year's third quarter that did not repeat.
Truckload: bigger dedicated fleet, leaner one-way
Truckload Transportation Services (TTS) revenue rose 37% to $714.0 million. Fuel surcharge revenue more than doubled, to $125.2 million from $59.5 million.
- Fleet: average TTS trucks in service rose 15.5% to 8,668, driven by FirstFleet.
- Dedicated: 7,090 trucks at quarter end, or 81% of the TTS fleet, up from 4,965 a year ago. Revenue per truck per week, net of fuel, rose 5.6%.
- One-Way Truckload: the fleet shrank to 1,650 trucks from 2,480 after this year's restructuring. Revenue per truck per week rose 34.3%, miles per truck rose 22.4% and revenue per total mile rose 9.7%.
Logistics still soft
Werner Logistics revenue fell 7% to $215.8 million, with an operating loss of $0.4 million. Truckload brokerage shipments fell 40% while revenue per shipment rose 44%. Intermodal revenue rose 7% and Final Mile rose 18%.
Costs and outlook
Fuel expense more than doubled to $130.3 million from $64.1 million. Werner's average truck age was 2.8 years, and it expects to accelerate tractor purchases in the fourth quarter.
The company now guides to 16% to 17% average TTS truck growth for 2026 and net capital spending of $190 million to $205 million, down from $215 million to $250 million. It expects one-way revenue per total mile, net of fuel, to rise 10% to 13% in the fourth quarter.