Oct 27, 2026 earnings call — Fleet expansion and margin recovery focus
Werner reported third quarter revenue of $951 million and adjusted EPS of $0.16, driven by Dedicated growth and One-Way yield improvements.
Revenue $1.0B (est $1.0B) · EPS $0.16 (est $0.16)
Key quotes
"Excluding fuel surcharges, total Dedicated revenues increased 52% year-over-year, while revenue per truck per week grew nearly 6%."
"In the third quarter, revenue per truck per week surged by 34% year-over-year, driven by ongoing improvements in miles per truck and revenue per total mile."
"Given the opportunities we see ahead, we made a deliberate decision to accelerate investments in driver hiring and retention."
Analyst Q&A 8
Margins and timing to double-digit
Q (Scott Group · Wolfe): Analyst asked how margins will move from Q3 to Q4 and whether trucking can reach double-digit margins in 2027 or if that will take longer.
A: Management said most Q3 headwinds are temporary but some will continue into Q4. They explained Q3 driver costs were front-loaded investments to hire and onboard drivers, and some of that spending will remain elevated into Q4 at a measured pace.
"We believe that most of the Q3 headwinds are temporary, although some will continue into Q4." — Derek Leathers (CEO·CHAIR)
Pricing and recouping driver costs
Q (Christian Wetherbee · Wells Fargo): Analyst asked how pricing, especially in Dedicated, will help recover the upfront driver recruitment costs and how quickly that can happen.
A: Management said driver pay increases in Dedicated are funded through customer relationships and discussed jointly with customers. They noted the Q3 recruitment was broad-based to shift the driver narrative and that advertising and bonuses will continue into Q4 and likely Q1.
"As it relates to driver pay and driver increased costs in Dedicated, those are funded through our customer relationships." — Derek Leathers (CEO·CHAIR)
One-Way pricing for next year
Q (Jordan Alliger · Goldman Sachs): Analyst wanted thoughts on One-Way contract pricing in year two of the cycle and how contracts might look in 2027.
A: Management expects another season of increasing One-Way rates and said about 60% of One-Way business will be repriced in the first half of next year. Early opportunities in the 2027 bid season will likely need to be up in the double-digit range on average.
"I think we expect those early opportunities would probably need to be up double digits on average." — Christopher Wikoff (CFO)
Fuel surcharge lag and impact
Q (Ravi Shanker · Morgan Stanley): Analyst asked about the fuel surcharge lag and why fuel was a bigger issue this quarter.
A: Management confirmed the fuel surcharge lag is about 1 week and said the real issue was consistent week-over-week fuel increases during the quarter. They also said they had to revamp some fuel reimbursement programs where national DOE did not match where miles were run, and they are reimagining surcharges with customers.
"Our fuel surcharges are such that in some isolated cases, we also had to go back and revamp them relative to the difference between national DOE and where maybe the predominance of the miles were ran." — Derek Leathers (CEO·CHAIR)
Mexico cross-border and engineered lanes
Q (Brian Ossenbeck · JPMorgan): Analyst asked for an update on Mexico cross-border business and expedited/engineered teams, and how staffing has held up.
A: Management said they are bullish on Mexico cross-border as investment and plant activity there drive demand, though Q3 inspections caused some disruptions. They also said engineered lanes and expedited business improve miles productivity and are harder for competitors to poach, which they like for long-term quality.
"That freight also, I like a lot because it is much more difficult to poach and transition into intermodal or other activities because it is kind of fast transit, high service expectation." — Derek Leathers (CEO·CHAIR)
Breakdown of driver costs and path to double-digits
Q (Richa Talwar · Deutsche Bank): Analyst asked how much of driver recruitment costs are startup versus supporting existing contracts and whether self-help actions can drive double-digit margins in 2027.
A: Management said some costs were urgent for Q3 implementations and taking over private fleets, and that new drivers take 8 to 10 weeks before productive. They also outlined multiple levers to reach double-digit margins: rate increases, higher-margin volume from fleet growth, gains on equipment sales, and cost discipline and technology benefits.
"There's also the gains. While that's somewhat of a market-driven factor, there's things that we can be doing to influence that and that we are doing by reinvesting in the fleet, making sure that we have low age, low mile used equipment, quality used equipment to sell at a time when the demand and the resale value is going to be ticking up." — Christopher Wikoff (CFO)
One-Way vs Dedicated margin potential
Q (Ken Hoexter · BofA): Analyst asked how One-Way margins compare to Dedicated now, whether they have aligned, and if the mix limits margin potential.
A: Management said One-Way had been in a difficult spot but improved substantially (about 800 basis points) and can continue to improve quickly from a smaller base. They emphasized the restructuring removed fixed costs and positioned the One-Way network in the right markets, while Dedicated can take rate and the pipeline is strong.
"It does not reflect a change whatsoever in our approach to freshening our fleet." — Derek Leathers (CEO·CHAIR)
Regulatory enforcement and driver competition
Q (Thomas Wadewitz · UBS): Analyst asked about how far regulatory initiatives have progressed and whether competition for drivers among large carriers will keep pushing pay up.
A: Management said regulatory enforcement is not finished and compared it to being early in the process, with continued actions on schools, CDLs and B1 visa issues. They also said competition for high-quality drivers will be fierce, but Werner's driving schools, retention improvements, and pay packages position them well to attract and keep drivers.
"The B1 Visa cabotage issue is gaining steam and only really just getting started, and we're seeing impacts of that across the southern border." — Derek Leathers (CEO·CHAIR)