Werner Q2 revenue rises on TTS growth, FirstFleet acquisition

Overview

• U.S. trucking and logistics firm's Q2 revenue rose 24%, slightly beating analyst expectations

• Adjusted EPS for Q2 missed analyst expectations

• Adjusted net income for Q2 beat analyst expectations

Outlook

• Werner raises 2026 net capital expenditures guidance to $215 mln-$250 mln

• Company expects TTS average truck count growth of 16%-18% for 2026

• Werner sees Dedicated RPTPW growth of 3%-5% and One-Way Truckload RPTM growth of 10%-13%

Result Drivers

• TRUCKLOAD TRANSPORTATION SERVICES - Revenue growth was driven by a 36% increase in TTS revenues, with the FirstFleet acquisition and organic Dedicated business growth as key contributors

• ONE-WAY TRUCKLOAD RESTRUCTURING - Restructuring in One-Way Truckload led to the strongest revenue per truck growth in a decade, with higher spot rates and contractual rate increases

• ABSENCE OF PRIOR-YEAR GAINS - Operating income declined mainly due to the non-recurrence of favorable liability reversals and settlement gains recorded in the prior year

Company press release: ID:nBw1PwNb4a

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 11 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the ground freight logistics peer group is "buy."

• Wall Street's median 12-month price target for Werner Enterprises Inc is $43.00, about 6.4% above its July 27 closing price of $40.43

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 29 three months ago

Reuters Recommended Reads

• July 27 - Canada's TFI International Q2 adjusted profit beats estimates on growth in all businesses

• July 28 - UPS hikes full-year forecasts after Amazon delivery reductions, shares drop on investor skepticism

• July 28 - PACCAR beats quarterly estimates on strong truck orders

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)