Werner Enterprises (WERN) 16th Annual Wells Fargo Industrials & Materials Conference summary

Market environment and supply dynamics

• Multiple regulatory enforcement actions, including B-1 visa violations and CDL issues, are significantly reducing trucking capacity, creating a material impact on the market and driving up tender rejection rates and spot rates to multi-year highs.

• The reduction in non-domiciled drivers is ongoing, with tens of thousands already removed and more expected as states enforce federal guidelines.

• The combination of enforcement, retirements, and CDL school scrutiny is creating a constrained driver pool, intensifying supply-side pressures.

Pricing, bid season, and customer dynamics

• Rate increases in the One-Way segment have accelerated through the bid season, moving beyond initial mid-single-digit expectations as market conditions tightened.

• Mini-bids and rebids are increasing due to routing guide disruptions, with shippers seeking more reliable capacity.

• Dedicated segment contractual renewals are solid, with revenue per truck guidance up flat to 3% for the year, and retention rates remain high.

Operational changes and margin recovery

• The FirstFleet acquisition is integrating ahead of schedule, with $6 million in synergies targeted for 2026 already actioned and potential to exceed this in the current year.

• Truckload Transportation Services fleet is guided to grow 23%-28% year-over-year, with growth weighted toward Dedicated in the second half.

• Restructuring in the One-Way business has improved profitability, with a 10% increase in revenue per truck per week in Q1, driven by higher production and utility.

• Margin recovery is expected from both self-help actions (including technology investments and operational improvements) and favorable market dynamics.