Werner Enterprises (WERN) Q4 2025 earnings summary

Executive summary

• Revenues for Q4 2025 were $738 million, down 2% year-over-year; full-year 2025 revenues were $2.97 billion, also down 2%.

• Adjusted operating income for Q4 was $11.3 million (1.5% margin), down 8% year-over-year; adjusted EPS was $0.05, down 29%.

• Strategic restructuring of One-Way Truckload focused on specialized, expedited, and cross-border Mexico business, with a $44.2 million Q4 charge.

• Acquired FirstFleet for $282.8 million, expanding the dedicated fleet, network, and customer diversification; expected to be EPS accretive before synergies.

• Dedicated business now represents over half of pro forma revenue, with strong growth momentum and a robust pipeline.

Financial highlights

• Q4 2025 revenues were $738 million, down 2% year-over-year; full-year revenues also declined 2%.

• Adjusted operating income for Q4 was $11.3 million (1.5% margin); adjusted EPS was $0.05.

• TTS Q4 revenue was $513 million, down 3%; adjusted operating income was $12.7 million, down 13%.

• Logistics segment Q4 revenue was $208 million, down 3% year-over-year; Intermodal up 24%, Final Mile up 4%.

• Free cash flow for 2025 was $19 million, or 0.6% of revenues, down from 3.1% the prior year.

Outlook and guidance

• 2026 guidance includes FirstFleet: average truck fleet up 23%-28% for the year.

• Net CapEx guidance for 2026 is $185-$225 million, with upper range allowing for pre-buy ahead of 2027 EPA changes.

• Dedicated revenue per truck per week guidance: down 1% to up 2%; One-Way revenue per total mile (H1) flat to up 3%.

• Effective tax rate guidance for 2026: 25.5%-26.5%.

• Annual net interest expense projected at $40M–$45M; equipment gains expected at $8M–$18M.