Earlier today, we issued our earnings release with our fourth quarter and full year 2025 results. Please see the disclosure statement on slide two of the presentation, as well as the disclaimers in our earnings release related to forward-looking statements. A reconciliation to the most directly comparable GAAP measures is included in the tables attached to the earnings release and in the appendix of the slide presentation. During this prolonged and unprecedented multi-year downturn, we have focused on executing our strategy to position our business for revenue and earnings growth as demand returns.
Once fully completed, we expect meaningful earnings improvement in TTS in 2026. Most recently, we used our strong balance sheet to deploy capital to acquire FirstFleet, a large, high-quality, Dedicated carrier. This acquisition is immediately accretive and dovetails with our strategy to lean further into profitable, sustainable growth and Dedicated with large, complex shippers across diverse markets. With ongoing capacity attrition and the early signs of demand improvement, the outlook for Werner in 2026 is more positive than it's been for several years.
As we enter a new year, momentum in Dedicated remains positive, with a strong pipeline of opportunities and early realization of some rate increases. The strength of our Dedicated business, combined with FirstFleet, creates a more scalable platform to drive sustainable, profitable growth for Werner's future. Lastly, One-Way provides flexibility and surge capacity for our Dedicated customers, and it allows us to support a wide range of customers during times of increased demand. These restructuring actions are designed to increase miles per truck and shift towards more profitable, specialized freight and lanes.
| Metric | Period | Current guidance |
|---|---|---|
| One-Way contract rate per mile (first half) | 1H2026 | Flat to up 3% (New; mix shift to longer haul masks mid-single-digit like-for-like renewals) |
| FirstFleet cost synergies | FY2026+ | $18M targeted (~1/3 realized in 2026, 2/3 run-rate by year-end; ~300 bps margin improvement when fully realized) (New) |
| Average Dedicated fleet growth | FY2026 | +23% to +28% (including FirstFleet) (New) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | -2% | Smaller fleet and lower truckload Logistics volumes from disciplined pricing, partly offset by higher One-Way miles per truck |
| Adjusted operating income | — | $11.3M; 1.5% adjusted operating margin |
| TTS revenue (ex-fuel) | -3% | Lower miles per truck partly offset by higher revenue per total mile |
| Dedicated revenue (ex-fuel) | +1% | Average Dedicated trucks up 2.4%; now 65% of TTS trucking revenue |
| One-Way trucking revenue (ex-fuel) | -8% | Average trucks down 10% from restructuring; partly offset by 2.2% higher revenue per truck per week |
| Logistics revenue | -3% | Focus on yield management; truckload Logistics down 8% on lower volumes and margin contraction |
| Intermodal revenue | +24% | Almost entirely higher volume |
| Final Mile revenue | +4% | Strongest momentum since inception |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| One-Way restructuring | — | Began Q4, largely complete by end of Q1; smaller, more specialized fleet (expedited, Mexico cross-border, engineered) targeting positive reinvestable margins, inflection in Q2 | In progress |
| FirstFleet acquisition | — | Grows Dedicated 50%; combined Dedicated >half of $3.6B pro forma revenue; margins to converge with Werner Dedicated in 18-24 months | New / integrating |
| Supply-led freight recovery | Derek has been a consistent supply-side bull | Enforcement (driver training, ELD, scale) ticking up; rejection rates crested ~14%, COVID-like territory, even excluding storm effects | Strengthening |
| Dedicated vs One-Way mix | Dedicated 63% of TTS a year ago | 65% of TTS trucking revenue (over 70% with FirstFleet); Dedicated outperforms One-Way ~8 of 10 years | Shifting to dedicated |
| Technology / EDGE TMS and AI | — | 95% One-Way and 85% Dedicated trips on EDGE; AI used in onboarding, visibility, predictive maintenance, speed to bill | Advancing |