Leathers noted that disciplined pricing led to a smaller fleet and lower truckload logistics volume. (Werner Enterprises)
February 6, 2026 3:41 PM, EST
Key Takeaways:
- Werner posted a fourth‑quarter loss as it restructured its one‑way operations to focus on more profitable, specialized freight.
- Dedicated, intermodal and final‑mile operations showed growth, while truckload brokerage faced higher transportation costs.
- Executives expect restructuring efforts to improve earnings and utilization beginning in the second quarter of 2026.
Werner Enterprises responded to a difficult fourth quarter by prioritizing more profitable operations over its one-way business, the company reported Feb. 5.
The Omaha, Neb.-based freight carrier and logistics company posted a net loss attributable to itself of $27.8 million, or negative 46 cents a diluted share, for the three months ending Dec. 31. That compared with net income of $11.9 million, 19 cents a share, during the same time the previous year. Total revenue decreased 2% to $737.6 million from $754.7 million.
“We see signs of encouragement for the industry and Werner as we move into 2026,” Werner CEO Derek Leathers said during a call with investors. “During this prolonged and unprecedented multiyear downturn, we have focused on executing our strategy to position our business for revenue and earnings growth as demand returns.”
Werner has worked to cut costs, increase efficiency and invest in technology to enhance visibility, streamline operations and improve customer service. This has involved strategically restructuring one-way operations to be more targeted toward specialized, expedited, cross-border and engineered business within Truckload Transportation Services.
“Once fully completed, we expect meaningful earnings improvement in TTS in 2026,” Leathers said. “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 in dedicated, with large, complex shippers across diverse markets.”
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Leathers also noted that disciplined pricing led to a smaller fleet and lower truckload logistics volume. But higher one-way miles per truck partially offset those factors, contributing to the decline in overall revenue. He also pointed out that peak volume in December was flat compared with the prior year in a way that was consistent with expectations.
“As we enter a new year, momentum in dedicated remains positive, with a strong pipeline of opportunities and early realization of some rate increases, customers remain focused on reliable and flexible transportation partners like Werner, who offer creative solutions, and high service at scale,” Leathers said. “The strength of our dedicated business, combined with FirstFleet, creates a more scalable platform to drive sustainable, profitable growth.”
Werner launched the strategic restructuring of its one-way truckload business in Q4. The decision is aimed at significantly enhancing long-term profitability and fleet utilization by maximizing production and mitigating unprofitable freight. The plan involves exiting selective unprofitable regional and shorthaul truckload freight, further integrating one-way acquisition operations and shifting the one-way fleet composition toward more specialized, expedited and team capacity.
“One-way continues to be pressured across the industry,” Leathers said. “We remain committed to specialized services in one-way, such as expedited, cross-border Mexico and engineered business. We’ve taken actions to restructure our one-way operations and offering that will result in profitability enhancements, which we expect to be noticeable in the second quarter. Our vision for one-way is a smaller, more productive and specialized fleet, complemented by asset-light PowerLink carriers. One-way trucking is an integral part of our portfolio.”
For the full year, Werner reported net loss attributable to itself of $14.4 million, or negative 24 cents a share, on revenue of $2.97 billion, compared with net income of $34.2 million, or 55 cents a share, on revenue of $3.03 billion in 2024.
“These restructuring actions are designed to increase miles per truck and shift toward more profitable, specialized freight and lanes,” Leathers said. “Combined with our large trailer pool and PowerLink carriers, we believe this positions us to capitalize on improving market conditions and drive greater margin improvement.”
Transport Topics reporters Eugene Mulero and Keiron Greenhalgh examine the critical trends that will define freight transportation in the year ahead. Tune in above or by going to RoadSigns.ttnews.com.
The TTS segment reported that revenue decreased 3% to $512.6 million from $527.3 million the prior year. The segment reported an operating loss of $32.9 million, compared with an operating income of $11.7 million. Dedicated experienced a net increase in average trucks in service of 2.4% year over year. But dedicated average revenues per truck per week decreased 1.1%, while one-way revenues per total mile slipped 0.1%.
“In logistics, intermodal and final mile, revenues and profits increased year over year,” Leathers said. “Both of these divisions exited 2025 in growth mode, and we anticipate momentum continuing in 2026. Truckload brokerage results were challenged in the quarter as purchase transportation costs increased, escalating rapidly in December, and resulting in lower logistics operating income in the fourth quarter.”
The logistics segment reported that revenue decreased 3% to $207.5 million from $213.2 million the prior year. The segment reported an operating loss of $191,000, compared with operating income of $1.24 million. Truckload logistics revenue, which represents 72% of the segment, decreased 8% due to a decrease in shipments. Intermodal revenue increased 24% to $6.5 million, while final-mile revenue increased 4% from the prior year.
Werner ranks No. 18 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 32 on the TT Top 100 list of the largest logistics companies.
