Werner Enterprises (WERN) AI Stock Analysis

• Market Cap: $2.10B
• Dividend Yield: 1.84%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -3.42%
• EPS Growth: -43.86%
• Country: US
• Employees: 13,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Trucking
• EPS (TTM): 0.05
• Shares Outstanding: 59,869,404
• 10 Day Avg. Volume: 1,574,393
• 30 Day Avg. Volume: 1,085,293
• PEG Ratio: 0.88
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -26.54
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 11.29
• Enterprise Value/Ebitda: 9.17
• 1Y Price Target: $34.92
• Price Target Upside: -0.48% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 0.79
• Revenue Forecast (FY): $3.51B

• Rating: 49 Neutral
• Price Target: $34.00 ▼(-3.11% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held down primarily by weakening financial performance—margin compression, a 2025 net loss, and consistently negative free cash flow—despite a still-manageable balance sheet. The earnings call adds support via the accretive First Fleet acquisition, identified synergies, and 2026 improvement expectations, but near-term profitability and logistics margin pressure remain key risks. Technically, the longer-term trend is somewhat supportive, while valuation is constrained by negative earnings.

Positive Factors

Scale lift from First Fleet acquisition

Acquiring First Fleet materially increases Werner's scale and fleet density, deepening dedicated capabilities. The revenue and tractor additions diversify customer exposure and should improve utilization and fixed-cost absorption, supporting durable earnings power as synergies are realized.

Higher mix and growth of Dedicated business

A larger, growing Dedicated segment shifts Werner toward stable, recurring service contracts with higher revenue predictability and customer stickiness. This mix reduces exposure to volatile spot markets and supports steadier margins and long-term cash flow resilience versus pure one-way truckload.

Structural cost savings and tech migration

Progress on Edge TMS and multi-year cost reductions indicate durable operating leverage through technology and process improvements. Structural savings lower unit costs, improve route/asset efficiency, and can sustain margins over time as systems scale across the enlarged fleet.

Negative Factors

Severe margin compression and recent net loss

Margins have fallen sharply from prior peaks, reflecting weaker pricing power and rising input or purchased-transportation costs. Persistently compressed margins constrain free cash flow and make earnings recovery harder even with scale, increasing execution risk over the coming quarters.

Weak free cash flow and declining cash conversion

Negative and declining FCF signals that operating profits and current cash generation do not cover capital needs, limiting ability to delever, invest, or return cash. This persistent cash conversion weakness raises refinancing and allocation tradeoff risks over the medium term.

Rising leverage and higher borrowings

Increased debt and higher revolver/securitization usage reduce financial flexibility and increase interest exposure, especially if margins and cash flow remain pressured. Elevated leverage constrains capital allocation and raises refinancing and covenant risk during a multi-quarter recovery period.

Werner Enterprises Business Overview & Revenue Model

Company Description

Werner Enterprises, Inc., a transportation and logistics company, engages in transporting truckload shipments of general commodities in interstate and intrastate commerce in the United States, Mexico, and internationally. It operates through Truckload Transportation Services and Werner Logistics segments. The Truckload Transportation Services segment operates medium-to-long-haul van fleet that transports various consumer nondurable products and other commodities in truckload quantities using dry van trailers; the expedited fleet, which offers time-sensitive truckload services using driver teams; regional short-haul fleet that provides comparable truckload van service in the United States; and temperature controlled fleet, which offers truckload services for temperature sensitive products using temperature-controlled trailers. It transports retail store merchandise, consumer products, food and beverage products, and manufactured products. The Werner Logistics segment provides non-asset-based transportation and logistics services, including truck brokerage; logistics management services and solutions; rail transportation through alliances with rail and drayage providers; and residential and commercial deliveries of large or heavy items using liftgate straight truck. As of December 31, 2021, the company had a fleet of 8,340 trucks, which included 8,050 company-operated, as well as 290 owned and operated by independent contractors;27,225 company-owned trailers that comprised dry vans, flatbeds, temperature-controlled, and other trailers; and 55 intermodal drayage trucks. Werner Enterprises, Inc. was founded in 1956 and is headquartered in Omaha, Nebraska.

How the Company Makes Money

Werner Enterprises generates revenue primarily through its freight transportation services. The company's revenue model is multifaceted, with key revenue streams including Truckload services, which involve transporting goods over long distances; Dedicated services, where trucks are assigned to specific customers for consistent service; and Logistics services, which encompass supply chain management and intermodal transportation solutions. The company also earns revenue from freight brokerage, where it matches shippers with carriers. Significant partnerships with various shippers and manufacturers enhance its earnings potential, while a focus on operational efficiency and technology integration helps optimize costs and improve service delivery.

Werner Enterprises Financial Statement Overview

Summary

Operating performance has deteriorated: flat-to-down revenue since 2022, sharp margin compression (gross margin ~5.8% in 2025) and a 2025 net loss. Balance sheet is still workable but weaker vs prior years with higher leverage (debt-to-equity ~0.55) and negative ROE in 2025. Cash generation is a concern with declining operating cash flow and persistently negative free cash flow (2025 FCF ~-$69M).

Income Statement

Profitability has deteriorated materially over the last several years. Revenue has been essentially flat-to-down since 2022 (2025 down ~0.6% after a 2024 decline), while margins compressed sharply: gross margin fell from ~17–19% (2020–2021) to ~5.8% in 2025, and the company moved to a net loss in 2025 (net margin ~-0.5%) after low profitability in 2024 (~1.1%). EBITDA margin remains positive (~10.2% in 2025) but is well below peak levels (~20–23% in 2020–2021), signaling weaker pricing/power and/or cost pressure.

Balance Sheet

The balance sheet remains relatively stable with moderate leverage, but it has weakened versus prior years. Debt-to-equity is ~0.55 in 2025 (up from ~0.18 in 2020 and ~0.34 in 2021), indicating a higher debt load relative to equity. Equity is still sizable (~$1.36B in 2025) against total assets (~$2.89B), providing cushion, but returns have turned negative in 2025 (return on equity ~-1.1%) after modestly positive levels in 2024, reflecting the earnings downturn rather than a liquidity crisis.

Cash Flow

Cash generation is mixed: operating cash flow stayed positive in 2025 (~$182M) but has trended down meaningfully from 2022–2023 levels (~$449M–$474M). Free cash flow is consistently negative from 2021–2025 (including ~-$69M in 2025), indicating ongoing capital intensity and/or investment needs that are not being covered by operating cash alone. Operating cash flow covered only ~58% of EBITDA in 2025 (down from ~143–145% in 2022–2023), pointing to weaker cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.97B	3.03B	3.28B	3.29B	2.73B
Gross Profit	172.42M	338.63M	423.65M	521.59M	477.93M
EBITDA	304.58M	372.10M	480.82M	616.54M	618.14M
Net Income	-14.40M	34.23M	112.38M	241.26M	259.05M
Balance Sheet
Total Assets	2.89B	3.05B	3.16B	3.18B	2.68B
Cash, Cash Equivalents and Short-Term Investments	59.92M	40.75M	61.72M	107.24M	54.20M
Total Debt	752.00M	701.76M	685.26M	736.04M	456.51M
Total Liabilities	1.50B	1.56B	1.59B	1.70B	1.32B
Stockholders Equity	1.36B	1.46B	1.53B	1.44B	1.33B
Cash Flow
Free Cash Flow	-68.53M	-84.06M	-124.42M	-58.54M	-38.03M
Operating Cash Flow	181.83M	329.73M	474.37M	448.71M	332.82M
Investing Cash Flow	-171.57M	-241.45M	-434.94M	-514.33M	-397.30M
Financing Cash Flow	7.30M	-105.72M	-87.07M	118.03M	89.67M

Werner Enterprises Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WERN, the sentiment is Positive. The current price of 35.09 is above the 20-day moving average (MA) of 34.74, above the 50-day MA of 33.17, and above the 200-day MA of 28.68, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 53.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WERN.

Werner Enterprises Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNDR	66 Neutral	$4.98B	48.18	3.45%	1.40%	5.46%	2.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HTLD	58 Neutral	$854.25M	-16.37	-4.35%	0.87%	-19.56%	-54.39%
ARCB	56 Neutral	$2.29B	39.17	4.61%	0.62%	-5.34%	-48.16%
MRTN	54 Neutral	$1.11B	63.50	2.53%	2.07%	-9.74%	-42.57%
ULH	52 Neutral	$437.87M	-10.87	-6.66%	2.76%	-7.55%	-130.67%
WERN	49 Neutral	$2.10B	-140.98	1.78%	1.84%	-3.42%	-43.86%

Werner Enterprises Corporate Events

Werner Enterprises Updates Executive Compensation and Incentive Plans

On February 12, 2026, Werner Enterprises’ board compensation committee approved new base salaries and long-term equity awards for its named executive officers, with salary changes effective February 13, 2026. The package includes restricted stock that vests over three years and performance stock that can vest between 0% and 200% of target based on average annual diluted EPS growth from 2026 through 2028, adjusted by a total shareholder return modifier against a peer group.

The committee also set parameters for the 2026 annual incentive cash bonus program, tying potential payouts of 0% to 200% of target bonuses, which range from 80% to 125% of base salary, to company operating income, revenue excluding fuel surcharges, and individual performance. Executives remain eligible for various perquisites and broad-based benefit plans, underscoring a compensation structure designed to align leadership pay with multi-year financial performance and shareholder returns.

The most recent analyst rating on (WERN) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Werner Enterprises stock, see the WERN Stock Forecast page.

Werner Enterprises to Present at Multiple February Conferences

On January 29, 2026, Werner Enterprises announced it will participate in three Miami-based investment conferences in February 2026: the Stifel 2026 Transportation and Logistics Conference on February 10, Citi’s 2026 Global Industrial Tech and Mobility Conference on February 17, and the Barclays 43rd Annual Industrial Select Conference on February 18, each featuring Werner fireside chat presentations and investor meetings. Live webcasts and 30-day archived replays of these events will be available via the company’s investor website, underscoring Werner’s effort to engage the investment community and provide greater visibility into its operations and strategy, with timing and access details subject to potential schedule updates communicated through its public disclosure channels.

The most recent analyst rating on (WERN) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Werner Enterprises stock, see the WERN Stock Forecast page.

Werner Enterprises Acquires FirstFleet, Expanding Dedicated Trucking

On January 27, 2026, Werner Enterprises acquired 100% of First Enterprises, Inc. (FirstFleet), a privately held dedicated trucking company based in Murfreesboro, Tennessee, for approximately $245 million in cash, plus a separate $37.8 million purchase of 11 real estate properties, funded through cash on hand and its existing revolving credit facility. The deal, which adds roughly 2,400 tractors, 11,000 trailers and 37 properties serving about 130 customer sites, elevates Werner to the fifth-largest dedicated carrier in North America, boosts its exposure to resilient end markets such as grocery, bakery goods and corrugated packaging, and is expected to be immediately accretive to EPS, with around $18 million in annual synergies and stronger free cash flow anticipated as FirstFleet operates as a business unit within Werner’s Truckload Transportation Services segment while largely retaining its management and Murfreesboro headquarters.

The most recent analyst rating on (WERN) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Werner Enterprises stock, see the WERN Stock Forecast page.