Werner Enterprises (WERN)
NASDAQ:WERN
Top Page
Werner Enterprises
(NASDAQ:WERN)
Select Model
Select Model
Rating:49Neutral
Price Target:
$31.00
â–¼(-4.20% Downside)
Action:ReiteratedDate: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
Acquisitive scale expansion (First Fleet)
The First Fleet acquisition materially increases scale and dedicated capacity, adding ~$615M revenue and 2,400 tractors. Identified $18M annual synergies (with most run‑rate by year‑end) should be durably accretive to earnings and cash flow as integration progresses and fixed costs are absorbed.
Negative Factors
Material margin compression and 2025 net loss
Margins have deteriorated sharply from prior peaks (gross margin ~17–19% to ~5.8%), culminating in a 2025 net loss. This reflects structural pricing pressure and cost inflation that impair the firm's ability to generate sustainable profits and weakens internal funding for reinvestment absent margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Acquisitive scale expansion (First Fleet)
The First Fleet acquisition materially increases scale and dedicated capacity, adding ~$615M revenue and 2,400 tractors. Identified $18M annual synergies (with most run‑rate by year‑end) should be durably accretive to earnings and cash flow as integration progresses and fixed costs are absorbed.
Read all positive factors
Werner Enterprises (WERN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.94B
Dividend Yield1.84%
Average Volume (3M)1.09M
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth-3.42%
EPS Growth-43.86%
CountryUS
Employees13,000
SectorIndustrials
Sector Strength72
IndustryTrucking
Share Statistics
EPS (TTM)0.05
Shares Outstanding59,869,404
10 Day Avg. Volume1,574,393
30 Day Avg. Volume1,085,293
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)1.33
Price to Sales (P/S)0.61
P/FCF Ratio-26.54
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit10.80
Enterprise Value/Ebitda8.77
Forecast
1Y Price Target
$35.00Price Target Upside8.16% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)0.75
Revenue Forecast (FY)$3.56B
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 Truck...
How the Company Makes Money
Werner makes money primarily by charging customers for moving freight and managing freight on their behalf. Its revenue model is generally split between (1) asset-based truckload transportation and (2) logistics services. In asset-based truckload,...
Werner Enterprises Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call presented a mix of strategic progress and near-term challenges. Highlights include the accretive First Fleet acquisition (adds scale, $615M LTM revenue, 2,400 tractors), clear synergy opportunities ($18M annual cost synergies), meaningful dedicated growth and technology-driven cost savings (~$150M of structural savings over three years, Edge TMS migration). However, near-term profitability and cash generation remain constrained: Q4 adjusted operating margin was only 1.5%, adjusted EPS $0.05, a Q4 $44.2M restructuring charge (mostly non-cash), logistics margin compression from surging purchase transportation costs, and weather-driven operational disruption in Q1. Management’s tone is constructive and forward-looking — they expect material earnings improvement in 2026 (with a Q2 inflection), confident synergy realization from First Fleet, and durable long-term benefits from a larger dedicated footprint and technology investments. Overall, strategic positives (scale, synergies, tech, dedicated growth) are weighed against short-term margin and cash flow pressures and restructuring impacts.Positive Updates
Strategic Acquisition of First Fleet
Acquired First Fleet for $282.8M ( $245M for operating company, $37.8M for real estate). First Fleet brings ~$615M trailing twelve-month revenue, ~2,400 tractors, is immediately EPS accretive, and provides $18M of identified annual cost synergies (~1/3 realizable in 2026 with two-thirds run-rate by year-end). The deal expands combined revenue to ~$3.6B (from ~ $3.0B standalone) and increases Dedicated to >50% of portfolio (from 43%).
Negative Updates
One Way Restructuring Charges and Pressures
Executed strategic One Way Trucking restructuring that produced a Q4 charge of $44.2M (mostly non-cash: $42.7M comprising $21.7M intangible impairment and $21M equipment impairment). One Way trucking revenue (net of fuel) declined 8% in Q4 to $156M and average One Way trucks fell ~10% to 2,386.
Read all updates
Q4-2025 Updates
Positive
Negative
Strategic Acquisition of First Fleet
Acquired First Fleet for $282.8M ( $245M for operating company, $37.8M for real estate). First Fleet brings ~$615M trailing twelve-month revenue, ~2,400 tractors, is immediately EPS accretive, and provides $18M of identified annual cost synergies (~1/3 realizable in 2026 with two-thirds run-rate by year-end). The deal expands combined revenue to ~$3.6B (from ~ $3.0B standalone) and increases Dedicated to >50% of portfolio (from 43%).
Read all positive updates
Company Guidance
Werner's 2026 guidance—now reported on an average‑truck basis and incorporating the First Fleet acquisition—calls for full‑year average TTS trucks to be up 23%–28% (pro forma revenue growing from roughly $3.0B to $3.6B and Dedicated to over half the mix); net CapEx of $185M–$225M (upper end allows a 2027 EPA pre‑buy); Dedicated revenue per truck per week guided to down 1% to up 2%; One‑Way truckload revenue per total mile for H1 guided flat to +3%; an effective tax rate of 25.5%–26.5%; net interest expense of $40M–$45M; used‑equipment gains excluding real estate of $8M–$18M; and stable used‑asset values expected—with First Fleet contributing ~$615M TTM revenue, ~2,400 tractors, immediate EPS/cash‑flow accretion and $18M of identified annual cost synergies (roughly one‑third realizable in 2026 and ~two‑thirds run‑rate by year‑end).Werner Enterprises Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
60
Neutral
Cash Flow
41
Neutral
| 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
Positive
32.36
Price Trends
32.00
Positive
30.91
Positive
29.15
Positive
Market Momentum
0.12
Negative
63.30
Neutral
78.36
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 32.36 is above the 20-day moving average (MA) of 29.15, above the 50-day MA of 32.00, and above the 200-day MA of 29.15, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 63.30 is Neutral, neither overbought nor oversold. The STOCH value of 78.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WERN.
Werner Enterprises Risk Analysis
Werner Enterprises disclosed 16 risk factors in its most recent earnings report. Werner Enterprises reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Werner Enterprises Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $4.96B | 52.58 | 3.44% | 1.40% | 5.46% | 2.31% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $560.73M | -4.00 | -6.38% | 2.76% | -7.55% | -130.67% | |
56 Neutral | $2.42B | -51.41 | 4.61% | 0.62% | -5.34% | -48.16% | |
54 Neutral | $1.14B | 53.18 | 2.27% | 2.07% | -9.74% | -42.57% | |
49 Neutral | $1.94B | -126.32 | -1.03% | 1.84% | -3.42% | -43.86% | |
46 Neutral | $852.78M | -13.41 | -6.71% | 0.87% | -19.56% | -54.39% |
* Industrials Sector Average
WERN
Werner Enterprises
32.36
4.17
14.80%
HTLD
Heartland Express
11.01
2.64
31.62%
MRTN
Marten Transport
14.01
0.88
6.74%
ARCB
ArcBest
108.48
46.43
74.82%
ULH
Universal Logistics
21.28
-4.58
-17.72%
SNDR
Schneider National
28.29
6.06
27.24%
Werner Enterprises Corporate Events
Executive/Board Changes
Werner Enterprises Updates Executive Compensation and Incentive Plans
Neutral
Feb 18, 2026
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 ...
Business Operations and Strategy
Werner Enterprises to Present at Multiple February Conferences
Positive
Jan 29, 2026
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 an...
Business Operations and StrategyM&A Transactions
Werner Enterprises Acquires FirstFleet, Expanding Dedicated Trucking
Positive
Jan 28, 2026
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 purc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.