Werner Enterprises (WERN.O): WERN 2Q: Raised pricing guides as CEO Leathers sees 3rd inning in capacity exits but driver sourcing a key headwind

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Werner Enterprises (WERN.O): WERN 2Q: Raised pricing guides as CEO Leathers sees 3rd inning in capacity exits but driver sourcing a key headwind

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28 Jul 2026 22:29:14 ET │ 14 pages

Werner Enterprises (WERN.O)

WERN 2Q: Raised pricing guides as CEO Leathers sees 3rd inning in

capacity exits but driver sourcing a key headwind

CITI'S TAKE

WERN reported 2Q26 adj. EPS of $0.22, a significant improvement from Neutral

1Q’s $0.02 and slightly above our $0.21 est. but behind Street $0.24 target.

It raised its Dedicated revenue per truck per week guide to +3% to +5% y-y Price (28 Jul 26 16:00) US$38.31

for ’26 vs. prior flat to up +3% and its One-Way revenue per total mile guide Target price US$43.00↓

to +10% to +13% y-y 3Q26 vs. prior up +1% to +4% y-y 2Q26. We see room

from US$47.00for shares to move higher on earnings given lowered sentiment on a -12%

QTD drawdown against the raised pricing guides despite lowered truck Expected share price return 12.2%

count reflecting slower driver hiring and modest Dedicated contract renewal Expected dividend yield 1.5%

rates of +L/MSD% (lower than KNX’s +DD%, albeit for irregular route). CEO

Expected total return 13.7%Derek Leathers sees favorable supply/demand still in early innings,

expecting further acceleration in capacity exits with “a whole lot of margin Market Cap US$2,297M

improvement that needs to take place across the entire industry”.

Fundamentals — While WERN sees the supply/demand tailwinds still largely

supply-driven, it anticipates idiosyncratic benefits from its larger exposure vs. peers Price Performance

to discount/value retailers/grocers and non-discretionary areas as budget pressures (RIC: WERN.O, BB: WERN US)

on sustained elevated inflation drive lower-income consumers to this vertical,