Werner Enterprises: Highlights from Calls with the Company and Model Update

Research evidence excerpt

Werner Enterprises: Highlights from Calls with the Company and Model Update

J P M O R G A N North America Equity Research

28 July 2026

Werner Enterprises Underweight

WERN, WERN US

Highlights from Calls with the Company and Model Price (28 Jul 26):$38.31

Update ▲Price Target (Dec-27):$39.00 Prior (Dec-26):$37.00

Werner posted a largely in-line print as higher One-Way rates tracked the broader

market while the well-telegraphed gross margin squeeze in TL brokerage pushed Airfreight & Surface Transportation /

ShippingLogistics into the red again. The reduced fleet size forecast was driven by strong

utilization gains from the network restructuring but was partially offset by Brian P. Ossenbeck, CFA AC

challenging driver availability, which is one of our chief concerns for large asset- (1-212) 622-1023

brian.p.ossenbeck@jpmorgan.com

based fleets heading into the up-cycle. Management noted the competition for high

quality drivers has increased and that this market will remain challenging for the Grady Carr

(1-212) 622-1251

foreseeable future. Overall, while we acknowledge the significant efforts to grady.carr@jpmchase.com

restructure the One-Way fleet and continue to invest through the cycle, we continue

Brandon Wexler

to favor peers such as KNX with greater One-Way exposure and operating leverage (1-212) 622-1956

to the improving rate and volume environment. brandon.wexler@jpmchase.com

J.P. Morgan Securities LLC

• Guidance reflects higher rates with a smaller fleet. Management raised

its full-year Dedicated RPTPW guide to +3-5% (from flat to +3%) on Key Changes (FYE Dec)

contract renewals across both the legacy and FirstFleet fleets, and guided Prev Cur Δ

One-Way RPTM to +10-13% in 3Q after 2Q printed +10.4% and Adj. EPS - 26E ($) 0.99 1.21 22.1%

Adj.