Werner Enterprises (NASDAQ:WERN) Announces Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Werner Enterprises (NASDAQ:WERN) released its quarterly earnings results on Thursday. The transportation company reported $0.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.04), FiscalAI reports. Werner Enterprises had a net margin of 0.85% and a return on equity of 0.14%. The company had revenue of $737.64 million for the quarter, compared to the consensus estimate of $767.51 million. During the same period in the prior year, the firm posted $0.08 EPS. The business’s revenue for the quarter was down 2.3% on a year-over-year basis.

Here are the key takeaways from Werner Enterprises’ conference call:

• FirstFleet acquisition closed Jan 27 and is “immediately accretive,” adding ~$615M trailing revenue and 2,400 tractors, growing Werner’s dedicated business ~50% with $18M of identified annual cost synergies (a portion expected in 2026).
• Management executed a strategic one-way trucking restructure, taking a $44.2M charge in Q4 ( ~$42.7M non-cash impairments) to shrink and refocus the fleet on specialized, higher‑value lanes; company expects profitability improvement to be noticeable in Q2 2026 but the action reduced Q4 fleet size and near-term volumes.
• Q4 revenue declined 2% YoY ($738M), adjusted operating income was $11.3M (1.5% margin) and adjusted EPS $0.05; full‑year free cash flow was only $19M, liquidity remains ~$702M but debt increased after the FirstFleet purchase, leaving mixed near‑term financial leverage dynamics.
• Non-truckload businesses and technology investments are gaining traction — intermodal grew double-digits, final mile momentum is the strongest to date, EDGE TMS and AI migrations are lowering cost-to-serve and contributed to ~$150M of structural cost reductions over the last three years.

Werner Enterprises Stock Down 5.8%

Werner Enterprises stock opened at $35.69 on Friday. The company has a quick ratio of 1.59, a current ratio of 1.62 and a debt-to-equity ratio of 0.52. The firm has a market cap of $2.14 billion, a P/E ratio of 86.04, a P/E/G ratio of 0.87 and a beta of 1.08. The business has a fifty day moving average of $31.78 and a two-hundred day moving average of $28.76. Werner Enterprises has a twelve month low of $23.02 and a twelve month high of $38.45.

Werner Enterprises Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, January 21st. Shareholders of record on Monday, January 5th were issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.6%. The ex-dividend date was Monday, January 5th. Werner Enterprises’s dividend payout ratio is presently 136.59%.

Werner Enterprises News Summary

Here are the key news stories impacting Werner Enterprises this week:

• Positive Sentiment: Management said dedicated revenue grew, supported by a larger fleet and customer retention; the FirstFleet buy is intended to accelerate sustainable dedicated growth. Werner Enterprises Reports Fourth Quarter and Annual 2025 Results
• Positive Sentiment: Some analysts and industry commentators view the FirstFleet acquisition as a strategic move that could spark consolidation in dedicated trucking and create scale benefits if integration goes as planned. Will Werner’s $245M FirstFleet buy signal new era of dedicated trucking consolidation?
• Positive Sentiment: An analyst price-target update raised the target (reported as a 12.69% increase), reflecting some bullish reassessment after the acquisition and operational commentary. Werner Enterprises (WERN) price target increased by 12.69% to 32.35
• Neutral Sentiment: Earnings call transcript and slide deck provide management detail on results, integration plans and near-term outlook — useful for investors assessing guidance and execution risk. Werner Enterprises, Inc. (WERN) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Company presentation (Q4 results) lays out segment performance and integration rationale — important context but outcome depends on execution. Werner Enterprises, Inc. 2025 Q4 – Results – Earnings Call Presentation
• Negative Sentiment: WERN missed both EPS and revenue estimates for Q4 (EPS $0.05 vs. $0.09; revenue short of consensus) and reported year-over-year revenue decline — a near-term negative for sentiment and valuation multiples. Werner Enterprises (WERN) Misses Q4 Earnings and Revenue Estimates
• Negative Sentiment: Analysts and reporters warn the FirstFleet acquisition could pressure near-term earnings and will be an execution test for valuation — watch integration costs and accretion timing. Werner faces earnings test as FirstFleet deal reshapes strategy
• Negative Sentiment: Ongoing legal overhang: a long-running drivers’ lawsuit has a settlement ready to go, creating potential cash/legal exposure to monitor. Werner settlement ready to go in drivers’ lawsuit that dates to 2014

Analyst Ratings Changes

Several brokerages have recently issued reports on WERN. TD Cowen lifted their target price on Werner Enterprises from $31.00 to $39.00 and gave the stock a “hold” rating in a report on Friday. Barclays increased their target price on Werner Enterprises from $28.00 to $33.00 and gave the company an “equal weight” rating in a research report on Thursday, January 15th. Weiss Ratings reissued a “sell (d)” rating on shares of Werner Enterprises in a research note on Monday, December 22nd. UBS Group reduced their target price on shares of Werner Enterprises from $27.00 to $25.00 and set a “neutral” rating on the stock in a report on Friday, November 7th. Finally, Citigroup reissued a “sell” rating and set a $34.00 price objective on shares of Werner Enterprises in a research note on Friday. Two analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, Werner Enterprises presently has an average rating of “Reduce” and an average target price of $32.36.

Institutional Investors Weigh In On Werner Enterprises

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in WERN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Werner Enterprises by 0.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 126,854 shares of the transportation company’s stock valued at $3,717,000 after buying an additional 401 shares during the period. CANADA LIFE ASSURANCE Co grew its stake in shares of Werner Enterprises by 0.8% in the second quarter. CANADA LIFE ASSURANCE Co now owns 64,228 shares of the transportation company’s stock valued at $1,758,000 after buying an additional 503 shares in the last quarter. California State Teachers Retirement System increased its stake in Werner Enterprises by 1.1% during the second quarter. California State Teachers Retirement System now owns 57,011 shares of the transportation company’s stock worth $1,560,000 after purchasing an additional 601 shares during the period. PNC Financial Services Group Inc. lifted its holdings in Werner Enterprises by 41.3% during the 4th quarter. PNC Financial Services Group Inc. now owns 2,324 shares of the transportation company’s stock worth $70,000 after buying an additional 679 shares in the last quarter. Finally, Swiss National Bank boosted its holdings in Werner Enterprises by 1.2% in the third quarter. Swiss National Bank now owns 119,700 shares of the transportation company’s stock valued at $3,151,000 after purchasing an additional 1,400 shares during the period. 89.32% of the stock is currently owned by hedge funds and other institutional investors.

Werner Enterprises Company Profile

Werner Enterprises, Inc, founded in 1956 by Clarence L. “Chris” Werner, is a leading transportation and logistics provider based in Omaha, Nebraska. The company began as a one‐truck operation and has since grown into one of North America’s largest carriers, offering an array of services to support diverse supply chains.

Werner’s core business activities include full truckload dry van services, dedicated contract carriage, intermodal transport and brokerage solutions. The company also provides value-added services such as warehousing, freight management and fleet maintenance through its network of terminals and service centers.