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Werner Enterprises CEO Derek Leathers instructed analysts Thursday that ongoing enforcement actions and capability exits might set the stage for a “extra balanced” freight market heading into 2026.
On Thursday, the Omaha-based truckload service (NASDAQ: WERN) posted a $20.6 million third-quarter loss amid a tough freight setting and authorized settlement prices.
“We’re coming into peak season with wholesome client demand and powerful retail alignment,” Leathers stated. “Enforcement on a number of fronts is resulting in ongoing capability attrition, and the tariff-related noise appears to be settling in. The continued structural enhancements to our prices, mixed with latest productiveness beneficial properties, put us on improved footing to leverage the upside because the market comes additional into stability.”
Leathers famous that enforcement actions towards non-domiciled and B-1 visa drivers might take away a significant variety of operators from the market.
“If enforcement urge for food stays, and I feel we’d all agree it does, there may be capability that can be exiting this market — and it will likely be extra significant than what we’ve seen up till now,” Leathers stated.
He added that even when some sidelined drivers return in response to tightening provide and rising charges, it might “pale by comparability” to the variety of exits anticipated on account of new compliance crackdowns and CDL enforcement.
Leathers emphasised that know-how automation and AI stay central to Werner’s cost-savings technique.
“In logistics, automation is sort of totally carried out,” Leathers stated. “We’re automating any and every thing we are able to to take friction out of the method — and you’ll see it move by in our working bills.”
He stated these techniques permit Werner so as to add quantity with out proportionally rising working prices, whereas in Truckload Transportation Providers (TTS), digital conversion continues to be in progress.
“Till you may unplug and convert utterly, it represents a short-term headwind,” Leathers stated, including that AI is now being deployed throughout recruiting, billing, and collections to “do extra with much less.”
Leathers stated the corporate’s devoted pipeline stays sturdy, with most new fleet launches deferred to early 2026.
“Our devoted implementations can be true devoted — difficult-to-serve, defensible-type fleets, not simply quantity masquerading as devoted,” Leathers stated. “It’s painful to implement, however when you’re on the opposite aspect, the retention worth is value it.”
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