Werner Enterprises CEO Derek Leathers advised analysts Thursday that ongoing enforcement actions and capability exits may set the stage for a “extra balanced” freight market heading into 2026.
On Thursday, the Omaha-based truckload provider (NASDAQ: WERN) posted a $20.6 million third-quarter loss amid a troublesome freight atmosphere and authorized settlement prices.
“We’re coming into peak season with wholesome shopper demand and robust retail alignment,” Leathers mentioned. “Enforcement on a number of fronts is resulting in ongoing capability attrition, and the tariff-related noise appears to be settling in. The continuing structural enhancements to our prices, mixed with latest productiveness features, 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 may 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 will likely be exiting this market — and it will likely be extra significant than what we’ve seen up till now,” Leathers mentioned.
He added that even when some sidelined drivers return in response to tightening provide and rising charges, it will “pale by comparability” to the variety of exits anticipated because 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 almost absolutely carried out,” Leathers mentioned. “We’re automating any and all the things we will to take friction out of the method — and you’ll see it movement via in our working bills.”
He mentioned these techniques permit Werner so as to add quantity with out proportionally rising working prices, whereas in Truckload Transportation Providers (TTS), digital conversion remains to be in progress.
“Till you’ll be able to unplug and convert utterly, it represents a short-term headwind,” Leathers mentioned, including that AI is now being deployed throughout recruiting, billing, and collections to “do extra with much less.”
Leathers mentioned the corporate’s devoted pipeline stays strong, with most new fleet launches deferred to early 2026.
“Our devoted implementations will likely be true devoted — difficult-to-serve, defensible-type fleets, not simply quantity masquerading as devoted,” Leathers mentioned. “It’s painful to implement, however when you’re on the opposite aspect, the retention worth is price it.”
