Werner Enterprises第二季營收增24% 惟保險及重組開支拖累盈利大減

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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q
 

[Markone]
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026 
OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 0-14690 

WERNER ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
 

Nebraska47-0648386
(State or other jurisdiction of
incorporation or organization)(I.R.S. Employer
Identification No.)

14507 Frontier Road
Post Office Box 45308
Omaha,Nebraska68145-0308
(Address of principal executive offices)(Zip Code)

(402) 895-6640 
(Registrant’s telephone number, including area code)

  
Securities registered pursuant to Section 12(b) of the Act: 

 Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 Par ValueWERNThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 

Large Accelerated Filer☒  Accelerated filer☐
Non-accelerated filer☐
  Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒ 
As of July 31, 2026, 59,977,156 shares of the registrant’s common stock, par value $0.01 per share, were outstanding.

Table of Contents

WERNER ENTERPRISES, INC.
INDEX
 

PAGE
PART I – FINANCIAL INFORMATION

Cautionary Note Regarding Forward-Looking Statements
3

Item 1.Financial Statements:
4

Consolidated Statements of Income for the Three and Six Months Ended June 30, 2026 and 2025
4

Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2026 and 2025
5

Consolidated Condensed Balance Sheets as of June 30, 2026 and December 31, 2025
6

Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025
7

Consolidated Statements of Stockholders’ Equity and Temporary Equity - Redeemable Noncontrolling Interest for the Three and Six Months Ended June 30, 2026 and 2025
9

Note 1 - Basis of Presentation and Recent Accounting Pronouncements
11

Note 2 - Business Acquisition
12

Note 3 - Revenue
14

Note 4 - Assets Held for Sale
15

Note 5 - Goodwill and Intangible Assets
15

Note 6 - Leases
16

Note 7 - Fair Value
18

Note 8 - Investments
19

Note 9 - Debt and Credit Facilities
20

Note 10 - Commitments and Contingencies
22

Note 11 - Restructuring and Impairment Costs
22

Note 12 - Earnings Per Share
23

Note 13 - Segment Information
24

Note 14 - Subsequent Event
28

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations
29

Item 3.Quantitative and Qualitative Disclosures About Market Risk
40

Item 4.Controls and Procedures
41

PART II – OTHER INFORMATION

Item 1.Legal Proceedings
42

Item 1A.Risk Factors
42

Item 2.Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities
42

Item 5.Other Information
42

Item 6.Exhibits
43

2

Table of Contents

PART I
FINANCIAL INFORMATION

Cautionary Note Regarding Forward-Looking Statements:
This Quarterly Report on Form 10-Q contains historical information and forward-looking statements based on information currently available to our management. The forward-looking statements in this report, including those made in Item 2 (Management’s Discussion and Analysis of Financial Condition and Results of Operations) of Part I, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These safe harbor provisions encourage reporting companies to provide prospective information to investors. Forward-looking statements can be identified by the use of certain words, such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project” and other similar terms and language. We believe the forward-looking statements are reasonable based on currently available information. However, forward-looking statements involve risks, uncertainties and assumptions, whether known or unknown, that could cause our actual results, business, financial condition and cash flows to differ materially from those anticipated in the forward-looking statements. A discussion of important factors relating to forward-looking statements is included in Part II, Item 1A (Risk Factors) of this Quarterly Report and in Part I, Item 1A (Risk Factors) of our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”). Readers should not unduly rely on the forward-looking statements included in this Form 10-Q because such statements speak only to the date they were made. Unless otherwise required by applicable securities laws, we undertake no obligation or duty to update or revise any forward-looking statements contained herein to reflect subsequent events or circumstances or the occurrence of unanticipated events.

3

Table of Contents

ITEM 1. FINANCIAL STATEMENTS

WERNER ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 

  
Three Months Ended 
June 30,Six Months Ended
June 30,
(In thousands, except per share amounts)2026202520262025
Operating revenues$933,927 $753,148 $1,742,537 $1,465,262 
Operating expenses:
Salaries, wages and benefits310,964 250,451 590,625 493,676 
Fuel119,897 60,401 202,342 123,493 
Supplies and maintenance77,648 62,260 145,453 122,300 
Taxes and licenses23,383 23,100 46,211 45,444 
Insurance and claims41,425 (6,813)83,353 36,964 
Depreciation and amortization78,811 70,757 155,008 140,806 
Rent and purchased transportation248,927 228,280 470,031 434,422 
Communications and utilities4,866 3,730 9,457 8,087 
Restructuring and impairment4,094 — 4,094 — 
Other6,991 (5,339)15,047 (419)
Total operating expenses917,006 686,827 1,721,621 1,404,773 
Operating income 16,921 66,321 20,916 60,489 
Other expense (income):
Interest expense11,674 9,353 23,324 18,890 
Interest income(1,569)(1,487)(3,072)(2,979)
Loss (gain) on investments in equity securities11 33 (15)35 
Earnings from equity method investments(650)(719)(736)(842)
Other117 51 19 (317)
Total other expense, net9,583 7,231 19,520 14,787 
Income before income taxes7,338 59,090 1,396 45,702 
Income tax expense2,003 15,468 522 12,301 
Net income 5,335 43,622 874 33,401 
Net loss attributable to noncontrolling interest1,015 440 1,214 563 
Net income attributable to Werner$6,350 $44,062 $2,088 $33,964 
Earnings per share:
Basic$0.11 $0.72 $0.03 $0.55 
Diluted$0.11 $0.72 $0.03 $0.55 
Weighted-average common shares outstanding:
Basic59,965 60,888 59,938 61,386 
Diluted60,240 61,001 60,196 61,532 

See Notes to Consolidated Financial Statements (Unaudited).
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WERNER ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 

  
Three Months Ended 
June 30,Six Months Ended
June 30,
(In thousands)2026202520262025
Net income$5,335 $43,622 $874 $33,401 
Other comprehensive income:
Foreign currency translation adjustments936 2,633 976 2,571 
Change in fair value of interest rate swaps, net of tax1,468 (469)3,160 (1,903)
Other comprehensive income2,404 2,164 4,136 668 
Comprehensive income7,739 45,786 5,010 34,069 
Comprehensive loss attributable to noncontrolling interest1,015 440 1,214 563 
Comprehensive income attributable to Werner$8,754 $46,226 $6,224 $34,632 

See Notes to Consolidated Financial Statements (Unaudited).
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WERNER ENTERPRISES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
 

(In thousands, except share amounts)June 30,
2026December 31,
2025
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$57,024 $59,922 
Accounts receivable, trade, less allowance of $8,818 and $7,646, respectively
490,902 394,933 
Other receivables17,630 20,398 
Inventories and supplies14,175 12,104 
Prepaid expenses43,452 57,184 

Assets held for sale11,983 32,643 
Other current assets40,144 35,665 
Total current assets675,310 612,849 
Property and equipment, at cost2,996,322 2,901,984 
Less – accumulated depreciation1,163,904 1,111,480 
Property and equipment, net1,832,418 1,790,504 
Finance lease right-of-use assets, net48,068 — 
Goodwill138,576 129,104 
Intangible assets, net62,945 44,603 
Operating lease right-of-use assets, net101,956 39,703 
Other non-current assets299,454 271,911 
Total assets$3,158,727 $2,888,674 
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY
Current liabilities:

Accounts payable$119,087 $95,084 

Insurance and claims accruals119,367 99,827 
Accrued payroll82,941 51,442 

Accrued expenses8,045 16,199 
Current maturities of finance lease liabilities25,120 — 
Current maturities of operating lease liabilities46,437 15,451 

Other current liabilities65,461 36,781 
Total current liabilities466,458 314,784 
Long-term debt, net of current portion793,000 752,000 
Finance lease liabilities, less current maturities23,167 — 
Operating lease liabilities, less current maturities57,201 26,470 
Other long-term liabilities24,316 26,080 
Insurance and claims accruals, net of current portion136,816 112,126 

Deferred income taxes274,608 266,209 
Total liabilities1,775,566 1,497,669 
Commitments and contingencies
Temporary equity - redeemable noncontrolling interest26,899 28,113 
Stockholders’ equity:
Common stock, $0.01 par value, 200,000,000 shares authorized; 80,533,536 shares issued; 59,977,156 and 59,869,405 shares outstanding, respectively
805 805 
Paid-in capital147,482 144,641 
Retained earnings1,889,869 1,904,572 
Accumulated other comprehensive loss(11,939)(16,075)
Treasury stock, at cost; 20,556,380 and 20,664,131 shares, respectively
(669,955)(671,051)
Total stockholders’ equity1,356,262 1,362,892 
Total liabilities, temporary equity and stockholders’ equity$3,158,727 $2,888,674 

See Notes to Consolidated Financial Statements (Unaudited).
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WERNER ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

  Six Months Ended June 30,
(In thousands)20262025
Cash flows from operating activities:
Net income$874 $33,401 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization155,008 140,806 
Deferred income taxes(5,449)(8,672)
Amortization of operating lease right-of-use assets22,174 8,980 
Gain on disposal of property and equipment(5,251)(8,769)
Restructuring and impairment2,415 — 
Non-cash equity compensation6,119 4,907 
Insurance and claims accruals, net of current portion(1,180)(43,017)
Loss (gain) on investments in equity securities(15)35 
Earnings from equity method investment(736)(842)
Gain on contingent earnout liability settlement— (7,815)
Other(7,418)(13,275)
Changes in certain working capital items:
Accounts receivable, net(18,719)(28,854)
Other current assets24,251 21,172 
Accounts payable12,489 3,103 
Operating lease liabilities(22,402)(8,758)
Other current liabilities5,095 (17,007)
Net cash provided by operating activities167,255 75,395 
Cash flows from investing activities:
Additions to property and equipment(81,812)(111,855)
Proceeds from sales of property and equipment, including assets held for sale90,432 53,793 
Net cash invested in acquisition(184,755)— 
Investment in equity securities(2,000)(6,021)
Payments to acquire equity method investment(2,000)(1,760)
Issuance of notes receivable(9,289)(1,381)
Collections of notes receivable3,622 3,303 

Net cash used in investing activities(185,802)(63,921)
Cash flows from financing activities:
Repayments of short-term debt(161,000)(10,000)
Proceeds from issuance of short-term debt177,000 10,000 
Repayments of long-term debt(42,800)(320,000)
Proceeds from issuance of long-term debt67,800 395,000 
Principal installments on finance lease obligations(6,838)— 

Dividends on common stock(16,775)(17,329)
Repurchases of common stock— (55,562)
Tax withholding related to net share settlements of restricted stock awards(2,182)(1,939)
Other — (2,016)

Net cash provided by (used in) financing activities15,205 (1,846)
Effect of exchange rate fluctuations on cash444 1,040 
Net increase (decrease) in cash and cash equivalents(2,898)10,668 
Cash and cash equivalents, beginning of period59,922 40,752 
Cash and cash equivalents, end of period$57,024 $51,420 

See Notes to Consolidated Financial Statements (Unaudited).

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WERNER ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Unaudited)

  Six Months Ended June 30,
(In thousands)20262025
Supplemental disclosures of cash flow information:
Interest paid$23,087 $20,607 
Income taxes paid2,686 38,664 
Supplemental schedule of non-cash investing and financing activities:
Notes receivable issued upon sale of property and equipment$1,359 $998 
Change in fair value of interest rate swaps3,160 (1,903)
Property and equipment acquired included in accounts payable1,451 14,718 

        Dividends accrued but not yet paid at end of period8,397 8,376 
Contingent consideration associated with acquisition30,000 — 

See Notes to Consolidated Financial Statements (Unaudited).

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WERNER ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND
TEMPORARY EQUITY - REDEEMABLE NONCONTROLLING INTEREST
(Unaudited)

Three Months Ended June 30, 2026
(In thousands, except share and per share amounts)Common
StockPaid-In
CapitalRetained
EarningsAccumulated
Other
Comprehensive
LossTreasury
StockTotal
Stockholders’
EquityTemporary Equity - Redeemable Noncontrolling Interest
Balance, March 31, 2026$805 $144,753 $1,891,918 $(14,343)$(670,432)$1,352,701 $27,914 
Net income attributable to Werner— — 6,350 — — 6,350 — 
Net loss attributable to noncontrolling interest— — — — — — (1,015)
Other comprehensive income— — — 2,404 — 2,404 — 

Dividends on common stock ($0.14 per share)
— — (8,399)— — (8,399)— 
Common stock issued for stock-based compensation, including tax effects, 27,041 shares
— (550)— — 477 (73)— 
Non-cash equity compensation expense— 3,279 — — — 3,279 — 

Balance, June 30, 2026$805 $147,482 $1,889,869 $(11,939)$(669,955)$1,356,262 $26,899 

Three Months Ended June 30, 2025
(In thousands, except share and per share amounts)Common
StockPaid-In
CapitalRetained
EarningsAccumulated
Other
Comprehensive
LossTreasury
StockTotal
Stockholders’
EquityTemporary Equity - Redeemable Noncontrolling Interest
Balance, March 31, 2025$805 $137,867 $1,934,007 $(19,933)$(616,513)$1,436,233 $37,821 
Net income attributable to Werner— — 44,062 — — 44,062 — 
Net loss attributable to noncontrolling interest— — — — — — (440)
Other comprehensive income— — — 2,164 — 2,164 — 
Repurchases of common stock, 2,113,007 shares
— — — — (55,562)(55,562)— 
Dividends on common stock ($0.14 per share)
— — (8,376)— — (8,376)— 
Common stock issued for stock-based compensation, including tax effects, 18,527 shares
— (402)— — 342 (60)— 
Non-cash equity compensation expense— 2,463 — — — 2,463 — 

Distribution to noncontrolling interest— — — — — — (516)

Balance, June 30, 2025$805 $139,928 $1,969,693 $(17,769)$(671,733)$1,420,924 $36,865 

See Notes to Consolidated Financial Statements (Unaudited).

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WERNER ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND
TEMPORARY EQUITY - REDEEMABLE NONCONTROLLING INTEREST (CONTINUED)
(Unaudited)

Six Months Ended June 30, 2026
(In thousands, except share and per share amounts)Common
StockPaid-In
CapitalRetained
EarningsAccumulated
Other
Comprehensive
LossTreasury
StockTotal
Stockholders’
EquityTemporary Equity - Redeemable Noncontrolling Interest
Balance, December 31, 2025$805 $144,641 $1,904,572 $(16,075)$(671,051)$1,362,892 $28,113 
Net income attributable to Werner— — 2,088 — — 2,088 — 
Net loss attributable to noncontrolling interest— — — — — — (1,214)
Other comprehensive income — — — 4,136 — 4,136 — 

Dividends on common stock ($0.28 per share)
— — (16,791)— — (16,791)— 
Common stock issued for stock-based compensation, including tax effects, 107,751 shares
— (3,278)— — 1,096 (2,182)— 
Non-cash equity compensation expense— 6,119 — — — 6,119 — 

Balance, June 30, 2026$805 $147,482 $1,889,869 $(11,939)$(669,955)$1,356,262 $26,899 

Six Months Ended June 30, 2025
(In thousands, except share and per share amounts)Common
StockPaid-In
CapitalRetained
EarningsAccumulated
Other
Comprehensive
LossTreasury
StockTotal
Stockholders’
EquityTemporary Equity - Redeemable Noncontrolling Interest
Balance, December 31, 2024$805 $137,889 $1,952,775 $(18,437)$(617,100)$1,455,932 $37,944 
Net income attributable to Werner— — 33,964 — — 33,964 — 
Net loss attributable to noncontrolling interest— — — — — — (563)
Other comprehensive income— — — 668 — 668 — 
Repurchases of common stock, 2,113,007 shares
— — — — (55,562)(55,562)— 
Dividends on common stock ($0.28 per share)
— — (17,046)— — (17,046)— 
Common stock issued for stock-based compensation, including tax effects, 92,890 shares
— (2,868)— — 929 (1,939)— 
Non-cash equity compensation expense— 4,907 — — — 4,907 — 

Distribution to noncontrolling interest— — — — — — (516)

Balance, June 30, 2025$805 $139,928 $1,969,693 $(17,769)$(671,733)$1,420,924 $36,865 

See Notes to Consolidated Financial Statements (Unaudited).

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WERNER ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 

(1) BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS 
Basis of Presentation 
The accompanying unaudited interim consolidated financial statements include the accounts of Werner Enterprises, Inc. and its subsidiaries (collectively, the “Company” or “Werner”). Redeemable noncontrolling interest on the consolidated condensed balance sheets represents the portion of a consolidated entity in which we do not have a direct equity ownership. In these notes, the terms “we,” “us,” or “our” refer to Werner Enterprises, Inc. and its subsidiaries. All significant intercompany accounts and transactions relating to these entities have been eliminated. 
These consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) instructions to Form 10-Q and, in the opinion of management, reflect all adjustments, which are all of normal recurring nature, necessary to present fairly the financial condition, results of operations and cash flows for the periods presented in conformity with U.S. generally accepted accounting principles (“GAAP”). These consolidated financial statements do not include all information and footnotes required by GAAP for complete financial statements; although in management’s opinion, the disclosures are adequate so that the information presented is not misleading.
Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. In the opinion of management, the information set forth on the accompanying consolidated condensed balance sheets is fairly stated in all material respects in relation to the consolidated balance sheets from which it has been derived.
These consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and accompanying notes contained in our 2025 Form 10-K.
Reclassifications
Other non-current assets of $39.7 million, other current liabilities of $15.5 million, and other long-term liabilities of $26.5 million were reclassified to operating lease right-of-use assets, net, current maturities of operating lease liabilities, and operating lease liabilities, less current maturities, respectively, as of December 31, 2025, on the consolidated condensed balance sheets. In addition, certain prior period amounts in the consolidated statements of cash flows have been reclassified for separate presentation of amortization of operating lease right-of-use assets and operating lease liabilities, with no effect on the previously reported net cash provided by operating activities. These reclassifications were made to conform to the current financial statement presentation. 
New Accounting Pronouncements
In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-05 Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient permitting entities to assume that conditions at the balance sheet date remain unchanged for the remaining life of the asset when estimating expected credit losses for current accounts receivable and current contract assets under Topic 606 – Revenue from Contracts with Customers. On January 1, 2026, we adopted ASU 2025-05 using a prospective approach. We elected the practical expedient upon the adoption of ASU 2025-05, and adoption of the standard did not have a material impact to our results of operations, cash flows, and financial condition. 
Recently Issued Accounting Pronouncements, Not Yet Effective 
In November 2024, the FASB issued ASU 2024-03 Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public business entities to disclose additional information about specific expense categories in the notes to the financial statements at interim and annual reporting periods, including purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The provisions of this update are effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, using either a prospective or retrospective approach. We are evaluating the impact of adopting ASU 2024-03, and we expect this ASU to impact our disclosures but not our results of operations, cash flows, and financial condition.
In September 2025, the FASB issued ASU 2025-06 Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), which simplifies the capitalization guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with 
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early adoption permitted. The amendments in this update permit an entity to apply the new guidance using a prospective, retrospective or modified transition approach. We plan to adopt this ASU for our fiscal year beginning January 1, 2028 using a prospective approach. Although we are evaluating the impact of adopting ASU 2025-06 on our results of operations, cash flows, and financial position, we do not expect a material effect upon adoption.
In November 2025, the FASB issued ASU 2025-09 Derivatives and Hedging (Topic 815), which clarifies certain aspects of the guidance on hedge accounting and addresses several incremental hedge accounting issues airing from the global reference rate reform initiative. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments in this update require an entity to apply the new guidance using a prospective approach. We plan to adopt this ASU for our fiscal year beginning January 1, 2027 using a prospective approach. Although we are evaluating the impact of adopting ASU 2025-09 on our results of operations, cash flows, and financial position, we do not expect a material effect upon adoption. 

(2) BUSINESS ACQUISITION
On January 27, 2026, we acquired 100% of the equity interests in FirstEnterprises, Inc. (“FirstFleet”). Separately, under a real estate purchase agreement, we acquired 11 properties from FirstFleet. The purchase price in accordance with GAAP for this acquisition was $214.8 million, which is reflective of cash paid of $184.8 million as well as a contingent earnout valued at $30.0 million on the acquisition date. The contingent earnout is dependent on gross revenue net of fuel surcharge metrics for the period April 1, 2026 through March 31, 2027. The potential undiscounted future contingent earnout payment that we could be required to make is between $0 and $35.0 million. We funded these transactions using cash on hand and our existing revolving credit facility. The cash paid was reduced by the finance lease liabilities assumed in connection with the transaction.
Headquartered in Murfreesboro, Tennessee, FirstFleet brings added scale to Werner with approximately 2,400 tractors, 11,000 trailers and 37 strategically located properties near 130 customer sites around the country. The results of operations for FirstFleet are included in our consolidated financial statements beginning January 27, 2026. Revenues generated by FirstFleet are reported in our Dedicated operating segment within the Truckload Transportation Services (“TTS”) reportable segment. For the three and six months ended June 30, 2026, our consolidated operating results included FirstFleet revenues of $169.1 million and $277.0 million, respectively, and net income of $1.1 million and $3.0 million, respectively. We incurred transaction costs related to the acquisition, such as legal and professional fees, of $4.3 million and $10.3 million for the three and six months ended June 30, 2026, respectively, which is included in other operating expenses on the consolidated statements of income. 
Provisional Purchase Price Allocation
We accounted for the FirstFleet purchase using the acquisition method of accounting under GAAP. The purchase price has been allocated to the assets acquired and liabilities assumed using market data and valuation techniques. The estimated fair values of the assets acquired and liabilities assumed are considered provisional for FirstFleet, pending the completion of acquired tangible assets valuations, the assessment of operating and finance leases right-of-use assets and related liabilities, independent valuation of acquired intangible assets, calculations of deferred taxes based upon the underlying tax basis of assets acquired and liabilities assumed and the income taxes receivable, and the determination of insurance reserve liabilities. The determination of estimated fair values requires management to make significant estimates and assumptions. We believe that the information available provides a reasonable basis for estimating the values of assets acquired and liabilities assumed in the FirstFleet acquisition; however, these provisional estimates may be adjusted upon the availability of new information regarding facts and circumstances which existed at the acquisition date, and such adjustments may impact future earnings. We expect to finalize the valuation of assets and liabilities for FirstFleet as soon as practicable, but not later than one year from the acquisition date. Any adjustments to the initial estimates of the fair value of the acquired assets and liabilities assumed in the FirstFleet acquisition will be recorded as adjustments to the respective assets and liabilities, with the residual amounts allocated to goodwill. As of June 30, 2026, no adjustments have been made to the provisional purchase price allocation.
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The following table summarizes the provisional purchase price allocation for FirstFleet as of June 30, 2026 (in thousands):

Provisional Purchase Price

Cash consideration paid
$177,387 (1)

Contingent consideration arrangement
30,000 (2)

Deferred cash payments
7,368 (3)

Total provisional purchase price (fair value of consideration)
214,755 

Provisional Purchase Price Allocation

Accounts receivable, trade
77,250 
Inventories and supplies1,927 
Prepaid expenses8,007 
Other current assets3,130 
Property and equipment
175,573 

Finance lease right-of-use assets
57,195 
Goodwill9,472 
Intangible assets22,600 
Operating lease right-of-use assets
74,230 
Other non-current assets873 
Total assets acquired430,257 
Accounts payable10,464 
Insurance and claims accruals16,028 
Accrued payroll16,035 
Accrued expenses2,721 
Current maturities of operating lease liabilities35,627 
Current maturities of finance lease liabilities26,900 
Other current liabilities50 

Finance lease liabilities, less current maturities30,296 
Operating lease liabilities, less current maturities38,602 

Insurance and claims accruals, net of current portion25,870 
Deferred income taxes12,909 
Total liabilities assumed215,502 
Total provisional purchase price allocated$214,755 

(1) At closing, $11.9 million of the cash consideration was placed in escrow to secure certain indemnification obligations of the sellers and to cover post-closing adjustments. During the six months ended June 30, 2026, $5.9 million was returned to the sellers. As of June 30, 2026, $6.0 million remains in escrow subject to the satisfaction of certain indemnification and post-closing obligations. 
(2) The FirstFleet contingent consideration is recorded in other current liabilities on the consolidated condensed balance sheet as of June 30, 2026. For additional information regarding the valuation of the contingent liability, see Note 7 – Fair Value.
(3) Deferred cash payments of $7.4 million were made during the six months ended June 30, 2026. 
The following unaudited pro forma information combines the historical operations of the Company and FirstFleet giving effect to the FirstFleet acquisition, and related transactions as if consummated on January 1, 2025, the beginning of the comparable prior annual reporting period. The unaudited pro forma financial information is based on currently available information, is presented for informational purposes only, and is not indicative of future operations or results had the FirstFleet acquisition been completed as of January 1, 2025 or any other date.
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The following table summarizes the unaudited pro forma financial information (in thousands):

Three Months Ended 
June 30,Six Months Ended
June 30,
202520262025
Operating revenues$909,606 $1,792,309 $1,775,709 
Net income45,528 19,338 31,943 
Earnings per share - basic0.75 0.32 0.52 
Earnings per share - diluted0.75 0.32 0.52 

The unaudited pro forma financial information includes certain adjustments such as recognition of assets acquired at estimated fair values and related depreciation and amortization, interest expense on acquisition financing, elimination of transaction costs incurred by the Company and FirstFleet that were directly related to the acquisition, and related income tax effects of these items. The adjustments do not reflect potential revenue enhancements, cost savings or operating synergies that we expect to realize after the acquisition.
Goodwill and Intangible Assets
Goodwill represents the excess of cost over the fair value of net identifiable tangible and intangible assets acquired in a business combination. Goodwill and intangible assets with indefinite lives are not amortized. Goodwill is reviewed for potential impairment on an annual basis or more frequently if indicators of a potential impairment exist. Goodwill associated with the acquisition was primarily attributable to acquiring and retaining the existing FirstFleet network and the anticipated synergies from combining the operations of the Company and FirstFleet. None of the goodwill associated with the acquisition is expected to be deductible for income tax purposes. All goodwill is assigned to our TTS segment.
We preliminarily allocated $22.6 million of the purchase price to finite-lived intangible assets, consisting of customer relationships. The estimated fair values of the intangible assets were determined, with the assistance of an independent third-party valuation firm, using the multi-period excess earn