Breaking
Advertisement
AI

Polymathic AI and Princeton Researchers Release FlashMap, a Flow Map Drafter for 6.14x Faster LLM Decoding

Researchers from Polymathic AI, Princeton University, USC ISI, NYU and the Flatiron Institute have released FlashMap. FlashMap speculative decoding replaces the discrete diffusion drafter with a continuous flow map. It drafts a full 16-token block in 1 forward pass. Tokens in that block stay consistent with each other. On Qwen3-8B, the research team reports up to 6.14x lossless speedup on GSM8K. Drafter weights for Qwen3-8B and Qwen3-4B are on Hugging Face, with vLLM and SGLang plugins. TL;DR Size: 0.5B-parameter drafter (500M for Qwen3-8B, 475M for Qwen3-4B); drafts blocks of K = 16 tokens. Runs on: the same GPU as the target model. Paper speedups use 1 NVIDIA H200 NVL at concurrency 1, in bf16. Performance: fastest drafter tested on Qwen3-8B, about 7% above a retrained DFlash on average. Best: 6.14x speedup on GSM8K at temperature 0 (acceptance length 7.69 tokens). Worst: 2.28x speedup on Alpaca at temperature 1. On Qwen3-4B (temperature 0), it trails DFlash on 4 of 9 tasks. What is FlashMap? FlashMap is a speculative decoding drafter that maps Gaussian noise to a token block in 1 step. A small drafter proposes K tokens. The target model then checks all K in 1 parallel pass and keeps the longest matching prefix. Output stays exactly what the target would produce. Speed depends on 2 things. How many drafted tokens get accepted, and how cheaply they were drafted. EAGLE-3 drafts autoregressively, so cost grows with block length. DFlash drafts the full block in 1 pass with block diffusion. Why do diffusion drafters lose acceptance? DFlash predicts each slot in the block independently. The research team calls this the factorized approximation. Picture a continuation that is “new york” or “san diego” with equal odds. An independent drafter proposes “new diego” or “san york” half the time. The target rejects those at slot 2. FlashMap builds on Flow Map Language Models. Each noise sample maps to 1 full block. The noise picks the mode for every slot jointly. How does FlashMap work? The drafter is a 6-block diffusion transformer (DiT), with embedding dimension 2048 and 16 attention heads. It reads hidden states from target layers 1, 9, 17, 25 and 33. Embedding matrix and LM head are copied from the target and stay frozen. Training runs in 2 stages: Flow teacher: a continuous flow over one-hot token blocks, trained with cross-entropy. A time reparameterization handles Qwen3’s 151,936-token vocabulary. Flow map student: semigroup distillation turns the flow into a 2-time denoiser. It jumps from noise to data in 1 step. Both drafters train on 500K samples from Open-PerfectBlend. Total compute across all models and ablations was about 4,600 GPU hours on H200s. window.addEventListener("message",function(e){if(e.data&&e.data.fmxHeight){var f=document.getElementById("fmx-frame");if(f&&e.source===f.contentWindow)f.style.height=e.data.fmxHeight+"px";}}); How does FlashMap compare on benchmarks? The research team retrained EAGLE-3 and DFlash on the same data and settings. Tests cover 9 benchmarks across math, code and chat, at temperatures 0 and 1. Speed: 1-step FlashMap is the fastest drafter on every Qwen3-8B task, at both temperatures. Accuracy: 1-step FlashMap beats DFlash on acceptance length in 15 of 18 settings. It has about half the parameters. Chat gains are largest: at temperature 0, gains over DFlash are 5.5% on math, 11.1% on chat. 2-step mode: acceptance length beats DFlash in 18 of 18 settings, by 10% on average. EAGLE-3: at temperature 1, it has 9% higher acceptance length but runs 35% slower. A shuffle test checks whether drafts use real inter-token structure. At 2 steps, FlashMap recovers most of the joint-structure gain of a 16-step teacher. At 1 step, it keeps only a small fraction. Drafting 4 noise samples as a tree raised speedup by 11% on average. Comparison: FlashMap vs other speculative decoding drafters Average speedups are computed by Marktechpost from Figure 1(c) of the FlashMap paper. Matched rows use the authors’ retrained baselines. How do you deploy FlashMap? The flashmap package needs only torch and transformers>=4.56. Install it with uv pip install flashmap. A spec_generate call runs drafter and target together on 1 GPU. For serving, the project page gives 2 paths: vLLM 0.31: pass the drafter in --speculative-config with num_speculative_tokens set to 16. SGLang 0.5.20: use --speculative-algorithm DSPARK with the FlashMap draft path. Set num_steps=2 to trade some speed for higher acceptance. For sampling above temperature 0, vLLM needs "draft_sample_method": "probabilistic". Key Takeaways FlashMap drafts 16 tokens jointly in 1 pass with a continuous flow map. Up to 6.14x lossless speedup on Qwen3-8B, using a 0.5B drafter. Faster than a retrained DFlash on all 9 Qwen3-8B benchmarks. 2-step mode keeps acceptance flat across the block. Weights are Apache-2.0, code is MIT, with vLLM and SGLang plugins. Check out the paper, project page, GitHub repo and model weights. Also, feel free to follow us on Twitter and don’t forget to join our 150k+ML SubReddit and Subscribe to our Newsletter. Wait! are you on telegram? now you can join us on telegram as well. Need to partner with us for promoting your GitHub Repo OR Hugging Face Page OR Product Release OR Webinar etc.? Connect with us The post Polymathic AI and Princeton Researchers Release FlashMap, a Flow Map Drafter for 6.14x Faster LLM Decoding appeared first on MarkTechPost.

Most Read

  1. S&P 500, Nasdaq open higher as oil pulls back ahead of Fed decision

  2. The four most revealing insights from Netflix’s new Matthew Perry doc

  3. Dinosaur skeleton goes to auction in New York with £4.5m price tag

Technology

View all →
Technology

Apple refreshes the iMac, entry-level MacBook Pro with the M6 chip

Apple has announced refreshes for the iMac and the entry-level, 14-inch MacBook Pro. Both machines are getting the M6 chip, which was introduced in the Mac mini several weeks ago. The M6 is split into two variants for the iMac. Picking the "M6 chip with two Thunderbolt ports" option gets you a 10-core CPU and a 10-core GPU, whereas picking "M6 chip with four Thunderbolt ports" gets you 12 cores for each, instead. The two-port variant maxes out at 24 GB of RAM and 1TB of storage, whereas the four-port one maxes out at 32GB of RAM and 2TB of storage.Read full article Comments

Technology

South Carolina’s measles outbreak jumped to Washington state 5 times in 2 weeks

Since measles was declared eliminated in the US in 2000, the country's occasional cases have come mainly from international travelers—visitors from far-flung places where the virus still spreads freely — or unvaccinated US residents who return from abroad with a highly infectious souvenir. But as vaccination rates have slipped nationwide in recent years and outbreaks grow bigger and more frequent, domestic travel now poses a greater risk than international incursions. In a study published this week in NEJM Evidence, Washington state health officials highlight that risk, detailing how an explosive outbreak in South Carolina reached their distant state through five distinct importation events over two weeks in January. In all, the introductions led to 26 cases among residents before officials stamped out the spread. South Carolina's measles outbreak began on October 2, 2025, and was declared over on April 26, 2026. Officials confirmed 997 cases in the state during the outbreak. At the time, it was the largest measles outbreak recorded since the virus was declared eliminated, but Pennsylvania's ongoing outbreak has since surpassed it.Read full article Comments

Technology

China’s top-secret spaceplane can’t hide in low-Earth orbit

A winged Chinese spacecraft bearing a strong resemblance to the US military's X-37B spaceplane was photographed in orbit by a passing US-owned commercial satellite in 2024, and we finally have the image. The Chinese spaceplane has delta wings, payload bay doors, a dark heat shield, and a rear-mounted service module with power-generating solar arrays. In other words, the design of the winged ship is, to a great degree, a copy of the X-37B spaceplane flown by the US Space Force. The photo was taken by a commercial imaging satellite owned by a company called Vantor, known as Maxar in 2024. Vantor is one of several companies that provide reconnaissance imagery of locations around the world to the US military and US intelligence agencies. The same Earth-imaging satellites can point their telescopes at objects in space.Read full article Comments

Technology

“No human at the helm”: Delaware plan would let AI agents run entire businesses

A Delaware proposal to let companies be operated by AI agents would help the firms' human owners evade legal responsibility for reckless and harmful actions taken by the AI, US Rep. James Comer (R-Ky.) told Delaware Governor Matt Meyer in a letter yesterday. Comer, chairman of the House Committee on Oversight and Government Reform, told Meyer that the committee "seeks assistance obtaining documents related to your state administration’s efforts to establish a new form of corporate entity to be known as an Artificial Intelligence Company (AIC)." Comer said the proposal is ripe for abuse. "We are concerned that Delaware’s AIC proposal could be used to protect powerful AI companies and their investors from responsibility for reckless harmful actions, while also protecting non-transparent forces seeking anticompetitive regulatory capture behind state AI initiatives," Comer's letter said.Read full article Comments

Transportation

View all →
Transportation

WEX, Euclid AI target 90% reduction in trucking transaction costs

WEX is expanding its use of artificial intelligence and digital payment technology for trucking fleets, announcing a partnership with Euclid AI on Tuesday aimed at automating back-office operations and reducing costs for over-the-road carriers. The announcement came during the WEX OTR Summit in Jacksonville, Florida, where Cade Mund, senior director and head of product for WEX OTR, outlined the company’s technology roadmap for 2026 and 2027, including cardless fueling, modernized fleet management software and AI-powered purchasing tools. Under the agreement, WEX (NYSE: WEX) and San Francisco-based Euclid AI will work together to bring AI agents designed specifically for trucking operations to WEX’s OTR customers. Euclid said its technology has enabled fleet managers to handle five to 10 times more work while reducing costs per transaction by 80% to 90% in existing production deployments. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668545404-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668545404-0'); }); “Our customers are looking for practical ways to take cost and complexity out of running a fleet, and AI agents built specifically for trucking are a significant step forward,” said Tim Hampton, senior vice president and general manager of WEX OTR, in a news release. Hampton said the collaboration would extend WEX’s services beyond its existing payments and fleet management products. AI agents target trucking paperwork, compliance Euclid’s technology is designed to automate repetitive administrative tasks that consume time and resources at trucking companies. Its Precision Agents can process bills of lading, proof-of-delivery documents, driver qualification records and compliance paperwork, according to the announcment. The agents can also manage communications involving drivers, customers and dispatchers, including shipment updates, document requests and follow-up messages. Other applications include automating multistep workflows, such as moving freight documentation through billing or managing compliance renewals. Euclid CEO Ahmad Kakar said the partnership would make the company’s technology available to WEX’s OTR customer base. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767553440-0'); }); “We’ve already delivered major results for the largest carriers in the country,” Kakar said in a statement. “Together, we’re putting that same power in the hands of WEX OTR customers.” WEX did not announce a specific deployment schedule or pricing structure for the new AI services. WEX expands cardless fueling network During his presentation, titled “Fueling the Future 2.0: The WEX OTR Product & Payments Roadmap,” Mund said the company’s strategy centers on making fuel purchases more seamless, intelligent and connected to other fleet operations. “I believe that the future of fueling is a frictionless experience for our customers,” Mund said. He said WEX recently launched its cardless fueling network, allowing drivers to purchase fuel without relying on a physical payment card. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot4', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668086344-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668086344-0'); }); The network is operating at Pilot Flying J, Love’s, TravelCenters of America, Maverik and SCI terminals, according to Mund, with additional merchants expected to join. While WEX wants to reduce reliance on physical fuel cards, Mund said traditional cards will remain part of the payments ecosystem. “I think plastic is going to be around for a while,” he said. “I don’t think it’s just going to go away.” Fleet management modernization continues WEX is also upgrading its eManager fleet management platform, which Mund acknowledged has become outdated. “There’s a customer quote that I heard this year that said eManager, you can do pretty much everything if you can find it,” Mund told attendees. The company is redesigning the system to simplify navigation and improve access to fleet management functions. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767778941-0'); }); WEX has also introduced a unified authentication system intended to allow customers to access multiple services through a single login, including fuel management, permitting and fuel tax tools. Other improvements include application programming interfaces that allow carriers to integrate fuel pricing and discount data into their own optimization systems. Looking ahead to 2027, Mund said WEX plans to continue expanding cardless fueling, modernizing payment products and incorporating AI into fleet management decisions. Potential applications include monitoring transactions, recommending changes to fuel card settings and helping process requests for purchases outside a driver’s normal fueling network. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { var gptSlot = googletag.defineSlot('/21776187881/fw-responsive-main_content-slot6', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767872042-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); setInterval(function() { if (!document.hidden) { googletag.pubads().refresh([gptSlot]); } }, 60000); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767872042-0'); }); “AI can help make those decisions and perform those actions on your behalf,” Mund said. Why it matters: WEX says AI-powered automation and digital payments could help trucking fleets reduce administrative costs, streamline operations and improve efficiency amid tight margins. The post WEX, Euclid AI target 90% reduction in trucking transaction costs appeared first on FreightWaves.

Transportation

Insurance claims adjustments tank Landstar’s otherwise strong Q3

Truckload broker Landstar System noted strong demand for its dry van and flatbed offerings on its third-quarter call with analysts on Tuesday. A tightened capacity backdrop and the buildout of data centers are shaping the favorable fundamentals. However, insurance claims activity clouded an otherwise solid result. “You can look down the P&L and if you skip one line known as insurance and claims, you’d have a lot of good news to write home about,” said Landstar President and CEO Frank Lonegro. Landstar (NASDAQ: LSTR) reported third-quarter earnings per share of $1.42, which was 24 cents below the consensus estimate. The miss was attributable to $13 million (29 cents per share) in adverse adjustments to claims reserves and $8 million (18 cents per share) in unfavorable developments on two prior-year claims. The result was 20 cents better than the adjusted EPS result from a year ago, which excluded several non-recurring items. Consolidated revenue was up 25% y/y to $1.51 billion, which was largely in line with the consensus estimate. Total truck revenue increased 29% y/y to $1.41 billion as loads increased 3% and revenue per load jumped 25%. Higher diesel fuel prices, along with improving TL pricing, drove the yield increase. Revenue per load was up 7.5% from the second quarter. Dry van loads increased 6% y/y, with revenue per load up 23%. Flatbed loads increased 4% y/y, with yield up 29%. Landstar noted elevated heavy-haul demand. Total truck loads are up 7% y/y in October, with revenue per load 29% higher. Both metrics are running “slightly above” historical sequential trends. The company normally sees a slight increase in truck revenue from the third to the fourth quarter as both loads and revenue per load increase approximately 1%. Landstar culled its approved carrier list from over 100,000 in 2022 to nearly 68,000 in the recent quarter. The bulk of the reductions occurred in 2023 and into 2024 to combat cargo theft. The decline was also the result of deteriorating TL market conditions, especially for owner operators. Landstar’s approved carrier list was up 5% sequentially in the third quarter. Trucks provided by business capacity owners (BCOs) increased 165 units sequentially to 8,709. This was the largest sequential increase since the 2021 third quarter. The BCO truck count is up 22 units from the end of the third quarter. The BCO truck turnover rate improved 480 basis points y/y to 26.6%. BCO revenue per mile—Landstar’s preferred metric for TL pricing as it excludes fuel surcharges—was up 23% y/y on dry van loads and up 19% y/y on flatbed shipments. BCO revenue per load was 10.9% higher sequentially in the period. Landstar’s BCOs are owner-operators who haul almost exclusively for the company. Changes among this segment of capacity have historically signaled turns in the broader TL market. Variable contribution, or net revenue, increased 25% y/y to $212 million. (The calculation measures revenue remaining after purchased transportation expenses and agent commissions are paid.) A variable contribution margin of 14% was 10 bps lower y/y. The adjusted operating margin (as a percentage of variable contribution) declined 220 bps y/y to 30.9%. Insurance and claims expenses (as a percentage of BCO revenue) increased 220 bps y/y to 9.4%. The expense line was up $22.3 million y/y (to $55.3 million) due to the aforementioned unfavorable claims items, totaling $21 million. However, Landstar’s accident frequency improved again, dropping to 0.57 DOT reportable accidents per million miles through the first nine months of the year. A spike in nuclear verdicts has materially moved the expense line in recent years. In 2016, the company guided insurance expense to just 3.2% of BCO revenue. Why it matters? Landstar’s commentary provides some insight on how the industry is adapting, following the Supreme Court’s broker liability ruling. Its third-quarter results highlight how claims volatility can offset improving freight fundamentals, especially as insurers and brokers continue to adjust to a tougher liability environment. More FreightWaves articles by Todd Maiden: Werner Enterprises sees cost headwinds lingering into Q1 Knight-Swift again eyes big rate increases as new bid season nears Heartland Express sees earnings turnaround in Q3 The post Insurance claims adjustments tank Landstar’s otherwise strong Q3 appeared first on FreightWaves.

Transportation

Port Houston container volumes jump 11% as imports surge in September

Port Houston recorded an 11% year-over-year increase in container volumes in September, fueled by stronger imports and improving export activity through its Bayport and Barbours Cut container terminals. The port handled 376,419 twenty-foot equivalent units (TEUs) during the month, compared with 337,659 TEUs during the same month in 2025, according to figures presented during the Oct. 21 Port Commission meeting. Through the first nine months of 2026, Port Houston handled 3.35 million TEUs, up 2% from 3.27 million TEUs during the same period last year. Loaded container imports rose 16% year over year in September to 174,189 TEUs, while loaded exports increased 2% to 132,009 TEUs. Port Houston CEO Charlie Jenkins said September’s performance represented a significant improvement after a challenging start to 2026. “We had a pretty rough start to the year,” Jenkins told commissioners, adding that recent cargo activity had improved the port’s outlook heading into the final quarter. Ryan Mariacher, the port’s chief operations officer, said container activity at Bayport and Barbours Cut continued to benefit from stronger import demand, while export volumes began accelerating toward the end of September. “The growth at Bayport and Barber’s Cut for the month was largely driven by imports,” Mariacher said during the meeting. He added that the second half of September and first half of October brought a long-anticipated surge in export volumes. Port officials said ocean carriers and shippers expect the stronger export activity to continue in the near term, potentially supporting additional freight movements through Houston’s container terminals. Houston container imports outperform national trends John Mosley, Port Houston’s chief commercial officer, said import demand remained unusually strong during the third quarter, traditionally the peak shipping season as retailers prepare for year-end sales. “This year has been unusually high with Port Houston outpacing the rest of the country,” Mosley told commissioners. He cited National Retail Federation Port Tracker data showing Houston among the strongest-performing major U.S. container gateways for import growth. Loaded imports through Port Houston increased 6% year to date through September, compared with a much weaker national import market, according to Mosley. The port’s September figures showed loaded imports increasing to 1.56 million TEUs through the first nine months, compared with 1.47 million TEUs during the same period in 2025. Mosley said the port was cautiously optimistic that exports would continue strengthening during the fourth quarter. Port officials have been meeting with major international ocean carriers to discuss additional shipping capacity, improved terminal throughput and opportunities to expand services. Eric Casey, Port Houston’s chief operating officer, said the port launched a new container and refrigerated cargo service in September and was negotiating additional services. “Commercially, we started a new container and reefer service in September, and more services are being negotiated today, so we are growing,” Casey said. The port’s September 2026 comparative statistics also showed a 31% increase in empty container exports, to 55,963 TEUs, compared with 42,782 TEUs a year earlier. The increase in empty equipment movements underscores the importance of container repositioning as ocean carriers balance import and export demand. Vessel traffic increases as cargo volumes rebound Port Houston recorded 750 vessel movements at its public terminals during September, up 10% from 681 a year earlier. Through September, vessel movements totaled 6,562, an 8% increase from 6,096 during the same period last year. Barge activity also increased, with 181 movements in September, up 23% year over year. The higher vessel activity coincided with stronger cargo throughput at the port’s public terminals, where total revenue tonnage increased 15% year over year to 4.88 million tons. Year-to-date cargo tonnage reached 42.37 million tons, up 2% from the same period in 2025. Port officials also highlighted the completion of Port Houston-led portions of Project 11, the Houston Ship Channel expansion project designed to accommodate larger vessels and improve navigation. The project widened a section of the Houston Ship Channel through Galveston Bay from 530 feet to 700 feet, allowing larger ships to move more efficiently and reducing daylight navigation restrictions. Jenkins said Port Houston was also advancing planning for Project 12, the next major expansion of the Houston Ship Channel, while considering ways to accelerate individual improvements to maintain the competitiveness of its container terminals. He noted that Port Houston previously accelerated channel improvements serving Bayport and Barbours Cut rather than waiting for the broader federal project schedule. Steel imports surge 181% in September Beyond containers, Port Houston reported a sharp increase in steel shipments, reflecting stronger activity tied to construction, manufacturing and energy infrastructure projects. Steel imports totaled 539,993 tons in September, up 181% from 192,351 tons a year earlier. Combined steel imports and exports exceeded 581,000 tons, the port’s strongest monthly steel performance since May 2022, according to operations officials. Port Houston also reported its first consecutive months exceeding 500,000 tons of steel in more than a decade. General cargo volumes have also increased, with officials pointing to rail-bound project cargo, including large electrical equipment and infrastructure components, as an important contributor to growth. September cargo statistics at a glance Why it matters: Stronger container volumes at Port Houston signal continued demand for Gulf Coast freight transportation and could support additional trucking, warehousing and intermodal activity. The post Port Houston container volumes jump 11% as imports surge in September appeared first on FreightWaves.

Transportation

Werner Enterprises sees cost headwinds lingering into Q1

Executives from Werner Enterprises outlined a path to double-digit truckload margins, but said cost headwinds will likely limit progress over the next two quarters. Werner (NASDAQ: WERN) reported third-quarter adjusted earnings per share of 16 cents after the market closed on Tuesday. The result was in line with a profit warning issued earlier in the month, calling for adjusted EPS of 15 to 16 cents versus the 36-cent consensus estimate at the time. Consolidated revenue of $951 million was 23% higher year over year and at the top end of management’s revised outlook ($946 million to $951 million). The increase was largely due to higher fuel surcharges and the January acquisition of dedicated carrier FirstFleet. EPS bridge from Q3 to Q4 Sequential cost increases from elevated diesel fuel prices, higher driver procurement expenses and a reserve adjustment for prior claims were an 18-cent EPS drag on the third quarter. Gains on asset sales increased y/y from $4.5 million to $8 million, providing a 4-cent tailwind. (The company booked an adjusted net loss of 3 cents per share in the 2025 third quarter.) Werner said some costs, like driver recruiting and training, were front-loaded expenses incurred ahead of a revenue offset. For instance, it had to bear the costs of adding 130 dedicated trucks and drivers throughout the quarter, even though the revenue stream didn’t begin until the end of the period. “We made the deliberate decision to accelerate investments in driver recruiting and onboarding to capture rising customer demand and support fleet expansion as industry capacity tightens,” said Chairman and CEO Derek Leathers. “We remain confident in our trajectory and our ability to capitalize on the early stages of this freight upcycle.” However, it also said some cost headwinds will linger into the first quarter. It provided a soft guide for “modest sequential [EPS] improvement” in the fourth quarter (from the 16-cent result in the third quarter). But the result will probably be materially below the current 38-cent fourth-quarter consensus estimate. Approximately one third of the 18-cent third-quarter EPS drag was tied to driver recruiting and sign-on bonuses, and does not represent “structural labor inflation,” management said. The remaining 12 cents stemmed from fuel and insurance claims, which should largely dissipate in the fourth quarter. However, lower gains on sale (guided to total just $1.7 million), higher interest expense and a higher tax rate are additional headwinds. Better pricing and a slightly larger fleet to accommodate peak season demand will provide some offsets. Truckload fuel surcharges operate on a one-week lag. Diesel prices were up sequentially in nine of the 13 weeks of the third quarter. By month, retail diesel prices dipped 1% sequentially in July, but increased 10% sequentially in August and another 15% in September. The near-term headwind will become an earnings tailwind when diesel prices revert. Other Q3 takeaways The company’s dedicated segment (81% of its total truck fleet) reported a 52% y/y increase in revenue (ex-fuel) as the average truck count was up 44% y/y to nearly 7,000 units and revenue per truck per week (ex-fuel) increased 6% y/y. (The FirstFleet deal added over 2,400 tractors and $615 million in annual revenue.) Dedicated revenue per truck per week is now expected to increase by 4 to 5% y/y for full-year 2026, an increase from the prior outlook for a 3-to-5% increase. The one-way unit again saw big gains in utilization following a restructuring earlier in the year, which included exiting non-profitable accounts and repurposing under-utilized equipment. One-way revenue was down 15% y/y (ex-fuel) as the average truck count declined 37% y/y. Revenue per truck per week (ex-fuel) increased 34% y/y as miles per truck increased 22% and revenue per total mile (ex-fuel) increased 10%. The rate-per-mile metric was negatively impacted by a 116-mile increase in length of haul. (Longer hauls usually accompany lower per-mile rates.) Guidance for the one-way fleet again calls for a 10-to-13% y/y increase in revenue per total mile during the fourth quarter. Roughly 60% of the one-way revenue book renews in the first half of 2027. Management is eyeing double-digit increases on many of these renewals. One-way saw more than 800 basis points of y/y margin improvement in the quarter (actual margin not disclosed). Werner is again looking to grow this fleet. The TL unit recorded $714 million in combined revenue, a 37% y/y increase (up 28% y/y excluding fuel surcharges). A 95.9% adjusted operating ratio (4.1% adjusted operating margin) was 220 bps better y/y, but 140 bps worse than the prior quarter. Management said the sequential cost headwinds represented a 200-bp drag. The company’s logistics unit reported a 7% y/y revenue decline to $216 million, but returned to profitability, posting a 0.4% adjusted operating margin. Truckload brokerage, which operates within the logistics unit, booked 600 bps of sequential operating margin improvement. (Werner does not disclose this subsegment’s margin results.) Why it matters? Werner’s third-quarter result shows the significant cost pressures carriers are currently facing—specifically rising diesel fuel prices and higher driver procurement costs. It signals that the industry’s recovery will not be linear, and that while carriers are raising rates, profitability is still being squeezed by early-upcycle cost inflation. More FreightWaves articles by Todd Maiden: Knight-Swift again eyes big rate increases as new bid season nears Heartland Express sees earnings turnaround in Q3 Werner Enterprises issues Q3 profit warning The post Werner Enterprises sees cost headwinds lingering into Q1 appeared first on FreightWaves.

Science

View all →
Science

A new survey of Canadian English shows what has changed in 50 years

Over the past 50 years, Canadian English has become more uniform across regions and has adopted many American terms and pronunciations, while the use of Canadian spellings has gained in popularity. These are the key results of a large-scale study by McGill researchers to update the Survey of Canadian English, initially done in 1972.

Science

How we rewrite memories of fallen artists—but not their art

What happens to our memories when we learn disturbing news about a beloved artist? New research from the University of South Florida finds that after a scandal, the brain tricks us: it reconciles a fallen artist with their adored art by rewriting our memories in two completely different directions.

Cricket

View all →
Cricket

++[Guarda dal diretta] Genoa Cricket and Football Club vs Venezia In diretta oggi Juventus – Inter, formazioni e dove vederla in TV, Full Live Coverage of Genoa Cricket and Football Club vs Venezia: Watch the Coppa Italia match live with full coverage on ESP

++[Guarda dal diretta] Genoa Cricket and Football Club vs Venezia In diretta oggi Juventus - Inter, formazioni e dove vederla in TV, Full Live Coverage of Genoa Cricket and Football Club vs Venezia: Watch the Coppa Italia match live with full coverage on ESP FC東京オフィシャルホームページ

Cricket

Sri Lanka make 430 to beat England after Brook’s 202

Sri Lanka make 430 to beat England after Brook's 202 BBCEngland vs Sri Lanka, ODI tri-series: Cricket score, reaction, video and analysis as Harry Brook's side lose astonishing match in Rawalpindi Sky SportsSri Lanka pull off a monumental ODI chase against England ICC

White Paper

View all →