Landstar System Reports First Quarter Revenue of $1.153B and Earnings per Share of $0.85 and Announces 11% Increase to Quarterly Dividend
Landstar System (NASDAQ: LSTR) reported first quarter 2025 results with revenue of $1.153 billion and earnings per share of $0.85, down from $1.32 in Q1 2024. The company identified a supply chain fraud in its international freight forwarding operations, resulting in a $4.8 million pre-tax charge ($0.10 per share). Despite challenging conditions, truck loads showed positive trends, marking the first time in 15 years that Q1 loads exceeded the previous Q4. The Board approved an 11% increase in quarterly dividend to $0.40 per share. During Q1, Landstar purchased 386,000 shares for $60.9 million and paid $83.3 million in dividends. The quarter was also impacted by elevated insurance and claim costs at 9.3% of BCO revenue, significantly above historical averages.
Landstar System (NASDAQ: LSTR) ha riportato i risultati del primo trimestre 2025 con un fatturato di 1,153 miliardi di dollari e utili per azione di 0,85 dollari, in calo rispetto a 1,32 dollari nel primo trimestre 2024. L'azienda ha individuato una frode nella catena di approvvigionamento nelle sue operazioni di spedizione internazionale, che ha comportato un addebito ante imposte di 4,8 milioni di dollari (0,10 dollari per azione). Nonostante le condizioni difficili, i carichi di camion hanno mostrato tendenze positive, segnando la prima volta in 15 anni che i carichi del primo trimestre hanno superato quelli del quarto trimestre precedente. Il Consiglio ha approvato un aumento dell'11% del dividendo trimestrale, portandolo a 0,40 dollari per azione. Durante il primo trimestre, Landstar ha acquistato 386.000 azioni per 60,9 milioni di dollari e ha pagato 83,3 milioni di dollari in dividendi. Il trimestre è stato inoltre influenzato da costi elevati di assicurazione e sinistri, pari al 9,3% dei ricavi BCO, significativamente superiori alle medie storiche.
Landstar System (NASDAQ: LSTR) reportó los resultados del primer trimestre de 2025 con ingresos de 1.153 millones de dólares y ganancias por acción de 0,85 dólares, una disminución respecto a los 1,32 dólares del primer trimestre de 2024. La compañía identificó un fraude en la cadena de suministro en sus operaciones de transporte internacional, lo que resultó en un cargo antes de impuestos de 4,8 millones de dólares (0,10 dólares por acción). A pesar de las condiciones difíciles, las cargas de camiones mostraron tendencias positivas, siendo la primera vez en 15 años que las cargas del primer trimestre superaron a las del cuarto trimestre anterior. La Junta aprobó un aumento del 11% en el dividendo trimestral, llevándolo a 0,40 dólares por acción. Durante el primer trimestre, Landstar compró 386,000 acciones por 60,9 millones de dólares y pagó 83,3 millones en dividendos. El trimestre también se vio afectado por costos elevados de seguros y reclamaciones, que representaron el 9,3% de los ingresos BCO, significativamente por encima de los promedios históricos.
Landstar System (NASDAQ: LSTR)은 2025년 1분기 실적을 발표하며 매출액 11억 5300만 달러와 주당순이익 0.85달러를 기록했으며, 이는 2024년 1분기의 1.32달러에서 감소한 수치입니다. 회사는 국제 화물 운송 업무에서 공급망 사기를 발견하여 세전 비용 480만 달러(주당 0.10달러)의 손실을 기록했습니다. 어려운 환경에도 불구하고 트럭 적재량은 긍정적인 추세를 보였으며, 15년 만에 처음으로 1분기 적재량이 이전 4분기보다 많았습니다. 이사회는 분기 배당금을 11% 인상하여 주당 0.40달러로 승인했습니다. 1분기 동안 Landstar는 38만 6천 주를 6090만 달러에 매입했고, 8330만 달러의 배당금을 지급했습니다. 또한 이번 분기는 BCO 매출의 9.3%에 달하는 높은 보험 및 청구 비용으로 인해 영향을 받았습니다. 이는 과거 평균을 크게 웃도는 수치입니다.
Landstar System (NASDAQ : LSTR) a annoncé ses résultats du premier trimestre 2025 avec un chiffre d'affaires de 1,153 milliard de dollars et un bénéfice par action de 0,85 dollar, en baisse par rapport à 1,32 dollar au premier trimestre 2024. L'entreprise a identifié une fraude dans sa chaîne d'approvisionnement au sein de ses opérations de transport international, entraînant une charge avant impôts de 4,8 millions de dollars (0,10 dollar par action). Malgré des conditions difficiles, les chargements de camions ont montré une tendance positive, marquant la première fois en 15 ans que les chargements du premier trimestre ont dépassé ceux du quatrième trimestre précédent. Le conseil d'administration a approuvé une augmentation de 11 % du dividende trimestriel à 0,40 dollar par action. Au cours du premier trimestre, Landstar a racheté 386 000 actions pour 60,9 millions de dollars et versé 83,3 millions de dollars de dividendes. Le trimestre a également été affecté par des coûts d'assurance et de sinistres élevés, représentant 9,3 % des revenus BCO, nettement supérieurs aux moyennes historiques.
Landstar System (NASDAQ: LSTR) meldete die Ergebnisse für das erste Quartal 2025 mit einem Umsatz von 1,153 Milliarden US-Dollar und einem Gewinn je Aktie von 0,85 US-Dollar, was einem Rückgang gegenüber 1,32 US-Dollar im ersten Quartal 2024 entspricht. Das Unternehmen entdeckte einen Betrugsfall in der Lieferkette bei seinen internationalen Speditionsgeschäften, was zu einer steuerlichen Belastung von 4,8 Millionen US-Dollar (0,10 US-Dollar je Aktie) führte. Trotz der schwierigen Bedingungen zeigten die LKW-Ladungen positive Trends und übertrafen zum ersten Mal seit 15 Jahren im ersten Quartal die des vorherigen vierten Quartals. Der Vorstand genehmigte eine 11%ige Erhöhung der Quartalsdividende auf 0,40 US-Dollar je Aktie. Im ersten Quartal kaufte Landstar 386.000 Aktien für 60,9 Millionen US-Dollar zurück und zahlte 83,3 Millionen US-Dollar an Dividenden. Das Quartal wurde zudem durch erhöhte Versicherungs- und Schadenskosten belastet, die 9,3% des BCO-Umsatzes ausmachten und deutlich über dem historischen Durchschnitt lagen.
- 11% increase in quarterly dividend to $0.40 per share
- First time in 15 years that Q1 truck loads exceeded previous Q4
- Strong balance sheet with $473M in cash and short-term investments
- 18% trailing twelve-month return on average shareholders' equity
- Power-only services revenue increased to $92M from $72M YoY
- $4.8M pre-tax charge due to supply chain fraud in international operations
- EPS declined to $0.85 from $1.32 YoY
- Revenue decreased to $1.153B from $1.171B YoY
- Operating income dropped to $39.4M from $60M YoY
- Elevated insurance and claim costs at 9.3% of BCO revenue vs 4.9% historical average
Insights
Landstar's Q1 results show revenue stability but significant profit compression due to insurance costs and fraud incident.
Landstar delivered Q1 revenue of
Two exceptional items significantly impacted profitability: a
Looking at operational metrics, truckload volumes showed unusual strength for the season. For the first time in 15 years, truck loads in Q1 exceeded the preceding Q4 levels, signaling potential market share gains despite the overall weak freight environment. The revenue per load decreased only marginally by
Segment analysis reveals shifts in Landstar's business mix: van equipment revenue declined to
The company maintains a strong balance sheet with
JACKSONVILLE, Fla., May 13, 2025 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported basic and diluted earnings per share (“EPS”) of
| 1Q 2025 | 1Q 2024 | ||||
| Revenue | $ | 1,152,502 | $ | 1,171,043 | |
| Gross profit | $ | 98,305 | $ | 113,902 | |
| Variable contribution | $ | 161,310 | $ | 168,240 | |
| Operating income | $ | 39,419 | $ | 59,961 | |
| Basic and diluted earnings per share | $ | 0.85 | $ | 1.32 | |
(1) Dollars above in thousands, except per share amounts.
(2) Please refer to the Consolidated Statements of Income and Reconciliation of Gross Profit to Variable Contribution included below.
As previously disclosed in Current Reports on Form 8-K filed with the U.S. Securities and Exchange Commission on April 2, 2025 (the “April 2nd 8-K”), and subsequently on April 25, 2025 (the “April 25th 8-K”), during the last week of the Company’s 2025 first quarter, Landstar identified a supply chain fraud relating to the Company’s international freight forwarding operations that does not involve its core North American truckload services. While investigation, remediation and collection efforts continue, the 2025 first quarter results include a
Landstar continues to return capital to stockholders through the Company’s stock purchase program and dividends. During the 2025 first quarter, Landstar purchased approximately 386,000 shares of its common stock at an aggregate cost of
Total revenue was
The number of loads hauled via truck declined
The April 25th 8-K announced that 2025 first quarter EPS was
Gross profit in the 2025 first quarter was
The Company’s balance sheet continues to be very strong, with cash and short-term investments of approximately
Landstar will provide a live webcast of its quarterly earnings conference call this morning at 8:30 a.m. ET. To access the webcast, visit www.investor.landstar.com; click on “Webcasts,” then click on “Landstar’s First Quarter 2025 Earnings Release Conference Call.” A slide presentation to accompany the webcast presentation is also available on Landstar’s investor relations website at https://investor.landstar.com/.
About Landstar:
Landstar System, Inc., is a technology-enabled, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market® under the symbol LSTR.
Non-GAAP Financial Measures:
In this earnings release and accompanying financial disclosures, the Company provides the following information that may be deemed non-GAAP financial measures: variable contribution and variable contribution margin. The Company believes variable contribution and variable contribution margin are useful measures of the variable costs that we incur at a shipment-by-shipment level attributable to our transportation network of third-party capacity providers and independent agents in order to provide services to our customers. The Company also believes that it is appropriate to present each of the financial measures that may be deemed a non-GAAP financial measure, as referred to above, for the following reasons: (1) disclosure of these matters will allow investors to better understand the underlying trends in the Company’s financial condition and results of operations; (2) this information will facilitate comparisons by investors of the Company’s results as compared to the results of peer companies; and (3) management considers this financial information in its decision making.
Forward Looking Statements Disclaimer:
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements.” This press release contains forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “expects,” “plans,” “predicts,” “may,” “should,” “could,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: U.S. trade relationships; an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; the impact of the Russian conflict with Ukraine on the operations of certain independent commission sales agents, including the Company’s largest such agent by revenue in the 2024 fiscal year; decreased demand for transportation services; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber and other information security incidents; dependence on key vendors; potential changes in taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; regulations requiring the purchase and use of zero-emission vehicles; intellectual property; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2024 fiscal year, described in Item 1A Risk Factors, and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.
| Landstar System, Inc. and Subsidiary | ||||||||||||
| Consolidated Statements of Income | ||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Thirteen Weeks Ended | ||||||||||||
| March 29, | March 30, | |||||||||||
| 2025 | 2024 | |||||||||||
| Revenue | $ | 1,152,502 | $ | 1,171,043 | ||||||||
| Investment income | 3,598 | 3,412 | ||||||||||
| Costs and expenses: | ||||||||||||
| Purchased transportation | 897,878 | 905,521 | ||||||||||
| Commissions to agents | 93,314 | 97,282 | ||||||||||
| Other operating costs, net of gains on asset sales/dispositions | 11,829 | 14,859 | ||||||||||
| Insurance and claims | 39,852 | 26,268 | ||||||||||
| Selling, general and administrative | 61,582 | 56,422 | ||||||||||
| Depreciation and amortization | 12,226 | 14,142 | ||||||||||
| Total costs and expenses | 1,116,681 | 1,114,494 | ||||||||||
| Operating income | 39,419 | 59,961 | ||||||||||
| Interest and debt (income) expense | (159 | ) | (1,611 | ) | ||||||||
| Income before income taxes | 39,578 | 61,572 | ||||||||||
| Income taxes | 9,772 | 14,476 | ||||||||||
| Net income | $ | 29,806 | $ | 47,096 | ||||||||
| Basic and diluted earnings per share | $ | 0.85 | $ | 1.32 | ||||||||
| Average basic and diluted shares outstanding | 35,203,000 | 35,750,000 | ||||||||||
| Dividends per common share | $ | 0.36 | $ | 0.33 | ||||||||
| Landstar System, Inc. and Subsidiary | |||||||||||||
| Consolidated Balance Sheets | |||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||
| (Unaudited) | |||||||||||||
| March 29, | December 28, | ||||||||||||
| 2025 | 2024 | ||||||||||||
| ASSETS | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 417,420 | $ | 515,018 | |||||||||
| Short-term investments | 56,016 | 51,619 | |||||||||||
| Trade accounts receivable, less allowance | |||||||||||||
| of | 703,181 | 683,841 | |||||||||||
| Other receivables, including advances to independent | |||||||||||||
| contractors, less allowance of | 48,433 | 47,160 | |||||||||||
| Other current assets | 16,571 | 22,229 | |||||||||||
| Total current assets | 1,241,621 | 1,319,867 | |||||||||||
| Operating property, less accumulated depreciation | |||||||||||||
| and amortization of | 297,517 | 311,345 | |||||||||||
| Goodwill | 40,881 | 40,933 | |||||||||||
| Other assets | 136,159 | 141,166 | |||||||||||
| Total assets | $ | 1,716,178 | $ | 1,813,311 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
| Current liabilities: | |||||||||||||
| Cash overdraft | $ | 59,359 | $ | 61,033 | |||||||||
| Accounts payable | 389,592 | 383,625 | |||||||||||
| Current maturities of long-term debt | 32,024 | 33,116 | |||||||||||
| Insurance claims | 37,638 | 40,511 | |||||||||||
| Dividends payable | - | 70,632 | |||||||||||
| Other current liabilities | 93,701 | 84,237 | |||||||||||
| Total current liabilities | 612,314 | 673,154 | |||||||||||
| Long-term debt, excluding current maturities | 61,944 | 69,191 | |||||||||||
| Insurance claims | 75,436 | 62,842 | |||||||||||
| Deferred income taxes and other non-current liabilities | 35,729 | 35,685 | |||||||||||
| Shareholders' equity: | |||||||||||||
| Common stock, | |||||||||||||
| shares, issued 68,581,772 and 68,559,269 | 686 | 686 | |||||||||||
| Additional paid-in capital | 257,296 | 255,260 | |||||||||||
| Retained earnings | 2,877,034 | 2,859,916 | |||||||||||
| Cost of 33,635,595 and 33,243,196 shares of common | |||||||||||||
| stock in treasury | (2,193,265 | ) | (2,131,413 | ) | |||||||||
| Accumulated other comprehensive loss | (10,996 | ) | (12,010 | ) | |||||||||
| Total shareholders' equity | 930,755 | 972,439 | |||||||||||
| Total liabilities and shareholders' equity | $ | 1,716,178 | $ | 1,813,311 | |||||||||
| Landstar System, Inc. and Subsidiary | |||||||||||
| Supplemental Information | |||||||||||
| (Unaudited) | |||||||||||
| Thirteen Weeks Ended | |||||||||||
| March 29, | March 30, | ||||||||||
| 2025 | 2024 | ||||||||||
| Revenue generated through (in thousands): | |||||||||||
| Truck transportation | |||||||||||
| Truckload: | |||||||||||
| Van equipment | $ | 594,795 | $ | 628,304 | |||||||
| Unsided/platform equipment | 340,408 | 343,045 | |||||||||
| Less-than-truckload | 22,436 | 25,617 | |||||||||
| Other truck transportation (1) | 92,079 | 71,966 | |||||||||
| Total truck transportation | 1,049,718 | 1,068,932 | |||||||||
| Rail intermodal | 17,487 | 22,695 | |||||||||
| Ocean and air cargo carriers | 65,637 | 54,074 | |||||||||
| Other (2) | 19,660 | 25,342 | |||||||||
| $ | 1,152,502 | $ | 1,171,043 | ||||||||
| Revenue on loads hauled via BCO Independent Contractors (3) | |||||||||||
| included in total truck transportation | $ | 427,057 | $ | 452,561 | |||||||
| Number of loads: | |||||||||||
| Truck transportation | |||||||||||
| Truckload: | |||||||||||
| Van equipment | 288,063 | 299,014 | |||||||||
| Unsided/platform equipment | 117,245 | 117,947 | |||||||||
| Less-than-truckload | 35,580 | 40,233 | |||||||||
| Other truck transportation (1) | 44,012 | 33,526 | |||||||||
| Total truck transportation | 484,900 | 490,720 | |||||||||
| Rail intermodal | 6,150 | 7,150 | |||||||||
| Ocean and air cargo carriers | 9,120 | 8,720 | |||||||||
| 500,170 | 506,590 | ||||||||||
| Loads hauled via BCO Independent Contractors (3) | |||||||||||
| included in total truck transportation | 194,070 | 208,740 | |||||||||
| Revenue per load: | |||||||||||
| Truck transportation | |||||||||||
| Truckload: | |||||||||||
| Van equipment | $ | 2,065 | $ | 2,101 | |||||||
| Unsided/platform equipment | 2,903 | 2,908 | |||||||||
| Less-than-truckload | 631 | 637 | |||||||||
| Other truck transportation (1) | 2,092 | 2,147 | |||||||||
| Total truck transportation | 2,165 | 2,178 | |||||||||
| Rail intermodal | 2,843 | 3,174 | |||||||||
| Ocean and air cargo carriers | 7,197 | 6,201 | |||||||||
| Revenue per load on loads hauled via BCO Independent Contractors (3) | $ | 2,201 | $ | 2,168 | |||||||
| Revenue by capacity type (as a % of total revenue): | |||||||||||
| Truck capacity providers: | |||||||||||
| BCO Independent Contractors (3) | 37 | % | 39 | % | |||||||
| Truck Brokerage Carriers | 54 | % | 53 | % | |||||||
| Rail intermodal | 2 | % | 2 | % | |||||||
| Ocean and air cargo carriers | 6 | % | 5 | % | |||||||
| Other | 2 | % | 2 | % | |||||||
| March 29, | March 30, | ||||||||||
| 2025 | 2024 | ||||||||||
| Truck Capacity Providers | |||||||||||
| BCO Independent Contractors (3) | 7,871 | 8,619 | |||||||||
| Truck Brokerage Carriers: | |||||||||||
| Approved and active (4) | 47,323 | 45,919 | |||||||||
| Other approved | 33,275 | 26,320 | |||||||||
| 80,598 | 72,239 | ||||||||||
| Total available truck capacity providers | 88,469 | 80,858 | |||||||||
| Trucks provided by BCO Independent Contractors (3) | 8,620 | 9,410 | |||||||||
| (1) | Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee. | ||||||||||
| (2) | Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro. | ||||||||||
| (3) | BCO Independent Contractors are independent contractors who provide truck capacity to the Company under exclusive lease arrangements. | ||||||||||
| (4) | Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end. | ||||||||||
| Landstar System, Inc. and Subsidiary | ||||||||||||
| Reconciliation of Gross Profit to Variable Contribution | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Thirteen Weeks Ended | ||||||||||||
| March 29, | March 30, | |||||||||||
| 2025 | 2024 | |||||||||||
| Revenue | $ | 1,152,502 | $ | 1,171,043 | ||||||||
| Costs of revenue: | ||||||||||||
| Purchased transportation | 897,878 | 905,521 | ||||||||||
| Commissions to agents | 93,314 | 97,282 | ||||||||||
| Variable costs of revenue | 991,192 | 1,002,803 | ||||||||||
| Trailing equipment depreciation | 6,977 | 6,897 | ||||||||||
| Information technology costs (1) | 3,675 | 5,804 | ||||||||||
| Insurance-related costs (2) | 40,524 | 26,778 | ||||||||||
| Other operating costs | 11,829 | 14,859 | ||||||||||
| Other costs of revenue | 63,005 | 54,338 | ||||||||||
| Total costs of revenue | 1,054,197 | 1,057,141 | ||||||||||
| Gross profit | $ | 98,305 | $ | 113,902 | ||||||||
| Gross profit margin | 8.5 | % | 9.7 | % | ||||||||
| Plus: other costs of revenue | 63,005 | 54,338 | ||||||||||
| Variable contribution | $ | 161,310 | $ | 168,240 | ||||||||
| Variable contribution margin | 14.0 | % | 14.4 | % | ||||||||
| (1) | Includes costs of revenue incurred related to internally developed software including ASC 350-40 amortization, implementation costs, hosting costs and other support costs utilized to support the Company’s independent commission sales agents, third party capacity providers, and customers, included as a portion of depreciation and amortization and of selling, general and administrative in the Company's Consolidated Statements of Income. | |||||||||||
| (2) | Primarily includes (i) insurance premiums paid for commercial auto liability, general liability, cargo and other lines of coverage related to the transportation of freight; (ii) the related cost of claims incurred under those programs; and (iii) brokerage commissions and other fees incurred relating to the administration of insurance programs available to BCO Independent Contractors that are reinsured by the Company, which are included in selling, general and administrative in the Company’s Consolidated Statements of Income. | |||||||||||
Contact: Jim Todd Chief Financial Officer 904-398-9400
FAQ
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