Landstar System Reports Second Quarter Revenue of $1.211b and Earnings Per Share of $1.20

Rhea-AI Summary

Landstar System (NASDAQ:LSTR) reported Q2 2025 financial results with revenue of $1.211 billion and earnings per share of $1.20, compared to $1.225 billion and $1.48 EPS in Q2 2024. The company saw a 3.2% sequential increase in truck revenue per load versus Q1 2025.

Key operational metrics include truck transportation revenue of $1.118 billion (92% of total revenue), with van equipment revenue at $591 million and unsided/platform equipment revenue at $401 million. The company maintained stable BCO truck count and returned capital through share repurchases of $42.4 million and declared a quarterly dividend of $0.40 per share.

Positive

• 3.2% sequential increase in truck revenue per load from Q1 2025
• Strong balance sheet with $426 million in cash and short-term investments
• 17% return on average shareholders' equity
• Stable BCO truck count, best performance since Q2 2022
• Continued capital return through $42.4M in share repurchases and $0.40 quarterly dividend

Negative

• Revenue decreased 1.1% year-over-year to $1.211B from $1.225B
• EPS declined 19% to $1.20 from $1.48 year-over-year
• Operating income dropped 17.3% to $56.28M from $68.06M
• Gross profit decreased 8.9% to $109.26M from $119.99M
• Total truck loads declined 1.5% compared to Q2 2024

Insights

Transportation Industry Financial Analyst

Landstar reports mixed Q2 results with EPS declining 19% YoY to $1.20 amid challenging freight environment, though showing sequential improvement.

Landstar System reported $1.211 billion in Q2 2025 revenue, representing a slight 1.1% year-over-year decline from $1.225 billion in Q2 2024. More concerning is the significant drop in profitability, with earnings per share falling 19% to $1.20 from $1.48 in the same quarter last year. This decline stems primarily from compressed margins, with gross profit decreasing by 8.9% to $109.3 million and operating income falling 17.3% to $56.3 million.

Looking deeper at operational metrics, we see some interesting trends developing. Truck transportation, comprising 92% of total revenue, actually increased 1.1% year-over-year to $1.118 billion. This growth was driven by a 2.6% increase in truck revenue per load, partially offset by a 1.5% decrease in load volume. Particularly notable is the 5.2% growth in unsided/platform equipment revenue to $401 million and the 29.6% increase in other truck transportation (primarily power-only services) to $101 million.

However, these gains were counterbalanced by weakness in van equipment revenue (down 4.5% to $591 million) and a sharp 22.3% decline in revenue from rail, air, and ocean cargo carriers to $73 million. The company also faced pressure from rising insurance and claims costs, which increased despite the overall revenue decline.

From a capital allocation perspective, Landstar continues to return significant cash to shareholders. During Q2, the company repurchased 300,141 shares at an aggregate cost of $42.4 million and declared a quarterly dividend of $0.40 per share, representing a 21.2% increase from the $0.33 dividend in Q2 2024. With $426 million in cash and short-term investments, Landstar maintains a strong balance sheet while delivering a trailing twelve-month return on equity of 17%.

CEO Frank Lonegro highlighted the sequential improvement in truck revenue per load (up 3.2% from Q1 2025) and the stabilization in BCO truck count as positive developments. However, the overall results reflect the continuing challenges in the freight transportation environment, with margin pressure persisting despite some revenue resilience in key segments.

JACKSONVILLE, Fla., July 29, 2025 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported basic and diluted earnings per share (“EPS”) of $1.20 in the 2025 second quarter on revenue of $1.211 billion. “The Landstar team of independent business owners and employees performed admirably during the second quarter, highlighted by continuing strong performance by our services hauled by unsided/platform equipment,” said Landstar President and Chief Executive Officer Frank Lonegro. “I was encouraged that Landstar achieved a 3.2% sequential increase in truck revenue per load compared to the 2025 first quarter, outperforming typical seasonality. In addition, I was excited to see our net BCO truck count remain essentially flat sequentially, the best performance we’ve seen since the second quarter of 2022. Our network of Landstar BCOs, agents and employees continue to be laser-focused on safety, security and delivering great service to our customers in what continues to be a dynamic and challenging freight transportation environment.”

	2Q 2025			2Q 2024
Revenue	$	1,211,383		$	1,225,005
Gross profit	$	109,261		$	119,996
Variable contribution	$	170,450		$	175,131
Operating income	$	56,280		$	68,059
Basic and diluted earnings per share	$	1.20		$	1.48

(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.

Landstar continues to return capital to stockholders through the Company’s stock purchase program and dividends. During the 2025 second quarter, Landstar purchased 300,141 shares of its common stock at an aggregate cost of $42.4 million, bringing the total number of common shares purchased during the twenty-six week period ended June 28, 2025, to 686,459 shares at an aggregate cost of approximately $103.3 million. The Company is currently authorized to purchase up to an additional 1,861,522 shares of the Company’s common stock under its longstanding share purchase program.  Landstar also announced today that its Board of Directors declared a quarterly dividend of $0.40 per share payable on September 9, 2025, to stockholders of record as of the close of business on August 19, 2025.

Total revenue was $1,211 million in the 2025 second quarter, compared to $1,225 million in the 2024 second quarter. Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2025 second quarter was $1,118 million, or 92% of revenue, compared to $1,106 million, or 90% of revenue, in the 2024 second quarter. Truckload transportation revenue hauled via van equipment in the 2025 second quarter was $591 million, compared to $619 million in the 2024 second quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2025 second quarter was $401 million, compared to $381 million in the 2024 second quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2025 second quarter was $101 million, compared to $78 million in the 2024 second quarter. Revenue hauled by rail, air and ocean cargo carriers was $73 million, or 6% of revenue, in the 2025 second quarter, compared to $94 million, or 8% of revenue, in the 2024 second quarter.

Truck revenue per load increased 2.6% in the 2025 second quarter as compared to the 2024 second quarter, while the number of loads hauled via truck declined 1.5% over the same period.

Gross profit in the 2025 second quarter was $109 million, and variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2025 second quarter was $170 million. Gross profit in the 2024 second quarter was $120 million, and variable contribution in the 2024 second quarter was $175 million. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2025 and 2024 second quarters and year-to-date periods are provided in the Company’s accompanying financial disclosures.

The Company’s balance sheet continues to be very strong, with cash and short-term investments of approximately $426 million as of June 28, 2025. Trailing twelve-month return on average shareholders’ equity was 17%, and return on invested capital, representing net income divided by the sum of average equity plus average debt, was 16%. 

Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 4:30 p.m. ET. To access the webcast, visit www.investor.landstar.com; click on “Webcasts,” then click on “Landstar’s Second 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: decreased demand for transportation services; U.S. trade relationships and potential or imposed tariffs; 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; 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; acquisitions and investments; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2024 fiscal year, described in Part I, Item 1A Risk Factors, Landstar’s Form 10-Q for the 2025 first quarter, described in Part II, 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)
			Twenty-Six Weeks Ended							Thirteen Weeks Ended
			June 28,			June 29,				June 28,			June 29,
			2025				2024			2025				2024
Revenue			$	2,363,885		$	2,396,048			$	1,211,383		$	1,225,005
Investment income				7,327			7,066				3,729			3,654
Costs and expenses:
	Purchased transportation			1,839,289			1,855,579				941,411			950,058
	Commissions to agents			192,836			197,098				99,522			99,816
	Other operating costs, net of gains on asset sales/dispositions			31,424			28,994				19,595			14,135
	Insurance and claims			70,301			53,432				30,449			27,164
	Selling, general and administrative			117,288			111,361				55,706			54,939
	Depreciation and amortization			24,375			28,630				12,149			14,488
		Total costs and expenses		2,275,513			2,275,094				1,158,832			1,160,600
Operating income				95,699			128,020				56,280			68,059
Interest and debt expense (income)				539			(3,286	)			698			(1,675	)
Income before income taxes				95,160			131,306				55,582			69,734
Income taxes				23,461			31,586				13,689			17,110
Net income			$	71,699		$	99,720			$	41,893		$	52,624
Basic and diluted earnings per share			$	2.05		$	2.79			$	1.20		$	1.48
Average basic and diluted shares outstanding				35,037,000			35,702,000				34,870,000			35,654,000
Dividends per common share			$	0.76		$	0.66			$	0.40		$	0.33

Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
				June 28,				December 28,
					2025				2024
ASSETS
Current assets:
	Cash and cash equivalents			$	359,237			$	515,018
	Short-term investments				66,935				51,619
	Trade accounts receivable, less allowance
		of $12,284 and $12,904			717,249				683,841
	Other receivables, including advances to independent
		contractors, less allowance of $21,995 and $17,812			48,781				47,160
	Other current assets				45,144				22,229
		Total current assets			1,237,346				1,319,867
Operating property, less accumulated depreciation
			and amortization of $464,538 and $456,547		287,500				311,345
Goodwill					41,399				40,933
Other assets					133,399				141,166
Total assets				$	1,699,644			$	1,813,311
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Cash overdraft			$	58,141			$	61,033
	Accounts payable				401,849				383,625
	Current maturities of long-term debt				30,747				33,116
	Insurance claims				36,797				40,511
	Dividends payable				-				70,632
	Other current liabilities				91,605				84,237
		Total current liabilities			619,139				673,154
Long-term debt, excluding current maturities					54,677				69,191
Insurance claims					73,268				62,842
Deferred income taxes and other non-current liabilities					30,734				35,685
Shareholders' equity:
	Common stock, $0.01 par value, authorized 160,000,000
		shares, issued 68,589,418 and 68,559,269			686				686
	Additional paid-in capital				258,915				255,260
	Retained earnings				2,905,011				2,859,916
	Cost of 33,935,882 and 33,243,196 shares of common
		stock in treasury			(2,235,622	)			(2,131,413	)
	Accumulated other comprehensive loss				(7,164	)			(12,010	)
		Total shareholders' equity			921,826				972,439
Total liabilities and shareholders' equity				$	1,699,644			$	1,813,311

	Landstar System, Inc. and Subsidiary
	Supplemental Information
	(Unaudited)
					Twenty-Six Weeks Ended									Thirteen Weeks Ended
					June 28,				June 29,					June 28,				June 29,
						2025				2024					2025				2024
Revenue generated through (in thousands):
	Truck transportation
		Truckload:
			Van equipment		$	1,186,071			$	1,247,244				$	591,276			$	618,940
			Unsided/platform equipment			741,270				723,995					400,862				380,950
		Less-than-truckload				47,749				53,707					25,313				28,090
		Other truck transportation(1)				192,766				149,675					100,687				77,709
			Total truck transportation			2,167,856				2,174,621					1,118,138				1,105,689
	Rail intermodal					39,515				45,002					22,028				22,307
	Ocean and air cargo carriers					116,426				125,380					50,789				71,306
	Other(2)					40,088				51,045					20,428				25,703
					$	2,363,885			$	2,396,048				$	1,211,383			$	1,225,005
	Revenue on loads hauled via BCO Independent Contractors(3)
		included in total truck transportation			$	888,489			$	918,071				$	461,432			$	465,510
Number of loads:
	Truck transportation
		Truckload:
			Van equipment			572,154				599,973					284,091				300,959
			Unsided/platform equipment			246,241				244,407					128,996				126,460
		Less-than-truckload				76,830				82,850					41,250				42,617
		Other truck transportation(1)				90,185				71,440					46,173				37,914
			Total truck transportation			985,410				998,670					500,510				507,950
	Rail intermodal					13,970				14,380					7,820				7,230
	Ocean and air cargo carriers					16,560				17,240					7,440				8,520
						1,015,940				1,030,290					515,770				523,700
	Loads hauled via BCO Independent Contractors(3)
		included in total truck transportation				398,000				422,300					203,930				213,560
Revenue per load:
	Truck transportation
		Truckload:
			Van equipment		$	2,073			$	2,079				$	2,081			$	2,057
			Unsided/platform equipment			3,010				2,962					3,108				3,012
		Less-than-truckload				621				648					614				659
		Other truck transportation(1)				2,137				2,095					2,181				2,050
			Total truck transportation			2,200				2,178					2,234				2,177
	Rail intermodal					2,829				3,129					2,817				3,085
	Ocean and air cargo carriers					7,031				7,273					6,826				8,369
	Revenue period on loads hauled via BCO Independent Contractors(3)				$	2,232			$	2,174				$	2,263			$	2,180
Revenue by capacity type (as a % of total revenue):
	Truck capacity providers:
		BCO Independent Contractors(3)				38	%			38	%				38	%			38	%
		Truck Brokerage Carriers				54	%			52	%				54	%			52	%
	Rail intermodal					2	%			2	%				2	%			2	%
	Ocean and air cargo carriers					5	%			5	%				4	%			6	%
	Other					2	%			2	%				2	%			2	%
														June 28,				June 29,
															2025				2024
Truck Capacity Providers:
	BCO Independent Contractors(3)														7,844				8,385
	Truck Brokerage Carriers:
	Approved and active(4)														41,842				45,382
	Other approved														27,672				25,450
															69,514				70,832
	Total available truck capacity providers														77,358				79,217
	Trucks provided by BCO Independent Contractors(3)														8,611				9,180
(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)
			Twenty-Six Weeks Ended								Thirteen Weeks Ended
			June 28,				June 29,				June 28,				June 29,
				2025				2024				2025				2024
Revenue			$	2,363,885			$	2,396,048			$	1,211,383			$	1,225,005
Costs of revenue:
		Purchased transportation		1,839,289				1,855,579				941,411				950,058
		Commissions to agents		192,836				197,098				99,522				99,816
	Variable costs of revenue			2,032,125				2,052,677				1,040,933				1,049,874
		Trailing equipment depreciation		13,844				13,834				6,867				6,937
		Information technology costs(1)		7,609				11,986				3,934				6,182
		Insurance-related costs(2)		71,317				54,659				30,793				27,881
		Other operating costs		31,424				28,994				19,595				14,135
	Other costs of revenue			124,194				109,473				61,189				55,135
	Total costs of revenue			2,156,319				2,162,150				1,102,122				1,105,009
Gross profit			$	207,566			$	233,898			$	109,261			$	119,996
Gross profit margin				8.8	%			9.8	%			9.0	%			9.8	%
	Plus: other costs of revenue			124,194				109,473				61,189				55,135
Variable contribution			$	331,760			$	343,371			$	170,450			$	175,131
Variable contribution margin				14.0	%			14.3	%			14.1	%			14.3	%
(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

What was Landstar's (LSTR) earnings per share in Q2 2025?

Landstar reported basic and diluted earnings per share of $1.20 in Q2 2025, down from $1.48 in Q2 2024.

How much revenue did Landstar generate in Q2 2025?

Landstar generated total revenue of $1.211 billion in Q2 2025, slightly down from $1.225 billion in Q2 2024.

What was Landstar's truck transportation revenue in Q2 2025?

Truck transportation revenue was $1.118 billion, representing 92% of total revenue, compared to $1.106 billion in Q2 2024.

How much cash does Landstar have on its balance sheet?

As of June 28, 2025, Landstar had $426 million in cash and short-term investments.

What dividend did Landstar declare for Q2 2025?

Landstar declared a quarterly dividend of $0.40 per share, payable on September 9, 2025, to stockholders of record as of August 19, 2025.

How many shares did Landstar repurchase in Q2 2025?

Landstar purchased 300,141 shares at an aggregate cost of $42.4 million during Q2 2025.