Landstar System Reports Third Quarter Results

Rhea-AI Summary

Landstar (NASDAQ: LSTR) reported 3Q 2025 results on Oct 28, 2025: revenue $1,205.4M vs $1,213.9M a year earlier and GAAP EPS $0.56 vs $1.41 in 3Q 2024. Management recorded three non-cash, non-recurring impairment charges that reduced EPS by $0.66, producing an Adjusted EPS $1.22 for the quarter.

Key operating figures: gross profit $111.1M, variable contribution $170.2M, operating income $26.3M (adjusted operating income $56.4M). Cash and short-term investments totaled about $434M. The Board declared a $0.40 quarterly dividend payable Dec 9, 2025, and repurchased 308,709 shares for $40.6M in the quarter.

Positive

• Adjusted EPS of $1.22 in 3Q 2025
• Cash and short-term investments of approximately $434M
• Repurchased 308,709 shares for $40.6M in 3Q 2025
• Declared quarterly dividend of $0.40 payable Dec 9, 2025
• Unsided/platform revenue rose to $386M from $370M year-over-year

Negative

• GAAP EPS declined to $0.56 from $1.41 in 3Q 2024
• Non-cash impairment charges reduced EPS by $0.66 in 3Q 2025
• Operating income fell to $26.3M from $63.1M year-over-year
• Total revenue declined to $1,205.4M from $1,213.9M year-over-year

Insights

Equity Research Analyst

Landstar reported near‑flat revenue, non‑cash impairments cut GAAP EPS; adjusted EPS largely intact, supported by buybacks and a dividend.

Revenue of $1,205 million was essentially unchanged year‑over‑year and gross profit and variable contribution fell approximately 1%, indicating stable core volumes but modest margin pressure. The company disclosed three non‑cash impairment charges totaling $30.1 million that reduced GAAP EPS from $1.22 (adjusted) to $0.56 for the quarter.

Balance sheet metrics remain solid with cash and short‑term investments of approximately $434 million and trailing twelve‑month return on average shareholders’ equity at 15%, while share repurchases of 308,709 shares for $40.6 million this quarter and a declared quarterly dividend of $0.40 per share show continued capital return. Watch the 10‑Q for details on the impairment drivers and the timeline for marketing the Mexican subsidiary; near‑term monitoring should focus on realized proceeds from any sale, the pace of integration or wind‑down of the legacy TMS, and whether adjusted results continue to track GAAP once non‑recurring items cease.

JACKSONVILLE, Fla., Oct. 28, 2025 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported its financial results for the 2025 third quarter. The Company reported total revenue of $1,205 million in the 2025 third quarter, compared to $1,214 million in the 2024 third quarter. Gross profit and variable contribution each also decreased approximately 1% in the 2025 third quarter compared to the 2024 third quarter. Landstar reported basic and diluted earnings per share (“EPS”) of $0.56 for the 2025 third quarter, compared to $1.41 in the 2024 third quarter. As further described below, and as previously disclosed in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on August 13, 2025, the 2025 third quarter included three non-cash, non-recurring items (the “Non-Cash Impairment Charges”) that adversely impacted financial results for the quarter. Excluding the impact of the Non-Cash Impairment Charges, Landstar would have reported 2025 third quarter EPS of $1.22 (“Adjusted EPS”). Reconciliations of EPS and Adjusted EPS for the 2025 and 2024 third quarters and year-to-date periods are provided in the Company’s accompanying financial disclosures.

“The Landstar team of independent business owners and employees executed admirably during the 2025 third quarter despite continued challenges in the overall economic environment for truck transportation services,” said Landstar President and Chief Executive Officer Frank Lonegro. “There were two notable highlights in the quarter.   First, Landstar continued to experience strong performance in our services hauled by unsided/platform equipment. Second, for the first time since the first quarter of 2022, the Company achieved sequential quarter-over-quarter growth in BCO truck count. Sustained strength over multiple quarters in our unsided/platform business, turning the corner on net BCO truck count and our laser focus on safety, security and delivering great service to our customers will be key elements we will leverage during the next upcycle.”

With respect to Landstar’s EPS performance in the 2025 third quarter, the Company conducted a strategic review of our operations during the 2025 third quarter focused on efforts to streamline our core operations and position the Company for future growth. Following this strategic review, Landstar made several important decisions that resulted in the Non-Cash Impairment Charges. In the aggregate, the Non-Cash Impairment Charges adversely impacted 2025 third quarter EPS by $0.66, consisting of:

• $16.1 million, or $0.35 per basic and diluted share, charged to goodwill and certain other assets in connection with the decision to actively market for sale Landstar Metro, S.A.P.I. de C.V., the Company’s wholly-owned Mexican operating subsidiary, principally engaged in intra-Mexico truck transportation services;
• $9.0 million, or $0.20 per basic and diluted share, related to the decision to select one of the Company’s transportation management systems as its primary such system for truckload brokerage services and, in connection with that decision, wind-down an alternative transportation management system currently in use by one of the Company’s operating subsidiaries; and
• $5.0 million, or $0.11 per basic and diluted share, relating to a non-controlling equity investment made by the Company in 2022 in a privately held technology start-up company.
  

Additional disclosure with respect to each of the Non-Cash Impairment Charges will be included in the Company’s Quarterly Report on Form 10-Q for the 2025 third quarter.

	3Q 2025		3Q 2024
Revenue	$	1,205,406	$	1,213,867
Gross profit	$	111,060	$	112,693
Variable contribution	$	170,241	$	171,359
Operating income	$	26,326	$	63,116
Adjusted operating income	$	56,430	$	63,116
Basic and diluted earnings per share (“EPS”)	$	0.56	$	1.41
Adjusted basic and diluted earnings per share (Adjusted EPS”)	$	1.22	$	1.41

(1)	Dollars above in thousands, except per share amounts.
(2)	Please refer to the Consolidated Statements of Income, the Reconciliation of Gross Profit to Variable Contribution, the Reconciliation of GAAP Operating Income to Adjusted Operating Income and the Reconciliation of GAAP EPS to Adjusted EPS included below.

Landstar continues to return capital to stockholders through the Company’s stock purchase program and dividends. During the 2025 third quarter, Landstar purchased 308,709 shares of its common stock at an aggregate cost of $40.6 million, bringing the total number of common shares purchased during the thirty-nine week period ended September 27, 2025, to 995,168 shares at an aggregate cost of approximately $143.9 million. The Company is currently authorized to purchase up to an additional 1,552,813 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 December 9, 2025, to stockholders of record as of the close of business on November 18, 2025.

Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2025 third quarter was $1,090 million, or 90% of revenue, compared to $1,091 million, or 90% of revenue, in the 2024 third quarter. Truckload transportation revenue hauled via van equipment in the 2025 third quarter was $583 million, compared to $604 million in the 2024 third quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2025 third quarter was $386 million, compared to $370 million in the 2024 third quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2025 third quarter was $96 million, compared to $93 million in the 2024 third quarter. Revenue hauled by rail, air and ocean cargo carriers was $96 million, or 8% of revenue, in the 2025 third quarter, compared to $97 million, or 8% of revenue, in the 2024 third quarter.

Both truck revenue per load and the number of loads hauled via truck in the 2025 third quarter were approximately equal as compared to the 2024 third quarter.

Gross profit in the 2025 third quarter was $111 million, and variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2025 third quarter was $170 million. Gross profit in the 2024 third quarter was $113 million, and variable contribution in the 2024 third quarter was $171 million. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2025 and 2024 third 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 $434 million as of September 27, 2025. Trailing twelve-month return on average shareholders’ equity was 15%. Return on invested capital, representing net income divided by the sum of average equity plus average debt, was 13%.

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 Third 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; adjusted operating income; and Adjusted EPS. 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 believes adjusted operating income and Adjusted EPS are useful measures given the non-cash, non-recurring nature of the Non-Cash Impairment Charges included in the Company’s 2025 third quarter results. 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)
			Thirty-Nine Weeks Ended							Thirteen Weeks Ended
			September 27,			September 28,				September 27,			September 28,
			2025				2024			2025				2024
Revenue			$	3,569,291		$	3,609,915			$	1,205,406		$	1,213,867
Investment income				10,620			10,988				3,293			3,922
Costs and expenses:
	Purchased transportation			2,775,761			2,799,384				936,472			943,805
	Commissions to agents			291,529			295,801				98,693			98,703
	Other operating costs, net of gains on asset sales/dispositions			46,996			44,138				15,572			15,144
	Insurance and claims			103,309			83,830				33,008			30,398
	Selling, general and administrative			174,303			162,613				57,015			51,252
	Depreciation and amortization			35,884			44,001				11,509			15,371
	Impairment of intangible and other assets			30,104			-				30,104			-
		Total costs and expenses		3,457,886			3,429,767				1,182,373			1,154,673
Operating income				122,025			191,136				26,326			63,116
Interest and debt expense (income)				756			(4,455	)			217			(1,169	)
Income before income taxes				121,269			195,591				26,109			64,285
Income taxes				30,206			45,838				6,745			14,252
Net income			$	91,063		$	149,753			$	19,364		$	50,033
Basic and diluted earnings per share			$	2.61		$	4.21			$	0.56		$	1.41
Average basic and diluted shares outstanding				34,885,000			35,608,000				34,581,000			35,420,000
Dividends per common share			$	1.16		$	1.02			$	0.40		$	0.36

Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
					September 27,				December 28,
						2025				2024
ASSETS
Current assets:
	Cash and cash equivalents				$	375,191			$	515,018
	Short-term investments					59,227				51,619
	Trade accounts receivable, less allowance
		of $12,471 and $12,904				695,983				683,841
	Other receivables, including advances to independent
		contractors, less allowance of $18,665 and $17,812				56,437				47,160
	Assets held for sale					13,856				-
	Other current assets					44,414				22,229
		Total current assets				1,245,108				1,319,867
Operating property, less accumulated depreciation
			and amortization of $468,683 and $456,547			262,466				311,345
Goodwill						34,005				40,933
Other assets						120,617				141,166
Total assets					$	1,662,196			$	1,813,311
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Cash overdraft				$	47,992			$	61,033
	Accounts payable					402,753				383,625
	Current maturities of long-term debt					29,428				33,116
	Insurance claims					43,889				40,511
	Dividends payable					-				70,632
	Contractor escrow					31,011				30,205
	Liabilities held for sale					4,247				-
	Other current liabilities					59,758				54,032
		Total current liabilities				619,078				673,154
Long-term debt, excluding current maturities						47,703				69,191
Insurance claims						67,567				62,842
Deferred income taxes and other non-current liabilities						39,144				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					260,501				255,260
	Retained earnings					2,910,514				2,859,916
	Cost of 34,244,716 and 33,243,196 shares of common
		stock in treasury				(2,276,252	)			(2,131,413	)
	Accumulated other comprehensive loss					(6,745	)			(12,010	)
		Total shareholders' equity				888,704				972,439
Total liabilities and shareholders' equity					$	1,662,196			$	1,813,311

Landstar System, Inc. and Subsidiary
Supplemental Information
(Unaudited)
					Thirty-Nine Weeks Ended									Thirteen Weeks Ended
					September 27,				September 28,					September 27,				September 28,
						2025				2024					2025				2024
Revenue generated through (in thousands):
	Truck transportation
		Truckload:
			Van equipment		$	1,769,440			$	1,851,237				$	583,369			$	603,993
			Unsided/platform equipment			1,127,276				1,093,753					386,006				369,758
		Less-than-truckload				72,229				77,902					24,480				24,195
		Other truck transportation (1)				288,807				242,853					96,041				93,178
			Total truck transportation			3,257,752				3,265,745					1,089,896				1,091,124
	Rail intermodal					63,183				65,981					23,668				20,979
	Ocean and air cargo carriers					188,696				201,729					72,270				76,349
	Other (2)					59,660				76,460					19,572				25,415
					$	3,569,291			$	3,609,915				$	1,205,406			$	1,213,867
	Revenue on loads hauled via BCO Independent Contractors included in total truck transportation (3)				$	1,345,852			$	1,374,915				$	457,363			$	456,844
Number of loads:
	Truck transportation
		Truckload:
			Van equipment			850,047				887,895					277,893				287,922
			Unsided/platform equipment			369,495				362,627					123,254				118,220
		Less-than-truckload				115,692				119,346					38,862				36,496
		Other truck transportation (1)				135,606				114,552					45,421				43,112
			Total truck transportation			1,470,840				1,484,420					485,430				485,750
	Rail intermodal					21,960				21,420					7,990				7,040
	Ocean and air cargo carriers					24,370				26,120					7,810				8,880
						1,517,170				1,531,960					501,230				501,670
		Loads hauled via BCO Independent Contractors included in total truck transportation (3)				597,010				620,640					199,010				198,340
Revenue per load:
	Truck transportation
		Truckload:
			Van equipment		$	2,082			$	2,085				$	2,099			$	2,098
			Unsided/platform equipment			3,051				3,016					3,132				3,128
		Less-than-truckload				624				653					630				663
		Other truck transportation (1)				2,130				2,120					2,114				2,161
			Total truck transportation			2,215				2,200					2,245				2,246
	Rail intermodal					2,877				3,080					2,962				2,980
	Ocean and air cargo carriers					7,743				7,723					9,254				8,598
	Revenue per load on loads hauled via BCO Independent Contractors (3)				$	2,254			$	2,215				$	2,298			$	2,303
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	%				52	%			52	%
	Rail intermodal					2	%			2	%				2	%			2	%
	Ocean and air cargo carriers					5	%			6	%				6	%			6	%
	Other					2	%			2	%				2	%			2	%
														September 27,				September 28,
															2025				2024
Truck Capacity Providers:
	BCO Independent Contractors (3)														7,827				8,266
	Truck Brokerage Carriers:
		Approved and active (4)													40,004				44,828
	Other approved														27,461				25,714
															67,465				70,542
	Total available truck capacity providers														75,292				78,808
	Trucks provided by BCO Independent Contractors (3)														8,618				9,027
(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)
			Thirty-Nine Weeks Ended								Thirteen Weeks Ended
			September 27,				September 28,				September 27,				September 28,
				2025				2024				2025				2024
Revenue			$	3,569,291			$	3,609,915			$	1,205,406			$	1,213,867
Costs of revenue:
		Purchased transportation		2,775,761				2,799,384				936,472				943,805
		Commissions to agents		291,529				295,801				98,693				98,703
	Variable costs of revenue			3,067,290				3,095,185				1,035,165				1,042,508
		Trailing equipment depreciation		20,829				20,764				6,985				6,930
		Information technology costs (1)		10,928				18,115				3,319				6,129
		Insurance-related costs (2)		104,622				85,122				33,305				30,463
		Other operating costs		46,996				44,138				15,572				15,144
	Other costs of revenue			183,375				168,139				59,181				58,666
	Total costs of revenue			3,250,665				3,263,324				1,094,346				1,101,174
Gross profit			$	318,626			$	346,591			$	111,060			$	112,693
Gross profit margin				8.9	%			9.6	%			9.2	%			9.3	%
	Plus: other costs of revenue			183,375				168,139				59,181				58,666
Variable contribution			$	502,001			$	514,730			$	170,241			$	171,359
Variable contribution margin				14.1	%			14.3	%			14.1	%			14.1	%

(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.

Landstar System, Inc. and Subsidiary
Reconciliation of GAAP Operating Income to Adjusted Operating Income
(Dollars in thousands)
(Unaudited)
						Thirty-Nine Weeks Ended						Thirteen Weeks Ended
						September 27,			September 28,			September 27,			September 28,
						2025			2024			2025			2024
GAAP operating income						$	122,025		$	191,136		$	26,326		$	63,116
Plus: Impairment of intangible and other assets							30,104			-			30,104			-
Adjusted operating income						$	152,129		$	191,136		$	56,430		$	63,116

Landstar System, Inc. and Subsidiary
Reconciliation of GAAP Earnings per Share to Adjusted Earnings per Share
(Unaudited)
	Thirty-Nine Weeks Ended						Thirteen Weeks Ended
	September 27,			September 28,			September 27,			September 28,
	2025			2024			2025			2024
GAAP basic and diluted earnings per share	$	2.61		$	4.21		$	0.56		$	1.41
Plus: Impairment of intangible and other assets, net of tax, per basic and diluted share		0.66			-			0.66			-
Adjusted basic and diluted earnings per share	$	3.27		$	4.21		$	1.22		$	1.41

Contact:
Jim Todd
Chief Financial Officer
904-398-9400

FAQ

What did Landstar (LSTR) report for 3Q 2025 revenue and EPS?

Landstar reported $1,205.4M revenue and GAAP EPS $0.56 for 3Q 2025.

Why is Landstar's 3Q 2025 EPS lower than 3Q 2024 for LSTR?

EPS was reduced by $0.66 due to three non-cash, non-recurring impairment charges recorded in 3Q 2025.

What was Landstar's 3Q 2025 Adjusted EPS for LSTR after impairment charges?

Landstar reported Adjusted EPS $1.22 for 3Q 2025 excluding the non-cash impairment charges.

How much cash did Landstar (LSTR) hold as of September 27, 2025?

Landstar had approximately $434M of cash and short-term investments as of September 27, 2025.

What capital returns did Landstar announce in the 3Q 2025 report (LSTR)?

In 3Q 2025 Landstar repurchased 308,709 shares for $40.6M and declared a $0.40 quarterly dividend payable Dec 9, 2025.

Did Landstar (LSTR) report any business performance improvements in 3Q 2025?

Yes; revenue hauled via unsided/platform equipment increased to $386M, and BCO truck count grew sequentially quarter-over-quarter.