Landstar System Reports Third Quarter Revenue of $1.512B and Earnings Per Share of $1.42
Higher truck revenue accompanied rising earnings, while insurance and claim costs increased to $55.3 million from $33.0 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Landstar System (NASDAQ: LSTR) reported third-quarter 2026 revenue of $1.512 billion, up 25% from the same quarter last year. Earnings per share rose to $1.42 from $0.56; the prior-year quarter included $0.66 per share in non-cash impairment charges. Operating income increased 149.0% to $65.540 million, while gross profit rose 13.9% to $126.547 million.
Truck revenue reached $1.407 billion, up 29%, with revenue per load increasing approximately 25% and truck loads increasing approximately 3% year over year. Insurance and claim costs rose to $55.3 million from $33.0 million. Landstar purchased 232,645 shares for $41.4 million during the quarter. A quarterly dividend of $0.44 per share is payable December 8, 2026, to holders of record November 17. Cash and short-term investments totaled approximately $351 million at September 26, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter revenue increased 25.4% to $1.512 billion from the 2025 third quarter.
- Moderate pointThird-quarter EPS rose 153.6% to $1.42; prior-year EPS included a $0.66 impairment charge.
- Moderate pointThird-quarter operating income increased 149.0% to $65.540 million year over year.
- Moderate pointThird-quarter net income rose to $48.043 million from $19.364 million a year earlier.
- Moderate pointThird-quarter gross profit increased 13.9% to $126.547 million year over year.
19 minor points
- Minor pointThird-quarter variable contribution, revenue less purchased transportation and agent commissions, rose 24.6% to $212.066 million.
- Minor pointThird-quarter truck revenue per load increased approximately 25% year over year.
- Minor pointThird-quarter truck loads increased approximately 3% year over year.
- Minor pointThird-quarter van revenue rose to $759.949 million from $583.369 million a year earlier.
- Minor pointThird-quarter unsided/platform revenue rose to $518.582 million from $386.006 million a year earlier.
- Minor pointThird-quarter less-than-truckload revenue rose to $24.933 million from $24.480 million a year earlier.
- Minor pointThird-quarter other truck revenue rose to $103.707 million from $96.041 million a year earlier.
- Minor pointThird-quarter rail intermodal revenue rose to $27.806 million from $23.668 million a year earlier.
- Minor pointThird-quarter other revenue rose to $21.476 million from $19.572 million a year earlier.
- Minor pointIndependent Business Capacity Owner truck additions totaled a net 165 in the third quarter.
- Minor pointBusiness Capacity Owners achieved a 5% year-over-year improvement in Department of Transportation accident frequency.
- Minor pointThird-quarter share repurchases returned $41.4 million through purchases of 232,645 shares.
- Minor point. Forward-looking: it has not happened yet and may not happen.Remaining share repurchase authorization covers up to an additional 882,550 shares.
- Minor pointThird-quarter dividends per common share rose to $0.44 from $0.40 a year earlier.
- Minor pointThirty-nine-week revenue rose to $4.115342 billion from $3.569291 billion in the comparable 2025 period.
- Minor pointThirty-nine-week operating income rose to $185.004 million from $122.025 million in the comparable 2025 period.
- Minor pointThirty-nine-week net income rose to $136.434 million from $91.063 million in the comparable 2025 period.
- Minor pointThirty-nine-week EPS rose to $4.02 from $2.61 in the comparable 2025 period.
- Minor pointThird-quarter depreciation and amortization declined to $9.918 million from $11.509 million a year earlier.
Negative
- Moderate pointThird-quarter insurance and claim costs rose to $55.3 million from $33.0 million a year earlier.
- Moderate pointNon-current insurance claim liabilities rose to $103.299 million from $62.706 million at December 27, 2025.
- Minor pointThird-quarter ocean and air cargo revenue fell to $55.334 million from $72.270 million a year earlier.
- Minor pointThird-quarter ocean and air cargo loads fell to 6,970 from 7,810 a year earlier.
- Minor pointThird-quarter ocean and air cargo revenue per load fell to $7,939 from $9,254 a year earlier.
10 minor points
- Minor pointThird-quarter less-than-truckload loads fell to 29,834 from 38,862 a year earlier.
- Minor pointThird-quarter purchased transportation costs rose to $1,182.045 million from $936.472 million a year earlier.
- Minor pointThird-quarter agent commissions rose to $117.676 million from $98.693 million a year earlier.
- Minor pointThird-quarter other operating costs rose to $21.226 million from $15.572 million a year earlier.
- Minor pointThird-quarter selling, general and administrative expenses rose to $62.376 million from $57.015 million a year earlier.
- Minor pointThird-quarter investment income fell to $2.264 million from $3.293 million a year earlier.
- Minor pointThird-quarter interest and debt expense rose to $362,000 from $217,000 a year earlier.
- Minor pointCash and cash equivalents fell to $297.321 million at September 26, 2026, from $396.694 million at December 27, 2025.
- Minor pointShort-term investments fell to $53.683 million at September 26, 2026, from $55.531 million at December 27, 2025.
- Minor pointLong-term debt excluding current maturities rose to $56.899 million from $48.480 million at December 27, 2025.
News Explained
Beyond the 232,645 shares bought in the third quarter, Landstar is authorized to purchase up to 882,550 more; that is potential repurchase capacity, not an additional purchase already made.
Details
Market move: LSTR -15.75% vs previous close. 3Q26 earnings report
On Oct 28, the first trading day after this news, the latest delayed price for LSTR is 15.75% below the previous close. Our momentum scanner has recorded 9 alerts for this stock so far that day. The latest delayed price is $142.19. Relative volume is exceptionally heavy at 6.6x the average.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Revenue
- $1.512 billion; up 25%
- 2026 third quarter versus 2025 third quarter
- Basic and diluted EPS
- $1.42; up 154%
- 2026 third quarter versus $0.56 in 2025 third quarter; prior-year EPS was affected by impairment charges
- Gross profit
- Up 14%
- 2026 third quarter versus 2025 third quarter
- Variable contribution
- Up 25%
- 2026 third quarter versus 2025 third quarter
- Insurance and claim costs
- $55.3 million, versus $33.0 million
- 2026 third quarter versus 2025 third quarter
- Q3 share repurchases
- 232,645 shares; $41.4 million
- 2026 third quarter
- Quarterly dividend
- $0.44 per share
- Declared for payment on December 8, 2026
Previous Earnings Reports
-
Revenue and EPS rose year over year, alongside higher gross profit and operating income.
-
First-quarter revenue and EPS increased year over year, with gross profit and operating income higher.
-
Insurance and claims costs reached $56 million amid lower quarterly revenue and EPS.
-
Revenue fell and EPS declined, with non-cash impairment charges reducing EPS by $0.66.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
non-gaap financial measures financial
return on invested capital financial
adverse actuarial adjustments financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
JACKSONVILLE, Fla., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported its financial results for the 2026 third quarter. The Company reported total revenue of
“The Landstar team of independent business owners and employees excelled in a freight transportation backdrop that continues to improve. Our network generated truck revenue of
| 3Q 2026 | 3Q 2025 | Change ($) | Change (%) | |||||
| Revenue | $ | 1,511,787 | $ | 1,205,406 | $ | 306,381 | 25.4 | % |
| Gross profit | $ | 126,547 | $ | 111,060 | $ | 15,487 | 13.9 | % |
| Variable contribution | $ | 212,066 | $ | 170,241 | $ | 41,825 | 24.6 | % |
| Operating income | $ | 65,540 | $ | 26,326 | $ | 39,214 | 149.0 | % |
| Basic and diluted earnings per share (“EPS”) | $ | 1.42 | $ | 0.56 | $ | 0.86 | 153.6 | % |
| (1) | Dollars above in thousands, except per share amounts. | |
| (2) | Please refer to the Consolidated Statements of Income and the Reconciliation of Gross Profit to Variable Contribution included below. | |
| (3) | Operating income and EPS during the 2025 third quarter were negatively impacted by | |
Third quarter 2026 EPS reflected highly elevated insurance and claim costs of
- Approximately
$13.0 million , or$0.29 per share, of adverse actuarial adjustments to insurance and claim reserves. $8.0 million , or$0.18 per share, of prior year development attributable to settlements of a 2024 brokered truck accident claim and a 2025 BCO accident.
During the 2026 third quarter, truck revenue was
Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2026 third quarter was
Gross profit in the 2026 third quarter was
Landstar continues to return capital to stockholders through the Company’s share purchase program and dividends. During the 2026 third quarter, Landstar purchased 232,645 shares of its common stock at an aggregate cost of
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 afternoon at 4:30 p.m. ET. To access the webcast, visit https://www.investor.landstar.com; click on “Webcasts,” then click on “Landstar’s Third Quarter 2026 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 freight transportation and logistics solutions focused on safety, security and service 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,” “would,” “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; substantial verdicts or settlements rendered in connection with accidents or other 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 second largest such agent by revenue in the 2025 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; increased exposure to broker liability claims; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2025 fiscal year; described in Part I, Item 1A Risk Factors; Landstar’s Form 10-Q for the 2026 second quarter, 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) | |||||||||||||
| Thirty-Nine Weeks Ended | Thirteen Weeks Ended | ||||||||||||
| September 26, | September 27, | September 26, | September 27, | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Revenue | $ | 4,115,342 | $ | 3,569,291 | $ | 1,511,787 | $ | 1,205,406 | |||||
| Investment income | 7,943 | 10,620 | 2,264 | 3,293 | |||||||||
| Costs and expenses: | |||||||||||||
| Purchased transportation | 3,212,442 | 2,775,761 | 1,182,045 | 936,472 | |||||||||
| Commissions to agents | 319,254 | 291,529 | 117,676 | 98,693 | |||||||||
| Other operating costs, net of gains on asset sales/dispositions | 53,971 | 46,996 | 21,226 | 15,572 | |||||||||
| Insurance and claims | 130,193 | 103,309 | 55,270 | 33,008 | |||||||||
| Selling, general and administrative | 191,534 | 174,303 | 62,376 | 57,015 | |||||||||
| Depreciation and amortization | 30,887 | 35,884 | 9,918 | 11,509 | |||||||||
| Impairment of intangible and other assets | - | 30,104 | - | 30,104 | |||||||||
| Total costs and expenses | 3,938,281 | 3,457,886 | 1,448,511 | 1,182,373 | |||||||||
| Operating income | 185,004 | 122,025 | 65,540 | 26,326 | |||||||||
| Interest and debt expense | 1,692 | 756 | 362 | 217 | |||||||||
| Income before income taxes | 183,312 | 121,269 | 65,178 | 26,109 | |||||||||
| Income taxes | 46,878 | 30,206 | 17,135 | 6,745 | |||||||||
| Net income | $ | 136,434 | $ | 91,063 | $ | 48,043 | $ | 19,364 | |||||
| Basic and diluted earnings per share | $ | 4.02 | $ | 2.61 | $ | 1.42 | $ | 0.56 | |||||
| Average basic and diluted shares outstanding | 33,943,000 | 34,885,000 | 33,871,000 | 34,581,000 | |||||||||
| Dividends per common share | $ | 1.24 | $ | 1.16 | $ | 0.44 | $ | 0.40 | |||||
| Landstar System, Inc. and Subsidiary | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||
| (Unaudited) | ||||||||||
| September 26, | December 27, | |||||||||
| 2026 | 2025 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 297,321 | $ | 396,694 | ||||||
| Short-term investments | 53,683 | 55,531 | ||||||||
| Trade accounts receivable, less allowance | ||||||||||
| of | 892,404 | 670,137 | ||||||||
| Other receivables, including advances to independent | ||||||||||
| contractors, less allowance of | 77,898 | 52,784 | ||||||||
| Assets held for sale | - | 12,231 | ||||||||
| Other current assets | 50,217 | 28,949 | ||||||||
| Total current assets | 1,371,523 | 1,216,326 | ||||||||
| Operating property, less accumulated depreciation | ||||||||||
| and amortization of | 268,570 | 261,322 | ||||||||
| Goodwill | 34,005 | 34,005 | ||||||||
| Other assets | 133,617 | 124,282 | ||||||||
| Total assets | $ | 1,807,715 | $ | 1,635,935 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Cash overdraft | $ | 68,713 | $ | 56,654 | ||||||
| Accounts payable | 482,041 | 369,567 | ||||||||
| Current maturities of long-term debt | 25,772 | 28,342 | ||||||||
| Insurance claims | 87,393 | 87,343 | ||||||||
| Dividends payable | - | 68,117 | ||||||||
| Liabilities held for sale | - | 6,961 | ||||||||
| Other current liabilities | 101,837 | 78,856 | ||||||||
| Total current liabilities | 765,756 | 695,840 | ||||||||
| Long-term debt, excluding current maturities | 56,899 | 48,480 | ||||||||
| Insurance claims | 103,299 | 62,706 | ||||||||
| Deferred income taxes and other non-current liabilities | 51,765 | 33,244 | ||||||||
| Shareholders' equity: | ||||||||||
| Common stock, | ||||||||||
| shares, issued 68,636,098 and 68,590,708 | 686 | 686 | ||||||||
| Additional paid-in capital | 269,696 | 261,256 | ||||||||
| Retained earnings | 2,947,019 | 2,852,680 | ||||||||
| Cost of 34,927,155 and 34,531,982 shares of common | ||||||||||
| stock in treasury | (2,378,302 | ) | (2,313,245 | ) | ||||||
| Accumulated other comprehensive loss | (9,103 | ) | (5,712 | ) | ||||||
| Total shareholders' equity | 829,996 | 795,665 | ||||||||
| Total liabilities and shareholders' equity | $ | 1,807,715 | $ | 1,635,935 | ||||||
| Landstar System, Inc. and Subsidiary | ||||||||||||||||||||
| Supplemental Information | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Thirty-Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||||||
| September 26, | September 27, | September 26, | September 27, | |||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Revenue generated through (in thousands): | ||||||||||||||||||||
| Truck transportation | ||||||||||||||||||||
| Truckload: | ||||||||||||||||||||
| Van equipment | $ | 2,080,868 | $ | 1,769,440 | $ | 759,949 | $ | 583,369 | ||||||||||||
| Unsided/platform equipment | 1,379,319 | 1,127,276 | 518,582 | 386,006 | ||||||||||||||||
| Less-than-truckload | 73,845 | 72,229 | 24,933 | 24,480 | ||||||||||||||||
| Other truck transportation (1) | 289,298 | 288,807 | 103,707 | 96,041 | ||||||||||||||||
| Total truck transportation | 3,823,330 | 3,257,752 | 1,407,171 | 1,089,896 | ||||||||||||||||
| Rail intermodal | 74,881 | 63,183 | 27,806 | 23,668 | ||||||||||||||||
| Ocean and air cargo carriers | 153,047 | 188,696 | 55,334 | 72,270 | ||||||||||||||||
| Other (2) | 64,084 | 59,660 | 21,476 | 19,572 | ||||||||||||||||
| $ | 4,115,342 | $ | 3,569,291 | $ | 1,511,787 | $ | 1,205,406 | |||||||||||||
| Revenue on loads hauled via BCO Independent Contractors (3) | ||||||||||||||||||||
| included in total truck transportation | $ | 1,629,408 | $ | 1,345,852 | $ | 590,987 | $ | 457,363 | ||||||||||||
| Number of loads: | ||||||||||||||||||||
| Truck transportation | ||||||||||||||||||||
| Truckload: | ||||||||||||||||||||
| Van equipment | 870,347 | 850,047 | 294,875 | 277,893 | ||||||||||||||||
| Unsided/platform equipment | 375,093 | 369,495 | 128,398 | 123,254 | ||||||||||||||||
| Less-than-truckload | 95,729 | 115,692 | 29,834 | 38,862 | ||||||||||||||||
| Other truck transportation (1) | 143,311 | 135,606 | 47,543 | 45,421 | ||||||||||||||||
| Total truck transportation | 1,484,480 | 1,470,840 | 500,650 | 485,430 | ||||||||||||||||
| Rail intermodal | 23,600 | 21,960 | 8,490 | 7,990 | ||||||||||||||||
| Ocean and air cargo carriers | 20,840 | 24,370 | 6,970 | 7,810 | ||||||||||||||||
| 1,528,920 | 1,517,170 | 516,110 | 501,230 | |||||||||||||||||
| Loads hauled via BCO Independent Contractors (3) | ||||||||||||||||||||
| included in total truck transportation | 644,870 | 597,010 | 212,660 | 199,010 | ||||||||||||||||
| Revenue per load: | ||||||||||||||||||||
| Truck transportation | ||||||||||||||||||||
| Truckload: | ||||||||||||||||||||
| Van equipment | $ | 2,391 | $ | 2,082 | $ | 2,577 | $ | 2,099 | ||||||||||||
| Unsided/platform equipment | 3,677 | 3,051 | 4,039 | 3,132 | ||||||||||||||||
| Less-than-truckload | 771 | 624 | 836 | 630 | ||||||||||||||||
| Other truck transportation (1) | 2,019 | 2,130 | 2,181 | 2,114 | ||||||||||||||||
| Total truck transportation | 2,576 | 2,215 | 2,811 | 2,245 | ||||||||||||||||
| Rail intermodal | 3,173 | 2,877 | 3,275 | 2,962 | ||||||||||||||||
| Ocean and air cargo carriers | 7,344 | 7,743 | 7,939 | 9,254 | ||||||||||||||||
| Revenue per load on loads hauled via BCO Independent Contractors (3) | $ | 2,527 | $ | 2,254 | $ | 2,779 | $ | 2,298 | ||||||||||||
| Revenue by capacity type (as a % of total revenue): | ||||||||||||||||||||
| Truck capacity providers: | ||||||||||||||||||||
| BCO Independent Contractors (3) | 40 | % | 38 | % | 39 | % | 38 | % | ||||||||||||
| Truck Brokerage Carriers | 53 | % | 54 | % | 54 | % | 52 | % | ||||||||||||
| Rail intermodal | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||||
| Ocean and air cargo carriers | 4 | % | 5 | % | 4 | % | 6 | % | ||||||||||||
| Other | 2 | % | 2 | % | 1 | % | 2 | % | ||||||||||||
| September 26, | September 27, | |||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Truck Capacity Providers: | ||||||||||||||||||||
| BCO Independent Contractors (3) | 7,843 | 7,827 | ||||||||||||||||||
| Truck Brokerage Carriers: | ||||||||||||||||||||
| Approved and active (4) | 39,460 | 40,004 | ||||||||||||||||||
| Other approved | 28,455 | 27,461 | ||||||||||||||||||
| 67,915 | 67,465 | |||||||||||||||||||
| Total available truck capacity providers | 75,758 | 75,292 | ||||||||||||||||||
| Trucks provided by BCO Independent Contractors (3) | 8,709 | 8,618 | ||||||||||||||||||
| (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 26, | September 27, | September 26, | September 27, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Revenue | $ | 4,115,342 | $ | 3,569,291 | $ | 1,511,787 | $ | 1,205,406 | |||||||||
| Costs of revenue: | |||||||||||||||||
| Purchased transportation | 3,212,442 | 2,775,761 | 1,182,045 | 936,472 | |||||||||||||
| Commissions to agents | 319,254 | 291,529 | 117,676 | 98,693 | |||||||||||||
| Variable costs of revenue | 3,531,696 | 3,067,290 | 1,299,721 | 1,035,165 | |||||||||||||
| Trailing equipment depreciation | 19,108 | 20,829 | 6,489 | 6,985 | |||||||||||||
| Information technology costs (1) | 8,186 | 10,928 | 2,503 | 3,319 | |||||||||||||
| Insurance-related costs (2) | 130,955 | 104,622 | 55,301 | 33,305 | |||||||||||||
| Other operating costs | 53,971 | 46,996 | 21,226 | 15,572 | |||||||||||||
| Other costs of revenue | 212,220 | 183,375 | 85,519 | 59,181 | |||||||||||||
| Total costs of revenue | 3,743,916 | 3,250,665 | 1,385,240 | 1,094,346 | |||||||||||||
| Gross profit | $ | 371,426 | $ | 318,626 | $ | 126,547 | $ | 111,060 | |||||||||
| Gross profit margin | 9.0 | % | 8.9 | % | 8.4 | % | 9.2 | % | |||||||||
| Plus: other costs of revenue | 212,220 | 183,375 | 85,519 | 59,181 | |||||||||||||
| Variable contribution | $ | 583,646 | $ | 502,001 | $ | 212,066 | $ | 170,241 | |||||||||
| Variable contribution margin | 14.2 | % | 14.1 | % | 14.0 | % | 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 costs of claims incurred under those programs; and (iii) brokerage commissions and other fees incurred relating the 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
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
When will Landstar pay its quarterly dividend?
Landstar will pay its $0.44 per-share quarterly dividend on December 8, 2026, to stockholders of record as of the close of business on November 17, 2026.
What adjustments affected Landstar's third-quarter 2026 insurance and claim costs?
Insurance and claim costs included approximately $13.0 million, or $0.29 per share, of adverse actuarial adjustments to reserves. They also included $8.0 million, or $0.18 per share, of prior-year development attributable to settlements of a 2024 brokered truck accident claim and a 2025 Business Capacity Owner accident.
What were Landstar's reported returns on equity and invested capital?
Landstar reported trailing twelve-month return on average shareholders' equity of 19% and return on invested capital of 18%. Return on invested capital represents net income divided by the sum of average equity plus average debt.