Stronger margins lift Landstar (NASDAQ: LSTR) Q1 2026 EPS by 36%
Rhea-AI Filing Summary
Landstar System, Inc. reported solid growth for the first quarter of fiscal 2026, with revenue of $1.171 billion, up 2% from the prior-year quarter, and basic and diluted EPS of $1.16, a 36% increase. Net income rose to $39.4 million from $29.8 million.
Profitability improved as gross profit climbed 14% to $112.5 million and operating income increased 35% to $53.2 million. Truck transportation revenue grew to $1.082 billion, supported by higher revenue per load despite fewer loads. The company generated $72.4 million of free cash flow, repurchased about $22.6 million of stock, and declared a $0.40 quarterly dividend, while maintaining cash and short-term investments of roughly $411 million.
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Insights
Landstar’s Q1 2026 shows strong margin and EPS expansion on modest revenue growth.
Landstar delivered Q1 2026 revenue of $1.171 billion, up 1.6%, while operating income jumped 35.1% to $53.2 million. EPS rose from $0.85 to $1.16, reflecting better pricing, mix, and lower insurance and SG&A burdens.
Truck revenue reached $1.082 billion, with revenue per truckload up and total loads slightly lower. Gross profit grew 14.5% and variable contribution increased 6.7%, signaling healthier unit economics even in a "dynamic" freight backdrop.
The balance sheet remains robust with about $411 million in cash and short-term investments and trailing 12‑month return on equity of 14%. Q1 operating cash flow of $78.2 million and free cash flow of $72.4 million funded dividends and buybacks, while management highlights ongoing investment in trailers, technology, and AI initiatives.
8-K Event Classification
Key Figures
Key Terms
variable contribution financial
BCO Independent Contractors financial
Non-GAAP financial measures financial
free cash flow financial
return on invested capital financial
DOT Accident technical
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) | ||
| (Address of principal executive offices) | (Zip Code) | |||
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading |
Name of each exchange | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition |
On April 28, 2026, Landstar System, Inc. (“Landstar” or the “Company”) issued a press release announcing results for the first quarter of fiscal 2026. A copy of the press release is attached hereto as Exhibit 99.1.
The information contained in Item 7.01 concerning the presentation to Landstar investors is hereby incorporated into this Item 2.02 by reference.
The information furnished under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
| Item 7.01 | Regulation FD Disclosure |
A slide presentation, dated April 28, 2026, is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The slide presentation provides information that may be referred to by the Company on its conference call with investors scheduled to occur on April 28, 2026 in connection with the Company’s release of results for the first quarter of fiscal 2026.
The information furnished under Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
| Item 9.01 | Financial Statements and Exhibits |
| Exhibits |
||
| 99.1 | Press Release, dated April 28, 2026, of Landstar System, Inc. | |
| 99.2 | Slide Presentation, dated April 28, 2026, of Landstar System, Inc. | |
| 104 | Inline XBRL for the cover page of this Current Report on Form 8-K | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LANDSTAR SYSTEM, INC. | ||||||
| Date: April 28, 2026 | By: | /s/ James P. Todd | ||||
| Name: | James P. Todd | |||||
| Title: | Vice President, Chief Financial Officer and Assistant Secretary | |||||
Exhibit 99.1
| For Immediate Release | April 28, 2026 |
LANDSTAR SYSTEM REPORTS IMPROVED FIRST QUARTER PERFORMANCE
REVENUE OF $1.171B AND EARNINGS PER SHARE OF $1.16
Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported its financial results for the 2026 first quarter. The Company reported total revenue of $1.171 billion in the 2026 first quarter, an increase of 2% as compared to revenue of $1.153 billion in the 2025 first quarter, and basic and diluted earnings per share (“EPS”) of $1.16 in the 2026 first quarter, an increase of 36% as compared to EPS of $0.85 per share in the 2025 first quarter. As a reminder, EPS in the 2025 first quarter was unfavorably impacted by approximately $0.10 related to the previously disclosed supply chain fraud matter. The Company also reported a 14% increase in gross profit and a 7% increase in variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2026 first quarter, as compared in each case to the 2025 first quarter.
“The Landstar team of independent business owners and employees executed well in a dynamic transportation backdrop, with our network generating higher truck transportation revenues and increased BCO utilization year-over-year,” said Landstar President and Chief Executive Officer Frank Lonegro. “I was particularly pleased with our variable contribution performance which reflected Landstar’s first year-over-year increase in variable contribution since the third quarter of 2022. We were encouraged by our improved first quarter results, attributable to a strengthening rate environment and the Company’s unwavering commitment to safety, security and service.”
| 1Q 2026 | 1Q 2025 | Change ($) | Change (%) | |||||||||||||
| Revenue |
$ | 1,171,291 | $ | 1,152,502 | $ | 18,789 | 1.6 | % | ||||||||
| Gross profit |
$ | 112,542 | $ | 98,305 | $ | 14,237 | 14.5 | % | ||||||||
| Variable contribution |
$ | 172,151 | $ | 161,310 | $ | 10,841 | 6.7 | % | ||||||||
| Operating income |
$ | 53,236 | $ | 39,419 | $ | 13,817 | 35.1 | % | ||||||||
| Basic and diluted earnings per share (“EPS”) |
$ | 1.16 | $ | 0.85 | $ | 0.31 | 36.5 | % | ||||||||
| (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. |
Landstar continues to return capital to stockholders through the Company’s stock purchase program and dividends. During the 2026 first quarter, Landstar purchased 150,923 shares of its common stock at an aggregate cost of $22.6 million. The Company is currently authorized to purchase up to an additional 1,115,195 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 June 9, 2026, to stockholders of record as of the close of business on May 19, 2026.
LANDSTAR SYSTEM/ 2
During the 2026 first quarter, truck revenue was $1,082 million, or 3% higher, as compared to the 2025 first quarter truck revenue of $1,050 million. Truck revenue per load increased approximately 6% in the 2026 first quarter compared to the 2025 first quarter, while the number of loads hauled via truck decreased approximately 2% compared to the 2025 first quarter.
Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2026 first quarter was 92% of revenue, compared to 91% of revenue in the 2025 first quarter. Truckload transportation revenue hauled via van equipment in the 2026 first quarter was $603 million, compared to $595 million in the 2025 first quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2026 first quarter was $369 million, compared to $340 million in the 2025 first quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2026 first quarter was $87 million, compared to $92 million in the 2025 first quarter. Revenue hauled by rail, air and ocean cargo carriers was $67 million, or 6% of revenue, in the 2026 first quarter, compared to $83 million, or 7% of revenue, in the 2025 first quarter.
Gross profit in the 2026 first quarter was $113 million, as compared to $98 million in the 2025 first quarter. Variable contribution in the 2026 first quarter was $172 million, compared to $161 million in the 2025 first quarter. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2026 and 2025 first quarters 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 $411 million as of March 28, 2026. Trailing twelve-month return on average shareholders’ equity was 14%. Return on invested capital, representing net income divided by the sum of average equity plus average debt, was 13%.
LANDSTAR SYSTEM/ 3
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 First 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/.
Contact:
Jim Todd
Chief Financial Officer
904-398-9400
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.
LANDSTAR SYSTEM/ 4
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; 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; 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, 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 28, | March 29, | |||||||
| 2026 | 2025 | |||||||
| Revenue |
$ | 1,171,291 | $ | 1,152,502 | ||||
| Investment income |
2,974 | 3,598 | ||||||
| Costs and expenses: |
||||||||
| Purchased transportation |
906,997 | 897,878 | ||||||
| Commissions to agents |
92,143 | 93,314 | ||||||
| Other operating costs, net of gains on asset sales/dispositions |
14,800 | 11,829 | ||||||
| Insurance and claims |
35,564 | 39,852 | ||||||
| Selling, general and administrative |
60,965 | 61,582 | ||||||
| Depreciation and amortization |
10,560 | 12,226 | ||||||
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| Total costs and expenses |
1,121,029 | 1,116,681 | ||||||
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| Operating income |
53,236 | 39,419 | ||||||
| Interest and debt expense (income) |
518 | (159 | ) | |||||
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| Income before income taxes |
52,718 | 39,578 | ||||||
| Income taxes |
13,278 | 9,772 | ||||||
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| Net income |
$ | 39,440 | $ | 29,806 | ||||
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| Basic and diluted earnings per share |
$ | 1.16 | $ | 0.85 | ||||
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| Average basic and diluted shares outstanding |
34,022,000 | 35,203,000 | ||||||
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| Dividends per common share |
$ | 0.40 | $ | 0.36 | ||||
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Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
| March 28, | December 27, | |||||||
| 2026 | 2025 | |||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 353,255 | $ | 396,694 | ||||
| Short-term investments |
57,697 | 55,531 | ||||||
| Trade accounts receivable, less allowance of $8,606 and $12,490 |
692,016 | 670,137 | ||||||
| Other receivables, including advances to independent contractors, less allowance of $15,791 and $18,759 |
48,402 | 52,784 | ||||||
| Assets held for sale |
11,788 | 12,231 | ||||||
| Other current assets |
20,443 | 28,949 | ||||||
|
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|
|
|
|||||
| Total current assets |
1,183,601 | 1,216,326 | ||||||
|
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|||||
| Operating property, less accumulated depreciation and amortization of $480,097 and $473,642 |
255,738 | 261,322 | ||||||
| Goodwill |
34,005 | 34,005 | ||||||
| Other assets |
128,854 | 124,282 | ||||||
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| Total assets |
$ | 1,602,198 | $ | 1,635,935 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Cash overdraft |
$ | 54,432 | $ | 56,654 | ||||
| Accounts payable |
396,654 | 369,567 | ||||||
| Current maturities of long-term debt |
26,121 | 28,342 | ||||||
| Insurance claims |
56,794 | 87,343 | ||||||
| Dividends payable |
— | 68,117 | ||||||
| Liabilities held for sale |
8,468 | 6,961 | ||||||
| Other current liabilities |
88,251 | 78,856 | ||||||
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| Total current liabilities |
630,720 | 695,840 | ||||||
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| Long-term debt, excluding current maturities |
43,145 | 48,480 | ||||||
| Insurance claims |
96,502 | 62,706 | ||||||
| Deferred income taxes and other non-current liabilities |
32,855 | 33,244 | ||||||
| Shareholders’ equity: |
||||||||
| Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,619,240 and 68,590,708 |
686 | 686 | ||||||
| Additional paid-in capital |
263,740 | 261,256 | ||||||
| Retained earnings |
2,878,506 | 2,852,680 | ||||||
| Cost of 34,691,030 and 34,531,982 shares of common stock in treasury |
(2,336,869 | ) | (2,313,245 | ) | ||||
| Accumulated other comprehensive loss |
(7,087 | ) | (5,712 | ) | ||||
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| Total shareholders’ equity |
798,976 | 795,665 | ||||||
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| Total liabilities and shareholders’ equity |
$ | 1,602,198 | $ | 1,635,935 | ||||
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Landstar System, Inc. and Subsidiary
Supplemental Information
(Unaudited)
| Thirteen Weeks Ended | ||||||||
| March 28, | March 29, | |||||||
| 2026 | 2025 | |||||||
| Revenue generated through (in thousands): |
||||||||
| Truck transportation |
||||||||
| Truckload: |
||||||||
| Van equipment |
$ | 603,406 | $ | 594,795 | ||||
| Unsided/platform equipment |
368,569 | 340,408 | ||||||
| Less-than-truckload |
23,788 | 22,436 | ||||||
| Other truck transportation (1) |
86,518 | 92,079 | ||||||
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| Total truck transportation |
1,082,281 | 1,049,718 | ||||||
| Rail intermodal |
19,314 | 17,487 | ||||||
| Ocean and air cargo carriers |
47,969 | 65,637 | ||||||
| Other (2) |
21,727 | 19,660 | ||||||
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| $ | 1,171,291 | $ | 1,152,502 | |||||
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| Revenue on loads hauled via BCO Independent Contractors (3) included in total truck transportation |
$ | 475,348 | $ | 427,057 | ||||
| Number of loads: |
||||||||
| Truck transportation |
||||||||
| Truckload: |
||||||||
| Van equipment |
277,711 | 288,063 | ||||||
| Unsided/platform equipment |
114,554 | 117,245 | ||||||
| Less-than-truckload |
34,925 | 35,580 | ||||||
| Other truck transportation (1) |
46,390 | 44,012 | ||||||
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| Total truck transportation |
473,580 | 484,900 | ||||||
| Rail intermodal |
6,590 | 6,150 | ||||||
| Ocean and air cargo carriers |
6,710 | 9,120 | ||||||
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| 486,880 | 500,170 | |||||||
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| Loads hauled via BCO Independent Contractors (3) included in total truck transportation |
207,610 | 194,070 | ||||||
| Revenue per load: |
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| Truck transportation |
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| Truckload: |
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| Van equipment |
$ | 2,173 | $ | 2,065 | ||||
| Unsided/platform equipment |
3,217 | 2,903 | ||||||
| Less-than-truckload |
681 | 631 | ||||||
| Other truck transportation (1) |
1,865 | 2,092 | ||||||
| Total truck transportation |
2,285 | 2,165 | ||||||
| Rail intermodal |
2,931 | 2,843 | ||||||
| Ocean and air cargo carriers |
7,149 | 7,197 | ||||||
| Revenue per load on loads hauled via BCO Independent Contractors (3) |
$ | 2,290 | $ | 2,201 | ||||
| Revenue by capacity type (as a % of total revenue): |
||||||||
| Truck capacity providers: |
||||||||
| BCO Independent Contractors (3) |
41 | % | 37 | % | ||||
| Truck Brokerage Carriers |
52 | % | 54 | % | ||||
| Rail intermodal |
2 | % | 2 | % | ||||
| Ocean and air cargo carriers |
4 | % | 6 | % | ||||
| Other |
2 | % | 2 | % | ||||
| March 28, | March 29, | |||||||
| 2026 | 2025 | |||||||
| Truck Capacity Providers: |
||||||||
| BCO Independent Contractors (3) |
7,663 | 7,871 | ||||||
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| Truck Brokerage Carriers: |
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| Approved and active (4) |
37,647 | 47,323 | ||||||
| Other approved |
27,420 | 33,275 | ||||||
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| 65,067 | 80,598 | |||||||
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| Total available truck capacity providers |
72,730 | 88,469 | ||||||
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| Trucks provided by BCO Independent Contractors (3) |
8,476 | 8,620 | ||||||
| (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 28, | March 29, | |||||||
| 2026 | 2025 | |||||||
| Revenue |
$ | 1,171,291 | $ | 1,152,502 | ||||
| Costs of revenue: |
||||||||
| Purchased transportation |
906,997 | 897,878 | ||||||
| Commissions to agents |
92,143 | 93,314 | ||||||
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| Variable costs of revenue |
999,140 | 991,192 | ||||||
| Trailing equipment depreciation |
6,268 | 6,977 | ||||||
| Information technology costs (1) |
2,603 | 3,675 | ||||||
| Insurance-related costs (2) |
35,938 | 40,524 | ||||||
| Other operating costs |
14,800 | 11,829 | ||||||
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| Other costs of revenue |
59,609 | 63,005 | ||||||
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| Total costs of revenue |
1,058,749 | 1,054,197 | ||||||
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| Gross profit |
$ | 112,542 | $ | 98,305 | ||||
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| Gross profit margin |
9.6 | % | 8.5 | % | ||||
| Plus: other costs of revenue |
59,609 | 63,005 | ||||||
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| Variable contribution |
$ | 172,151 | $ | 161,310 | ||||
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| Variable contribution margin |
14.7 | % | 14.0 | % | ||||
| (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. |
Date Landstar System, Inc. Earnings Conference Call 1Q 2026 Exhibit 99.2
Forward-Looking Statements Disclaimer The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements made in this slide presentation that are not based on historical facts are “forward-looking statements.” This presentation may make certain statements containing 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: the operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2025 fiscal year, described in the section Risk Factors, and 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. 1Q 2026
Non-GAAP Financial Measures 1Q 2026 In this slide presentation, the Company provides the following information that may be deemed a non-GAAP financial measure: variable contribution, variable contribution margin and operating income as a percentage of variable contribution. Management 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. Management believes that operating income as a percentage of variable contribution is a useful measure as: (i) variable costs of revenue for a significant portion of the Company’s business are highly influenced by short-term market-based trends in the freight transportation industry, whereas other costs, including other costs of revenue, are much less impacted by short-term freight market trends; and (ii) this measure is meaningful to investors’ evaluations of the Company’s management of costs attributable to operations other than the purely variable costs associated with purchased transportation and commissions to agents that the Company incurs to provide services to our customers. Management 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. A tabulation of the expenses identified as costs of revenue as well as a reconciliation of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2026 and 2025 first quarters is included in this slide presentation within the Appendix.
Frank Lonegro Chief Executive Officer 1Q 2026 Executive Summary
Slide header CEO Perspective R E S U L T S Dollars in Millions (except per share amounts) H I G H L I G H T S 1Q revenue performance 3% increase in truck transportation revenue over 1Q 2025, primarily attributable to an 8% increase in unsided/platform revenue Improving financial metrics and EPS 14% increase in gross profit and a 7% increase in variable contribution over 1Q 2025 10% increase in BCO utilization over 1Q 2025 First year over year increase in variable contribution since the third quarter of 2022 Improved earnings per share performance Strong balance sheet Continuing to return meaningful capital to stockholders Investing through the cycle Supporting our network of entrepreneurs with continued investment in trailing equipment and technology, including AI Metric 1Q 2026 1Q 2025 Chg. Revenue $ 1,171.3 $ 1,152.5 1.6% Operating Income $ 53.2 $ 39.4 35.1% Earnings per Share $ 1.16 $ 0.85 36.5%
Frank Lonegro Chief Executive Officer 1Q 2026 Network and Capacity
Slide header $1.08B Truck Revenue 474K Truck Loadings $2,285 Truck Revenue per Load 457 Million $ Agents* 8,476 BCO Trucks 65,067 Carriers 17,200+ Trailers 0.64 DOT Accidents per Million Miles** * Based on 2025 fiscal year **See definition of DOT accidents within the Appendix 1Q R E S U L T S L A N D S T A R N E T W O R K Agents ~980 Customers 20,000+ Capacity 72,000+ Employees* ~1,300 Landstar Network and 1Q Truckload Operating Results * Excluding LSTR Metro
Truck Capacity All information is provided as of the end of the applicable period Active refers to truck brokerage carriers who hauled freight for Landstar in the 180-day period immediately preceding the period end. Note: Fuel surcharges billed to customers on freight hauled by BCO Independent Contractors, which are paid 100% to the BCO and not included in either revenue or the cost of purchased transportation, were $60.4 million and $54.2 million in the 2026 and 2025 first quarters, respectively. A V A I L A B L E T R U C K C A P A C I T Y P R O V I D E R S Type of Capacity Mar 28, 2026 Dec 27, 2025 Mar 29, 2025 BCO Independent Contractors 7,663 7,712 7,871 Truck Brokerage Carriers Approved and Active (1) 37,647 36,852 47,323 Other Approved 27,420 25,938 33,275 Total Truck Brokerage Carriers 65,067 62,790 80,598 Total Available Truck Capacity Providers 72,730 70,502 88,469 Trucks Provided by BCO Independent Contractors 8,476 8,514 8,620
Jim Todd Chief Financial Officer 1Q 2026 Financial Results
Slide header Revenue Source Rate (1) Vol. (2) Chg. Truck 5.6% (2.3%) 3.1% Rail Intermodal 3.1% 7.2% 10.4% Ocean/Air (0.7%) (26.4%)) (26.9%) Insurance Premiums N/A N/A (3.2%) Total Revenue — — 1.6% R E S U L T S V A R I A N C E Percentage change in rate is calculated on a revenue per load basis. Percentage change in volume is calculated on the number of loads hauled. Revenue Dollars in Millions
Slide header Revenue Share Y-O-Y Change 1Q 2026 1Q 2025 Market Segment in Revenue 28.9 29.0 Consumer Durables 1 16.3 14.4 Machinery 16 9.2 8.7 Building Products 7 8.5 9.1 Automotive (6) 7.3 7.2 AA&E, Hazmat 3 7.0 7.3 Electrical (2) 4.9 5.1 Metals (2) 2.6 2.7 Foodstuffs (1) 1.7 2.0 Substitute Line Haul (13) 13.6 14.5 Other (5) Transportation logistics revenue up 2% Y-O-Y Revenue Variances by Industry Served with Revenue Share Indicated Amounts in Percent
Slide header Gross Profit Variable Contribution Amounts in % 1Q 2025 14.0 Change in Mix/Other 0.5 Revenue – Variable 0.1 Revenue – Fixed (3) 0.1 2026 14.7 C H A N G E I N V C M A R G I N Gross profit equals revenue less the cost of purchased transportation, commissions to agents and other costs of revenue. Gross profit margin equals gross profit divided by revenue. Variable contribution (VC) equals revenue less the cost of purchased transportation and commissions to agents. Variable contribution margin equals VC divided by revenue. Revenue on transactions where the Company’s variable contribution margin was based on a contractually pre-determined percentage of revenue accounted for 45% and 42% of revenue in the 2026 and 2025 first quarters, respectively. R E S U L T S 9.6% 8.5% 14.7% 14.0% Gross Profit (1) and Variable Contribution (2) with Associated Margins Dollars in Millions
Slide header Operating Income Percentage of Gross Profit Variable Contribution C H A N G E I N P E R C E N T A G E of Variable Contribution R E S U L T S Operating Income as a Percentage of Gross Profit and Variable Contribution Dollars in Millions Amounts in % 1Q 2025 24.4) Insurance and claims 3.5 SG&A 2.8 Depreciation and amortization 1.5 Other operating costs (1.3) 2026 30.9
Slide header Return Type Mar 28, 2026 Mar 29, 2025 Equity 14% 18% Invested Capital 13% 17% Assets 7% 10% N E T C A S H (1) with Debt to Capital (2) as of date indicated S O U R C E S / U S E S O F C A S H Year-to-date as of date indicated Cash Flow Type 1Q 2026 1Q 2025 Cash flow from operations $ 78.2 $ 55.7 Capital expenditures $ 5.8 $ 1.9 Free cash flow (3) $ 72.4 $ 53.8 Share repurchases $ 22.4 $ 60.4 Dividends paid $ 81.7 $ 83.3 R E T U R N S Trailing 12 months as of date indicated Net cash is defined as cash and cash equivalents of $353.3 million plus short term investments of $57.7 million less outstanding debt of $69.3 million as of March 28, 2026. As of March 29, 2025, net cash was cash and cash equivalents of $417.4 million plus short term investments of $56.0 million less outstanding debt of $94.0 million. Capital is defined as total debt plus total shareholders’ equity. Free cash flow is defined as cash flow from operations less cash capital expenditures. 8% 9% Key Balance Sheet and Cash Flow Statistics Dollars in Millions
Frank Lonegro Chief Executive Officer 1Q 2026 Closing Remarks
Slide header Current Market Update and Historical Trends Ü Current Market Update - April 2026 business activity: – Truck Loads: April approximately equal to April 2025 – Essentially in-line with typical March to April month-to-month historical trends – Truck Revenue per Load: April approximately 13% above April 2025 – Significantly above typical March to April month-to-month historical trends Historical Trends - Pre-pandemic historical seasonality patterns would normally yield: – Truck Revenue: Mid-single digit to high-single digit increase from 1Q to 2Q – Truck Loads: 7% increase 1Q to 2Q – Truck Revenue per Load: 2% increase 1Q to 2Q
1Q 2026 Appendix
Slide header Revenue Breakdown by Service Type P E R C E N T A G E O F R E V E N U E 1Q 2 0 2 6 by Service Type LTL — 2% T R U C K L O A D Van — 52%, Unsided/Platform — 31% OTHER TRUCK — 7% T R U C K T R A N S P O R T A T I O N RAIL INTERMODAL — 2% OCEAN / AIR CARGO — 4% CHANGE IN MIX SINCE 1Q 2025 Van Equipment Unsided/ Platform Equipment LTL Other Truck Transportation Rail Intermodal Ocean/ Air cargo All Other 52% Ü 52% 30% Ü 31% 2% Ü 2% 8% Ü 7% 2% Ü 2% 6% Ü 4% 2% Ü 2% ALL OTHER — 2%
Slide header Truckload Loadings and Revenue per Truckload Trends U N S I D E D / P L A T F O R M V A N NUMBER OF LOADS REVENUE PER LOAD NUMBER OF LOADS REVENUE PER LOAD
Reconciliation of Gross Profit to Variable Contribution Dollars in Thousands 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. 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. 2010 2011 2009 % Proj % Plan % External Revenue #REF! #REF! #REF! Purchased Transportation 0 #REF! 0 #REF! #REF! #REF! Commissions to Agents 0 #REF! 0 #REF! #REF! #REF! Net Revenue #REF! #REF! #REF! #REF! #REF! #REF! Investment Income 0 #REF! #VALUE! #VALUE! #REF! 1.1% Other Operating Costs #REF! #REF! #REF! #REF! #REF! #REF! Insurance Expense #REF! #REF! #REF! #REF! #REF! #REF! SG&A #REF! #REF! #REF! #REF! #REF! #REF! Depreciation and Amortization #REF! #REF! #REF! #REF! #REF! #REF! Operating Income #REF! #REF! #REF! #REF! #REF! #REF! Interest and Debt Expense #REF! #REF! #REF! Income Before Income Taxes #REF! #REF! #REF! Income Taxes #REF! #REF! #REF! Net Income #REF! #REF! #REF! Diluted Earnings per Share Shares Diluted Earnings per Share % of 2013 % of 2013 % of Fiscal Years Ended Thirteen Weeks Ended December 25, December 26, March 28, March 29, 2021 2020 2026 2025 2012 Rev/GP Plan Rev/GP Proj Rev/GP Revenue $6,537,568 $4,132,981 $1,171,291 $1,152,502 External Revenue #REF! #REF! #REF! Costs of revenue: Purchased Transportation #REF! #REF! #REF! #REF! #REF! #REF! Purchased transportation 5,114,667 3,192,850 ,906,997 ,897,878 Commissions to agents ,507,209 ,340,780 92,143 93,314 Variable costs of revenue 5,621,876 3,533,630 ,999,140 ,991,192 Interest and Debt Expense #REF! #REF! #REF! Income Before Income Taxes #REF! #REF! #REF! Trailing equipment depreciation 35,204 34,892 6,268 6,977 Information technology costs (1) 13,560 9,791 2,603 3,675 Insurance-related costs (2) ,109,387 90,778 35,938 40,524 Income Taxes #REF! #REF! #REF! Other operating costs 36,531 30,463 14,800 11,829 Other costs of revenue ,194,682 ,165,924 59,609 63,005 Total costs of revenue 5,816,558 3,699,554 1,058,749 1,054,197 Gross profit $,721,010 $,433,427 $,112,542 $98,305 Gross profit margin 0.11028718936460775 0.10487031031596807 9.6% 8.5% Plus: other costs of revenue ,194,682 ,165,924 59,609 63,005 Variable contribution $,915,692 $,599,351 $,172,151 $,161,310 Variable contribution margin 0.14006615304039668 0.14501663569225215 0.14699999999999999 0.13996504995219097 (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. 2010 2011 2009 % Proj % Plan % External Revenue #REF! #REF! #REF! Purchased Transportation 0 #REF! 0 #REF! #REF! #REF! Commissions to Agents 0 #REF! 0 #REF! #REF! #REF! Net Revenue #REF! #REF! #REF! #REF! #REF! #REF! Investment Income 0 #REF! #VALUE! #VALUE! #REF! 1.1% Other Operating Costs #REF! #REF! #REF! #REF! #REF! #REF! Insurance Expense #REF! #REF! #REF! #REF! #REF! #REF! SG&A #REF! #REF! #REF! #REF! #REF! #REF! Depreciation and Amortization #REF! #REF! #REF! #REF! #REF! #REF! Operating Income #REF! #REF! #REF! #REF! #REF! #REF! Interest and Debt Expense #REF! #REF! #REF! Income Before Income Taxes #REF! #REF! #REF! Income Taxes #REF! #REF! #REF! Net Income #REF! #REF! #REF! Diluted Earnings per Share Shares Diluted Earnings per Share % of 2013 % of 2013 % of Fiscal Years Ended Thirteen Weeks Ended December 25, December 26, March 28, March 29, 2021 2020 2026 2025 2012 Rev/GP Plan Rev/GP Proj Rev/GP Revenue $6,537,568 $4,132,981 $1,171,291 $1,152,502 External Revenue #REF! #REF! #REF! Costs of revenue: Purchased Transportation #REF! #REF! #REF! #REF! #REF! #REF! Purchased transportation 5,114,667 3,192,850 ,906,997 ,897,878 Commissions to agents ,507,209 ,340,780 92,143 93,314 Variable costs of revenue 5,621,876 3,533,630 ,999,140 ,991,192 Interest and Debt Expense #REF! #REF! #REF! Income Before Income Taxes #REF! #REF! #REF! Trailing equipment depreciation 35,204 34,892 6,268 6,977 Information technology costs (1) 13,560 9,791 2,603 3,675 Insurance-related costs (2) ,109,387 90,778 35,938 40,524 Income Taxes #REF! #REF! #REF! Other operating costs 36,531 30,463 14,800 11,829 Other costs of revenue ,194,682 ,165,924 59,609 63,005 Total costs of revenue 5,816,558 3,699,554 1,058,749 1,054,197 Gross profit $,721,010 $,433,427 $,112,542 $98,305 Gross profit margin 0.11028718936460775 0.10487031031596807 9.6% 8.5% Plus: other costs of revenue ,194,682 ,165,924 59,609 63,005 Variable contribution $,915,692 $,599,351 $,172,151 $,161,310 Variable contribution margin 0.14006615304039668 0.14501663569225215 0.14699999999999999 0.13996504995219097 (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.
Slide header Free Cash Flow with Stock Purchases and Dividends Dollars and Shares in Millions 5 – Y E A R S U M M A R Y Cash Flow Item 2021 2022 2023 2024 2025 Cash flow from operations $ 277 $ 623 $ 394 $ 287 $ 225 Cash capital expenditures $ 24 $ 26 $ 26 $ 31 $ 10 Free cash flow $ 253 $ 597 $ 368 $ 256 $ 215 Share repurchases $ 123 $ 286 $ 54 $ 81 $ 180 Dividends paid $ 112 $ 116 $ 117 $ 120 $ 125 Common share count(1) 37.7 35.9 35.7 35.3 34.1 Common share count as of the end of the applicable period.
Slide header DOT Accident (1) Frequency per Million Miles Traveled by BCOs 5 – Y E A R S U M M A R Y A “DOT Accident” is defined, consistent with U.S. 49 CFR 390.5T, as an occurrence involving a commercial motor vehicle operating on a highway in interstate or intrastate commerce that results in a fatality, a bodily injury to a person who, as a result of the injury, immediately receives medical treatment away from the scene of the accident, or one or more motor vehicles incurring disabling damage as a result of the accident, requiring the motor vehicle(s) to be transported away from the scene by a tow truck or by other motor vehicle, but does not include an occurrence involving only boarding and alighting from a stationary motor vehicle or an occurrence involving only the loading or unloading of cargo.
AI Effort: AI Task Force Benefit: Accelerate the automation of routine agent & BCO workflows Unlock Growth Network Retention Improve Communications Enhance Decision Making Identify and Reduce Risk Improve Productivity Accelerate Workflow Automation Recruit, retain & grow network through enhanced technology AI Effort: BCO Retention Benefit: Targeted support for at risk BCOs AI Effort: AI agents embedded within agent portal; AI Task Force Benefit: Raise agent & BCO revenue thresholds through enhanced tools AI Effort: AI-Enhanced Fraud Detection Tool Benefit: Technology enhanced vetting to minimize fraudulent activity AI Effort: Pricing Tool; AI agents embedded within agent portal Benefit: Improve insights and decision support AI Effort: AI-Enabled Call Center; AI Task Force Benefit: Reduced network friction Improve productivity and unlock Agent & BCO growth Attract & retain Agents & BCOs Strengthen reputation as the leader in Safety, Security and Service AI For The Landstar Network of Entrepreneurs In-flight AI Efforts AI related projects account for half of Landstar’s 2026 IT capital budget
AI Effort: AI-Enabled Contact Center; AI agents: AI Task Force Benefits: Synchronize agent, BCO and corporate workflows & communication Strengthen Brand Leverage Financial Strength Network Retention Enhance Decision Making Identify Risk Improve Productivity Improve Network Integration Grow network through enhanced support AI Effort: ERP; AI Enhanced Credit Benefit: Improve decision making AI Effort: AI-Enabled Contact Center; Microsoft Co-Pilot corporate roll-out Benefit: Optimize internal resources, focus on higher value problem solving AI Effort: AI-Enhanced Fraud Detection Tool Benefit: Enhanced analytical tools to minimize fraudulent activity AI Effort AI-Enabled Contact Center Benefit: Improve network support & access to information AI Effort: BCO Retention Tool Benefit: Improve toolkit to aid BCO retention Improve the experience for all Landstar Network stakeholders Optimize the deployment of resources Minimize risk and reduce friction throughout the Landstar Network AI For Landstar Corporate In-flight AI Efforts
Date Landstar System, Inc. Earnings Conference Call 1Q 2026