Landstar System Reports Second Quarter Revenue of $1.432B and Earnings per Share of $1.44

07/28/26

04:05 PM EDT

2Q 2026 Presentation Slides 2.1 MB

JACKSONVILLE, Fla., July 28, 2026 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported its financial results for the 2026 second quarter. The Company reported total revenue of $1.432 billion in the 2026 second quarter, an increase of 18% as compared to revenue of $1.211 billion in the 2025 second quarter, and basic and diluted earnings per share (“EPS”) of $1.44 in the 2026 second quarter, an increase of 20% as compared to EPS of $1.20 per share in the 2025 second quarter. The Company also reported a 21% increase in gross profit and a 17% increase in variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2026 second quarter, as compared in each case to the 2025 second quarter.

“The Landstar team of independent business owners and employees truly shined in a rapidly improving freight transportation backdrop. I was pleased that our network generated both truck volumes and truck revenue per load that outpaced normal seasonal patterns, with variable contribution increasing approximately 17% year-over-year,” said Landstar President and Chief Executive Officer Frank Lonegro. “I was delighted to see our net 68 BCO truck additions during the second quarter, the strongest quarterly improvement since the first quarter of 2022. Although the Company experienced a lower DOT accident frequency during the 2026 first half, increased insurance and claims expense, primarily attributable to unfavorable development of prior years’ claims, had an adverse impact on our second quarter results. The claim environment for freight transportation providers remains challenging, especially with the U.S. Supreme Court’s recent Montgomery decision relating to potential broker liability.”

	2Q 2026		2Q 2025		Change ($)		Change (%)
Revenue	$	1,432,264	$	1,211,383	$	220,881		18.2	%
Gross profit	$	132,337	$	109,261	$	23,076		21.1	%
Variable contribution	$	199,429	$	170,450	$	28,979		17.0	%
Operating income	$	66,228	$	56,280	$	9,948		17.7	%
Basic and diluted earnings per share (“EPS”)	$	1.44	$	1.20	$	0.24		20.0	%

(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 also announced today that its Board of Directors declared a quarterly dividend of $0.44 per share payable on September 9, 2026, to stockholders of record as of the close of business on August 18, 2026. This quarterly dividend includes a 10% increase over the amount of the Company’s regular quarterly dividend declared following each of the prior five quarters. It is currently the intention of the Board to continue to pay dividends on a quarterly basis going forward. Landstar continues to return capital to stockholders through the Company’s stock purchase program and dividends. While Landstar did not purchase shares in the second quarter, during the 2026 first half, 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.

During the 2026 second quarter, truck revenue was $1,334 million, or 19% higher, as compared to the 2025 second quarter truck revenue of $1,118 million. Truck revenue per load increased approximately 17% in the 2026 second quarter compared to the 2025 second quarter, and the number of loads hauled via truck increased approximately 2% compared to the 2025 second quarter.

Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2026 second quarter was 93% of revenue, compared to 92% of revenue in the 2025 second quarter. Truckload transportation revenue hauled via van equipment in the 2026 second quarter was $718 million, compared to $591 million in the 2025 second quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2026 second quarter was $492 million, compared to $401 million in the 2025 second quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2026 second quarter was $99 million, compared to $101 million in the 2025 second quarter. Revenue hauled by rail, air and ocean cargo carriers was $78 million, or 5% of revenue, in the 2026 second quarter, compared to $73 million, or 6% of revenue, in the 2025 second quarter.

Gross profit in the 2026 second quarter was $132 million, as compared to $109 million in the 2025 second quarter. Variable contribution in the 2026 second quarter was $199 million, compared to $170 million in the 2025 second quarter. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2026 and 2025 second quarters and year-to-date periods are provided in the Company’s accompanying financial disclosures.

The Company’s balance sheet continues to be very strong, with cash and short-term investments of approximately $348 million as of June 27, 2026. Trailing twelve-month return on average shareholders’ equity was 16%. Return on invested capital, representing net income divided by the sum of average equity plus average debt, was 14%.

Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 4:30 p.m. ET. To access the webcast, visit www.investor.landstar.com; click on “Webcasts,” then click on “Landstar’s Second Quarter 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; 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)


			Twenty-Six Weeks Ended				Thirteen Weeks Ended
			June 27,		June 28,		June 27,		June 28,
			2026		2025		2026		2025

Revenue			$	2,603,555	$	2,363,885	$	1,432,264	$	1,211,383
Investment income				5,679		7,327		2,705		3,729

Costs and expenses:
	Purchased transportation			2,030,397		1,839,289		1,123,400		941,411
	Commissions to agents			201,578		192,836		109,435		99,522
	Other operating costs, net of gains on asset sales/dispositions			32,745		31,424		17,945		19,595
	Insurance and claims			74,923		70,301		39,359		30,449
	Selling, general and administrative			129,158		117,288		68,193		55,706
	Depreciation and amortization			20,969		24,375		10,409		12,149

		Total costs and expenses		2,489,770		2,275,513		1,368,741		1,158,832

Operating income				119,464		95,699		66,228		56,280
Interest and debt expense				1,330		539		812		698

Income before income taxes				118,134		95,160		65,416		55,582
Income taxes				29,743		23,461		16,465		13,689

Net income			$	88,391	$	71,699	$	48,951	$	41,893

Basic and diluted earnings per share			$	2.60	$	2.05	$	1.44	$	1.20

Average basic and diluted shares outstanding				33,979,000		35,037,000		33,935,000		34,870,000

Dividends per common share			$	0.80	$	0.76	$	0.40	$	0.40

Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)

			June 27,			December 27,
				2026			2025
ASSETS
Current assets:
	Cash and cash equivalents		$	294,350		$	396,694
	Short-term investments			53,352			55,531
	Trade accounts receivable, less allowance of $9,135 and $12,490			866,879			670,137
	Other receivables, including advances to independent contractors, less allowance of $14,727 and $18,759			47,306			52,784
	Assets held for sale			-			12,231
	Other current assets			59,159			28,949
		Total current assets		1,321,046			1,216,326


Operating property, less accumulated depreciation and amortization of $488,271 and $473,642				252,963			261,322
Goodwill				34,005			34,005
Other assets				134,521			124,282
Total assets			$	1,742,535		$	1,635,935

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Cash overdraft		$	71,849		$	56,654
	Accounts payable			468,780			369,567
	Current maturities of long-term debt			24,686			28,342
	Insurance claims			59,020			87,343
	Dividends payable			-			68,117
	Liabilities held for sale			-			6,961
	Other current liabilities			99,588			78,856
		Total current liabilities		723,923			695,840

Long-term debt, excluding current maturities				42,088			48,480
Insurance claims				98,686			62,706
Deferred income taxes and other non-current liabilities				41,108			33,244

Shareholders' equity:
	Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,631,174 and 68,590,708			686			686
	Additional paid-in capital			266,673			261,256
	Retained earnings			2,913,890			2,852,680
	Cost of 34,694,249 and 34,531,982 shares of common stock in treasury			(2,336,862	)		(2,313,245	)
	Accumulated other comprehensive loss			(7,657	)		(5,712	)
		Total shareholders' equity		836,730			795,665
Total liabilities and shareholders' equity			$	1,742,535		$	1,635,935

Landstar System, Inc. and Subsidiary
Supplemental Information
(Unaudited)

				Twenty-Six Weeks Ended						Thirteen Weeks Ended
				June 27,			June 28,			June 27,			June 28,
					2026			2025			2026			2025
Revenue generated through (in thousands):

	Truck transportation
		Truckload:
			Van equipment	$	1,320,919		$	1,186,071		$	717,513		$	591,276
			Unsided/platform equipment		860,737			741,270			492,168			400,862
		Less-than-truckload			48,912			47,749			25,124			25,313
		Other truck transportation (1)			185,591			192,766			99,073			100,687
			Total truck transportation		2,416,159			2,167,856			1,333,878			1,118,138
	Rail intermodal				47,075			39,515			27,761			22,028
	Ocean and air cargo carriers				97,713			116,426			49,744			50,789
	Other (2)				42,608			40,088			20,881			20,428
				$	2,603,555		$	2,363,885		$	1,432,264		$	1,211,383

	Revenue on loads hauled via BCO Independent Contractors (3)
		included in total truck transportation		$	1,038,421		$	888,489		$	563,073		$	461,432

Number of loads:

	Truck transportation
		Truckload:
			Van equipment		575,472			572,154			297,761			284,091
			Unsided/platform equipment		246,695			246,241			132,141			128,996
		Less-than-truckload			65,895			76,830			30,970			41,250
		Other truck transportation (1)			95,768			90,185			49,378			46,173
			Total truck transportation		983,830			985,410			510,250			500,510
	Rail intermodal				15,110			13,970			8,520			7,820
	Ocean and air cargo carriers				13,870			16,560			7,160			7,440
					1,012,810			1,015,940			525,930			515,770

	Loads hauled via BCO Independent Contractors (3)
		included in total truck transportation			432,210			398,000			224,600			203,930

Revenue per load:

	Truck transportation
		Truckload:
			Van equipment	$	2,295		$	2,073		$	2,410		$	2,081
			Unsided/platform equipment		3,489			3,010			3,725			3,108
		Less-than-truckload			742			621			811			614
		Other truck transportation (1)			1,938			2,137			2,006			2,181
			Total truck transportation		2,456			2,200			2,614			2,234
	Rail intermodal				3,115			2,829			3,258			2,817
	Ocean and air cargo carriers				7,045			7,031			6,947			6,826

	Revenue per load on loads hauled via BCO Independent Contractors (3)			$	2,403		$	2,232		$	2,507		$	2,263

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	%		54	%
	Rail intermodal				2	%		2	%		2	%		2	%
	Ocean and air cargo carriers				4	%		5	%		3	%		4	%
	Other				2	%		2	%		1	%		2	%


										June 27,			June 28,
											2026			2025
Truck Capacity Providers:

	BCO Independent Contractors (3)										7,719			7,844
	Truck Brokerage Carriers:
	Approved and active (4)										37,656			41,842
	Other approved										26,951			27,672
											64,607			69,514
	Total available truck capacity providers										72,326			77,358

	Trucks provided by BCO Independent Contractors (3)										8,544			8,611


(1) Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment.
	Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee.

(2) Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro.

(3) BCO Independent Contractors are independent contractors who provide truck capacity to the Company under exclusive lease arrangements.

(4) Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end.

Landstar System, Inc. and Subsidiary
Reconciliation of Gross Profit to Variable Contribution
(Dollars in thousands)
(Unaudited)

			Twenty-Six Weeks Ended						Thirteen Weeks Ended
			June 27,			June 28,			June 27,			June 28,
				2026			2025			2026			2025

Revenue			$	2,603,555		$	2,363,885		$	1,432,264		$	1,211,383

Costs of revenue:
		Purchased transportation		2,030,397			1,839,289			1,123,400			941,411
		Commissions to agents		201,578			192,836			109,435			99,522

	Variable costs of revenue			2,231,975			2,032,125			1,232,835			1,040,933

		Trailing equipment depreciation		12,619			13,844			6,351			6,867
		Information technology costs (1)		5,683			7,609			3,080			3,934
		Insurance-related costs (2)		75,654			71,317			39,716			30,793
		Other operating costs		32,745			31,424			17,945			19,595

	Other costs of revenue			126,701			124,194			67,092			61,189

	Total costs of revenue			2,358,676			2,156,319			1,299,927			1,102,122

Gross profit			$	244,879		$	207,566		$	132,337		$	109,261

Gross profit margin				9.4	%		8.8	%		9.2	%		9.0	%

	Plus: other costs of revenue			126,701			124,194			67,092			61,189

Variable contribution			$	371,580		$	331,760		$	199,429		$	170,450

Variable contribution margin				14.3	%		14.0	%		13.9	%		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 in the Company's Consolidated Statements of Income.

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

Source: Landstar System Holdings, Inc.