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

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

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

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

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

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

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

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

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

Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 4:30 p.m. ET. To access the webcast, visit www.investor.landstar.com; click on “Webcasts,” then click on “Landstar’s Second Quarter 2025 Earnings Release Conference Call.” A slide presentation to accompany the webcast presentation is also available on Landstar’s investor relations website at https://investor.landstar.com/.

About Landstar:
Landstar System, Inc., is a technology-enabled, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market® under the symbol LSTR.

Non-GAAP Financial Measures:
In this earnings release and accompanying financial disclosures, the Company provides the following information that may be deemed non-GAAP financial measures: variable contribution and variable contribution margin. The Company believes variable contribution and variable contribution margin are useful measures of the variable costs that we incur at a shipment-by-shipment level attributable to our transportation network of third-party capacity providers and independent agents in order to provide services to our customers. The Company also believes that it is appropriate to present each of the financial measures that may be deemed a non-GAAP financial measure, as referred to above, for the following reasons: (1) disclosure of these matters will allow investors to better understand the underlying trends in the Company’s financial condition and results of operations; (2) this information will facilitate comparisons by investors of the Company’s results as compared to the results of peer companies; and (3) management considers this financial information in its decision making.

Forward Looking Statements Disclaimer:
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements.” This press release contains forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “expects,” “plans,” “predicts,” “may,” “should,” “could,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: decreased demand for transportation services; U.S. trade relationships and potential or imposed tariffs; an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; the impact of the Russian conflict with Ukraine on the operations of certain independent commission sales agents, including the Company’s largest such agent by revenue in the 2024 fiscal year; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber and other information security incidents; dependence on key vendors; potential changes in taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; regulations requiring the purchase and use of zero-emission vehicles; intellectual property; acquisitions and investments; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2024 fiscal year, described in Part I, Item 1A Risk Factors, Landstar’s Form 10-Q for the 2025 first quarter, described in Part II, Item 1A Risk Factors, and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Landstar System, Inc. and Subsidiary
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)


			Twenty-Six Weeks Ended					Thirteen Weeks Ended
			June 28,		June 29,			June 28,		June 29,
			2025			2024		2025			2024

Revenue			$	2,363,885	$	2,396,048		$	1,211,383	$	1,225,005
Investment income				7,327		7,066			3,729		3,654

Costs and expenses:
	Purchased transportation			1,839,289		1,855,579			941,411		950,058
	Commissions to agents			192,836		197,098			99,522		99,816
	Other operating costs, net of gains on asset sales/dispositions			31,424		28,994			19,595		14,135
	Insurance and claims			70,301		53,432			30,449		27,164
	Selling, general and administrative			117,288		111,361			55,706		54,939
	Depreciation and amortization			24,375		28,630			12,149		14,488

		Total costs and expenses		2,275,513		2,275,094			1,158,832		1,160,600

Operating income				95,699		128,020			56,280		68,059
Interest and debt expense (income)				539		(3,286	)		698		(1,675	)

Income before income taxes				95,160		131,306			55,582		69,734
Income taxes				23,461		31,586			13,689		17,110

Net income			$	71,699	$	99,720		$	41,893	$	52,624

Basic and diluted earnings per share			$	2.05	$	2.79		$	1.20	$	1.48

Average basic and diluted shares outstanding				35,037,000		35,702,000			34,870,000		35,654,000

Dividends per common share			$	0.76	$	0.66		$	0.40	$	0.33

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


				June 28,			December 28,
					2025			2024
ASSETS
Current assets:
	Cash and cash equivalents			$	359,237		$	515,018
	Short-term investments				66,935			51,619
	Trade accounts receivable, less allowance
		of $12,284 and $12,904			717,249			683,841
	Other receivables, including advances to independent
		contractors, less allowance of $21,995 and $17,812			48,781			47,160
	Other current assets				45,144			22,229
		Total current assets			1,237,346			1,319,867

Operating property, less accumulated depreciation
			and amortization of $464,538 and $456,547		287,500			311,345
Goodwill					41,399			40,933
Other assets					133,399			141,166
Total assets				$	1,699,644		$	1,813,311

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Cash overdraft			$	58,141		$	61,033
	Accounts payable				401,849			383,625
	Current maturities of long-term debt				30,747			33,116
	Insurance claims				36,797			40,511
	Dividends payable				-			70,632
	Other current liabilities				91,605			84,237
		Total current liabilities			619,139			673,154

Long-term debt, excluding current maturities					54,677			69,191
Insurance claims					73,268			62,842
Deferred income taxes and other non-current liabilities					30,734			35,685

Shareholders' equity:
	Common stock, $0.01 par value, authorized 160,000,000
		shares, issued 68,589,418 and 68,559,269			686			686
	Additional paid-in capital				258,915			255,260
	Retained earnings				2,905,011			2,859,916
	Cost of 33,935,882 and 33,243,196 shares of common
		stock in treasury			(2,235,622	)		(2,131,413	)
	Accumulated other comprehensive loss				(7,164	)		(12,010	)
		Total shareholders' equity			921,826			972,439
Total liabilities and shareholders' equity				$	1,699,644		$	1,813,311

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


				Twenty-Six Weeks Ended						Thirteen Weeks Ended
				June 28,			June 29,			June 28,			June 29,
					2025			2024			2025			2024
Revenue generated through (in thousands):

	Truck transportation
		Truckload:
			Van equipment	$	1,186,071		$	1,247,244		$	591,276		$	618,940
			Unsided/platform equipment		741,270			723,995			400,862			380,950
		Less-than-truckload			47,749			53,707			25,313			28,090
		Other truck transportation⁽¹⁾			192,766			149,675			100,687			77,709
			Total truck transportation		2,167,856			2,174,621			1,118,138			1,105,689
	Rail intermodal				39,515			45,002			22,028			22,307
	Ocean and air cargo carriers				116,426			125,380			50,789			71,306
	Other⁽²⁾				40,088			51,045			20,428			25,703
				$	2,363,885		$	2,396,048		$	1,211,383		$	1,225,005

	Revenue on loads hauled via BCO Independent Contractors⁽³⁾
		included in total truck transportation		$	888,489		$	918,071		$	461,432		$	465,510

Number of loads:

	Truck transportation
		Truckload:
			Van equipment		572,154			599,973			284,091			300,959
			Unsided/platform equipment		246,241			244,407			128,996			126,460
		Less-than-truckload			76,830			82,850			41,250			42,617
		Other truck transportation⁽¹⁾			90,185			71,440			46,173			37,914
			Total truck transportation		985,410			998,670			500,510			507,950
	Rail intermodal				13,970			14,380			7,820			7,230
	Ocean and air cargo carriers				16,560			17,240			7,440			8,520
					1,015,940			1,030,290			515,770			523,700

	Loads hauled via BCO Independent Contractors⁽³⁾
		included in total truck transportation			398,000			422,300			203,930			213,560

Revenue per load:

	Truck transportation
		Truckload:
			Van equipment	$	2,073		$	2,079		$	2,081		$	2,057
			Unsided/platform equipment		3,010			2,962			3,108			3,012
		Less-than-truckload			621			648			614			659
		Other truck transportation⁽¹⁾			2,137			2,095			2,181			2,050
			Total truck transportation		2,200			2,178			2,234			2,177
	Rail intermodal				2,829			3,129			2,817			3,085
	Ocean and air cargo carriers				7,031			7,273			6,826			8,369

	Revenue period on loads hauled via BCO Independent Contractors⁽³⁾			$	2,232		$	2,174		$	2,263		$	2,180

Revenue by capacity type (as a % of total revenue):

	Truck capacity providers:
		BCO Independent Contractors⁽³⁾			38	%		38	%		38	%		38	%
		Truck Brokerage Carriers			54	%		52	%		54	%		52	%
	Rail intermodal				2	%		2	%		2	%		2	%
	Ocean and air cargo carriers				5	%		5	%		4	%		6	%
	Other				2	%		2	%		2	%		2	%


										June 28,			June 29,
											2025			2024
Truck Capacity Providers:

	BCO Independent Contractors⁽³⁾										7,844			8,385
	Truck Brokerage Carriers:
	Approved and active⁽⁴⁾										41,842			45,382
	Other approved										27,672			25,450
											69,514			70,832
	Total available truck capacity providers										77,358			79,217

	Trucks provided by BCO Independent Contractors⁽³⁾										8,611			9,180


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

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

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

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

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

			Twenty-Six Weeks Ended						Thirteen Weeks Ended
			June 28,			June 29,			June 28,			June 29,
				2025			2024			2025			2024

Revenue			$	2,363,885		$	2,396,048		$	1,211,383		$	1,225,005

Costs of revenue:
		Purchased transportation		1,839,289			1,855,579			941,411			950,058
		Commissions to agents		192,836			197,098			99,522			99,816

	Variable costs of revenue			2,032,125			2,052,677			1,040,933			1,049,874

		Trailing equipment depreciation		13,844			13,834			6,867			6,937
		Information technology costs⁽¹⁾		7,609			11,986			3,934			6,182
		Insurance-related costs⁽²⁾		71,317			54,659			30,793			27,881
		Other operating costs		31,424			28,994			19,595			14,135

	Other costs of revenue			124,194			109,473			61,189			55,135

	Total costs of revenue			2,156,319			2,162,150			1,102,122			1,105,009

Gross profit			$	207,566		$	233,898		$	109,261		$	119,996

Gross profit margin				8.8	%		9.8	%		9.0	%		9.8	%

	Plus: other costs of revenue			124,194			109,473			61,189			55,135

Variable contribution			$	331,760		$	343,371		$	170,450		$	175,131

Variable contribution margin				14.0	%		14.3	%		14.1	%		14.3	%

(1)	Includes costs of revenue incurred related to internally developed software including ASC 350-40 amortization, implementation costs, hosting costs and other support costs utilized to support the Company’s independent commission sales agents, third party capacity providers, and customers, included as a portion of depreciation and amortization and of selling, general and administrative in the Company's Consolidated Statements of Income.

(2)	Primarily includes (i) insurance premiums paid for commercial auto liability, general liability, cargo and other lines of coverage related to the transportation of freight; (ii) the related cost of claims incurred under those programs; and (iii) brokerage commissions and other fees incurred relating to the administration of insurance programs available to BCO Independent Contractors that are reinsured by the Company, which are included in selling, general and administrative in the Company’s Consolidated Statements of Income.

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

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