8-K
LANDSTAR SYSTEM INC (LSTR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 28, 2025
LANDSTAR SYSTEM, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 021238 | 06-1313069 |
|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification No.) |
| 13410 Sutton Park Drive South, Jacksonville, Florida | 32224 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
(904) 398-9400
(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<br>Symbol(s) | Name of each exchange<br>on which registered |
|---|---|---|
| Common Stock | LSTR | NASDAQ |
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 October 28, 2025, Landstar System, Inc. (“Landstar” or the “Company”) issued a press release announcing results for the third quarter of fiscal 2025. 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 October 28, 2025, 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 October 28, 2025 in connection with the Company’s release of results for the third quarter of fiscal 2025.
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 October 28, 2025, of Landstar System, Inc. |
| 99.2 | Slide Presentation, dated October 28, 2025, 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: October 28, 2025 | By: | /s/ James P. Todd |
| Name: | James P. Todd | |
| Title: | Vice President, Chief Financial Officer<br> <br>and Assistant Secretary |
EX-99.1
Exhibit 99.1
| For Immediate Release | October 28, 2025 |
|---|
LANDSTAR SYSTEM REPORTS THIRD QUARTER RESULTS
Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported its financial results for the 2025 third quarter. The Company reported total revenue of $1,205 million in the 2025 third quarter, compared to $1,214 million in the 2024 third quarter. Gross profit and variable contribution each also decreased approximately 1% in the 2025 third quarter compared to the 2024 third quarter. Landstar reported basic and diluted earnings per share (“EPS”) of $0.56 for the 2025 third quarter, compared to $1.41 in the 2024 third quarter. As further described below, and as previously disclosed in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on August 13, 2025, the 2025 third quarter included three non-cash, non-recurring items (the “Non-Cash Impairment Charges”) that adversely impacted financial results for the quarter. Excluding the impact of the Non-Cash Impairment Charges, Landstar would have reported 2025 third quarter EPS of $1.22 (“Adjusted EPS”). Reconciliations of EPS and Adjusted EPS for the 2025 and 2024 third quarters and year-to-date periods are provided in the Company’s accompanying financial disclosures.
“The Landstar team of independent business owners and employees executed admirably during the 2025 third quarter despite continued challenges in the overall economic environment for truck transportation services,” said Landstar President and Chief Executive Officer Frank Lonegro. “There were two notable highlights in the quarter. First, Landstar continued to experience strong performance in our services hauled by unsided/platform equipment. Second, for the first time since the first quarter of 2022, the Company achieved sequential quarter-over-quarter growth in BCO truck count. Sustained strength over multiple quarters in our unsided/platform business, turning the corner on net BCO truck count and our laser focus on safety, security and delivering great service to our customers will be key elements we will leverage during the next upcycle.”
LANDSTAR SYSTEM/2
With respect to Landstar’s EPS performance in the 2025 third quarter, the Company conducted a strategic review of our operations during the 2025 third quarter focused on efforts to streamline our core operations and position the Company for future growth. Following this strategic review, Landstar made several important decisions that resulted in the Non-Cash Impairment Charges. In the aggregate, the Non-Cash Impairment Charges adversely impacted 2025 third quarter EPS by $0.66, consisting of:
| • | $16.1 million, or $0.35 per basic and diluted share, charged to goodwill and certain other assets in<br>connection with the decision to actively market for sale Landstar Metro, S.A.P.I. de C.V., the Company’s wholly-owned Mexican operating subsidiary, principally engaged in intra-Mexico truck transportation services; |
|---|---|
| • | $9.0 million, or $0.20 per basic and diluted share, related to the decision to select one of the<br>Company’s transportation management systems as its primary such system for truckload brokerage services and, in connection with that decision, wind-down an alternative transportation management system currently in use by one of the<br>Company’s operating subsidiaries; and |
| --- | --- |
| • | $5.0 million, or $0.11 per basic and diluted share, relating to a<br>non-controlling equity investment made by the Company in 2022 in a privately held technology start-up company. |
| --- | --- |
Additional disclosure with respect to each of the Non-Cash Impairment Charges will be included in the Company’s Quarterly Report on Form 10-Q for the 2025 third quarter.
| 3Q 2025 | 3Q 2024 | |||
|---|---|---|---|---|
| Revenue | $ | 1,205,406 | $ | 1,213,867 |
| Gross profit | $ | 111,060 | $ | 112,693 |
| Variable contribution | $ | 170,241 | $ | 171,359 |
| Operating income | $ | 26,326 | $ | 63,116 |
| Adjusted operating income | $ | 56,430 | $ | 63,116 |
| Basic and diluted earnings per share (“EPS”) | $ | 0.56 | $ | 1.41 |
| Adjusted basic and diluted earnings per share (Adjusted EPS”) | $ | 1.22 | $ | 1.41 |
| (1) | Dollars above in thousands, except per share amounts. | |||
| --- | --- | |||
| (2) | Please refer to the Consolidated Statements of Income, the Reconciliation of Gross Profit to Variable<br>Contribution, the Reconciliation of GAAP Operating Income to Adjusted Operating Income and the Reconciliation of GAAP EPS to Adjusted EPS included below. | |||
| --- | --- |
LANDSTAR SYSTEM/3
Landstar continues to return capital to stockholders through the Company’s stock purchase program and dividends. During the 2025 third quarter, Landstar purchased 308,709 shares of its common stock at an aggregate cost of $40.6 million, bringing the total number of common shares purchased during the thirty-nine week period ended September 27, 2025, to 995,168 shares at an aggregate cost of approximately $143.9 million. The Company is currently authorized to purchase up to an additional 1,552,813 shares of the Company’s common stock under its longstanding share purchase program. Landstar also announced today that its Board of Directors declared a quarterly dividend of $0.40 per share payable on December 9, 2025, to stockholders of record as of the close of business on November 18, 2025.
Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2025 third quarter was $1,090 million, or 90% of revenue, compared to $1,091 million, or 90% of revenue, in the 2024 third quarter. Truckload transportation revenue hauled via van equipment in the 2025 third quarter was $583 million, compared to $604 million in the 2024 third quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2025 third quarter was $386 million, compared to $370 million in the 2024 third quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2025 third quarter was $96 million, compared to $93 million in the 2024 third quarter. Revenue hauled by rail, air and ocean cargo carriers was $96 million, or 8% of revenue, in the 2025 third quarter, compared to $97 million, or 8% of revenue, in the 2024 third quarter.
Both truck revenue per load and the number of loads hauled via truck in the 2025 third quarter were approximately equal as compared to the 2024 third quarter.
Gross profit in the 2025 third quarter was $111 million, and variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2025 third quarter was $170 million. Gross profit in the 2024 third quarter was $113 million, and variable contribution in the 2024 third quarter was $171 million. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2025 and 2024 third quarters and year-to-date periods are provided in the Company’s accompanying financial disclosures.
LANDSTAR SYSTEM/4
The Company’s balance sheet continues to be very strong, with cash and short-term investments of approximately $434 million as of September 27, 2025. Trailing twelve-month return on average shareholders’ equity was 15%. Return on invested capital, representing net income divided by the sum of average equity plus average debt, was 13%.
Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 4:30 p.m. ET. To access the webcast, visit www.investor.landstar.com; click on “Webcasts,” then click on “Landstar’s Third Quarter 2025 Earnings Release Conference Call.” A slide presentation to accompany the webcast presentation is also available on Landstar’s investor relations website at https://investor.landstar.com/.
Contact:
Jim Todd
Chief Financial Officer
904-398-9400
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.
LANDSTAR SYSTEM/5
Non-GAAP Financial Measures*:*
In this earnings release and accompanying financial disclosures, the Company provides the following information that may be deemed non-GAAP financial measures: variable contribution and variable contribution margin; adjusted operating income; and Adjusted EPS. The Company believes variable contribution and variable contribution margin are useful measures of the variable costs that we incur at a shipment-by-shipment level attributable to our transportation network of third-party capacity providers and independent agents in order to provide services to our customers. The Company believes adjusted operating income and Adjusted EPS are useful measures given the non-cash, non-recurring nature of the Non-Cash Impairment Charges included in the Company’s 2025 third quarter results. The Company also believes that it is appropriate to present each of the financial measures that may be deemed a non-GAAP financial measure, as referred to above, for the following reasons: (1) disclosure of these matters will allow investors to better understand the underlying trends in the Company’s financial condition and results of operations; (2) this information will facilitate comparisons by investors of the Company’s results as compared to the results of peer companies; and (3) management considers this financial information in its decision making.
Forward Looking Statements Disclaimer:
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements.” This press release contains forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “expects,” “plans,” “predicts,” “may,” “should,” “could,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: decreased demand for transportation services; U.S. trade relationships and potential or imposed tariffs; an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; the impact of the Russian conflict with Ukraine on the operations of certain independent commission sales agents, including the Company’s largest such agent by revenue in the 2024 fiscal year; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber and other information security incidents; dependence on key vendors; potential changes in taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; regulations requiring the
LANDSTAR SYSTEM/6
purchase and use of zero-emission vehicles; intellectual property; acquisitions and investments; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2024 fiscal year, described in Part I, Item 1A Risk Factors, Landstar’s Form 10-Q for the 2025 first quarter, described in Part II, Item 1A Risk Factors, and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.
Landstar System, Inc. and Subsidiary
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
| Thirty-Nine Weeks Ended | Thirteen Weeks Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| September 27,<br>2025 | September 28,<br>2024 | September 27,<br>2025 | September 28,<br>2024 | |||||||
| Revenue | $ | 3,569,291 | $ | 3,609,915 | $ | 1,205,406 | $ | 1,213,867 | ||
| Investment income | 10,620 | 10,988 | 3,293 | 3,922 | ||||||
| Costs and expenses: | ||||||||||
| Purchased transportation | 2,775,761 | 2,799,384 | 936,472 | 943,805 | ||||||
| Commissions to agents | 291,529 | 295,801 | 98,693 | 98,703 | ||||||
| Other operating costs, net of gains on asset sales/dispositions | 46,996 | 44,138 | 15,572 | 15,144 | ||||||
| Insurance and claims | 103,309 | 83,830 | 33,008 | 30,398 | ||||||
| Selling, general and administrative | 174,303 | 162,613 | 57,015 | 51,252 | ||||||
| Depreciation and amortization | 35,884 | 44,001 | 11,509 | 15,371 | ||||||
| Impairment of intangible and other assets | 30,104 | — | 30,104 | — | ||||||
| Total costs and expenses | 3,457,886 | 3,429,767 | 1,182,373 | 1,154,673 | ||||||
| Operating income | 122,025 | 191,136 | 26,326 | 63,116 | ||||||
| Interest and debt expense (income) | 756 | (4,455 | ) | 217 | (1,169 | ) | ||||
| Income before income taxes | 121,269 | 195,591 | 26,109 | 64,285 | ||||||
| Income taxes | 30,206 | 45,838 | 6,745 | 14,252 | ||||||
| Net income | $ | 91,063 | $ | 149,753 | $ | 19,364 | $ | 50,033 | ||
| Basic and diluted earnings per share | $ | 2.61 | $ | 4.21 | $ | 0.56 | $ | 1.41 | ||
| Average basic and diluted shares outstanding | 34,885,000 | 35,608,000 | 34,581,000 | 35,420,000 | ||||||
| Dividends per common share | $ | 1.16 | $ | 1.02 | $ | 0.40 | $ | 0.36 |
Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
| December 28,<br>2024 | |||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 375,191 | $ | 515,018 | ||
| Short-term investments | 59,227 | 51,619 | |||
| Trade accounts receivable, less allowance of 12,471 and 12,904 | 695,983 | 683,841 | |||
| Other receivables, including advances to independent contractors, less allowance of 18,665 and<br>17,812 | 56,437 | 47,160 | |||
| Assets held for sale | 13,856 | — | |||
| Other current assets | 44,414 | 22,229 | |||
| Total current assets | 1,245,108 | 1,319,867 | |||
| Operating property, less accumulated depreciation and amortization of 468,683 and<br>456,547 | 262,466 | 311,345 | |||
| Goodwill | 34,005 | 40,933 | |||
| Other assets | 120,617 | 141,166 | |||
| Total assets | 1,662,196 | $ | 1,813,311 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Cash overdraft | 47,992 | $ | 61,033 | ||
| Accounts payable | 402,753 | 383,625 | |||
| Current maturities of long-term debt | 29,428 | 33,116 | |||
| Insurance claims | 43,889 | 40,511 | |||
| Dividends payable | — | 70,632 | |||
| Contractor escrow | 31,011 | 30,205 | |||
| Liabilities held for sale | 4,247 | — | |||
| Other current liabilities | 59,758 | 54,032 | |||
| Total current liabilities | 619,078 | 673,154 | |||
| Long-term debt, excluding current maturities | 47,703 | 69,191 | |||
| Insurance claims | 67,567 | 62,842 | |||
| Deferred income taxes and other non-current<br>liabilities | 39,144 | 35,685 | |||
| Shareholders’ equity: | |||||
| Common stock, 0.01 par value, authorized 160,000,000 shares, issued 68,589,418 and<br>68,559,269 | 686 | 686 | |||
| Additional paid-in capital | 260,501 | 255,260 | |||
| Retained earnings | 2,910,514 | 2,859,916 | |||
| Cost of 34,244,716 and 33,243,196 shares of common stock in treasury | (2,276,252 | ) | (2,131,413 | ) | |
| Accumulated other comprehensive loss | (6,745 | ) | (12,010 | ) | |
| Total shareholders’ equity | 888,704 | 972,439 | |||
| Total liabilities and shareholders’ equity | 1,662,196 | $ | 1,813,311 |
All values are in US Dollars.
Landstar System, Inc. and Subsidiary
Supplemental Information
(Unaudited)
| Thirty-Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 27,<br>2025 | September 28,<br>2024 | September 27,<br>2025 | September 28,<br>2024 | |||||||||
| Revenue generated through (in thousands): | ||||||||||||
| Truck transportation | ||||||||||||
| Truckload: | ||||||||||||
| Van equipment | $ | 1,769,440 | $ | 1,851,237 | $ | 583,369 | $ | 603,993 | ||||
| Unsided/platform equipment | 1,127,276 | 1,093,753 | 386,006 | 369,758 | ||||||||
| Less-than-truckload | 72,229 | 77,902 | 24,480 | 24,195 | ||||||||
| Other truck transportation ^(1)^ | 288,807 | 242,853 | 96,041 | 93,178 | ||||||||
| Total truck transportation | 3,257,752 | 3,265,745 | 1,089,896 | 1,091,124 | ||||||||
| Rail intermodal | 63,183 | 65,981 | 23,668 | 20,979 | ||||||||
| Ocean and air cargo carriers | 188,696 | 201,729 | 72,270 | 76,349 | ||||||||
| Other ^(2)^ | 59,660 | 76,460 | 19,572 | 25,415 | ||||||||
| $ | 3,569,291 | $ | 3,609,915 | $ | 1,205,406 | $ | 1,213,867 | |||||
| Revenue on loads hauled via BCO Independent Contractors ^(3)^included in total truck transportation | $ | 1,345,852 | $ | 1,374,915 | $ | 457,363 | $ | 456,844 | ||||
| Number of loads: | ||||||||||||
| Truck transportation | ||||||||||||
| Truckload: | ||||||||||||
| Van equipment | 850,047 | 887,895 | 277,893 | 287,922 | ||||||||
| Unsided/platform equipment | 369,495 | 362,627 | 123,254 | 118,220 | ||||||||
| Less-than-truckload | 115,692 | 119,346 | 38,862 | 36,496 | ||||||||
| Other truck transportation ^(1)^ | 135,606 | 114,552 | 45,421 | 43,112 | ||||||||
| Total truck transportation | 1,470,840 | 1,484,420 | 485,430 | 485,750 | ||||||||
| Rail intermodal | 21,960 | 21,420 | 7,990 | 7,040 | ||||||||
| Ocean and air cargo carriers | 24,370 | 26,120 | 7,810 | 8,880 | ||||||||
| 1,517,170 | 1,531,960 | 501,230 | 501,670 | |||||||||
| Loads hauled via BCO Independent Contractors ^(3)^included in total truck transportation | 597,010 | 620,640 | 199,010 | 198,340 | ||||||||
| Revenue per load: | ||||||||||||
| Truck transportation | ||||||||||||
| Truckload: | ||||||||||||
| Van equipment | $ | 2,082 | $ | 2,085 | $ | 2,099 | $ | 2,098 | ||||
| Unsided/platform equipment | 3,051 | 3,016 | 3,132 | 3,128 | ||||||||
| Less-than-truckload | 624 | 653 | 630 | 663 | ||||||||
| Other truck transportation ^(1)^ | 2,130 | 2,120 | 2,114 | 2,161 | ||||||||
| Total truck transportation | 2,215 | 2,200 | 2,245 | 2,246 | ||||||||
| Rail intermodal | 2,877 | 3,080 | 2,962 | 2,980 | ||||||||
| Ocean and air cargo carriers | 7,743 | 7,723 | 9,254 | 8,598 | ||||||||
| Revenue per load on loads hauled via BCO Independent Contractors ^(3)^ | $ | 2,254 | $ | 2,215 | $ | 2,298 | $ | 2,303 | ||||
| Revenue by capacity type (as a % of total revenue): | ||||||||||||
| Truck capacity providers: | ||||||||||||
| BCO Independent Contractors ^(3)^ | 38 | % | 38 | % | 38 | % | 38 | % | ||||
| Truck Brokerage Carriers | 54 | % | 52 | % | 52 | % | 52 | % | ||||
| Rail intermodal | 2 | % | 2 | % | 2 | % | 2 | % | ||||
| Ocean and air cargo carriers | 5 | % | 6 | % | 6 | % | 6 | % | ||||
| Other | 2 | % | 2 | % | 2 | % | 2 | % | ||||
| September 27,<br>2025 | September 28,<br>2024 | |||||||||||
| Truck Capacity Providers: | ||||||||||||
| BCO Independent Contractors ^(3)^ | 7,827 | 8,266 | ||||||||||
| Truck Brokerage Carriers: | ||||||||||||
| Approved and active ^(4)^ | 40,004 | 44,828 | ||||||||||
| Other approved | 27,461 | 25,714 | ||||||||||
| 67,465 | 70,542 | |||||||||||
| Total available truck capacity providers | 75,292 | 78,808 | ||||||||||
| Trucks provided by BCO Independent Contractors<br>^(3)^ | 8,618 | 9,027 | ||||||||||
| (1) Includes power-only, expedited, straight truck, cargo van, and miscellaneous<br>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<br>consignee.<br> <br>(2) Includes primarily reinsurance premium revenue generated by the insurance<br>segment and intra-Mexico transportation services revenue generated by Landstar Metro.<br> <br>(3) BCO<br>Independent Contractors are independent contractors who provide truck capacity to the Company under exclusive lease arrangements.<br><br><br>(4) Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days<br>immediately preceding the fiscal quarter end. | ||||||||||||
| --- |
Landstar System, Inc. and Subsidiary
Reconciliation of Gross Profit to Variable Contribution
(Dollars in thousands)
(Unaudited)
| Thirty-Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 27, | September 28, | September 27, | September 28, | |||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Revenue | $ | 3,569,291 | $ | 3,609,915 | $ | 1,205,406 | $ | 1,213,867 | ||||
| Costs of revenue: | ||||||||||||
| Purchased transportation | 2,775,761 | 2,799,384 | 936,472 | 943,805 | ||||||||
| Commissions to agents | 291,529 | 295,801 | 98,693 | 98,703 | ||||||||
| Variable costs of revenue | 3,067,290 | 3,095,185 | 1,035,165 | 1,042,508 | ||||||||
| Trailing equipment depreciation | 20,829 | 20,764 | 6,985 | 6,930 | ||||||||
| Information technology costs (1) | 10,928 | 18,115 | 3,319 | 6,129 | ||||||||
| Insurance-related costs (2) | 104,622 | 85,122 | 33,305 | 30,463 | ||||||||
| Other operating costs | 46,996 | 44,138 | 15,572 | 15,144 | ||||||||
| Other costs of revenue | 183,375 | 168,139 | 59,181 | 58,666 | ||||||||
| Total costs of revenue | 3,250,665 | 3,263,324 | 1,094,346 | 1,101,174 | ||||||||
| Gross profit | $ | 318,626 | $ | 346,591 | $ | 111,060 | $ | 112,693 | ||||
| Gross profit margin | 8.9 | % | 9.6 | % | 9.2 | % | 9.3 | % | ||||
| Plus: other costs of revenue | 183,375 | 168,139 | 59,181 | 58,666 | ||||||||
| Variable contribution | $ | 502,001 | $ | 514,730 | $ | 170,241 | $ | 171,359 | ||||
| Variable contribution margin | 14.1 | % | 14.3 | % | 14.1 | % | 14.1 | % | ||||
| (1) | Includes costs of revenue incurred related to internally developed software including ASC 350-40 amortization, implementation costs, hosting costs and other support costs utilized to support the Company’s independent commission sales agents, third party capacity providers, and customers, included<br>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<br>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<br>available to BCO Independent Contractors that are reinsured by the Company, which are included in selling, general and administrative in the Company’s Consolidated Statements of Income. | |||||||||||
| --- | --- |
Landstar System, Inc. and Subsidiary
Reconciliation of GAAP Operating Income to Adjusted Operating Income
(Dollars in thousands)
(Unaudited)
| Thirty-Nine Weeks Ended | Thirteen Weeks Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| September 27, | September 28, | September 27, | September 28, | |||||
| 2025 | 2024 | 2025 | 2024 | |||||
| GAAP operating income | $ | 122,025 | $ | 191,136 | $ | 26,326 | $ | 63,116 |
| Plus: Impairment of intangible and other assets | 30,104 | — | 30,104 | — | ||||
| Adjusted operating income | $ | 152,129 | $ | 191,136 | $ | 56,430 | $ | 63,116 |
Landstar System, Inc. and Subsidiary
Reconciliation of GAAP Earnings per Share to Adjusted Earnings per Share
(Unaudited)
| Thirty-Nine Weeks Ended | Thirteen Weeks Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| September 27, | September 28, | September 27, | September 28, | |||||
| 2025 | 2024 | 2025 | 2024 | |||||
| GAAP basic and diluted earnings per share | $ | 2.61 | $ | 4.21 | $ | 0.56 | $ | 1.41 |
| Plus: Impairment of intangible and other assets, net of tax, per basic and diluted share | 0.66 | — | 0.66 | — | ||||
| Adjusted basic and diluted earnings per share | $ | 3.27 | $ | 4.21 | $ | 1.22 | $ | 1.41 |
EX-99.2
Date Landstar System, Inc. Earnings Conference Call 3Q 2025 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. 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 2024 fiscal year and Form 10-Q for the 2025 first quarter, 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. 3Q 2025
In this slide presentation, the Company provides the following information that may be deemed non-GAAP financial measures: (i) adjusted operating income, (ii) adjusted basic and diluted earnings per share (“Adjusted Earnings per Share” or “Adjusted EPS”), (iii) variable contribution, (iv) variable contribution margin, (v) adjusted operating income as a percentage of gross profit, (vi) operating income as a percentage of variable contribution, and (vii) adjusted operating income as a percentage of variable contribution. Management believes adjusted operating income and Adjusted EPS are useful measures of the profitability of the Company’s business given the non-cash, non-recurring nature of three discrete impairment charges (the “Non-Cash Impairment Charges”) included in the Company’s 2025 third quarter results and previously described in a Current Report on Form 8-K filed with the SEC on August 13, 2025. 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 and adjusted operating income as a percentage of variable contribution are useful measures 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 believes adjusted operating income as a percentage of gross profit is a useful measure for purposes of comparison given the non-cash, non-recurring nature of the Non-Cash Impairment Charges. 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 reconciliations of (i) operating income to adjusted operating income, (ii) basic and diluted earnings per share (“Earnings per Share”) to Adjusted EPS, (iii) gross profit to variable contribution and (iv) gross profit margin to variable contribution margin for the 2025 and 2024 third quarters and year-to-date periods are included in this slide presentation within the Appendix. Non-GAAP Financial Measures 3Q 2025
Frank Lonegro Chief Executive Officer 3Q 2025 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 3Q revenue performance Strong performance in our services hauled by unsided/platform equipment Truck capacity 3Q BCO truck count grew sequentially; best performance since 1Q 2022 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 Metric 3Q 2025 3Q 2024 Chg. Revenue $ 1,205.4 $ 1,213.9 (0.7%) Operating Income $ 26.3 $ 63.1 (58.3%) Adjusted Operating Income (1) $ 56.4 $ 63.1 (10.6%) Earnings per Share $ 0.56 $ 1.41 (60.3%) Adjusted Earnings per Share (1) $ 1.22 $ 1.41 (13.5%) Excludes the impact of the Non-Cash Impairment Charges in the 2025 third quarter. See Appendix for reconciliations to the applicable closest GAAP measure.
Slide header $1.09B Truck Revenue 485K Truck Loadings $2,245 Truck Revenue per Load 485 Million $ Agents* 8,618 BCO Trucks 67,465 Carriers 17,400+ Trailers 0.60 DOT Accidents per Million Miles** * Based on 2024 fiscal year ** Based on 3Q 2025 YTD; See definition of DOT Accidents within the Appendix 3Q R E S U L T S L A N D S T A R N E T W O R K Agents ~1,000 Customers 23,000+ Capacity 75,000+ Employees ~1,400 Landstar Network and 3Q Truckload Operating Results
Slide header 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 $169.5 million and $197.1 million in the 2025 and 2024 year-to-date periods, respectively, and $58.8 million and $ 61.2 million in the 2025 and 2024 third 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 Sep 27, 2025 Jun 28, 2025 Dec 28, 2024 Sep 28, 2024 BCO Independent Contractors 7,827 7, 844 8,082 8,266 Truck Brokerage Carriers Approved and Active (1) 40,004 41,842 43,718 44,828 Other Approved 27,461 27,672 26,527 25, 714 Total Truck Brokerage Carriers 67,465 69,514 70,245 70,542 Total Available Truck Capacity Providers 75,292 77,358 78,327 78,808 Trucks Provided by BCO Independent Contractors 8,618 8,611 8,843 9,027 Truck Capacity All information is provided as of the end of the applicable period
Jim Todd Chief Financial Officer 3Q 2025 Financial Results
Slide header Revenue Source Rate (1) Vol. (2) Chg. Truck (0.0%) (0.1%) (0.1%) Rail Intermodal (0.6%) 13.5% 12.8% Ocean/Air 7.6% (12.0%)) (5.3%) Insurance Premiums N/A N/A (6.0%) Total Revenue — — (0.7%) 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 3Q 2025 3Q 2024 Market Segment in Revenue 27.4 28.4 Consumer Durables (4) 15.3 13.8 Machinery 10 9.0 9.8 Building Products (8) 9.0 9.5 Automotive (6) 8.4 6.6 Electrical 26 6.9 7.1 AA&E, Hazmat (3) 4.8 5.0 Metals (5) 2.9 2.5 Energy 18 1.6 1.9 Substitute Line Haul (19) 14.7 15.4 Other (5) Transportation logistics revenue down 1% Y-O-Y Revenue Variances by Industry Served with Revenue Share Indicated Amounts in Percent
Slide header Gross Profit Variable Contribution Amounts in % 3Q 2024 14.1 Revenue – Variable (0.2) Revenue – Fixed (3) 0.1 Change in Mix/Other 0.1 2025 14.1 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 43% and 42% of revenue in the 2025 and 2024 third quarters, respectively. R E S U L T S 9.2% 9.3% 14.1% 14.1% 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 and Adjusted Operating Income (1) as a Percentage of Gross Profit and Variable Contribution Dollars in Millions Amounts in % 3Q 2024 36.8) Non-Cash Impairment Charges (17.7) SG&A (3.5) Insurance and claims (2.0) Other operating costs (0.3) Depreciation 2.2 2025 15.5 Plus: Non-Cash Impairment Charges 17.7 2025 (as adjusted) 33.1 3Q 2025 GAAP operating income and related percentages 3Q 2025 adjusted operating income and related percentages 3Q 2024 GAAP operating income and related percentages Adjusted operating income equals operating income plus impairment of intangible and other assets.
Slide header Return Type Sep 27, 2025 (4) Sep 28, 2024 Equity 15% 21% Invested Capital 13% 19% Assets 8% 12% 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 3Q 2025 3Q 2024 Cash flow from operations $ 152.2 $ 225.4 Capital expenditures $ 7.7 $ 24.3 Free cash flow (3) $ 144.5 $ 201.2 Share repurchases $ 143.2 $ 78.7 Dividends paid $ 111.1 $ 107.8 R E T U R N S Trailing 12 months as of date indicated Net cash is defined as cash and cash equivalents of $375.2 million plus short term investments of $59.2 million less outstanding debt of $77.1 million as of September 27, 2025. As of September 28, 2024, net cash was cash and cash equivalents of $468.8 million plus short term investments of $62.5 million less outstanding debt of $72.5 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. Excluding the impact of the non-cash non-recurring impairment charges, return on equity, invested capital and assets for the trailing 12 months ended September 27, 2025 would have been 17%, 15% and 9%, respectively. 8% 7% Key Balance Sheet and Cash Flow Statistics Dollars in Millions
Frank Lonegro Chief Executive Officer 3Q 2025 Closing Remarks
Slide header Current Market Update and Historical Trends Ü Current Market Update - October business activity: – Truck Loads: October approximately 3% below October 2024 – Modestly below typical September to October month-to-month historical trends – Truck Revenue per Load: October approximately equal to October 2024 – Slightly below typical September to October month-to-month historical trends Historical Trends - Pre-pandemic historical seasonality patterns would normally yield: – Truck Revenue: Slight increase from 3Q to 4Q – Truck Loads: Slight increase 3Q to 4Q – Truck Revenue per Load: Slight increase 3Q to 4Q
3Q 2025 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 3Q 2 0 2 5 by Service Type LTL — 2% T R U C K L O A D Van — 48%, Unsided/Platform — 32% OTHER TRUCK — 8% 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 — 6% CHANGE IN SHARE SINCE 3Q 2024 Van Equipment Unsided/ Platform Equipment LTL Other Truck Transportation Rail Intermodal Ocean/ Air cargo All Other 50% Ü 48% 30% Ü 32% 2% Ü 2% 8% Ü 8% 2% Ü 2% 6% Ü 6% 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
Slide header Revenue – Year-to-Date Dollars in Millions Revenue Source Rate (1) Vol. (2) Chg. Truck 0.7% (0.9%) (0.2%) Rail Intermodal (6.6%) 2.5% (4.2%) Ocean/Air 0.3% (6.7%)) (6.5%) Insurance Premiums N/A N/A (8.2%) Total Revenue — — (1.1%) 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.
Slide header Gross Profit and Variable Contribution – Year-to-Date with Associated Margins Dollars in Millions Gross Profit Variable Contribution Amounts in % 3Q YTD 2024 14.3 Revenue – Fixed (1) 0.0 Revenue – Variable (0.1) Change in Mix/Other (0.1) 2025 14.1 C H A N G E I N V C M A R G I N Revenue on transactions where the Company’s variable contribution margin was based on a contractually pre-determined percentage of revenue accounted for 43% of revenue in both the 2025 and 2024 year-to-date periods. R E S U L T S 8.9% 9.6% 14.1% 14.3%
Slide header Operating Income – Year-to-Date as a Percentage of Gross Profit and Variable Contribution Dollars in Millions 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 Amounts in % 3Q YTD 2024 37.1) Impairment (6.0) Insurance and claims (4.3) SG&A (3.1) Other operating costs (0.8) Depreciation and amortization 1.4 2025 24.3)
Slide header Adjusted Operating Income – Year-to-Date as a Percentage of Gross Profit and Variable Contribution Dollars in Millions Adjusted 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 Amounts in % 3Q YTD 2024 37.1) Insurance and claims (4.3) SG&A (3.1) Other operating costs (0.8) Depreciation and amortization 1.4 2025 30.3)
Slide header 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 Thirty-Nine Weeks Ended Thirteen Weeks Ended Sep 27, Sep 28, Sep 27, Sep 28, 2025 2024 2025 2024 2012 Rev/GP Plan Rev/GP Proj Rev/GP Revenue $3,569,291 $3,609,915 $1,205,406 $1,213,867 External Revenue #REF! #REF! #REF! Costs of revenue: Purchased Transportation #REF! #REF! #REF! #REF! #REF! #REF! Purchased transportation 2,775,761 2,799,384 ,936,472 ,943,805 Commissions to agents ,291,529 ,295,801 98,693 98,703 Variable costs of revenue 3,067,290 3,095,185 1,035,165 1,042,508 Interest and Debt Expense #REF! #REF! #REF! Income Before Income Taxes #REF! #REF! #REF! Trailing equipment depreciation 20,829 20,764 6,985 6,930 Information technology costs (1) 10,928 18,115 3,319 6,129 Insurance-related costs (2) ,104,622 85,122 33,305 30,463 Income Taxes #REF! #REF! #REF! Other operating costs 46,996 44,138 15,572 15,144 Other costs of revenue ,183,375 ,168,139 59,181 58,666 Total costs of revenue 3,250,665 3,263,324 1,094,346 1,101,174 Gross profit $,318,626 $,346,591 $,111,060 $,112,693 Gross profit margin 8.9% 9.6% 9.2% 9.3% Plus: other costs of revenue ,183,375 ,168,139 59,181 58,666 Variable contribution $,502,001 $,514,730 $,170,241 $,171,359 Variable contribution margin 0.14099999999999999 0.14330722923747771 0.14099999999999999 0.14099999999999999 (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 Thirty-Nine Weeks Ended Thirteen Weeks Ended Sep 27, Sep 28, Sep 27, Sep 28, 2025 2024 2025 2024 2012 Rev/GP Plan Rev/GP Proj Rev/GP Revenue $3,569,291 $3,609,915 $1,205,406 $1,213,867 External Revenue #REF! #REF! #REF! Costs of revenue: Purchased Transportation #REF! #REF! #REF! #REF! #REF! #REF! Purchased transportation 2,775,761 2,799,384 ,936,472 ,943,805 Commissions to agents ,291,529 ,295,801 98,693 98,703 Variable costs of revenue 3,067,290 3,095,185 1,035,165 1,042,508 Interest and Debt Expense #REF! #REF! #REF! Income Before Income Taxes #REF! #REF! #REF! Trailing equipment depreciation 20,829 20,764 6,985 6,930 Information technology costs (1) 10,928 18,115 3,319 6,129 Insurance-related costs (2) ,104,622 85,122 33,305 30,463 Income Taxes #REF! #REF! #REF! Other operating costs 46,996 44,138 15,572 15,144 Other costs of revenue ,183,375 ,168,139 59,181 58,666 Total costs of revenue 3,250,665 3,263,324 1,094,346 1,101,174 Gross profit $,318,626 $,346,591 $,111,060 $,112,693 Gross profit margin 8.9% 9.6% 9.2% 9.3% Plus: other costs of revenue ,183,375 ,168,139 59,181 58,666 Variable contribution $,502,001 $,514,730 $,170,241 $,171,359 Variable contribution margin 0.14099999999999999 0.14330722923747771 0.14099999999999999 0.14099999999999999 (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 Reconciliations of GAAP Operating Income to Adjusted Operating Income and GAAP EPS to Adjusted EPS Dollars in Thousands (except per share amounts) Thirty-Nine Weeks Ended Thirteen Weeks Ended Sep 27, Sep 28, Sep 27, Sep 28, 2025 2024 2025 2024 GAAP operating income $,122,025 $,191,136 $26,326 $63,116 Plus: Impairment of intangible and other assets 30,104 0 30,104 0 Adjusted operating income $,152,129 $,191,136 $56,430 $63,116 Thirty-Nine Weeks Ended Thirteen Weeks Ended Sep 27, Sep 28, Sep 27, Sep 28, 2025 2024 2025 2024 GAAP basic and diluted earnings per share $2.61 $4.21 $0.56000000000000005 $1.41 Plus: Impairment of intangible and other assets, net of tax, per basic and diluted share 0.66 0 0.66 0 Adjusted basic and diluted earnings per share $3.27 $4.21 $1.2200000000000002 $1.41 Thirty-Nine Weeks Ended Thirteen Weeks Ended Sep 27, Sep 28, Sep 27, Sep 28, 2025 2024 2025 2024 GAAP operating income $,122,025 $,191,136 $26,326 $63,116 Plus: Impairment of intangible and other assets 30,104 0 30,104 0 Adjusted operating income $,152,129 $,191,136 $56,430 $63,116 Thirty-Nine Weeks Ended Thirteen Weeks Ended Sep 27, Sep 28, Sep 27, Sep 28, 2025 2024 2025 2024 GAAP basic and diluted earnings per share $2.61 $4.21 $0.56000000000000005 $1.41 Plus: Impairment of intangible and other assets, net of tax, per basic and diluted share 0.66 0 0.66 0 Adjusted basic and diluted earnings per share $3.27 $4.21 $1.2200000000000002 $1.41
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 2020 2021 2022 2023 2024 Cash flow from operations $ 211 $ 277 $ 623 $ 394 $ 287 Cash capital expenditures(1) $ 34 $ 24 $ 26 $ 26 $ 31 Free cash flow $ 177 $ 253 $ 597 $ 368 $ 256 Share repurchases $ 116 $ 123 $ 286 $ 54 $ 81 Dividends paid $ 110 $ 112 $ 116 $ 117 $ 120 Common share count(2) 38.4 37.7 35.9 35.7 35.3 Cash capital expenditures includes purchases of operating property and, for fiscal year 2020, consideration paid for acquisition of a business. 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.
Date Landstar System, Inc. Earnings Conference Call 3Q 2025