Landstar System Reports Improved First Quarter Performance Revenue of $1.171B and Earnings Per Share of $1.16

Financial News JACKSONVILLE, Fla., April 28, 2026 (GLOBE NEWSWIRE) -- 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. 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 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/. 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) 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 Total costs and expenses 1,121,029 1,116,681 Operating income 53,236 39,419 Interest and debt expense (income) 518 (159 ) Income before income taxes 52,718 39,578 Income taxes 13,278 9,772 Net income $ 39,440 $ 29,806 Basic and diluted earnings per share $ 1.16 $ 0.85 Average basic and diluted shares outstanding 34,022,000 35,203,000 Dividends per common share $ 0.40 $ 0.36 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 Total current assets 1,183,601 1,216,326 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 Total assets $ 1,602,198 $ 1,635,935 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 Total current liabilities 630,720 695,840 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 ) Total shareholders' equity 798,976 795,665 Total liabilities and shareholders' equity $ 1,602,198 $ 1,635,935 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 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 $ 1,171,291 $ 1,152,502 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 Total truck transportation 473,580 484,900 Rail intermodal 6,590 6,150 Ocean and air cargo carriers 6,710 9,120 486,880 500,170 Loads hauled via BCO Independent Contractors (3) included in total truck transportation 207,610 194,070 Revenue per load: Truck transportation Truckload: 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 Truck Brokerage Carriers: Approved and active (4) 37,647 47,323 Other approved 27,420 33,275 65,067 80,598 Total available truck capacity providers 72,730 88,469 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 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 Other costs of revenue 59,609 63,005 Total costs of revenue 1,058,749 1,054,197 Gross profit $ 112,542 $ 98,305 Gross profit margin 9.6 % 8.5 % Plus: other costs of revenue 59,609 63,005 Variable contribution $ 172,151 $ 161,310 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. Contact: Jim Todd Chief Financial Officer 904-398-9400 Source: Landstar System Holdings, Inc.