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

Financial News 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.