Landstar System Reports Third Quarter Results

JACKSONVILLE, Fla., Oct. 28, 2025 (GLOBE NEWSWIRE) -- 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.”

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 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 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 Company’s operating subsidiaries; and$5.0 million, or $0.11 per basic and diluted share, relating to a 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 Contribution, the Reconciliation of GAAP Operating Income to Adjusted Operating Income and the Reconciliation of GAAP EPS to Adjusted EPS included below.

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.

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/.

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; 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 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 SubsidiaryConsolidated Statements of Income(Dollars in thousands, except per share amounts)(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 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 SubsidiaryConsolidated Balance Sheets(Dollars in thousands, except per share amounts)(Unaudited) September 27, December 28, 2025 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 $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 $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 liabilities 39,144 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 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

Landstar System, Inc. and SubsidiarySupplemental Information(Unaudited) Thirty-Nine Weeks Ended Thirteen Weeks Ended September 27, September 28, September 27, September 28, 2025 2024 2025 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 included in total truck transportation (3) $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 included in total truck transportation (3) 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, September 28, 2025 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 (3) 8,618 9,027 (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 SubsidiaryReconciliation 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 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.

Landstar System, Inc. and SubsidiaryReconciliation 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 $63,116Plus: 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 SubsidiaryReconciliation 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 $1.41Plus: 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