Landstar System Reports Second Quarter Revenue of $1.211b and Earnings Per Share of $1.20
JACKSONVILLE, Fla., July 29, 2025 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ:LSTR) ("Landstar" or the "Company") today reported basic and diluted earnings per share ("EPS") of $1.20 in the 2025 second quarter on revenue of $1.211 billion. "The Landstar team of independent business owners and employees performed admirably during the second quarter, highlighted by continuing strong performance by our services hauled by unsided/platform equipment," said Landstar President and Chief Executive Officer Frank Lonegro. "I was encouraged that Landstar achieved a 3.2% sequential increase in truck revenue per load compared to the 2025 first quarter, outperforming typical seasonality. In addition, I was excited to see our net BCO truck count remain essentially flat sequentially, the best performance we've seen since the second quarter of 2022. Our network of Landstar BCOs, agents and employees continue to be laser-focused on safety, security and delivering great service to our customers in what continues to be a dynamic and challenging freight transportation environment."
2Q 2025
2Q 2024
Revenue
$
1,211,383
$
1,225,005
Gross profit
$
109,261
$
119,996
Variable contribution
$
170,450
$
175,131
Operating income
$
56,280
$
68,059
Basic and diluted earnings per share
$
1.20
$
1.48
(1)
Dollars above in thousands, except per share amounts.
(2)
Please refer to the Consolidated Statements of Income and Reconciliation of Gross Profit to Variable Contribution included below.
Landstar continues to return capital to stockholders through the Company's stock purchase program and dividends. During the 2025 second quarter, Landstar purchased 300,141 shares of its common stock at an aggregate cost of $42.4 million, bringing the total number of common shares purchased during the twenty-six week period ended June 28, 2025, to 686,459 shares at an aggregate cost of approximately $103.3 million. The Company is currently authorized to purchase up to an additional 1,861,522 shares of the Company's common stock under its longstanding share purchase program. Landstar also announced today that its Board of Directors declared a quarterly dividend of $0.40 per share payable on September 9, 2025, to stockholders of record as of the close of business on August 19, 2025.
Total revenue was $1,211 million in the 2025 second quarter, compared to $1,225 million in the 2024 second quarter. Truck transportation revenue hauled by independent business capacity owners ("BCOs") and truck brokerage carriers in the 2025 second quarter was $1,118 million, or 92% of revenue, compared to $1,106 million, or 90% of revenue, in the 2024 second quarter. Truckload transportation revenue hauled via van equipment in the 2025 second quarter was $591 million, compared to $619 million in the 2024 second quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2025 second quarter was $401 million, compared to $381 million in the 2024 second quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2025 second quarter was $101 million, compared to $78 million in the 2024 second quarter. Revenue hauled by rail, air and ocean cargo carriers was $73 million, or 6% of revenue, in the 2025 second quarter, compared to $94 million, or 8% of revenue, in the 2024 second quarter.
Truck revenue per load increased 2.6% in the 2025 second quarter as compared to the 2024 second quarter, while the number of loads hauled via truck declined 1.5% over the same period.
Gross profit in the 2025 second quarter was $109 million, and variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2025 second quarter was $170 million. Gross profit in the 2024 second quarter was $120 million, and variable contribution in the 2024 second quarter was $175 million. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2025 and 2024 second quarters and year-to-date periods are provided in the Company's accompanying financial disclosures.
The Company's balance sheet continues to be very strong, with cash and short-term investments of approximately $426 million as of June 28, 2025. Trailing twelve-month return on average shareholders' equity was 17%, and return on invested capital, representing net income divided by the sum of average equity plus average debt, was 16%.
Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 4:30 p.m. ET. To access the webcast, visit www.investor.landstar.com; click on "Webcasts," then click on "Landstar's Second Quarter 2025 Earnings Release Conference Call." A slide presentation to accompany the webcast presentation is also available on Landstar's investor relations website at https://investor.landstar.com/.
About Landstar:Landstar System, Inc., is a technology-enabled, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market® under the symbol LSTR.
Non-GAAP Financial Measures:In this earnings release and accompanying financial disclosures, the Company provides the following information that may be deemed non-GAAP financial measures: variable contribution and variable contribution margin. The Company believes variable contribution and variable contribution margin are useful measures of the variable costs that we incur at a shipment-by-shipment level attributable to our transportation network of third-party capacity providers and independent agents in order to provide services to our customers. The Company also believes that it is appropriate to present each of the financial measures that may be deemed a non-GAAP financial measure, as referred to above, for the following reasons: (1) disclosure of these matters will allow investors to better understand the underlying trends in the Company's financial condition and results of operations; (2) this information will facilitate comparisons by investors of the Company's results as compared to the results of peer companies; and (3) management considers this financial information in its decision making.
Forward Looking Statements Disclaimer:The following is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are "forward-looking statements." This press release contains forward-looking statements, such as statements which relate to Landstar's business objectives, plans, strategies and expectations. Terms such as "anticipates," "believes," "estimates," "intention," "expects," "plans," "predicts," "may," "should," "could," "will," the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: decreased demand for transportation services; U.S. trade relationships and potential or imposed tariffs; an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; the impact of the Russian conflict with Ukraine on the operations of certain independent commission sales agents, including the Company's largest such agent by revenue in the 2024 fiscal year; substantial industry competition; disruptions or failures in the Company's computer systems; cyber and other information security incidents; dependence on key vendors; potential changes in taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; regulations requiring the purchase and use of zero-emission vehicles; intellectual property; acquisitions and investments; and other operational, financial or legal risks or uncertainties detailed in Landstar's Form 10-K for the 2024 fiscal year, described in Part I, Item 1A Risk Factors, Landstar's Form 10-Q for the 2025 first quarter, described in Part II, Item 1A Risk Factors, and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.
Landstar System, Inc. and Subsidiary
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
Twenty-Six Weeks Ended
Thirteen Weeks Ended
June 28,
June 29,
June 28,
June 29,
2025
2024
2025
2024
Revenue
$
2,363,885
$
2,396,048
$
1,211,383
$
1,225,005
Investment income
7,327
7,066
3,729
3,654
Costs and expenses:
Purchased transportation
1,839,289
1,855,579
941,411
950,058
Commissions to agents
192,836
197,098
99,522
99,816
Other operating costs, net of gains on asset sales/dispositions
31,424
28,994
19,595
14,135
Insurance and claims
70,301
53,432
30,449
27,164
Selling, general and administrative
117,288
111,361
55,706
54,939
Depreciation and amortization
24,375
28,630
12,149
14,488
Total costs and expenses
2,275,513
2,275,094
1,158,832
1,160,600
Operating income
95,699
128,020
56,280
68,059
Interest and debt expense (income)
539
(3,286
)
698
(1,675
)
Income before income taxes
95,160
131,306
55,582
69,734
Income taxes
23,461
31,586
13,689
17,110
Net income
$
71,699
$
99,720
$
41,893
$
52,624
Basic and diluted earnings per share
$
2.05
$
2.79
$
1.20
$
1.48
Average basic and diluted shares outstanding
35,037,000
35,702,000
34,870,000
35,654,000
Dividends per common share
$
0.76
$
0.66
$
0.40
$
0.33
Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
June 28,
December 28,
2025
2024
ASSETS
Current assets:
Cash and cash equivalents
$
359,237
$
515,018
Short-term investments
66,935
51,619
Trade accounts receivable, less allowance
of $12,284 and $12,904
717,249
683,841
Other receivables, including advances to independent
contractors, less allowance of $21,995 and $17,812
48,781
47,160
Other current assets
45,144
22,229
Total current assets
1,237,346
1,319,867
Operating property, less accumulated depreciation
and amortization of $464,538 and $456,547
287,500
311,345
Goodwill
41,399
40,933
Other assets
133,399
141,166
Total assets
$
1,699,644
$
1,813,311
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Cash overdraft
$
58,141
$
61,033
Accounts payable
401,849
