Landstar System Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 28 April 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Key takeaways

Diluted EPS rose 36% to $1.16: Diluted EPS was $1.16 against $0.85, up 36.5%. The company said the prior-year quarter was unfavorably impacted by about $0.10 from the supply chain fraud matter. Source
Operating income rose 35%: Operating income was $53.2 million against $39.4 million, up 35.1%. Net income was $39.4 million against $29.8 million. Source
Variable contribution up first time since 2022: Variable contribution rose 6.7% to $172.2 million. Management said this was the first year-over-year increase in variable contribution since the third quarter of 2022. Source
Truck revenue per load up 6%: Truck revenue per load rose about 6% while truck loads fell about 2%, to 473,580 from 484,900. Revenue per truck load was $2,285 against $2,165. Source
Insurance and claims costs fell: Insurance and claims expense was $35.6 million against $39.9 million. Insurance-related costs in the gross profit reconciliation were $35.9 million against $40.5 million. Source
Gross profit margin rose to 9.6%: Gross profit margin was 9.6% against 8.5%. Gross profit was $112.5 million against $98.3 million, up 14.5%. Source

“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”
Landstar President and Chief Executive Officer Frank Lonegro

Guidance

Area	Period	Figure	Against last quarter
Quarterly dividend Source	Dividend payable June 9, 2026; record date May 19, 2026	$0.40 per share	Kept
Share repurchase authorization Source	Remaining authority after first quarter purchases	1,115,195 shares

What changed from last quarter

Guidance kept: The quarterly dividend stayed at $0.40 per share, the same amount declared in the prior quarter.

Results and growth drivers

Diluted EPS rose 36% to $1.16: Diluted EPS was $1.16 against $0.85, up 36.5%. The company said the prior-year quarter was unfavorably impacted by about $0.10 from the supply chain fraud matter. Source
Operating income rose 35%: Operating income was $53.2 million against $39.4 million, up 35.1%. Net income was $39.4 million against $29.8 million. Source
Variable contribution up first time since 2022: Variable contribution rose 6.7% to $172.2 million. Management said this was the first year-over-year increase in variable contribution since the third quarter of 2022. Source

Revenue mix by equipment

Truck revenue rose 3%: Truck transportation revenue was $1,082 million, up 3% from $1,050 million. Source
Unsided/platform revenue rose 8%: Unsided/platform truckload revenue was $369 million against $340 million. Revenue per load on that equipment was $3,217 against $2,903. Source
Van revenue edged up: Van truckload revenue was $603 million against $595 million, while van loads fell to 277,711 from 288,063. Source
Power-only revenue declined: Other truck transportation, largely power-only, was $87 million against $92 million. Source
Ocean and air revenue declined: Rail, air and ocean cargo revenue was $67 million, or 6% of revenue, against $83 million, or 7%. Ocean and air cargo carriers revenue was $48.0 million against $65.6 million. Source

“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.”
Landstar President and Chief Executive Officer Frank Lonegro

Loads, rates and capacity providers

Truck revenue per load up 6%: Truck revenue per load rose about 6% while truck loads fell about 2%, to 473,580 from 484,900. Revenue per truck load was $2,285 against $2,165. Source
BCO and brokerage share of revenue rose: Truck revenue hauled by BCOs and brokerage carriers was 92% of revenue, against 91%. Revenue per load on BCO-hauled freight was $2,290 against $2,201. Source
Brokerage carrier pool shrank: Approved and active truck brokerage carriers were 37,647 against 47,323. Total available truck capacity providers were 72,730 against 88,469. Source

Costs and insurance claims

Insurance and claims costs fell: Insurance and claims expense was $35.6 million against $39.9 million. Insurance-related costs in the gross profit reconciliation were $35.9 million against $40.5 million. Source
Purchased transportation and commissions rose slightly: Purchased transportation was $907.0 million against $897.9 million. Commissions to agents were $92.1 million against $93.3 million. Source
Other operating costs rose: Other operating costs, net of gains on asset sales and dispositions, were $14.8 million against $11.8 million. SG&A was $61.0 million against $61.6 million, and depreciation and amortization was $10.6 million against $12.2 million. Source

Margins and taxes

Gross profit margin rose to 9.6%: Gross profit margin was 9.6% against 8.5%. Gross profit was $112.5 million against $98.3 million, up 14.5%. Source
Variable contribution margin rose 0.7 points: Variable contribution margin was 14.7% against 14.0%. Variable contribution was $172.2 million against $161.3 million, up 6.7%. Source
Income taxes rose with pre-tax income: Income taxes were $13.3 million against $9.8 million, on income before taxes of $52.7 million against $39.6 million. Source

Capital, cash and buybacks

Cash and short-term investments near $411 million: Cash and short-term investments were about $411 million at March 28, 2026, against $452 million at December 27, 2025. Source
Share repurchases of $22.6 million: Landstar bought 150,923 shares for $22.6 million in the quarter. Average basic and diluted shares fell to 34,022,000 from 35,203,000. Source
Repurchase authority reduced by purchases: Remaining authority under the share purchase program is 1,115,195 shares, down from 1,266,118 shares in the prior release. Source

Returns and balance sheet

Trailing return on equity 14%: Trailing twelve-month return on average shareholders’ equity was 14%, against 13% in the prior release. Return on invested capital, net income over average equity plus average debt, was 13%, against 12%. Source
Current insurance claims fell sharply: Current insurance claims were $56.8 million, down from $87.3 million. Non-current insurance claims rose to $96.5 million from $62.7 million. Source
Assets and liabilities held for sale: Assets held for sale were $11.8 million and liabilities held for sale were $8.5 million at March 28, 2026. The release does not name the business concerned. Source

Figures management reported

Figure	Reported
Truck loads Source	473,580 against 484,900 (about 2% lower)
Truck revenue per load Source	$2,285 against $2,165 (about 6% higher)
Trucks provided by BCO independent contractors (fleet) Source	8,476 against 8,620
Available truck capacity providers Source	72,730 against 88,469

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

LANDSTAR SYSTEM REPORTS IMPROVED FIRST QUARTER PERFORMANCE

REVENUE OF $1.171B AND EARNINGS PER SHARE OF $1.16

Jacksonville, FL - 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%

Dollars above in thousands, except per share amounts.
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.

LANDSTAR SYSTEM/ 2

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 SYSTEM/ 3

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.

LANDSTAR SYSTEM/ 4

Forward Looking Statements Disclaimer:

Forward-looking statements notice

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)

	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)

	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

	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	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	21,727	19,660
	$1,171,291	$1,152,502
Revenue on loads hauled via BCO Independent Contractors 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	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 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	1,865	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	$2,290	$2,201
Revenue by capacity type (as a % of total revenue):
Truck capacity providers:
BCO Independent Contractors	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	7,663	7,871
Truck Brokerage Carriers:
Approved and active	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	8,476	8,620

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.
Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro.
BCO Independent Contractors are independent contractors who provide truck capacity to the Company under exclusive lease arrangements.
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)

	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%

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.

Contacts
Jim Todd
Chief Financial Officer
904-398-9400