Landstar Third-Quarter EPS Jumps 154% To $1.42, But Insurance Costs Climb To $55.3 Million
Truck revenue rose 29% and the freight network added 165 net owner-operator trucks, while claims costs ate into the quarter.
Landstar System, which arranges freight transportation through independent agents and outside truck operators, said Tuesday that third-quarter earnings per share rose 154% to $1.42 on revenue up 25%. Insurance and claims costs of $55.3 million, up from $33.0 million a year earlier, held back the result, the company said in an 8-K filing.
Freight volume and pricing drove the top line
Revenue reached $1.512 billion, against $1.205 billion in the year-earlier quarter. Operating income rose 149% to $65.5 million, and net income was $48.0 million versus $19.4 million.
Truck revenue climbed 29% to $1.407 billion. Revenue per load rose about 25% and loads hauled rose about 3%. Van and unsided/platform equipment revenue each rose more than 30%.
Gross profit rose 14%, while variable contribution, which is revenue less purchased transportation and agent commissions, rose 25%. Gross profit margin slipped to 8.4% from 9.2%.
CEO Frank Lonegro said the network added a net 165 owner-operator trucks, the "strongest quarterly improvement since the third quarter of 2021." He also said the owner-operators cut DOT accident frequency 5% from a year earlier.
Claims costs and an easy comparison
Insurance and claims expense included about $13.0 million, or $0.29 per share, of adverse adjustments to reserves. It also carried $8.0 million, or $0.18 per share, tied to settlements of a 2024 brokered truck accident claim and a 2025 accident involving an owner-operator. Lonegro said: "we are not immune to the challenges of the insurance and claims inflation prevalent in our industry."
The year-earlier quarter bore $30.1 million of non-cash impairment charges, or $0.66 per share, from a strategic review. That makes the 154% EPS gain a softer comparison than it looks.
Buybacks, dividend and October trends
Landstar bought back 232,645 shares for $41.4 million in the quarter and can repurchase up to 882,550 more. It ended the period with about $351 million in cash and short-term investments.
A slide deck showed October truck loads about 7% above October 2025, with revenue per load about 29% higher. The company declared a quarterly dividend of $0.44 per share, payable December 8 to holders of record on November 17.
Landstar's trailing-twelve-month return on average shareholders' equity stood at 19%, with the company's quarterly dividend set at $0.44 per share.
Sources
- 8-K Filing — LANDSTAR SYSTEM INC (LSTR) — SEC EDGAR
- Exhibit d176512dex991.htm — LANDSTAR SYSTEM INC 8-K exhibit — SEC EDGAR
- Exhibit d176512dex992.htm — LANDSTAR SYSTEM INC 8-K exhibit — SEC EDGAR
- Landstar System Reports Third Quarter Revenue of $1.512B — globenewswire.com
