This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. Dive Brief: Federal trade policy and inflation concerns continue to impact the truckload freight market and Landstar System’s earnings, CEO Frank Lonegro said in a Q3 earnings call. Revenue decreased 1% year over year and operating costs rose to $15.6 million in Q3 compared to $15.1 million in 2024. On the truckload side, revenue hauled via van equipment wen ...

JACKSONVILLE, Fla., Oct. 30, 2025 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ: LSTR), a technology-enabled, asset-light provider of integrated freight transportation solutions, delivering safe, specialized transportation services, announced today the addition of Barr Blanton and Melanie Housey Hart to its Board of Directors. Barr Blanton, 42, is a recognized leader in technology advisory and business transformation. He currently serves as chief executive officer and a member of the board of directors ...

Key Takeaways Landstar's Q3 EPS of $1.22 missed estimates, while revenues of $1.21B slightly topped expectations.Operating income dipped 58.3% year over year, as total expenses rose 2.4% to $1.18B.Sequential growth in BCO truck count and strong platform-equipment performance stood out in Q3.Landstar System, Inc. (LSTR) ) third-quarter 2025 earnings per share (EPS) of $1.22 missed the Zacks Consensus Estimate of $1.24 and fell 13.5% year over year. Revenues of $1.21 billion marginally surpassed the Zacks Con ...

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Core Insights - Landstar System (LSTR) reported revenue of $1.21 billion for the quarter ended September 2025, reflecting a year-over-year decline of 0.4% and an EPS of $1.22, down from $1.41 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $1.2 billion by 0.49%, while the EPS fell short of the consensus estimate of $1.24 by 1.61% [1] Financial Performance Metrics - Revenue per load for Ocean and air cargo carriers was $9,254, significantly higher than the average estimate of $7,458.86 [4] - Revenue per load for Rail Intermodal was reported at $2,962, exceeding the average estimate of $2,851.28 [4] - Total number of loads was 501,230, slightly below the average estimate of 504,293 [4] - Truck Transportation loads totaled 485,430, also below the average estimate of 488,618 [4] - Investment income was $3.29 million, surpassing the average estimate of $2.82 million, but represented a year-over-year decline of 16% [4] - Revenue from Other sources was $19.57 million, lower than the estimated $22.41 million, marking a 23% decline year-over-year [4] - Revenue from Rail Intermodal increased to $23.67 million, exceeding the estimate of $21.51 million, with a year-over-year growth of 12.8% [4] - Truck Transportation revenue was $1.09 billion, matching the average estimate, with a slight year-over-year decline of 0.1% [4] - Revenue from Ocean and air cargo carriers was $72.27 million, above the estimate of $61.22 million, but down 5.3% year-over-year [4] - Other Truck Transportation revenue was $96.04 million, below the average estimate of $112.37 million, reflecting a year-over-year increase of 3.1% [4] - Less-than-truckload revenue was $24.48 million, exceeding the average estimate of $23.05 million, with a year-over-year growth of 1.2% [4] Stock Performance - Landstar shares have returned +6.6% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Truckload broker Landstar System said dry van freight demand remains soft but noted continued strength in flatbed volumes. It also reported a small increase among its exclusive carrier base, which is normally an indicator that the market could soon turn. Frank Lonegro, Landstar president and CEO, told analysts on a Tuesday call that increased regulation (non-domiciled CDL restrictions and English language proficiency requirements) on the driver population could also move the needle. The potential removal ...

Landstar System (LSTR) came out with quarterly earnings of $1.22 per share, missing the Zacks Consensus Estimate of $1.24 per share. This compares to earnings of $1.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.61%. A quarter ago, it was expected that this freight shipper and warehouser would post earnings of $1.16 per share when it actually produced earnings of $1.2, delivering a surprise of +3.45%.Over the last four ...

Financial Data and Key Metrics Changes - Overall company revenue decreased approximately 1% year over year in Q3 2025, with significant non-cash impairment charges impacting financial results [6][9][30] - GAAP EPS were reported at $0.56, while adjusted EPS, excluding impairment charges, was $1.22 [9][30] - Gross profit was $111.1 million in Q3 2025, compared to $112.7 million in Q3 2024, with a gross profit margin of 9.2% [24][25] Business Line Data and Key Metrics Changes - Heavy haul service revenue increased by 17% year over year, with heavy haul revenue per load up 9% and volume up 8% [7][19] - Non-truck transportation service revenue decreased by 1% year over year, but increased by approximately 16% when excluding prior year fraud-related revenue [21] - Transportation logistics segment revenue decreased by 0.6% year over year, with consumer durables revenue down approximately 4% [22] Market Data and Key Metrics Changes - The freight environment in Q3 2025 was characterized by soft demand, with truck capacity readily available and market conditions favoring shippers [10][34] - Revenue hauled on behalf of other truck transportation companies was down 17% year over year, indicating spare capacity in the market [24] - The number of loads hauled via truck in October 2025 was approximately 3% below October 2024, with revenue per load flat year over year [34] Company Strategy and Development Direction - The company is focused on strategic growth initiatives and continuous improvement in service levels [8][10] - A decision was made to actively market Landstar Metro for sale, with plans for a potential sale in late 2025 or early 2026 [7][30] - Investment in technology solutions and fleet refreshment is ongoing to enhance operational efficiency and service quality [11][29] Management's Comments on Operating Environment and Future Outlook - Management noted that the freight transportation backdrop is highly fluid, with an uncertain political and macroeconomic environment impacting operations [34] - The company is not providing formal guidance for Q4 2025 but is monitoring trends closely, particularly regarding government-related volumes and insurance costs [34][75] - Management expressed optimism about the potential for recovery in government-related business once operations resume post-shutdown [74][75] Other Important Information - The company declared a $0.40 dividend payable on December 9, 2025, to shareholders of record as of November 18, 2025 [11] - The effective income tax rate increased to 25.8% in Q3 2025, primarily due to lower pre-tax profits and the absence of favorable federal tax credits [32] Q&A Session Summary Question: Insights on the broader truckload market and capacity exits - Management noted a positive trend in BCO count, with a slight increase in truck count, indicating morale and operational stability [39][41] Question: Visibility on returning to BCO count growth - Management indicated that while there was a slight decline in October, efforts are focused on maintaining existing BCOs and onboarding new drivers [41][44] Question: Impact of approved and active carriers on freight buying - Management stated that the decline in approved carriers does not impact their ability to source and satisfy demand, emphasizing selectivity in partnerships [45][47] Question: Alignment of revenue trends with truckload spot rates - Management clarified that while spot rates may be increasing, their data does not reflect similar trends, indicating a potential lag in their pricing [51][52] Question: Commentary on government-related volume trends - Management acknowledged a decline in government-related dispatch loads due to the shutdown but expects a quick recovery once operations resume [59][75] Question: AI usage in brokerage and differentiation from peers - Management highlighted ongoing investments in AI to enhance agent support, BCO retention, and operational efficiency [76][78]

Financial Data and Key Metrics Changes - Overall company revenue decreased approximately 1% year over year in Q3 2025, impacted by non-cash, non-recurring items [6][9] - GAAP EPS were $0.56, while adjusted EPS was $1.22, excluding the impact of impairment charges totaling approximately $30.1 million [9][32] - Gross profit was $111.1 million compared to $112.7 million in Q3 2024, with a gross profit margin of 9.2% [24][25] Business Line Data and Key Metrics Changes - Heavy haul service revenue increased approximately 17% year over year, with heavy haul revenue per load up 9% and volume up 8% [7][19] - Non-truck transportation service revenue decreased by 1% year over year, but increased by approximately 16% when excluding prior year fraud-related revenue [21] - Transportation logistics segment revenue decreased by 0.6% year over year due to slight decreases in loadings and revenue per load [22] Market Data and Key Metrics Changes - Truck capacity remained readily available, with overall truck revenue per load essentially flat compared to Q3 2024 [10][17] - Revenue hauled on behalf of other truck transportation companies decreased by 17% year over year, indicating spare capacity in the market [24] - The number of loads hauled via truck in October 2025 was approximately 3% below October 2024, with revenue per load approximately equal to 2024 [34] Company Strategy and Development Direction - The company is focused on strategic growth initiatives and continuous improvement in service levels for customers, agents, and independent contractors [8][11] - A decision was made to actively market Landstar Metro for sale, with plans for a potential sale in late 2025 or early 2026 [7][9] - Investment in technology solutions and fleet refreshment is ongoing to enhance operational efficiency and service delivery [11][29] Management's Comments on Operating Environment and Future Outlook - The freight transportation environment remains challenging due to inflation and regulatory uncertainties, but there are positive signs in the heavy haul segment [5][34] - Management noted that the impact of regulatory changes on capacity will unfold over a longer period, with potential positive effects for the company [40][68] - The company will provide revenue commentary for Q4 2025 instead of formal guidance due to the fluid operating environment [34] Other Important Information - The company declared a $0.40 dividend payable on December 9, 2025, to shareholders of record as of November 18, 2025 [11] - The accident frequency rate was reported at 0.60 DOT reportable accidents per million miles, reflecting a strong safety performance [12][13] - The company is actively engaged in AI initiatives to improve customer service and operational efficiency [76] Q&A Session Summary Question: Insights on the broader truckload market and capacity exits - Management expressed satisfaction with the recent increase in BCO count, indicating positive morale and potential for growth despite regulatory challenges [39] Question: Visibility on returning to BCO count growth - Management noted a slight increase in BCO count in Q3 and emphasized ongoing efforts to maintain and onboard high-quality drivers [41][44] Question: Impact of approved and active carriers decline on freight buying - Management indicated that the decline in carriers would not significantly impact their ability to source and satisfy demand, focusing on selective partnerships [45][47] Question: Alignment of revenue trends with truckload spot rates - Management clarified that while spot rates may be increasing, their data does not reflect similar trends, indicating a potential lag in their pricing [51][52] Question: Commentary on government-related volume trends - Management acknowledged a decline in government-related dispatch loads due to the government shutdown but anticipated a quick recovery once operations resume [59][75]

Landstar System (NasdaqGS:LSTR) Q3 2025 Earnings Call October 28, 2025 04:30 PM ET Speaker6Good afternoon and welcome to Landstar System, Inc.'s third quarter earnings release conference call. All lines will be in listen only mode until a formal question and answer session. Today's call is being recorded. If you have any objections, you may disconnect at this time. Joining us from Landstar are Frank Lonegro, President and CEO, Jim Applegate, Vice President, Chief Corporate Sales Strategy and Specialized Fli ...