Landstar System(US:LSTR)2025-10-28 20:28Financial Performance - Total revenue for Q3 2025 was $1,205 million, a decrease of approximately 1% from $1,214 million in Q3 2024[2]. - Basic and diluted earnings per share (EPS) for Q3 2025 were $0.56, down from $1.41 in Q3 2024; adjusted EPS would have been $1.22 excluding non-cash impairment charges[2][6]. - Non-cash impairment charges negatively impacted Q3 2025 EPS by $0.66, with total charges amounting to $30.1 million[4][7]. - Gross profit for Q3 2025 was $111 million, compared to $113 million in Q3 2024, reflecting a slight decrease[11]. - Landstar's operating income for Q3 2025 was $26.3 million, significantly lower than $63.1 million in Q3 2024[6]. - Total revenue for the thirty-nine weeks ended September 27, 2025, was $3,569,291, a decrease of 1.1% compared to $3,609,915 for the same period in 2024[28]. - Adjusted operating income for the thirty-nine weeks ended September 27, 2025, was $152,129, down from $191,136 in the prior year[31]. - The company reported a GAAP basic and diluted earnings per share of $2.61 for the thirty-nine weeks ended September 27, 2025, compared to $4.21 for the same period in 2024[33]. Revenue Sources - Truck transportation revenue from independent business capacity owners (BCOs) was $1,090 million, representing 90% of total revenue, consistent with Q3 2024[9]. - The number of loads for truck transportation was 1,470,840 for the thirty-nine weeks ended September 27, 2025, compared to 1,484,420 in the same period of 2024, reflecting a decrease of 0.9%[23]. - Revenue per load for truck transportation was $2,215 for the thirty-nine weeks ended September 27, 2025, compared to $2,200 in the same period of 2024, an increase of 0.7%[28]. Shareholder Returns - The company returned $40.6 million to shareholders through stock repurchases in Q3 2025, totaling 308,709 shares bought back[8]. - A quarterly dividend of $0.40 per share was declared, payable on December 9, 2025[8]. Assets and Liabilities - Landstar's cash and short-term investments stood at approximately $434 million as of September 27, 2025[12]. - Total current assets decreased to $1,245,108 as of September 27, 2025, from $1,319,867 as of December 28, 2024, a decline of 5.6%[21]. - Total liabilities decreased to $773,781 as of September 27, 2025, from $742,345 as of December 28, 2024, indicating a slight increase of 4.2%[21]. - The company’s retained earnings increased to $2,910,514 as of September 27, 2025, up from $2,859,916 as of December 28, 2024, reflecting a growth of 1.8%[21]. Profitability Metrics - Gross profit margin decreased to 8.9% for the thirty-nine weeks ended September 27, 2025, down from 9.6% in the prior year[28]. - The company reported a variable contribution margin of 14.1% for the thirty-nine weeks ended September 27, 2025, slightly down from 14.3% in the prior year[28]. Operational Highlights - The company achieved sequential quarter-over-quarter growth in BCO truck count for the first time since Q1 2022[3].