Landstar System(US:LSTR) Globenewswire·2025-10-28 20:05Core Insights - Landstar System, Inc. reported total revenue of $1,205 million for Q3 2025, a slight decrease from $1,214 million in Q3 2024, with gross profit and variable contribution also down approximately 1% year-over-year [1][4] - Basic and diluted earnings per share (EPS) for Q3 2025 were $0.56, significantly lower than $1.41 in Q3 2024; however, adjusted EPS, excluding non-cash impairment charges, would have been $1.22 [1][4][32] - The company faced non-cash impairment charges totaling $30.1 million, which negatively impacted EPS by $0.66 [5][32] Financial Performance - Total revenue for Q3 2025 was $1,205 million, compared to $1,214 million in Q3 2024, reflecting a decrease of approximately 0.7% [1][4] - Gross profit for Q3 2025 was $111 million, down from $113 million in Q3 2024, while variable contribution decreased from $171 million to $170 million [4][9] - Operating income for Q3 2025 was $26.3 million, a significant drop from $63.1 million in Q3 2024 [4][31] Earnings Analysis - Basic and diluted EPS for Q3 2025 were reported at $0.56, compared to $1.41 in Q3 2024, indicating a decline of approximately 60% [1][4] - Adjusted EPS, which excludes the impact of non-cash impairment charges, was $1.22 for Q3 2025, compared to $1.41 in Q3 2024 [1][32] - The non-cash impairment charges included $16.1 million related to goodwill, $9.0 million for a transportation management system, and $5.0 million for an equity investment [5][32] Operational Highlights - The company noted strong performance in services hauled by unsided/platform equipment, with revenue from this segment increasing to $386 million in Q3 2025 from $370 million in Q3 2024 [2][7] - For the first time since Q1 2022, Landstar achieved sequential quarter-over-quarter growth in the count of independent business capacity owners (BCOs) [2] - Truck transportation revenue from BCOs and truck brokerage carriers accounted for 90% of total revenue in Q3 2025, consistent with the previous year [7] Capital Management - Landstar continued to return capital to shareholders, purchasing 308,709 shares for $40.6 million in Q3 2025, with total shares repurchased in the year-to-date period reaching 995,168 shares at a cost of approximately $143.9 million [6] - The Board of Directors declared a quarterly dividend of $0.40 per share, payable on December 9, 2025 [6] Balance Sheet Strength - As of September 27, 2025, Landstar reported cash and short-term investments of approximately $434 million, with a trailing twelve-month return on average shareholders' equity of 15% [10]