Landstar profits take $16.7M hit from court case, crashes

Core Insights - The final judgment against Landstar Ranger amounted to nearly $22.9 million in damages, with an additional $3.7 million in pre-judgment interest and post-judgment interest accruing at 7% [3] - A Texas jury found Landstar responsible for 15% of the damages, while the remaining liability was attributed to the hauling motor carrier and its employee truck driver [3] - The operating income for Landstar System fell to $29.6 million in Q4, reflecting a nearly 49% year-over-year decline due to increased costs from crashes [6] Financial Impact - Insurance and claims costs rose to $56 million in Q4, which included $11 million related to two crashes and $5.7 million for a fatal crash on December 31, 2021 [6] - The company's insurance premiums surged by approximately $22 million, representing a 400% increase for the annual policy ending May 31, 2026 [4] - The Q4 insurance and claims line item was reported at $30.1 million, indicating significant margin pressure compared to the previous year [4]