Earnings release
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For Immediate Release October 27, 2026 LANDSTAR SYSTEM REPORTS THIRD QUARTER REVENUE OF $1.512B AND EARNINGS PER SHARE OF $1.42 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported its financial results for the 2026 third quarter. The Company reported total revenue of $1.512 billion in the 2026 third quarter, an increase of 25% as compared to revenue of $1. 205 billion in the 2025 third quarter, and basic and diluted earnings per share (“EPS”) of $1.42 in the 2026 third quarter, an increase of 154% as compared to EPS of $ 0.56 in the 2025 third quarter. It should be noted that EPS in the 2025 third quarter was negatively impacted by non-cash impairment charges of $30.1 million, or $0.66 per share , related to the previously disclosed strategic review of operations conducted during the 2025 third quarter, and, as further described below, the 2026 third quarter EPS was negatively impacted by highly elevated insurance and claim costs. The Company also reported a 14% increase in gross profit and a 25% increase in variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2026 third quarter, as compared in each case to the 2025 third quarter. “The Landstar team of independent business owners and employees excelled in a freight transportation backdrop that continues to improve. Our network generated truck revenue of $1.407 billion, an increase of 29% compared to the 2025 third quarter , with revenue generated via van and unsided/platform equipment each increasing over 30% compared to the 2025 third quarter ,” said Landstar President and Chief Executive Officer Frank Lonegro. “In addition, I was highly encouraged to see our net 165 Business Capacity Owner (BCO) truck additions during the third quarter, the strongest quarterly improvement since the third quarter of 2021. We are continuing to deliver safety, security and service for our customers, and our BCOs achieved a 5% year -over-year improvement in DOT
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LANDSTAR SYSTEM/2 accident frequency. Even so, we are not immune to the challenges of the insurance and claims inflation prevalent in our industry.” 3Q 2026 3Q 2025 Change ($) Change (%) Revenue $ 1,511,787 $ 1,205,406 $ 306,381 25.4% Gross profit $ 126,547 $ 111,060 $ 15,487 13.9% Variable contribution $ 212,066 $ 170,241 $ 41,825 24.6% Operating income $ 65,540 $ 26,326 $ 39,214 149.0% Basic and diluted earnings per share (“EPS”) $ 1.42 $ 0.56 $ 0.86 153.6% (1) Dollars above in thousands, except per share amounts. (2) Please refer to the Consolidated Statements of Income and the Reconciliation of Gross Profit to Variable Contribution included below. (3) Operating income and EPS during the 2025 third quarter were negatively impacted by $30.1 million and $0.66, respectively, as a result of non-cash impairment charges. Third quarter 2026 EPS reflected highly elevated insurance and claim costs of $55.3 million, an increase from $33.0 million of insurance and claim costs reported during the 2025 third quarter. The following items are reflected in insurance and claims for the 2026 third quarter: - Approximately $13.0 million, or $0.29 per share, of adverse actuarial adjustments to insurance and claim reserves. - $8.0 million, or $0.18 per share, of prior year development attributable to settlements of a 2024 brokered truck accident claim and a 2025 BCO accident. During the 2026 third quarter, truck revenue was $1,407 million, an increase of 29%, as compared to the 2025 third quarter truck revenue of $1, 090 million. Truck revenue per load increased approximately 25% in the 2026 third quarter compared to the 2025 third quarter, and the number of loads hauled via truck increased approximately 3% compared to the 2025 third quarter. Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2026 third quarter was 93% of revenue, compared to 90% of revenue in the 2025 third quarter. Truckload transportation revenue hauled via van equipment in the 2026 third quarter was $760 million, compared to $583 million in the 2025 third quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2026 third quarter was $519 million, compared to $386 million in the
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LANDSTAR SYSTEM/3 2025 third quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2026 third quarter was $104 million, compared to $96 million in the 2025 third quarter. Revenue hauled by rail, air and ocean cargo carriers was $83 million, or 5% of revenue, in the 2026 third quarter, compared to $96 million, or 8% of revenue, in the 2025 third quarter. Gross profit in the 2026 third quarter was $127 million, as compared to $111 million in the 2025 third quarter. V ariable contribution in the 2026 third quarter was $ 212 million, compared to $ 170 million in the 2025 third quarter. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2026 and 2025 third quarters and year -to-date periods are provided in the Company’s accompanying financial disclosures. Landstar continues to return capital to stockholders through the Company’s share purchase program and dividends. During the 2026 third quarter, Landstar purchased 232,645 shares of its common stock at an aggregate cost of $41.4 million , bringing the total number of common shares purchased during the year-to-date period ended September 26, 2026 to 383,568 shares at an aggregate cost of approximately $64.0 million. The Company is currently authorized to purchase up to an additional 882,550 shares of the Company’s common stock under its longstanding share purchase program. Landstar also announced today that its Board of Directors declared a quarterly dividend of $0.44 per share payable on December 8, 2026, to stockholders of record as of the close of business on November 17, 2026. It is currently the intention of the Board to continue to pay dividends on a quarterly basis going forward. The Company’s balance sheet continues to be very strong, with cash and short-term investments of approximately $ 351 million as of September 26, 2026. Trailing twelve- month return on average shareholders’ equity was 19%. Return on invested capital, representing net income divided by the sum of average equity plus average debt, was 18%. Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 4:30 p.m. ET. To access the webcast, visit https://www.investor.landstar.com; click on
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LANDSTAR SYSTEM/4 “Webcasts,” then click on “Landstar’s Third Quarter 2026 Earnings Release Conference Call.” A slide presentation to accompany the webcast presentation is also available on Landstar’s investor relations website at https://investor.landstar.com/. Contact: Jim Todd Chief Financial Officer 904-398-9400 About Landstar: Landstar System, Inc. is a technology-enabled, asset-light provider of freight transportation and logistics solutions focused on safety, security and service to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Mark et® under the symbol LSTR. Non-GAAP Financial Measures: In this earnings release and accompanying financial disclosures, the Company provides the following information that may be deemed non -GAAP financial measure s: variable contribution and variable contribution margin . The Company believes v ariable contribution and variable contribution margin are useful measures of the variable costs that we incur at a shipment -by-shipment level attributable to our transportation network of third-party capacity providers and independent agents in order to provide services to our customers. The Company also believes that it is appropriate to present each of the financial measures that may be deemed a non -GAAP financial measure, as referred to above, for the following reasons: (1) disclosure of these matters will allow investors to better understand the underlying trends in the Company’s financial condition and results of operations; (2) this information will facilitate comparisons by investors of the Company’s results as compared to the results of peer companies; and (3) management considers this financial information in its decision making.
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LANDSTAR SYSTEM/5 Forward Looking Statements Disclaimer: The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward -looking statements .” This press release contains forward -looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “expects,” “plans,” “predict s,” “may,” “should,” “could,” “would,” “will,” the negative thereof and similar expressions are intended to identify forward -looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: decreased demand for transportation services; U.S. trade relationships and potential or imposed tariffs; an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; substantial verdicts or settlements rendered in connection with accidents or other claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; the impact of the Russian conflict with Ukraine on the operations of certain independent commission sales agents, including the Company’s second largest such agent by revenue in the 202 5 fiscal year; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber and other information security incidents; dependence on key vendors; potential changes in taxes; status of independent contractors; regulatory and legislati ve changes; regulations focused on diesel emissions and other air quality matters; regulations requiring the purchase and use of zero -emission vehicles; intellectual property; acquisitions and investments; increased exposure to broker liability claims; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10 -K for the 2025 fiscal year; described in Part I, Item 1A Risk Factors; Landstar’s Form 10-Q for the 2026 second quarter, described in Item 1A Risk Factors; and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.
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LANDSTAR SYSTEM/6 Thirty-Nine Weeks Ended Thirteen Weeks Ended September 26, September 27, September 26, September 27, 2026 2025 2026 2025 Revenue 4,115,342$ 3,569,291$ 1,511,787$ 1,205,406$ Investment income 7,943 10,620 2,264 3,293 Costs and expenses: Purchased transportation 3,212,442 2,775,761 1,182,045 936,472 Commissions to agents 319,254 291,529 117,676 98,693 Other operating costs, net of gains on asset sales/dispositions 53,971 46,996 21,226 15,572 Insurance and claims 130,193 103,309 55,270 33,008 Selling, general and administrative 191,534 174,303 62,376 57,015 Depreciation and amortization 30,887 35,884 9,918 11,509 Impairment of intangible and other assets - 30,104 - 30,104 Total costs and expenses 3,938,281 3,457,886 1,448,511 1,182,373 Operating income 185,004 122,025 65,540 26,326 Interest and debt expense 1,692 756 362 217 Income before income taxes 183,312 121,269 65,178 26,109 Income taxes 46,878 30,206 17,135 6,745 Net income 136,434$ 91,063$ 48,043$ 19,364$ Basic and diluted earnings per share 4.02$ 2.61$ 1.42$ 0.56$ Average basic and diluted shares outstanding 33,943,000 34,885,000 33,871,000 34,581,000 Dividends per common share 1.24$ 1.16$ 0.44$ 0.40$ Landstar System, Inc. and Subsidiary Consolidated Statements of Income (Dollars in thousands, except per share amounts) (Unaudited)
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LANDSTAR SYSTEM/7 September 26, December 27, 2026 2025 ASSETS Current assets: Cash and cash equivalents 297,321$ 396,694$ Short-term investments 53,683 55,531 Trade accounts receivable, less allowance of $8,090 and $12,490 892,404 670,137 Other receivables, including advances to independent contractors, less allowance of $15,314 and $18,759 77,898 52,784 Assets held for sale - 12,231 Other current assets 50,217 28,949 Total current assets 1,371,523 1,216,326 Operating property, less accumulated depreciation and amortization of $494,295 and $473,642 268,570 261,322 Goodwill 34,005 34,005 Other assets 133,617 124,282 Total assets 1,807,715$ 1,635,935$ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Cash overdraft 68,713$ 56,654$ Accounts payable 482,041 369,567 Current maturities of long-term debt 25,772 28,342 Insurance claims 87,393 87,343 Dividends payable - 68,117 Liabilities held for sale - 6,961 Other current liabilities 101,837 78,856 Total current liabilities 765,756 695,840 Long-term debt, excluding current maturities 56,899 48,480 Insurance claims 103,299 62,706 Deferred income taxes and other non-current liabilities 51,765 33,244 Shareholders' equity: Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,636,098 and 68,590,708 686 686 Additional paid-in capital 269,696 261,256 Retained earnings 2,947,019 2,852,680 Cost of 34,927,155 and 34,531,982 shares of common stock in treasury (2,378,302) (2,313,245) Accumulated other comprehensive loss (9,103) (5,712) Total shareholders' equity 829,996 795,665 Total liabilities and shareholders' equity 1,807,715$ 1,635,935$ Landstar System, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited)
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LANDSTAR SYSTEM/8 Thirty-Nine Weeks Ended Thirteen Weeks Ended September 26, September 27, September 26, September 27, 2026 2025 2026 2025 Revenue generated through (in thousands): Truck transportation Truckload: Van equipment 2,080,868$ 1,769,440$ 759,949$ 583,369$ Unsided/platform equipment 1,379,319 1,127,276 518,582 386,006 Less-than-truckload 73,845 72,229 24,933 24,480 Other truck transportation (1) 289,298 288,807 103,707 96,041 Total truck transportation 3,823,330 3,257,752 1,407,171 1,089,896 Rail intermodal 74,881 63,183 27,806 23,668 Ocean and air cargo carriers 153,047 188,696 55,334 72,270 Other (2) 64,084 59,660 21,476 19,572 4,115,342$ 3,569,291$ 1,511,787$ 1,205,406$ Revenue on loads hauled via BCO Independent Contractors (3) included in total truck transportation 1,629,408$ 1,345,852$ 590,987$ 457,363$ Number of loads: Truck transportation Truckload: Van equipment 870,347 850,047 294,875 277,893 Unsided/platform equipment 375,093 369,495 128,398 123,254 Less-than-truckload 95,729 115,692 29,834 38,862 Other truck transportation (1) 143,311 135,606 47,543 45,421 Total truck transportation 1,484,480 1,470,840 500,650 485,430 Rail intermodal 23,600 21,960 8,490 7,990 Ocean and air cargo carriers 20,840 24,370 6,970 7,810 1,528,920 1,517,170 516,110 501,230 Loads hauled via BCO Independent Contractors (3) included in total truck transportation 644,870 597,010 212,660 199,010 Revenue per load: Truck transportation Truckload: Van equipment 2,391$ 2,082$ 2,577$ 2,099$ Unsided/platform equipment 3,677 3,051 4,039 3,132 Less-than-truckload 771 624 836 630 Other truck transportation (1) 2,019 2,130 2,181 2,114 Total truck transportation 2,576 2,215 2,811 2,245 Rail intermodal 3,173 2,877 3,275 2,962 Ocean and air cargo carriers 7,344 7,743 7,939 9,254 Revenue per load on loads hauled via BCO Independent Contractors (3) 2,527$ 2,254$ 2,779$ 2,298$ Revenue by capacity type (as a % of total revenue): Truck capacity providers: BCO Independent Contractors (3) 40% 38% 39% 38% Truck Brokerage Carriers 53% 54% 54% 52% Rail intermodal 2% 2% 2% 2% Ocean and air cargo carriers 4% 5% 4% 6% Other 2% 2% 1% 2% September 26, September 27, 2026 2025 Truck Capacity Providers: BCO Independent Contractors (3) 7,843 7,827 Truck Brokerage Carriers: Approved and active (4) 39,460 40,004 Other approved 28,455 27,461 67,915 67,465 Total available truck capacity providers 75,758 75,292 Trucks provided by BCO Independent Contractors (3) 8,709 8,618 (1) Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee. (2) Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro. (3) BCO Independent Contractors are independent contractors who provide truck capacity to the Company under exclusive lease arrangements. (4) Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end. Landstar System, Inc. and Subsidiary Supplemental Information (Unaudited)
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LANDSTAR SYSTEM/9 Thirty-Nine Weeks Ended Thirteen Weeks Ended September 26, September 27, September 26, September 27, 2026 2025 2026 2025 Revenue 4,115,342$ 3,569,291$ 1,511,787$ 1,205,406$ Costs of revenue: Purchased transportation 3,212,442 2,775,761 1,182,045 936,472 Commissions to agents 319,254 291,529 117,676 98,693 Variable costs of revenue 3,531,696 3,067,290 1,299,721 1,035,165 Trailing equipment depreciation 19,108 20,829 6,489 6,985 Information technology costs (1) 8,186 10,928 2,503 3,319 Insurance-related costs (2) 130,955 104,622 55,301 33,305 Other operating costs 53,971 46,996 21,226 15,572 Other costs of revenue 212,220 183,375 85,519 59,181 Total costs of revenue 3,743,916 3,250,665 1,385,240 1,094,346 Gross profit 371,426$ 318,626$ 126,547$ 111,060$ Gross profit margin 9.0% 8.9% 8.4% 9.2% Plus: other costs of revenue 212,220 183,375 85,519 59,181 Variable contribution 583,646$ 502,001$ 212,066$ 170,241$ Variable contribution margin 14.2% 14.1% 14.0% 14.1% (1) Includes costs of revenue incurred related to internally developed software including ASC 350-40 amortization, implementation costs, hosting costs and other support costs utilized to support the Company's independent commission sales agents, third party capacity providers, and customers, included as a portion of depreciation and amortization and of selling, general and administrative in the Company's Consolidated Statements of Income. (2) Primarily includes (i) insurance premiums paid for commercial auto liability, general liability, cargo and other lines of coverage related to the transportation of freight; (ii) the related costs of claims incurred under those programs; and (iii) brokerage commissions and other fees incurred relating the the administration of insurance programs available to BCO Independent Contractors that are reinsured by the Company, which are included in selling, general and administrative in the Company's Consolidated Statements of Income. Landstar System, Inc. and Subsidiary Reconciliation of Gross Profit to Variable Contribution (Dollars in thousands) (Unaudited)