Landstar Q3 profit rises 154% as truck revenue climbs 29%

Landstar System Inc. (LSTR) said in a regulatory filing on Oct. 27 that earnings per share for the third quarter of fiscal 2026 rose to $1.42 from 56 cents a year earlier, while revenue climbed 25% to $1.512 billion.

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. The company uses a network of agents, third-party capacity providers and employees.

Truck revenue was the main driver. It rose 29% to $1.407 billion in the quarter, and revenue per truck load increased about 25%, while the number of loads hauled by truck rose about 3%, the company said.

The company said results were negatively impacted by highly elevated insurance and claim costs. Those costs totaled $55.3 million in the quarter, up from $33.0 million a year earlier.

Here's how the company did:

• Revenue: $1.512 billion vs. $1.205 billion a year earlier
• Earnings per share: $1.42 vs. 56 cents a year earlier
• Operating income: $65.5 million vs. $26.3 million a year earlier
• Gross profit: $127 million vs. $111 million a year earlier
• Variable contribution: $212 million vs. $170 million a year earlier

President and Chief Executive Officer Frank Lonegro said, "The Landstar team of independent business owners and employees excelled in a freight transportation backdrop that continues to improve."

The company added a net 165 Business Capacity Owner, or BCO, trucks during the quarter, its strongest quarterly improvement since the third quarter of 2021, the release said. BCO Independent Contractors provide truck capacity to the company under exclusive lease arrangements.

Truck revenue

Van equipment revenue rose to $760 million from $583 million a year earlier. Unsided/platform equipment revenue rose to $519 million from $386 million.

Revenue hauled by rail, air and ocean cargo carriers fell to $83 million, or 5% of revenue, from $96 million, or 8% of revenue, a year earlier. Revenue hauled by BCOs and truck brokerage carriers was 93% of revenue, up from 90%.

Insurance and claims costs

The company said adverse actuarial adjustments to insurance and claim reserves totaled approximately $13.0 million, or 29 cents per share, in the quarter.

Prior year development from settlements of a 2024 brokered truck accident claim and a 2025 BCO accident added $8.0 million, or 18 cents per share, to costs.

The release also said third-quarter 2025 operating income and EPS were negatively impacted by $30.1 million, or 66 cents per share, of non-cash impairment charges tied to a previously disclosed strategic review of operations.

President and Chief Executive Officer Frank Lonegro said, "Even so, we are not immune to the challenges of the insurance and claims inflation prevalent in our industry."

Capital returns

Landstar bought 232,645 shares of common stock in the quarter at an aggregate cost of $41.4 million. Year to date through Sept. 26, 2026, it bought 383,568 shares for about $64.0 million.

The company is authorized to buy up to an additional 882,550 shares under its share purchase program.

Its board declared a quarterly dividend of 44 cents per share, up from 40 cents a year earlier. The dividend is payable Dec. 8 to stockholders of record at the close of business on Nov. 17.

Cash and short-term investments were about $351 million as of Sept. 26, 2026. Trailing twelve-month return on average shareholders' equity was 19%.

A slide presentation furnished with the release said truck loads in October 2026 were approximately 7% above October 2025, and truck revenue per load was approximately 29% above.

The company said pre-pandemic seasonality patterns would normally yield a slight increase in truck revenue, truck loads and truck revenue per load from the third quarter to the fourth quarter.

Net income has risen in each of the last three quarters, from $19.4 million in the third quarter of 2025 to $49.0 million in the second quarter of 2026, according to its SEC filings.