For Immediate Release		January 28, 2026

LANDSTAR SYSTEM REPORTS FOURTH QUARTER RESULTS

Jacksonville, FL—Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today confirmed its financial results for the 2025 fourth quarter. As previously disclosed in a Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on January 21, 2026, the Company reported total revenue of $1,174 million in the 2025 fourth quarter, compared to $1,209 million in the 2024 fourth quarter. Landstar reported basic and diluted earnings per share (“EPS”) of $0.70 for the 2025 fourth quarter, compared to $1.31 in the 2024 fourth quarter.

“The Landstar team of independent business owners and employees performed well during the 2025 fourth quarter despite continued tough macro demand conditions in the freight transportation market. In fact, fourth quarter truck transportation revenue was nearly flat year over year, as the decrease in total revenue was primarily attributable to decreased ocean revenue. Our services hauled by unsided/platform equipment, a real bright spot for Landstar throughout 2025, continued to demonstrate sustained strength in the fourth quarter,” said Landstar President and Chief Executive Officer Frank Lonegro. “Truck revenue per load was another positive development related to the top line. Landstar achieved sequential improvement in truck revenue per load in the fourth quarter that exceeded pre-pandemic normal seasonality, and December truck revenue per load was six percent above fiscal October’s truck revenue per load. Increased insurance and claims expense, however, had a significant adverse impact on our fourth quarter results, as the claim environment for freight transportation providers remains extremely challenging.”

LANDSTAR SYSTEM/ 2

 

As previously disclosed in a Form 8-K filed with the SEC on January 21, 2026, 2025 fourth quarter EPS reflected highly elevated insurance and claims costs of $56 million, an increase from the approximately $30 million of insurance and claims costs reported during the 2024 fourth quarter. The following items are reflected in insurance and claims for the 2025 fourth quarter:

 

•

$16.7 million, or $0.37 per share, of insurance and claims costs related to three tragic vehicular accidents, two of which occurred during the 2025 fourth fiscal quarter and the third of which occurred during fiscal year 2022 but involved a post-trial judgment entered against the Company by the court in January 2026; and

 

•

$5.3 million, or $0.12 per share, related to an increase in the Company’s actuarily determined claim reserves.

In addition to the insurance and claims items reference above, the Company also recorded $2.1 million of additional non-cash impairment charges, or $0.05 per share, related to the ongoing sales process of Landstar Metro, S.A.P.I. de C.V., the Company’s wholly-owned Mexican operating subsidiary, principally engaged in intra-Mexico truck transportation services.

 

		4Q 2025				4Q 2024
Revenue		$	1,174,469			$	1,209,330
Gross profit		$	85,568			$	109,423
Variable contribution		$	166,019			$	166,523
Operating income		$	29,552			$	57,771
Basic and diluted earnings per share (“EPS”)		$	0.70			$	1.31

 

(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.

Landstar continues to return capital to stockholders through the Company’s stock purchase program and dividends. During the 2025 fourth quarter, Landstar purchased 286,695 shares of its common stock at an aggregate cost of $37.0 million, bringing the total number of common shares purchased during the 2025 fiscal year to 1,281,863 shares at an aggregate cost of approximately $180.9 million. The Company is currently authorized to purchase up to an additional 1,266,118 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 $0.40 per share payable on March 11, 2026, to stockholders of record as of the close of business on February 18, 2026.

LANDSTAR SYSTEM/ 3

 

Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2025 fourth quarter was $1,078 million, or 92% of revenue, compared to $1,081 million, or 89% of revenue, in the 2024 fourth quarter. Truckload transportation revenue hauled via van equipment in the 2025 fourth quarter was $559 million, compared to $597 million in the 2024 fourth quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2025 fourth quarter was $401 million, compared to $362 million in the 2024 fourth quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2025 fourth quarter was $95 million, compared to $100 million in the 2024 fourth quarter. Revenue hauled by rail, air and ocean cargo carriers was $77 million, or 7% of revenue, in the 2025 fourth quarter, compared to $107 million, or 9% of revenue, in the 2024 fourth quarter.

During the 2025 fourth quarter, truck revenue per load increased approximately 1% compared to the 2024 fourth quarter, while the number of loads hauled via truck decreased approximately 1% compared to the 2024 fourth quarter.

Gross profit in the 2025 fourth quarter was $86 million, and variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2025 fourth quarter was $166 million. Gross profit in the 2024 fourth quarter was $109 million, and variable contribution in the 2024 fourth quarter was $167 million. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2025 and 2024 fourth quarters and year-to-date periods are provided in the Company’s accompanying financial disclosures.

The Company’s balance sheet continues to be very strong, with cash and short-term investments of approximately $452 million as of December 27, 2025. Trailing twelve-month return on average shareholders’ equity was 13%. Return on invested capital, representing net income divided by the sum of average equity plus average debt, was 12%.

LANDSTAR SYSTEM/ 4

 

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 www.investor.landstar.com; click on “Webcasts,” then click on “Landstar’s Fourth Quarter 2025 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 integrated transportation management solutions delivering safe, specialized transportation services 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 Market^® 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 measures: variable contribution and variable contribution margin. The Company believes variable 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.

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,” “predicts,” “may,” “should,” “could,” “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; 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 2025 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 legislative 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; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2024 fiscal year, described in Part I, Item 1A Risk Factors, Landstar’s Form 10-Q for the 2025 first quarter, described in Part II, 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.

LANDSTAR SYSTEM/ 6

 

Landstar System, Inc. and Subsidiary

Consolidated Statements of Income

(Dollars in thousands, except per share amounts)

(Unaudited)

 

		Fiscal Years Ended								Fiscal Quarters Ended
		December 27, 2025				December 28, 2024				December 27, 2025				December 28, 2024
Revenue		$	4,743,760			$	4,819,245			$	1,174,469			$	1,209,330
Investment income			13,685				14,810				3,065				3,822
Costs and expenses:
Purchased transportation			3,688,343				3,745,241				912,582				945,857
Commissions to agents			387,397				392,751				95,868				96,950
Other operating costs, net of gains on asset sales/dispositions			61,586				58,781				14,590				14,643
Insurance and claims			159,436				113,929				56,127				30,099
Selling, general and administrative			230,548				217,708				56,245				55,095
Depreciation and amortization			46,388				56,738				10,504				12,737
Impairment of intangible and other assets			32,170				—				2,066				—
Total costs and expenses			4,605,868				4,585,148				1,147,982				1,155,381
Operating income			151,577				248,907				29,552				57,771
Interest and debt expense (income)			996				(5,419	)			240				(964	)
Income before income taxes			150,581				254,326				29,312				58,735
Income taxes			35,574				58,380				5,368				12,542
Net income		$	115,007			$	195,946			$	23,944			$	46,193
Basic and diluted earnings per share		$	3.31			$	5.51			$	0.70			$	1.31
Average basic and diluted shares outstanding			34,717,000				35,538,000				34,214,000				35,328,000
Dividends per common share		$	3.56			$	3.38			$	2.40			$	2.36

LANDSTAR SYSTEM/7

 

Landstar System, Inc. and Subsidiary

Consolidated Balance Sheets

(Dollars in thousands, except per share amounts)

(Unaudited)

 

		December 27, 2025				December 28, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	396,694			$	515,018
Short-term investments			55,531				51,619
Trade accounts receivable, less allowance of $12,490 and $12,904			670,137				683,841
Other receivables, including advances to independent contractors, less allowance of $18,759 and $17,812			52,784				47,160
Assets held for sale			12,231				—
Other current assets			28,949				22,229
Total current assets			1,216,326				1,319,867
Operating property, less accumulated depreciation and amortization of $473,642 and $456,547			261,322				311,345
Goodwill			34,005				40,933
Other assets			124,282				141,166
Total assets		$	1,635,935			$	1,813,311
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Cash overdraft		$	56,654			$	61,033
Accounts payable			369,567				383,625
Current maturities of long-term debt			28,342				33,116
Insurance claims			87,343				40,511
Dividends payable			68,117				70,632
Liabilities held for sale			6,961				—
Other current liabilities			78,856				84,237
Total current liabilities			695,840				673,154
Long-term debt, excluding current maturities			48,480				69,191
Insurance claims			62,706				62,842
Deferred income taxes and other non-current liabilities			33,244				35,685
Shareholders’ equity:
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,590,708 and 68,559,269			686				686
Additional paid-in capital			261,256				255,260
Retained earnings			2,852,680				2,859,916
Cost of 34,531,982 and 33,243,196 shares of common stock in treasury			(2,313,245	)			(2,131,413	)
Accumulated other comprehensive loss			(5,712	)			(12,010	)
Total shareholders’ equity			795,665				972,439
Total liabilities and shareholders’ equity		$	1,635,935			$	1,813,311

LANDSTAR SYSTEM/8

 

Landstar System, Inc. and Subsidiary

Supplemental Information

(Unaudited)

 

		Fiscal Years Ended								Fiscal Quarters Ended
		December 27, 2025				December 28, 2024				December 27, 2025				December 28, 2024
Revenue generated through (in thousands):
Truck transportation
Truckload:
Van equipment		$	2,328,386			$	2,447,810			$	558,946			$	596,573
Unsided/platform equipment			1,527,802				1,455,663				400,526				361,910
Less-than-truckload			95,856				99,828				23,627				21,926
Other truck transportation (1)			383,970				343,253				95,163				100,400
Total truck transportation			4,336,014				4,346,554				1,078,262				1,080,809
Rail intermodal			87,164				84,328				23,981				18,347
Ocean and air cargo carriers			241,433				289,902				52,737				88,173
Other (2)			79,149				98,461				19,489				22,001
		$	4,743,760			$	4,819,245			$	1,174,469			$	1,209,330
Revenue on loads hauled via BCO Independent Contractors (3) included in total truck transportation		$	1,803,514			$	1,821,989			$	457,662			$	447,074
Number of loads:
Truck transportation
Truckload:
Van equipment			1,124,539				1,170,772				274,492				282,877
Unsided/platform equipment			487,060				476,815				117,565				114,188
Less-than-truckload			151,518				153,253				35,826				33,907
Other truck transportation (1)			180,683				160,120				45,077				45,568
Total truck transportation			1,943,800				1,960,960				472,960				476,540
Rail intermodal			29,970				27,970				8,010				6,550
Ocean and air cargo carriers			31,120				34,440				6,750				8,320
			2,004,890				2,023,370				487,720				491,410
Loads hauled via BCO Independent Contractors (3) included in total truck transportation			798,050				814,150				201,040				193,510
Revenue per load:
Truck transportation
Truckload:
Van equipment		$	2,071			$	2,091			$	2,036			$	2,109
Unsided/platform equipment			3,137				3,053				3,407				3,169
Less-than-truckload			633				651				659				647
Other truck transportation (1)			2,125				2,144				2,111				2,203
Total truck transportation			2,231				2,217				2,280				2,268
Rail intermodal			2,908				3,015				2,994				2,801
Ocean and air cargo carriers			7,758				8,418				7,813				10,598
Revenue per load on loads hauled via BCO Independent Contractors (3)		$	2,260			$	2,238			$	2,276			$	2,310
Revenue by capacity type (as a % of total revenue):
Truck capacity providers:
BCO Independent Contractors (3)			38	%			38	%			39	%			37	%
Truck Brokerage Carriers			53	%			52	%			53	%			52	%
Rail intermodal			2	%			2	%			2	%			2	%
Ocean and air cargo carriers			5	%			6	%			4	%			7	%
Other			2	%			2	%			2	%			2	%

 

		December 27, 2025				December 28, 2024
Truck Capacity Providers:
BCO Independent Contractors (3)			7,712				8,082
Truck Brokerage Carriers:
Approved and active (4)			36,852				43,718
Other approved			25,938				26,527
			62,790				70,245
Total available truck capacity providers			70,502				78,327
Trucks provided by BCO Independent Contractors (3)			8,514				8,843

 

(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/9

 

Landstar System, Inc. and Subsidiary

Reconciliation of Gross Profit to Variable Contribution

(Dollars in thousands)

(Unaudited)

 

		Fiscal Years Ended								Fiscal Quarters Ended
		December 27, 2025				December 28, 2024				December 27, 2025				December 28, 2024
Revenue		$	4,743,760			$	4,819,245			$	1,174,469			$	1,209,330
Costs of revenue:
Purchased transportation			3,688,343				3,745,241				912,582				945,857
Commissions to agents			387,397				392,751				95,868				96,950
Variable costs of revenue			4,075,740				4,137,992				1,008,450				1,042,807
Trailing equipment depreciation			27,195				27,950				6,366				7,186
Information technology costs (1)			13,675				22,744				2,747				4,629
Insurance-related costs (2)			161,370				115,764				56,748				30,642
Other operating costs			61,586				58,781				14,590				14,643
Other costs of revenue			263,826				225,239				80,451				57,100
Total costs of revenue			4,339,566				4,363,231				1,088,901				1,099,907
Gross profit		$	404,194			$	456,014			$	85,568			$	109,423
Gross profit margin			8.5	%			9.5	%			7.3	%			9.0	%
Plus: other costs of revenue			263,826				225,239				80,451				57,100
Variable contribution		$	668,020			$	681,253			$	166,019			$	166,523
Variable contribution margin			14.1	%			14.1	%			14.1	%			13.8	%

 

(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 cost of claims incurred under those programs; and (iii) brokerage commissions and other fees incurred relating to 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.