For Immediate Release		July 28, 2026

LANDSTAR SYSTEM REPORTS SECOND QUARTER

REVENUE OF $1.432B AND EARNINGS PER SHARE OF $1.44

Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported its financial results for the 2026 second quarter. The Company reported total revenue of $1.432 billion in the 2026 second quarter, an increase of 18% as compared to revenue of $1.211 billion in the 2025 second quarter, and basic and diluted earnings per share (“EPS”) of $1.44 in the 2026 second quarter, an increase of 20% as compared to EPS of $1.20 per share in the 2025 second quarter. The Company also reported a 21% increase in gross profit and a 17% increase in variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2026 second quarter, as compared in each case to the 2025 second quarter.

“The Landstar team of independent business owners and employees truly shined in a rapidly improving freight transportation backdrop. I was pleased that our network generated both truck volumes and truck revenue per load that outpaced normal seasonal patterns, with variable contribution increasing approximately 17% year-over-year,” said Landstar President and Chief Executive Officer Frank Lonegro. “I was delighted to see our net 68 BCO truck additions during the second quarter, the strongest quarterly improvement since the first quarter of 2022. Although the Company experienced a lower DOT accident frequency during the 2026 first half, increased insurance and claims expense, primarily attributable to unfavorable development of prior years’ claims, had an adverse impact on our second quarter results. The claim environment for freight transportation providers remains challenging, especially with the U.S. Supreme Court’s recent Montgomery decision relating to potential broker liability.”

LANDSTAR SYSTEM/2

 

		2Q 2026				2Q 2025				Change ($)				Change (%)
Revenue		$	1,432,264			$	1,211,383			$	220,881				18.2	%
Gross profit		$	132,337			$	109,261			$	23,076				21.1	%
Variable contribution		$	199,429			$	170,450			$	28,979				17.0	%
Operating income		$	66,228			$	56,280			$	9,948				17.7	%
Basic and diluted earnings per share (“EPS”)		$	1.44			$	1.20			$	0.24				20.0	%

 

(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 also announced today that its Board of Directors declared a quarterly dividend of $0.44 per share payable on September 9, 2026, to stockholders of record as of the close of business on August 18, 2026. This quarterly dividend includes a 10% increase over the amount of the Company’s regular quarterly dividend declared following each of the prior five quarters. It is currently the intention of the Board to continue to pay dividends on a quarterly basis going forward. Landstar continues to return capital to stockholders through the Company’s stock purchase program and dividends. While Landstar did not purchase shares in the second quarter, during the 2026 first half, Landstar purchased 150,923 shares of its common stock at an aggregate cost of $22.6 million. The Company is currently authorized to purchase up to an additional 1,115,195 shares of the Company’s common stock under its longstanding share purchase program.

During the 2026 second quarter, truck revenue was $1,334 million, or 19% higher, as compared to the 2025 second quarter truck revenue of $1,118 million. Truck revenue per load increased approximately 17% in the 2026 second quarter compared to the 2025 second quarter, and the number of loads hauled via truck increased approximately 2% compared to the 2025 second quarter.

Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2026 second quarter was 93% of revenue, compared to 92% of revenue in the 2025 second quarter. Truckload transportation revenue hauled via van equipment in the 2026 second quarter was $718 million, compared to $591 million in the 2025 second quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2026 second quarter was $492 million, compared to $401 million in the

LANDSTAR SYSTEM/3

 

2025 second quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2026 second quarter was $99 million, compared to $101 million in the 2025 second quarter. Revenue hauled by rail, air and ocean cargo carriers was $78 million, or 5% of revenue, in the 2026 second quarter, compared to $73 million, or 6% of revenue, in the 2025 second quarter.

Gross profit in the 2026 second quarter was $132 million, as compared to $109 million in the 2025 second quarter. Variable contribution in the 2026 second quarter was $199 million, compared to $170 million in the 2025 second quarter. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2026 and 2025 second 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 $348 million as of June 27, 2026. Trailing twelve-month return on average shareholders’ equity was 16%. Return on invested capital, representing net income divided by the sum of average equity plus average debt, was 14%.

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 Second 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

LANDSTAR SYSTEM/4

 

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 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.

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,” “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

LANDSTAR SYSTEM/5

 

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 2025 fiscal year, described in Part I, 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)

 

		Twenty-Six Weeks Ended								Thirteen Weeks Ended
		June 27, 2026				June 28, 2025				June 27, 2026				June 28, 2025
Revenue		$	2,603,555			$	2,363,885			$	1,432,264			$	1,211,383
Investment income			5,679				7,327				2,705				3,729
Costs and expenses:
Purchased transportation			2,030,397				1,839,289				1,123,400				941,411
Commissions to agents			201,578				192,836				109,435				99,522
Other operating costs, net of gains on asset sales/dispositions			32,745				31,424				17,945				19,595
Insurance and claims			74,923				70,301				39,359				30,449
Selling, general and administrative			129,158				117,288				68,193				55,706
Depreciation and amortization			20,969				24,375				10,409				12,149
Total costs and expenses			2,489,770				2,275,513				1,368,741				1,158,832
Operating income			119,464				95,699				66,228				56,280
Interest and debt expense			1,330				539				812				698
Income before income taxes			118,134				95,160				65,416				55,582
Income taxes			29,743				23,461				16,465				13,689
Net income		$	88,391			$	71,699			$	48,951			$	41,893
Basic and diluted earnings per share		$	2.60			$	2.05			$	1.44			$	1.20
Average basic and diluted shares outstanding			33,979,000				35,037,000				33,935,000				34,870,000
Dividends per common share		$	0.80			$	0.76			$	0.40			$	0.40

LANDSTAR SYSTEM/7

 

Landstar System, Inc. and Subsidiary

Consolidated Balance Sheets

(Dollars in thousands, except per share amounts)

(Unaudited)

 

		June 27, 2026				December 27, 2025
ASSETS
Current assets:
Cash and cash equivalents		$	294,350			$	396,694
Short-term investments			53,352				55,531
Trade accounts receivable, less allowance of $9,135 and $12,490			866,879				670,137
Other receivables, including advances to independent contractors, less allowance of $14,727 and $18,759			47,306				52,784
Assets held for sale			—				12,231
Other current assets			59,159				28,949
Total current assets			1,321,046				1,216,326
Operating property, less accumulated depreciation and amortization of $488,271 and $473,642			252,963				261,322
Goodwill			34,005				34,005
Other assets			134,521				124,282
Total assets		$	1,742,535			$	1,635,935
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Cash overdraft		$	71,849			$	56,654
Accounts payable			468,780				369,567
Current maturities of long-term debt			24,686				28,342
Insurance claims			59,020				87,343
Dividends payable			—				68,117
Liabilities held for sale			—				6,961
Other current liabilities			99,588				78,856
Total current liabilities			723,923				695,840
Long-term debt, excluding current maturities			42,088				48,480
Insurance claims			98,686				62,706
Deferred income taxes and other non-current liabilities			41,108				33,244
Shareholders’ equity:
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,631,174 and 68,590,708			686				686
Additional paid-in capital			266,673				261,256
Retained earnings			2,913,890				2,852,680
Cost of 34,694,249 and 34,531,982 shares of common stock in treasury			(2,336,862	)			(2,313,245	)
Accumulated other comprehensive loss			(7,657	)			(5,712	)
Total shareholders’ equity			836,730				795,665
Total liabilities and shareholders’ equity		$	1,742,535			$	1,635,935

LANDSTAR SYSTEM/8

 

Landstar System, Inc. and Subsidiary

Supplemental Information

(Unaudited)

 

		Twenty-Six Weeks Ended								Thirteen Weeks Ended
		June 27, 2026				June 28, 2025				June 27, 2026				June 28, 2025
Revenue generated through (in thousands):
Truck transportation
Truckload:
Van equipment		$	1,320,919			$	1,186,071			$	717,513			$	591,276
Unsided/platform equipment			860,737				741,270				492,168				400,862
Less-than-truckload			48,912				47,749				25,124				25,313
Other truck transportation (1)			185,591				192,766				99,073				100,687
Total truck transportation			2,416,159				2,167,856				1,333,878				1,118,138
Rail intermodal			47,075				39,515				27,761				22,028
Ocean and air cargo carriers			97,713				116,426				49,744				50,789
Other (2)			42,608				40,088				20,881				20,428
		$	2,603,555			$	2,363,885			$	1,432,264			$	1,211,383
Revenue on loads hauled via BCO Independent Contractors (3) included in total truck transportation		$	1,038,421			$	888,489			$	563,073			$	461,432
Number of loads:
Truck transportation
Truckload:
Van equipment			575,472				572,154				297,761				284,091
Unsided/platform equipment			246,695				246,241				132,141				128,996
Less-than-truckload			65,895				76,830				30,970				41,250
Other truck transportation (1)			95,768				90,185				49,378				46,173
Total truck transportation			983,830				985,410				510,250				500,510
Rail intermodal			15,110				13,970				8,520				7,820
Ocean and air cargo carriers			13,870				16,560				7,160				7,440
			1,012,810				1,015,940				525,930				515,770
Loads hauled via BCO Independent Contractors (3) included in total truck transportation			432,210				398,000				224,600				203,930
Revenue per load:
Truck transportation
Truckload:
Van equipment		$	2,295			$	2,073			$	2,410			$	2,081
Unsided/platform equipment			3,489				3,010				3,725				3,108
Less-than-truckload			742				621				811				614
Other truck transportation (1)			1,938				2,137				2,006				2,181
Total truck transportation			2,456				2,200				2,614				2,234
Rail intermodal			3,115				2,829				3,258				2,817
Ocean and air cargo carriers			7,045				7,031				6,947				6,826
Revenue per load on loads hauled via BCO Independent Contractors (3)		$	2,403			$	2,232			$	2,507			$	2,263
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	%			54	%
Rail intermodal			2	%			2	%			2	%			2	%
Ocean and air cargo carriers			4	%			5	%			3	%			4	%
Other			2	%			2	%			1	%			2	%
										June 27, 2026				June 28, 2025
Truck Capacity Providers:
BCO Independent Contractors (3)											7,719				7,844
Truck Brokerage Carriers:
Approved and active (4)											37,656				41,842
Other approved											26,951				27,672
											64,607				69,514
Total available truck capacity providers											72,326				77,358
Trucks provided by BCO Independent Contractors (3)											8,544				8,611

 

(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)

 

		Twenty-Six Weeks Ended								Thirteen Weeks Ended
		June 27, 2026				June 28, 2025				June 27, 2026				June 28, 2025
Revenue		$	2,603,555			$	2,363,885			$	1,432,264			$	1,211,383
Costs of revenue:
Purchased transportation			2,030,397				1,839,289				1,123,400				941,411
Commissions to agents			201,578				192,836				109,435				99,522
Variable costs of revenue			2,231,975				2,032,125				1,232,835				1,040,933
Trailing equipment depreciation			12,619				13,844				6,351				6,867
Information technology costs (1)			5,683				7,609				3,080				3,934
Insurance-related costs (2)			75,654				71,317				39,716				30,793
Other operating costs			32,745				31,424				17,945				19,595
Other costs of revenue			126,701				124,194				67,092				61,189
Total costs of revenue			2,358,676				2,156,319				1,299,927				1,102,122
Gross profit		$	244,879			$	207,566			$	132,337			$	109,261
Gross profit margin			9.4	%			8.8	%			9.2	%			9.0	%
Plus: other costs of revenue			126,701				124,194				67,092				61,189
Variable contribution		$	371,580			$	331,760			$	199,429			$	170,450
Variable contribution margin			14.3	%			14.0	%			13.9	%			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 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.