Landstar System (LSTR) investor relations material

Executive summary

• Revenue increased 18.2% year-over-year to $1.432 billion in Q2 2026, with EPS up 20% and strong performance in heavy haul and truckload segments.

• Truck revenue per load rose 17% year-over-year and 14.4% sequentially, marking the largest sequential increase in 15 years.

• Net 68 BCO truck count additions marked the best quarterly improvement since Q1 2022, with declining turnover.

• The company continues to invest in technology, AI, and fleet upgrades, with AI initiatives accounting for half of the 2026 IT capital budget.

• $120 million was returned to shareholders in H1 2026 via dividends and buybacks.

Financial highlights

• Gross profit was $132.3 million (9.2% margin) in Q2 2026, up from $109.3 million (9%) in Q2 2025.

• Variable contribution reached $199.4 million (13.9% margin), up from $170.5 million (14.1%) year-over-year.

• Operating income for Q2 2026 was $66.2 million, representing 50% of gross profit and 33.2% of variable contribution.

• Cash and short-term investments ended at $348 million; net cash position was $280.9 million with a debt-to-capital ratio of 7%.

• Free cash flow for the first half of 2026 was $19.1 million, with $95.3 million in dividends paid and $24.1 million in share repurchases.

Outlook and guidance

• No formal Q3 guidance due to market volatility, but July 2026 truck volumes were 5% above July 2025 and revenue per load was 26% higher, both exceeding typical seasonal trends.

• Management expects continued positive momentum and is optimistic about the freight environment turning in their favor.

• Pre-pandemic seasonality would suggest flat truck revenue and a slight decrease in loads from Q2 to Q3.