Landstar System (LSTR) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $1.211 billion, down 1% year-over-year, with net income of $41.9 million and EPS of $1.20, reflecting a 28% and 18.9% decline, respectively; truck revenue per load increased for the first time since Q3 2022, and BCO truck count was flat sequentially, marking the best net truck count performance in 12 quarters.

• Operating income fell 17.3% to $56.3 million, impacted by higher insurance and claims costs and a $4.8 million supply chain fraud expense.

• The freight environment remained soft, with demand impacted by inflation and available truck capacity, but sequential truck revenue per load improved, indicating a move toward market balance.

• Safety performance remained strong, with an accident frequency rate of 0.67 per million miles, well below the national average.

• Continued investment in technology and equipment to support network growth and asset-light operations.

Financial highlights

• Truck revenue for Q2 2025 was $1.12 billion with 501,000 truck loadings and $2,234 truck revenue per load; truck revenue per load increased 2.6% year-over-year and 3.2% sequentially.

• Gross profit was $109.3 million (9% margin) versus $120 million (9.8% margin) last year; variable contribution was $170.5 million (14.1% margin) versus $175.1 million (14.3% margin) last year.

• Net income for the quarter was $41.9 million ($1.20 per share), down from $52.6 million ($1.48 per share) in Q2 2024.

• Cash and short-term investments ended at $426 million; net cash as of June 28, 2025, was $340.7 million.

• Free cash flow for Q2 2025 was $62.8 million, down from $142.3 million in Q2 2024.

Outlook and guidance

• No formal Q3 guidance provided due to market uncertainty; July truck volumes were slightly above normal seasonality, but revenue per load was 3% below last year.

• SG&A expected to decline by $3 million sequentially, partially offset by a $1.5 million increase in other operating costs due to the BCO All-Star Celebration.

• Management expects legal and professional fees to be slightly elevated for the remainder of 2025 due to the supply chain fraud matter.

• The company anticipates acquiring approximately $30 million in operating property, mainly new trailing equipment and IT hardware/software, during the rest of 2025.

• Ongoing trial in Texas could result in a substantial verdict against the company in Q3.