Landstar System (LSTR) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 25.4% YoY to $1,511.8M; operating income was $65.5M and net income $48.0M, with EPS of $1.42 versus $0.56.

• Truck growth and tighter capacity lifted revenue per load, while elevated insurance and claims costs weighed on earnings.

• Net additions of 165 BCO trucks marked the strongest quarterly improvement since Q3 2021; management described freight conditions as improving.

Financial highlights

• Revenue was $1,511.8M, up 25.4% YoY; gross profit rose 13.9% to $126.5M and variable contribution increased 24.6% to $212.1M.

• Operating income was $65.5M versus $26.3M; net income was $48.0M versus $19.4M. Q3 2025 included a $30.1M non-cash impairment charge, or $0.66 per share.

• Diluted EPS was $1.42 versus $0.56; 9M revenue was $4,115.3M versus $3,569M, with net income of $136.4M versus $91.1M.

• Gross margin was 8.4% versus 9.2%; variable contribution margin was 14.0% versus 14.1%.

• Insurance and claims costs were $55.3M; other operating costs were $21.2M and SG&A was $62.4M.

Outlook and guidance

• No formal Q4 guidance; management cited fluid freight, geopolitical and macroeconomic conditions, and volatile litigation and claims costs.

• October truck loads were ~7% above October 2025 and revenue per load was ~29% higher; both slightly exceeded typical seasonal trends.

• Historical Q3-to-Q4 seasonality indicates truck revenue per load and loads each rise ~1%, while variable contribution margin typically contracts 20–30 bps.

• Remaining FY26 operating-property investment is expected to be ~$79M, primarily for replacement trailers and IT hardware and software.