Landstar System — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue reached $1.512 billion in Q3 2026, a 25% increase from $1.205 billion in Q3 2025.
• Basic and diluted earnings per share (EPS) were $1.42, up 154% from $0.56 in Q3 2025; Q3 2025 EPS was negatively impacted by $30.1 million in non-cash impairment charges ($0.66 per share).
• Gross profit increased 14% to $126.5 million from $111.1 million in the prior year period.
• Variable contribution (revenue less cost of purchased transportation and commissions) rose 25% to $212.1 million from $170.2 million.
• Operating income surged 149% to $65.5 million from $26.3 million.
• Insurance and claim costs totaled $55.3 million in Q3 2026, an increase from $33.0 million in Q3 2025, negatively impacting EPS.
• Cash and short-term investments stood at approximately $351 million as of September 26, 2026.
• Trailing twelve-month return on average shareholders' equity was 19%, and return on invested capital was 18%.
• Total assets were $1.808 billion as of September 26, 2026, compared to $1.636 billion as of December 27, 2025.
• Total liabilities were $977.7 million, with long-term debt (excluding current maturities) at $56.9 million.

Business Segments and Product Lines:

• Truck revenue was $1.407 billion, up 29% from $1.090 billion in Q3 2025.
• Revenue from van equipment increased over 30% to $760 million from $583 million.
• Revenue from unsided/platform equipment increased over 30% to $519 million from $386 million.
• Other truck transportation (largely power-only) revenue was $104 million, up from $96 million.
• Rail, air, and ocean cargo revenue was $83 million (5% of total), down from $96 million (8% of total).
• Truck transportation revenue hauled by independent Business Capacity Owners (BCOs) and truck brokerage carriers comprised 93% of revenue, up from 90% in the prior year.
• Number of loads hauled via truck increased approximately 3% year-over-year.
• Truck revenue per load increased approximately 25% year-over-year.

Market and Competitive Landscape:

• The company reported a net addition of 165 Business Capacity Owner (BCO) trucks during the quarter, the strongest quarterly improvement since Q3 2021.
• BCOs achieved a 5% year-over-year improvement in DOT accident frequency.
• Total available truck capacity providers increased to 75,758 at quarter-end from 75,292 in the prior year period.
• Approved and active truck brokerage carriers numbered 39,460, down from 40,004 in the prior year period.

Risks and Challenges:

• Highly elevated insurance and claim costs in the industry negatively impacted earnings.
• Q3 2026 insurance and claims included $13.0 million in adverse actuarial adjustments to reserves and $8.0 million in prior year development related to specific accident settlements.
• The company notes it is not immune to industry-wide insurance and claims inflation.

Management Commentary and Tone:

• CEO Frank Lonegro stated the team excelled in a freight transportation backdrop that continues to improve.
• Management expressed high encouragement regarding the net 165 BCO truck additions and the 5% improvement in DOT accident frequency.
• The tone acknowledges challenges from insurance and claims inflation while highlighting strong operational performance.

Other Key Points:

• The Board of Directors declared a quarterly dividend of $0.44 per share, payable on December 8, 2026, to stockholders of record as of November 17, 2026.
• The company purchased 232,645 shares of common stock for $41.4 million during the quarter.
• Year-to-date share repurchases totaled 383,568 shares at an aggregate cost of approximately $64.0 million.
• The company remains authorized to purchase up to an additional 882,550 shares under its share purchase program.
• The company intends to continue paying dividends on a quarterly basis.
• A live webcast of the earnings conference call was scheduled for 4:30 p.m. ET on the date of the release.