10-Q · April 29, 2026
Landstar System, Inc. reported Q1 2026 revenue of $1,171,291,000, exceeding estimates of $1,162,118,840, and delivered an EPS of $1.16, beating the forecast of $1.12. The company's gross profit showed significant…
Earnings analysis · 10-Q
LSTR earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Landstar delivered a strong top-line recovery in Q2, with revenue up 18% year over year to $1.432 billion as truck revenue per load rose 17%; diluted EPS increased 20% to $1.44 but missed the $1.47 consensus estimate.…
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Landstar delivered a strong top-line recovery in Q2, with revenue up 18% year over year to $1.432 billion as truck revenue per load rose 17%; diluted EPS increased 20% to $1.44 but missed the $1.47 consensus estimate. Gross margin expanded 20 basis points to 9.2%, while operating margin held near flat at 4.6% as higher insurance/claims and incentive compensation offset scaling benefits. Liquidity remains ample and debt declined, but operating cash flow fell by $35.0 million year over year due to higher net receivables, while the updated broker-liability risk and elevated insurance costs remain material headwinds.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.44
What stood out
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Revenue accelerated 18% year over year
Q2 revenue rose $220.9 million, or 18%, year over year to $1.432 billion, driven by a 16% increase in revenue per load and a 2% increase in loads. Revenue was also 22% above Q1 2026 revenue of $1.171 billion.
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Truck pricing drove the quarter
Truck transportation revenue increased $215.7 million, or 19%, to $1.334 billion, representing 93% of consolidated revenue. Truck revenue per load rose approximately 17%, with van, unsided/platform and LTL revenue per load up 16%, 20% and 32%, respectively.
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Gross profit expanded; operating leverage muted
Gross profit increased $23.1 million to $132.3 million and gross margin expanded 20 basis points to 9.2% from 9.0%. Operating income increased $9.9 million, or 18%, to $66.2 million, although operating margin was essentially flat at 4.6% versus 4.6% a year earlier.
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EPS grew YoY but missed consensus
Diluted EPS increased 20% year over year to $1.44 from $1.20 and rose from $1.16 in Q1 2026. However, the reported $1.44 was below the $1.47 consensus estimate.
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Liquidity and leverage remain sound
Working capital increased $76.6 million to $597.1 million and the current ratio improved to 1.8x from 1.7x at year-end. Long-term debt including current maturities fell $10.0 million to $66.8 million, with no revolver borrowings outstanding.
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Credit facility extended through 2031
The new credit agreement matures June 30, 2031 and provides a $300.0 million revolver plus an uncommitted $500.0 million accordion. At June 27, available revolver capacity was $265.1 million after $34.9 million of letters of credit.
What to watch
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New broker-liability exposure risk
The updated risk factor cites the May 14, 2026 Montgomery decision narrowing FAAAA preemption defenses for broker-liability claims; industry peers have subsequently faced Nuclear Verdicts exceeding $100 million. Landstar warns insurance and third-party recoveries may be insufficient for a substantial verdict or settlement.
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Claims development pressured Q2 costs
Q2 insurance and claims expense increased $8.9 million year over year, driven in part by $10.5 million of net unfavorable development of prior-years' claims, versus $2.3 million in the prior-year quarter. Management also cited higher severity of current-year trucking claims.
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Insurance pricing and retained-loss exposure
Excess commercial-auto insurance premiums have risen approximately $21 million, or 390%, from the policy year ended April 30, 2020 to the policy year ending May 31, 2027. For a hypothetical $65 million claim in that policy year, Landstar estimates aggregate financial exposure of approximately $33 million.
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Receivables reduced operating cash flow
Operating cash flow fell to $27.8 million in the first 26 weeks of 2026 from $62.8 million a year earlier, as increased net receivables created unfavorable working-capital effects despite higher net income. Operating-property purchases were $8.7 million in the period.
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Tighter capacity raises procurement costs
Available truck capacity providers declined to 72,326 at June 27, 2026 from 77,358 a year earlier, including active truck brokerage carriers declining to 37,656 from 41,842. A tighter capacity market supported pricing but also lifted purchased transportation to 78.4% of Q2 revenue from 77.7%.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management anticipates acquiring approximately $105.0 million of operating property during the remainder of fiscal 2026, primarily replacement trailing equipment and IT hardware/software, through purchases or leases.
Earlier filings 4
10-K · February 24, 2026
Landstar presents itself as a technology-enabled, asset-light integrated transportation management provider with revenue of $4.7 billion in fiscal 2025, leveraging a large agent and third‑party capacity network. The…
10-K · February 24, 2025
Landstar positions itself as a technology-enabled, asset-light integrated transportation management provider with revenue of $4.8 billion in the most recently completed fiscal year and a competitive moat anchored in its…
10-Q · October 30, 2024
Landstar reported Q3 revenue of $1,213,867,000 and diluted EPS of $1.41. Revenue, operating income and net income declined year-over-year (revenue down $75,478,000; operating income down $17,232,000; net income down…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.