Landstar's Q2 2025 Earnings Call: Unpacking Key Contradictions in BCO Stability and Regulatory Impact

BCO count stability and turnover, impact of English proficiency requirements, stability and recruitment efforts, impact of new trucking regulations on capacity, and rate environment and BCO expectations are the key contradictions discussed in Landstar System's latest 2025Q2 earnings call.



Truck Revenue and Load Performance:
- Landstar's truck revenue per load increased by 2.6% year-over-year for the second quarter of 2025, marking the first such increase since Q3 2022.
- This growth was driven by a 3.2% increase in revenue per load on unsided platform equipment and a 1.2% increase on van equipment, albeit offset by a 1.5% decrease in the number of loads hauled via truck.
- The improvement was due to stable month-to-month seasonal trends in May and June, particularly on unsided platform equipment.

Heavy Haul Revenue Growth:
- Landstar's heavy haul revenue increased by 9% year-over-year in the second quarter of 2025.
- This growth was attributed to a 5% increase in heavy haul revenue per load and a 4% increase in heavy hauled volume.
- The increase in heavy haul revenue as a percentage of the overall unsided platform category, indicating a strategic focus in this area.

Challenges in Non-Truck Transportation Services:
- Non-truck transportation revenue was 22% or $21 million below the previous year's second quarter, driven by a 20% decrease in ocean revenue per shipment and a 14% decrease in ocean volume.
- These declines were attributed to a decrease in demand related to volatile federal trade policies and lingering inflation concerns.

Insurance and Claims Cost Challenges:
- Insurance and claims costs increased to 6.6% of BCO revenue in the second quarter of 2025, up from 5.8% the previous year.
- This increase was due to higher severity of trucking accidents, strategic cargo theft, and unfavorable development of prior year claim estimates.