Landstar System Q2 2025 Earnings: Revenue Down, EPS Beats Expectations

Landstar System's Q2 2025 earnings report shows revenue of $1.22 billion, a 1.1% decrease from Q2 2024. Net income fell 20% to $41.9 million, while profit margin dropped to 3.4% from 4.3% in Q2 2024. EPS was $1.20, beating expectations by 1.8%. Revenue is forecast to grow 6.2% p.a. over the next 3 years, compared to a 7.7% growth forecast for the Transportation industry in the US.

Landstar System Inc. (NASDAQ: LSTR) reported its second-quarter (Q2) 2025 earnings on July 29, showing mixed performance amidst challenging economic conditions. The company's revenue declined by 1.1% year-over-year (YoY) to $1.21 billion, while net income fell by 20% to $41.9 million. The earnings per share (EPS) came in at $1.20, beating analyst expectations by 1.8%.

The Jacksonville, Florida-based motor carrier reported that its revenue and earnings decreased from the prior year during the second quarter of 2025. Total revenue decreased by 1.1% to $1.21 billion from $1.23 billion. Net income for the three months ending June 30 was $41.9 million, or $1.20 per diluted share, compared with $52.6 million, or $1.48 per diluted share, during the same period in 2024 [1].

Landstar's CEO Frank Lonegro highlighted the company's strong performance in certain segments, particularly in unsided/platform equipment, which increased by 5.2% to $401 million from $381 million. However, revenue generated by van equipment decreased by 4.5% to $591 million from $619 million. Truck transportation revenue hauled by independent business capacity owners and truck brokerage carriers increased by 1.1% to $1.12 billion from $1.11 billion [1].

Despite the overall revenue decline, Landstar's heavy haul segment showed robust growth, with a 9% increase in revenue. The company also reported a 2.6% increase in truck revenue per load compared to the second quarter of 2024, indicating a positive trend in pricing [2].

The company maintained a strong balance sheet with $420 million in cash and short-term investments at the end of the quarter. Landstar executed approximately $102 million in share buybacks during the first half of 2025, demonstrating a commitment to returning capital to shareholders [2].

However, Landstar faced several challenges. Non-truck transportation service revenue decreased by 22% compared to the second quarter of 2024, with significant declines in ocean and intermodal revenue. The company also experienced a 1.5% decrease in the number of loads hauled via truck compared to the second quarter of 2024 [2].

Landstar's gross profit margin decreased to 9% of revenue, down from 9.8% in Q2 2024. Insurance and claims costs rose to $30.4 million, up from $27.2 million in Q2 2024. Selling, general, and administrative costs remained relatively stable at $55.7 million [2].

Despite the challenges, Landstar's performance in Q2 2025 was marked by a slight earnings beat, despite a challenging freight environment. The company's adaptability and diversified customer base have helped it maintain stability. Revenue is forecast to grow 6.2% per annum (p.a.) over the next three years, compared to a 7.7% growth forecast for the Transportation industry in the US [3].

References:
[1] https://www.ttnews.com/articles/landstar-earnings-q2-2025
[2] https://ca.finance.yahoo.com/news/landstar-system-inc-lstr-q2-071649272.html
[3] https://au.investing.com/news/transcripts/earnings-call-transcript-landstar-system-q2-2025-sees-slight-eps-beat-93CH-3948495