Landstar System Reports $1.15 Billion Revenue, Net Income Declines to $29.8 Million

Landstar System, Inc. reported a revenue of $1.15 billion for the thirteen weeks ended March 29, 2025, reflecting a decrease of 2% compared to $1.17 billion in the same period last year. The decline in revenue was primarily attributed to a slight reduction in the number of loads hauled, which fell by approximately 1%, while revenue per load remained relatively stable. The company's net income also decreased significantly to $29.8 million, or $0.85 per share, down from $47.1 million, or $1.32 per share, in the prior year. This decline in profitability was influenced by increased insurance and claims costs, which rose by $13.6 million, largely due to unfavorable developments in prior years' claims.

In terms of operational metrics, Landstar's transportation revenue, which constitutes 91% of total revenue, decreased by $19.2 million, with a notable drop in loads hauled via less-than-truckload and van services. The company reported that the number of loads for less-than-truckload services decreased by 12%, while loads for van equipment fell by 4%. Conversely, revenue from multimode capacity providers, including rail intermodal and ocean cargo, increased by 8%, indicating a shift in demand towards these services. The company’s purchased transportation costs represented 77.9% of revenue, slightly up from 77.3% in the previous year, reflecting the increased reliance on Truck Brokerage Carriers, which typically incur higher costs.

Landstar's balance sheet showed total assets of $1.72 billion as of March 29, 2025, down from $1.81 billion at the end of the previous fiscal year. Current assets decreased to $1.24 billion, primarily due to a reduction in cash and cash equivalents, which fell to $417.4 million from $515 million. The company’s total liabilities also decreased, leading to a reduction in shareholders' equity to $930.8 million, down from $972.4 million. The company declared a dividend of $0.36 per share during the quarter, totaling $12.7 million, and repurchased 386,318 shares at a cost of $60.9 million.

Strategically, Landstar continues to focus on enhancing its network of independent commission sales agents and third-party capacity providers. The company reported a decrease in the number of BCO Independent Contractors, which fell to 7,871 from 8,619 year-over-year. Despite this, the number of approved and active Truck Brokerage Carriers increased, indicating a shift in capacity sourcing strategies. The company is also navigating challenges related to supply chain fraud, which resulted in a $4.8 million expense during the quarter, impacting its selling, general, and administrative costs.

Looking ahead, Landstar's management remains cautious about the economic environment and its impact on customer demand. The company anticipates that its ability to generate revenue will depend on the performance of its independent commission sales agents and the overall market conditions. Landstar plans to continue investing in technology and expanding its service offerings to enhance operational efficiency and customer service. The company maintains a strong liquidity position with no outstanding borrowings under its credit agreement, providing flexibility for future growth initiatives.