Landstar Shares Fall 3% After Disappointing Third-Quarter Results
Key Facts
Chief Executive Frank Lonegro said the company’s network generated $1.407 billion in truck revenue, up 29% from the same period in 2025. The company attributed some of the growth in its truck business to revenue from van and open-deck equipment, each of which increased by more than 30%.
Activity indicators show that truck revenue growth came mainly from higher revenue per load, rather than a comparable increase in load count. Truck revenue per load rose about 25% from the third quarter of 2025, while the number of loads moved by truck increased only about 3%. Lonegro said: "Truck revenue per load increased approximately 25% in the third quarter of 2026 compared to the third quarter of 2025, and the number of loads we hauled by truck increased approximately 3%." Gross profit was $126.547 million, up 13.9% year over year, while variable contribution — revenue less purchased transportation costs and agent commissions — reached $212.066 million, up 24.6%. The figures show growth in both measures, with gross profit rising more slowly than truck revenue and variable contribution, as insurance and claims expenses increased.
By contrast, revenue from rail, air and ocean transportation fell to $83 million in the third quarter, or 5% of total revenue, from $96 million, or 8% of revenue, in the same period of 2025. The decline points to a smaller contribution from these activities to the revenue mix as truck revenue rose sharply. Performance a year earlier looked different: Landstar reported revenue of $1.205 billion in the third quarter of 2025, compared with $1.214 billion in the third quarter of 2024, while gross profit and variable contribution each fell about 1%. It also reported basic and diluted earnings of $0.56 per share at the time, but earnings per share were $1.22 excluding non-cash impairment charges. The company said those charges reduced earnings per share by $0.66 and included $16.1 million related to its Mexican subsidiary and $9.0 million related to selecting a transportation management system and discontinuing use of an alternative system.
In the second quarter of 2026, the company reported revenue of $1.432 billion, up 18% year over year, and basic and diluted earnings per share of $1.44, compared with $1.20 in the second quarter of 2025. After reporting that quarter, Lonegro said insurance and claims expenses rose mainly because of unfavorable developments in claims from prior years, and described the claims environment for truck carriers as still challenging. The statement places the increase in costs recorded in the third quarter within a challenge the CEO had cited in the prior period, while the company directly linked the expense impact to earnings per share. The third-quarter results therefore combine year-over-year revenue expansion and growth in truck volumes with earnings below the estimates cited for analysts and higher claims costs. Shareholder returns include dividends and share repurchases, according to details in the company’s announcement, alongside operating performance.
The company set Jan. 27, 2027, after market close, as the date for reporting fourth-quarter 2026 results, according to its investor relations calendar. That release is the next scheduled opportunity to review Landstar’s performance after a quarter marked by truck revenue growth and higher insurance and claims costs. The comparison with the fourth quarter will be part of tracking the course of revenue and profitability in light of those figures.