Landstar’s Q3 Revenue Reaches $1.512 Billion as EPS Misses Estimates
Key Facts
Landstar reported on October 27 that revenue totaled $1.512 billion in the third quarter of 2026, while diluted earnings per share came in at $1.42, according to the company’s statement. Earnings per share missed analyst estimates, while revenue slightly exceeded them, according to the source that reported the company’s results. The results came in a quarter when truck revenue rose and pricing and load metrics improved, but higher insurance and claims costs weighed on earnings. The stock’s movement clearly showed the contrast between regular trading and the period after the results were announced. The stock rose during the session, then fell after the close as investors focused on the EPS miss and higher insurance and claims costs.
Insurance and claims costs totaled $55.3 million in the third quarter, compared with $33.0 million a year earlier, according to Landstar’s statement. The amount included $13.0 million in unfavorable actuarial adjustments to insurance and claims reserves, which the company estimated reduced earnings per share by $0.29. Costs also included $8.0 million in prior-year claims development tied to two settlements, with an impact of $0.18 per share. These items help explain part of the gap between growth in operating activity and the reported EPS result. CEO Frank Lonegro said the freight transportation backdrop continued to improve, but acknowledged that the company was facing the industry’s prevailing inflation in insurance and claims costs.
Truck revenue rose 29% to $1.407 billion, driven by an increase of nearly 25% in revenue per truck load, according to the company’s statement. The number of truck loads moved increased about 3% year over year, indicating that revenue growth came mainly from higher revenue per load, alongside an increase in activity. Gross profit rose 13.9% to $126.547 million, from $111.060 million in the third quarter of 2025. Variable contribution also increased 24.6% to $212.066 million, compared with $170.241 million a year earlier. These metrics show improvement in revenue and operating measures, while insurance and claims costs remained a drag on the quarter’s profitability.
Comparing EPS with the prior year requires putting the comparison base in context: Landstar reported revenue of $1.205 billion in the third quarter of 2025, compared with $1.214 billion in the third quarter of 2024. The company said at the time that third-quarter 2025 EPS would have been $1.22 excluding impairment charges. Reading earnings growth from unadjusted figures alone therefore does not reflect the effect of those non-cash charges in the comparison period. In the current quarter, results showed growth in revenue, gross profit and variable contribution, alongside higher insurance and claims costs. Lonegro said the improving freight transportation backdrop had not insulated the company from inflation in those costs.
The company’s network added a net 165 trucks from business capacity owners during the quarter, its strongest quarterly improvement since the third quarter of 2021, according to Lonegro. The figure reflects an improvement in net truck additions to Landstar’s network, alongside growth in the number of loads moved. The stock closed at $168.78 on October 27, after closing at $165.17 in the previous session, according to EL7 data. During regular trading on the day the results were announced, the stock rose 2.19% to $168.78, before falling 2.74% after the close to $164.16. The source reported that the after-hours decline came as investors focused on the EPS miss and higher insurance and claims costs.
In October metrics cited by the company during its earnings call, revenue per truck load was about 29% above its level a year earlier, while loads increased about 7% compared with October 2025. Management said it expected the fourth quarter to be slightly above normal seasonal patterns. These metrics put management’s outlook for the next quarter in the context of continued improvement in pricing and loads, while insurance and claims costs remained among the challenges cited by the CEO. On distributions, Landstar announced a payment of $0.44 per share on December 8, 2026, to shareholders of record as of the close of November 17. Upcoming developments therefore include tracking fourth-quarter performance and the shareholder record and distribution payment dates announced by the company.