Landstar System (NASDAQ:LSTR) Announces Earnings Results, Misses Estimates By $0.05 EPS

Landstar System (NASDAQ:LSTR) announced its quarterly earnings data on Tuesday. The transportation company reported $1.44 earnings per share for the quarter, missing the consensus estimate of $1.49 by ($0.05), FiscalAI reports. Landstar System had a net margin of 2.64% and a return on equity of 20.90%. The firm had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.34 billion. During the same period in the prior year, the firm earned $1.20 earnings per share. The firm’s quarterly revenue was up 18.2% compared to the same quarter last year.

Here are the key takeaways from Landstar System’s conference call:

• Positive Sentiment: Landstar reported 18% year-over-year revenue growth in the second quarter, driven by a 17% increase in truck revenue per load and nearly 2% volume growth. Management said demand and pricing are outperforming typical pre-pandemic seasonality, with July revenue per load up approximately 26% year over year.
• Positive Sentiment: Heavy haul remained a major growth driver, with revenue up 18% year over year to approximately $164 million, supported by 9% volume growth and an 8% increase in revenue per load. Executives cited broad-based strength across data centers, energy, aerospace, and defense-related freight.
• Positive Sentiment: Capacity trends and network retention improved, including 68 net BCO truck additions in the quarter, a 28.3% trailing 12-month turnover rate versus 31.4% at year-end 2025, and another 49 net additions during the first four weeks of July. Landstar also added an approximately $18 million Midwest freight broker to its agent network and said interest from prospective agents has accelerated.
• Negative Sentiment: Insurance and claims costs rose to $39.4 million, including $10.5 million of unfavorable prior-year claims development tied largely to five claims, three involving truck brokerage. Higher claims severity, elevated legal exposure following the Montgomery decision, and uncertainty around future litigation prompted management to provide third-quarter commentary instead of formal financial guidance; second-quarter free cash flow was also negative because of working-capital needs.

Landstar System Stock Performance

Landstar System stock traded down $5.72 during midday trading on Thursday, reaching $172.11. 185,789 shares of the stock traded hands, compared to its average volume of 515,705. Landstar System has a fifty-two week low of $119.32 and a fifty-two week high of $228.46. The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 0.05. The firm has a market cap of $5.84 billion, a price-to-earnings ratio of 44.73 and a beta of 0.89. The firm has a fifty day moving average price of $208.26 and a two-hundred day moving average price of $178.01.

Landstar System Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Tuesday, August 18th will be issued a $0.44 dividend. This is a boost from Landstar System’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Tuesday, August 18th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 1.0%. Landstar System’s dividend payout ratio is 44.20%.

Analyst Ratings Changes

A number of brokerages have recently weighed in on LSTR. Janney Montgomery Scott set a $182.00 price target on Landstar System in a report on Wednesday. Susquehanna lifted their price objective on shares of Landstar System from $195.00 to $230.00 and gave the stock a “neutral” rating in a report on Tuesday, July 14th. Evercore set a $181.00 target price on shares of Landstar System in a research note on Wednesday, April 29th. Robert W. Baird reduced their price target on shares of Landstar System from $225.00 to $215.00 and set an “outperform” rating on the stock in a research report on Wednesday. Finally, Truist Financial lifted their price target on shares of Landstar System from $190.00 to $205.00 and gave the company a “hold” rating in a report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $194.62.

Landstar System announced that its Board of Directors has authorized a stock buyback plan on Tuesday, April 28th that permits the company to repurchase 1,115,195,000,000 outstanding shares. This repurchase authorization permits the transportation company to purchase up to 3.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

Key Headlines Impacting Landstar System

Here are the key news stories impacting Landstar System this week:

• Positive Sentiment: Landstar reported second-quarter 2026 revenue of $1.432 billion, up 18.2% year over year and above the approximately $1.34 billion analyst consensus. Growth was supported by stronger truck rates, higher load volumes and increased business capacity-owner utilization. Landstar System Reports Second Quarter Revenue and Earnings
• Positive Sentiment: Management’s earnings-call commentary highlighted pricing power and continued operating momentum, potentially improving investor confidence in Landstar’s ability to benefit from firmer freight-market conditions. Landstar Q2 Call Shows Pricing Power
• Positive Sentiment: Landstar raised its quarterly dividend by 10% to $0.44 per share, signaling confidence in cash generation and providing an additional shareholder-return catalyst. Landstar Posts Strong Q2 Results and Raises Dividend
• Neutral Sentiment: JPMorgan raised its price target from $198 to $204 but retained a Neutral rating, while Robert W. Baird lowered its target from $225 to $215 but kept an Outperform rating. The mixed revisions suggest analysts see upside but remain cautious. Analyst Price Target Changes
• Negative Sentiment: Reported EPS of $1.44 increased from $1.20 a year earlier but fell short of the broader $1.49 consensus cited by MarketBeat. The earnings miss, despite the revenue beat, likely remains the main reason investor reaction has been weak. Landstar Second-Quarter Earnings Report

Insider Activity at Landstar System

In related news, Director Diana M. Murphy sold 11,246 shares of the stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $221.28, for a total value of $2,488,514.88. Following the completion of the transaction, the director directly owned 18,853 shares of the company’s stock, valued at $4,171,791.84. This represents a 37.36% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO James P. Todd sold 1,200 shares of Landstar System stock in a transaction on Monday, June 15th. The shares were sold at an average price of $218.17, for a total value of $261,804.00. Following the sale, the chief financial officer directly owned 15,122 shares in the company, valued at $3,299,166.74. The trade was a 7.35% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.74% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Landstar System

Hedge funds and other institutional investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC raised its position in shares of Landstar System by 9.8% during the 1st quarter. Integrated Wealth Concepts LLC now owns 3,767 shares of the transportation company’s stock worth $566,000 after buying an additional 336 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Landstar System by 57.1% during the first quarter. Goldman Sachs Group Inc. now owns 138,009 shares of the transportation company’s stock valued at $20,729,000 after acquiring an additional 50,142 shares during the period. Empowered Funds LLC raised its holdings in Landstar System by 38.3% during the first quarter. Empowered Funds LLC now owns 4,687 shares of the transportation company’s stock worth $704,000 after purchasing an additional 1,298 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Landstar System by 13.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 142,341 shares of the transportation company’s stock worth $21,380,000 after purchasing an additional 16,698 shares during the period. Finally, Geneos Wealth Management Inc. lifted its position in Landstar System by 132.7% in the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the transportation company’s stock worth $37,000 after purchasing an additional 142 shares during the period. 97.95% of the stock is currently owned by institutional investors.

Landstar System Company Profile

Landstar System, Inc provides integrated transportation management solutions through a network of independent agents and third-party capacity providers. The company specializes in truckload brokerage, intermodal, air and ocean freight, expedited and heavy-haul services, along with value-added offerings such as cargo insurance, customs brokerage and supply chain management. Landstar’s proprietary technology platform enables real-time load matching, shipment tracking and data analytics to optimize fleet utilization and improve customer service.

Founded in 1968 and headquartered in Jacksonville, Florida, Landstar pioneered an asset-light brokerage model that has evolved into a global logistics operation.