Landstar Reports Q1 2025 Results and Raises Dividend

Landstar System, Inc. (NASDAQ: LSTR) announced first quarter 2025 financial results, reporting revenue of $1.15 billion and earnings per share (EPS) of $0.85, down from $1.32 in Q1 2024. The quarter included a $4.8 million pre-tax charge ($0.10 per share) related to a supply chain fraud in its international freight forwarding segment.
Key Financial Highlights:
• Revenue: $1.153 billion (down from $1.171 billion in Q1 2024)
• Gross profit: $98.3 million (vs. $113.9 million)
• Operating income: $39.4 million (vs. $60.0 million)
• Net income: $29.8 million (vs. $47.1 million)
• Variable contribution: $161.3 million (vs. $168.2 million)
• Gross profit margin: 8.5% (down from 9.7%)
• Cash & short-term investments: $473 million as of March 29, 2025
Dividend Update:
Landstar increased its quarterly dividend by 11% to $0.40 per share, payable on June 24, 2025.
Operational Metrics:
• Truck transportation revenue: $1.05 billion (91% of total revenue)
• Total truckloads: 484,900 (down 1.2% YoY)
• Truck revenue per load: $2,165 (down 0.6% YoY)
• BCO Independent Contractor loads: 194,070 (down from 208,740)
Additional Notes:
• $60.9 million was spent repurchasing ~386,000 shares.
• $83.3 million paid in dividends in Q1.
• Elevated insurance costs and the fraud incident notably impacted profitability.
• Full-year guidance was not updated in this release.

Landstar Updates Q1 2025 Outlook, Expects Lower EPS Due to Fraud and Claims Costs
Jacksonville, FL – April 2, 2025 – Landstar System, Inc. (Nasdaq: LSTR) has revised its Q1 2025 earnings guidance, citing elevated insurance and claims costs and the discovery of a significant supply chain fraud, which may impact earnings by $0.35 to $0.50 per share.

The company now expects Q1 EPS to range from $0.90 to $0.95, down from prior guidance of $1.05 to $1.25. However, revenue is projected to finish near the midpoint of its earlier forecast of $1.075B to $1.175B, driven by stronger-than-expected load volume in February.

Landstar also announced it repurchased 386,000 shares during the quarter at a cost of $60 million. Final Q1 results will be released after market close on April 29, 2025, followed by a conference call.

The fraud identified does not involve the company’s core North American truckload operations and remains under investigation.