Landstar System Reports Q2 Earnings with Revenue Growth and Margin Pressures
Landstar System (NASDAQ:LSTR) reported a strong second-quarter performance in fiscal year 2026, driven by increased revenue per load and volume. Second-quarter revenue rose 18% year over year to $954 million, supported by an 17% increase in truck revenue per load and nearly 2% higher truckload volumes. Heavy-haul revenue also grew 18%, fueled by demand from sectors like data centers, energy, aerospace, defense, and machinery. Despite the top-line growth, Landstar faced margin pressures due to tighter brokerage capacity and rising insurance costs. Insurance expenses reached $39.4 million in Q2, including a $10.5 million adjustment for unfavorable prior-year claims developments. Variable contribution margin declined slightly to 13.9%. The company noted improving network trends with higher July revenue per load up about 26% year over year and strong early third-quarter pricing. Landstar returned approximately $120 million to shareholders in the first half of the year, including a 10% increase in its quarterly dividend to $0.44 per share.
Tickers: $LSTR
Topics: dividend increase freight insurance costs revenue growth transportation