Landstar | 8-K: FY2025 Q4 Revenue Misses Estimate at USD 1.174 B

Revenue: As of FY2025 Q4, the actual value is USD 1.174 B, missing the estimate of USD 1.18 B.EPS: As of FY2025 Q4, the actual value is USD 0.7, missing the estimate of USD 0.988.EBIT: As of FY2025 Q4, the actual value is USD 26.73 M.Financial Metrics Summary for 莱帝土地星 (Landstar System, Inc.)Overall Financial Performance (Q4 2025 vs Q4 2024)Total Revenue: 莱帝土地星 (Landstar System, Inc.) reported total revenue of $1,174.5 million in Q4 2025, a decrease of 2.9% from $1,209.3 million in Q4 2024 .Gross Profit: Gross profit for Q4 2025 was $85,568 thousand, a decrease from $109,423 thousand in Q4 2024 . The gross profit margin was 7.3% in Q4 2025, down from 9.0% in Q4 2024 .Variable Contribution: Variable contribution for Q4 2025 was $166,019 thousand, slightly down from $166,523 thousand in Q4 2024 . The variable contribution margin was 14.1% in Q4 2025, an increase from 13.8% in Q4 2024 .Operating Income: Operating income in Q4 2025 was $29,552 thousand, a significant decrease from $57,771 thousand in Q4 2024 . This represented a 48.8% decrease, negatively impacted by a challenging insurance and claims environment (-$0.49 per share) and additional Metro impairment (-$0.05 per share) .Operating Income as a Percentage of Variable Contribution: This metric was 17.8% in Q4 2025, down from 34.7% in Q4 2024, primarily due to insurance and claims (-16.2%), non-cash impairment charges (-1.2%), and SG&A (-0.8%) .Net Income: Net income for Q4 2025 was $23,944 thousand, down from $46,193 thousand in Q4 2024 .Insurance and Claims Costs: Insurance and claims costs in Q4 2025 were $56 million, an increase from approximately $30 million in Q4 2024, including $16.7 million related to three tragic vehicular accidents and $5.3 million for an increase in actuarially determined claim reserves .Impairment Charges: The company recorded $2.1 million of additional non-cash impairment charges in Q4 2025 related to the ongoing sales process of Landstar Metro, S.A.P.I. de C.V. .Overall Financial Performance (Fiscal Year 2025 vs Fiscal Year 2024)Total Revenue: Total revenue for fiscal year 2025 was $4,743,760 thousand, down from $4,819,245 thousand in 2024, representing a 1.6% decrease .Gross Profit: Gross profit for fiscal year 2025 was $404,194 thousand, compared to $456,014 thousand in 2024 . Gross profit margins were 8.5% and 9.5% respectively .Variable Contribution: For the full fiscal year, variable contribution was $668,020 thousand in 2025, compared to $681,253 thousand in 2024 . Variable contribution margins were 14.1% for both periods .Operating Income: Operating income for fiscal year 2025 was $151,577 thousand, compared to $248,907 thousand in 2024 .Operating Income as a Percentage of Variable Contribution: This metric was 22.7% in fiscal year 2025, down from 36.5% in fiscal year 2024, primarily due to insurance and claims (-7.3%), non-cash impairment charges (-4.8%), and SG&A (-2.5%) .Net Income: Net income for the full fiscal year 2025 was $115,007 thousand, compared to $195,946 thousand in 2024 .Insurance and Claims Costs: Total insurance and claims costs for fiscal year 2025 were $159,436 thousand, up from $113,929 thousand in fiscal year 2024 .Impairment Charges: Total impairment of intangible and other assets for fiscal year 2025 was $32,170 thousand, compared to zero in fiscal year 2024 .Segment Revenue - Transportation LogisticsTruck Transportation Revenue: Total truck transportation revenue was $1,078 million in Q4 2025, nearly flat compared to $1,081 million in Q4 2024 . For the fiscal year, it was $4,336,014 thousand in 2025, compared to $4,346,554 thousand in 2024 . Truck revenue decreased by 0.2% in Q4 2025 vs Q4 2024 (rate up 0.5%, volume down 0.8%) and by 0.2% for FY 2025 vs 2024 (rate up 0.6%, volume down 0.9%) .Van Equipment: Revenue was $559 million in Q4 2025, down from $597 million in Q4 2024 .Unsided/Platform Equipment: Revenue was $401 million in Q4 2025, up from $362 million in Q4 2024 .Other Truck Transportation: Revenue was $95 million in Q4 2025, compared to $100 million in Q4 2024 .Rail, Air, and Ocean Cargo Carriers Revenue: Revenue was $77 million in Q4 2025, down from $107 million in Q4 2024, primarily due to decreased ocean revenue .Ocean/Air Revenue: Decreased by 40.2% in Q4 2025 vs Q4 2024 (rate down 26.3%, volume down 18.9%) and by 16.7% for FY 2025 vs 2024 (rate down 7.8%, volume down 9.6%) . For the fiscal year, ocean and air cargo carriers revenue was $241,433 thousand in 2025, down from $289,902 thousand in 2024 .Rail Intermodal Revenue: Increased by 30.7% in Q4 2025 vs Q4 2024 (rate up 6.9%, volume up 22.3%) and by 3.4% for FY 2025 vs 2024 (rate down 3.5%, volume up 7.2%) . Rail intermodal revenue was $87,164 thousand in 2025, up from $84,328 thousand in 2024 .Insurance Premiums: Decreased by 4.4% in Q4 2025 vs Q4 2024 and by 7.3% for FY 2025 vs 2024 .Revenue Share by Market Segment (Q4 2025)Consumer Durables: 27.8% .Machinery: 16.1% .Automotive: 14% .Building Products: 10.1% .AA&E, Hazmat: 9.4% .Electrical: 6.5% .Metals: 7.0% .Energy: 5.0% .Substitute Line Haul: 3.0% .Other: 2.3% .Operational MetricsTruck Revenue Per Load: Increased approximately 1% in Q4 2025 compared to Q4 2024, reaching $2,280 in Q4 2025 compared to $2,268 in Q4 2024 . December truck revenue per load was six percent above fiscal October’s truck revenue per load .Number of Loads Hauled via Truck: Decreased approximately 1% in Q4 2025 compared to Q4 2024, totaling 472,960 loads in Q4 2025 compared to 476,540 loads in Q4 2024 .Capacity Providers (as of December 27, 2025): 莱帝土地星 (Landstar System, Inc.) had 7,712 BCO Independent Contractors and 62,790 Truck Brokerage Carriers (36,852 approved and active), totaling 70,502 available truck capacity providers . This compares to 8,082 BCO Independent Contractors and 70,245 Truck Brokerage Carriers (43,718 approved and active) as of December 28, 2024 .DOT Accidents per Million Miles: 0.59 (based on 2025 fiscal year) .Cash Flow (Year-to-date as of Dec 27, 2025 vs Dec 28, 2024)Cash flow from operations: $224.9 million in 2025, down from $286.6 million in 2024 .Capital expenditures: $9.9 million in 2025, down from $31.0 million in 2024 .Free cash flow: $215.0 million in 2025, down from $255.6 million in 2024 .Cash and Investments (as of Dec 27, 2025 vs Dec 28, 2024)Cash and short-term investments: Totaled approximately $452 million as of December 27, 2025 .Cash and cash equivalents: $396,694 thousand at December 27, 2025, down from $515,018 thousand at December 28, 2024 .Short-term investments: $55,531 thousand at December 27, 2025, up from $51,619 thousand at December 28, 2024 .Net Cash: $396.7 million cash and cash equivalents plus $55.5 million short-term investments less $76.8 million outstanding debt as of December 27, 2025 . This compares to $515.0 million cash and cash equivalents plus $51.6 million short-term investments less $102.3 million outstanding debt as of December 28, 2024 .Return Metrics (Trailing 12 months as of Dec 27, 2025 vs Dec 28, 2024)Return on Equity: 13% in 2025, down from 20% in 2024 .Return on Invested Capital: 12% in 2025, down from 18% in 2024 .Return on Assets: 7% in 2025, down from 11% in 2024 .Capital AllocationShare Repurchases: During Q4 2025, 莱帝土地星 (Landstar System, Inc.) purchased 286,695 shares of its common stock at an aggregate cost of $37.0 million . For the full fiscal year 2025, the company purchased 1,281,863 shares at a cost of approximately $180.9 million . Share repurchases were $179.9 million in 2025, up from $81.4 million in 2024 .Dividends Paid: Dividends paid were $124.8 million in 2025, up from $120.5 million in 2024 . The Board of Directors declared a quarterly dividend of $0.40 per share payable on March 11, 2026 .Outlook / GuidanceFor January 2026, 莱帝土地星 (Landstar System, Inc.) anticipates truck loads to be approximately 1% below January 2025, aligning with typical historical trends . Truck revenue per load is expected to be about 4% above January 2025, modestly exceeding historical trends for the period . Historically, the first quarter usually sees mid-single digit to high-single digit decreases in truck revenue from the fourth quarter, with a 4% decline in truck loads and a 4% decline in truck revenue per load .