Landstar Profit Falls by More Than Half on Review Write-Downs
TL Carrier Sees Mexican Unit Sale Closing by Early 2026
Key Takeaways:
- Landstar posted a profit of $19.36 million, or 56 cents per diluted share, compared with $50.03 million, $1.41, in the year-ago period.
- Sale of Mexican logistics subsidiary Landstar Metro to close by early 2026.
- The carrier reported $1.205 billion in revenue, down 0.7% compared with $1.214 billion in the year-ago period.
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Profit at Landstar System fell by more than half in the third quarter of 2025 as ongoing economic uncertainty continued to hurt fleet owners and a strategic review led to write-downs, including on selling off a Mexican unit.
Jacksonville, Fla.-headquartered Landstar posted a profit of $19.36 million, or 56 cents per diluted share, in the most recent quarter, compared with $50.03 million, $1.41, in the year-ago period.
Truckload carrier Landstar carried out the strategic review during the most recent quarter, aiming to streamline its operations.
After the review, Landstar began actively marketing Mexican logistics subsidiary Landstar Metro for sale; decided to jettison one of two transportation management systems the carrier was using, Blue TMS; and took a write-down on an investment in a technology company.
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“We are working toward a late 2025 or early 2026 sale of Landstar Metro and have thus far experienced a good deal of interest in that company,” CEO Frank Lonegro said during Landstar’s Q3 earnings call.
The carrier took a combined 66 cents per diluted share charge against Q3 earnings as a result of the strategic review.
During the most recent quarter, the carrier reported $1.205 billion in revenue, down 0.7% compared with $1.214 billion in the year-ago period, the company said Oct. 28 after the market closed.
“The Landstar team of independent business owners and employees executed admirably during the 2025 third quarter despite continued challenges in the overall economic environment for truck transportation services,” Lonegro said in comments accompanying the earnings.
“There were two notable highlights in the quarter. First, Landstar continued to experience strong performance in our services hauled by unsided/platform equipment. Second, for the first time since the first quarter of 2022, the company achieved sequential quarter-over-quarter growth in [its business capacity owners] truck count,” the company’s top executive said.
“Sustained strength over multiple quarters in our unsided/platform business, turning the corner on net BCO truck count and our laser focus on safety, security and delivering great service to our customers will be key elements we will leverage during the next up cycle,” Lonegro added.
Landstar’s truck transportation revenue hauled by independent BCOs and truck brokerage carriers in Q3 totaled $1.090 billion, compared with $1.091 billion in the year-ago period.
Truckload transportation revenue hauled via flatbed trailer in Q3 totaled $386 million, compared with $370 million in same period 12 months earlier.
Landstar’s truckload operations transported 850,047 dry van loads in Q3, down 4.3% compared with 887,895 loads in the year-ago period.
The truckload division transported 369,495 flatbed loads in the most recent quarter, up 1.9% compared with 362,627 loads in Q3 2024.
Lonegro said during the earnings call that Landstar generated around $147 million of heavy-haul revenue in Q3, a 17% increase compared with $125.6 million in the year-ago period.
Still, Landstar executives say the freight market remains weak.
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“The challenging conditions experienced in the truckload freight environment over the past 10 quarters continued during the 2025 third quarter. Volatile federal trade policy and lingering inflation concerns continue to generate supply chain uncertainty,” Lonegro said during the call.
“The freight environment in the 2025 third quarter was characterized by relatively soft demand from a seasonal perspective. The impact of accumulated inflation remains a drag on the amount of truckload freight generated in relation to consumer spending,” Lonegro told analysts.
“Truck capacity continued to be readily available with small pockets of supply/demand equilibrium, and market conditions continue to favor the shipper amidst choppy conditions in the industrial economy,” he added.
Chief Financial Officer James Todd noted that revenue hauled on behalf of other truck transportation companies in Q3 was 17% below the year-ago quarter, a clear indicator that capacity is readily accessible in the marketplace.
“What would we need to see in order for the demand environment to improve? I think first and foremost, you need to have stable trade policy and have some of the relations between U.S.-China, U.S.-Canada [and] U.S.-Mexico,” Lonegro said.
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“The more normalization we can see there, I think the better for people deploying capital, which is ultimately what it comes down to. I also think the consumer, if they were to shift a little bit more back to goods rather than services, that would certainly be helpful,” he added.
Landstar ranks No. 11 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 4 among truckload players. It ranks No. 25 on the TT Top 100 logistics companies list.
