Landstar System, Inc. has reported its first-quarter results for 2025, showing a revenue of $1.153 billion, a slight decrease from the $1.171 billion reported in the first quarter of 2024. The company's gross profit for the first quarter of 2025 was $98 million, down from $114 million in the same period of 2024. Variable contribution was also down, standing at $161 million in the first quarter of 2025, compared to $168 million in the first quarter of 2024.
Operating income for the first quarter of 2025 was reported at $39.4 million, a significant decrease from the $59.9 million reported in the first quarter of 2024. The company's basic and diluted earnings per share (EPS) for the first quarter of 2025 were $0.85, down from $1.32 in the first quarter of 2024.
Despite the challenging macro-economic environment, Landstar President and CEO Frank Lonegro expressed encouragement at the performance of the company's independent business owners and employees. He highlighted a significant increase in the number of loads hauled via truck in the first quarter of 2025, which exceeded the immediately preceding fourth quarter for the first time in fifteen years.
However, the company's first quarter results were impacted by a $4.8 million pre-tax charge, or $0.10 per share, related to supply chain fraud in its international freight forwarding operations.
Landstar has also announced an 11% increase to its quarterly dividend, with a payout of $0.40 per share payable on June 24, 2025, to stockholders of record as of the close of business on June 5, 2025. The company continues to return capital to stockholders through its stock purchase program and dividends, having purchased approximately 386,000 shares of its common stock at an aggregate cost of $60.9 million and paid $83.3 million to stockholders in the form of cash dividends during the first quarter of 2025.
Truck transportation revenue hauled by independent business capacity owners and truck brokerage carriers in the first quarter of 2025 accounted for 91% of revenue, totaling $1.050 billion. This was slightly lower than the $1.069 billion reported in the first quarter of 2024. Truckload transportation revenue hauled via van equipment in the first quarter of 2025 was $595 million, down from $628 million in the first quarter of 2024.
Despite a 1.2% decline in the number of loads hauled via truck in the first quarter of 2025 compared to the first quarter of 2024, the company's performance was slightly better than the high-end of its guidance range.
The company's balance sheet remains strong, with cash and short-term investments of approximately $473 million as of March 29, 2025. Landstar also reported a trailing twelve-month return on average shareholders' equity of 18% and a return on invested capital of 17%.
Landstar's first-quarter results reflect the challenges posed by the unpredictable macro-economic environment and supply chain fraud, but the company continues to focus on delivering safe, specialized transportation services and returning capital to its stockholders. Following these announcements, the company's shares moved 6.09%, and are now trading at a price of $143.81. If you want to know more, read the company's complete 8-K report here.
