Q2 2026 Landstar System Inc Earnings Call Transcript
Key Points
- Landstar System Inc (LSTR) reported an 18% year-over-year increase in revenue for the second quarter of 2026.
- The company achieved a significant 18% increase in heavy haul revenue, driven by a 9% increase in volume and an 8% increase in revenue per load.
- Landstar System Inc (LSTR) successfully added a new $18 million freight broker from the Midwest to its agent network, marking one of the largest new agent signings in 15 years.
- The company maintained a strong balance sheet, returning approximately $120 million to shareholders through dividends and share repurchases in the first half of 2026.
- Landstar System Inc (LSTR) reported a decrease in the BCO truck turnover rate from 31.4% at the end of 2025 to 28.3% at the end of the second quarter of 2026, indicating improved retention.
- Landstar System Inc (LSTR) faced a challenging insurance and claims quarter with approximately $10.5 million of net unfavorable adjustments to prior year claims estimates.
- The company experienced a 129 basis point compression in its brokerage net revenue margin sequentially, indicating tighter market conditions.
- Insurance and claims costs increased to $39.4 million in the second quarter of 2026, up from $30.4 million in the same period of 2025.
- Selling, general, and administrative costs rose to $68.2 million in the second quarter of 2026, compared to $55.7 million in the second quarter of 2025.
- Landstar System Inc (LSTR) reported negative free cash flow during the second quarter of 2026, marking only the third negative free cash flow quarter in the past decade.
Good afternoon, and welcome to Landstar System, Inc. second quarter earnings release conference call. (Operator Instructions) Today's call is being recorded. If you have any objections, you may disconnect at this time. Joining us today from Landstar are Frank Lonegro, President and CEO; Jim Applegate, Vice President and Chief Corporate Sales Strategy and Specialized Freight Officer; Jim Todd, Vice President and CFO; Matt Miller, Vice President and Chief Safety and Operations Officer.
Now, I'd like to turn the call over to Mr. Jim Todd. Sir, you may begin.
Thanks, Arlene. Good afternoon, and welcome to Landstar's 2026 second quarter earnings conference call. Before we begin, let me read the following statement. The following is a safe harbor statement on the Private Securities Litigation Reform Act of 1995. Statements made during this conference call that are not based on historical facts are forward-looking statements.
During this conference call, we may make statements
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