Landstar's Q4 profits tumble as soaring car insurance costs bite

Landstar System, Inc. has released its financial results for the 2025 fourth quarter. The company reported a decline in total revenue compared to the same period in 2024, with earnings per share also dropping sharply. Higher car insurance costs and weaker ocean revenue were key factors in the downturn.

Total revenue for the quarter reached $1,174 million, down from $1,209 million in the 2024 fourth quarter. The decrease was largely driven by a fall in ocean revenue, though truck transportation revenue remained nearly unchanged year over year.

Truck revenue per load showed improvement, rising six percent from October to December 2025. This sequential growth exceeded typical pre-pandemic seasonal trends, indicating some resilience in the segment. Services using unsided/platform equipment also performed strongly throughout the quarter.

Earnings per share (EPS) fell to $0.70, less than half the $1.31 recorded in the 2024 fourth quarter. A major contributor was a surge in car insurance and claims costs, which jumped to $56 million—up from around $30 million in the previous year. Additionally, the company took a $2.1 million non-cash impairment charge, or $0.05 per share, tied to the ongoing sale of Landstar Metro, S.A.P.I. de C.V.

Frank Lonegro, President and CEO of Landstar, highlighted the challenges posed by elevated car insurance expenses. These costs weighed heavily on the quarter's financial performance, overshadowing gains in truck revenue efficiency.

The 2025 fourth quarter saw Landstar's truck division hold steady, but overall results were dragged down by higher car insurance costs and weaker ocean revenue. With EPS falling to $0.70 and additional impairment charges recorded, the company faces ongoing financial pressures as it moves into the new year.