Landstar System Inc (LSTR) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...

GuruFocus News

Thu, May 15, 2025, 4:02 PM 4 min read

• Revenue: Delivered topline results wrong the apical fractional of the first-quarter guidance range.

• Heavy Haul Revenue: Approximately $113 million, a 6% summation implicit the 2024 archetypal quarter.

• Truck Revenue Per Load: Decreased 0.6% compared to the 2024 archetypal quarter.

• Gross Profit: $98.3 cardinal compared to $113.9 cardinal successful the 2024 archetypal quarter.

• Gross Profit Margin: 8.5% of revenue, down from 9.7% successful the 2024 archetypal quarter.

• Variable Contribution: $161.3 cardinal compared to $168.2 cardinal successful the 2024 archetypal quarter.

• Insurance and Claims Costs: $39.9 million, 9.3% of BCO revenue, compared to $26.3 cardinal successful 2024.

• EPS Impact: $4.8 cardinal pretax complaint ($0.10 per share) owed to proviso concatenation fraud.

• Cash and Short-term Investments: $473 cardinal astatine the extremity of the quarter.

• Cash Flow from Operations: $56 cardinal for the 2025 archetypal quarter.

• Share Repurchases: Approximately $61 cardinal spent, repurchasing 386,000 shares.

• Dividend Increase: 11% summation successful the regular quarterly dividend.

• Warning! GuruFocus has detected 3 Warning Signs with LSTR.

Release Date: May 13, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Landstar System Inc (NASDAQ:LSTR) exceeded the precocious extremity of their guidance for the fig of loads hauled via truck, marking the archetypal clip successful astatine slightest 15 years that first-quarter loads exceeded the erstwhile 4th quarter.

• The institution reported a 6% year-over-year summation successful dense haul revenue, driven by a 3% summation successful some dense haul gross per load and volume.

• Landstar System Inc (NASDAQ:LSTR) maintained a beardown equilibrium expanse with $473 cardinal successful currency and short-term investments, and continued to instrumentality superior to shareholders done $61 cardinal successful stock repurchases and $83 cardinal successful dividends.

• The institution reported a beardown information show with an mishap frequence complaint of 0.69 DOT reportable accidents per cardinal miles, good beneath the nationalist average.

• Landstar System Inc (NASDAQ:LSTR) experienced a 14% summation successful water gross per shipment and a 19% summation successful aerial gross per shipment, contributing to an 8% summation successful non-truck proscription work revenue.

• Landstar System Inc (NASDAQ:LSTR) faced a $4.8 cardinal pretax complaint owed to a proviso concatenation fraud successful their planetary freight forwarding operations, impacting net per share.

• The institution experienced highly elevated security and claims costs, which were 9.3% of BCO revenue, importantly supra the humanities mean of 4.9%.

• Revenue per truckload decreased by 0.6% compared to the erstwhile year, with a 2.1% alteration successful gross per load connected loads hauled by motortruck brokerage carriers.

• The freight situation was characterized by comparatively brushed demand, upwind impacts, and readily disposable motortruck capacity, which favored shippers and impacted Landstar's gross performance.

• BCO motortruck number decreased astir 8% year-over-year, with a sequential diminution of 223 trucks from the 4th fourth of 2024.