Landstar’s second quarter results were met with a negative market reaction, reflecting investor concerns about persistent softness in the freight environment. Despite a modest year-over-year decline in overall sales, management pointed to sequential improvements in truck revenue per load and highlighted the strong performance of the company’s heavy haul segment. CEO Frank Lonegro noted, “Truck revenue was up year-over-year for the first time since the third quarter of 2022,” emphasizing both the resilience of Landstar’s network and the adaptability of its independent business owners.
Is now the time to buy LSTR? Find out in our full research report (it’s free).
Landstar (LSTR) Q2 CY2025 Highlights:
- Revenue: $1.22 billion vs analyst estimates of $1.21 billion (1.1% year-on-year decline, 0.5% beat)
- Adjusted EPS: $1.20 vs analyst estimates of $1.17 (2.4% beat)
- Adjusted EBITDA: $68.43 million vs analyst estimates of $66.02 million (5.6% margin, 3.7% beat)
- Operating Margin: 4.6%, in line with the same quarter last year
- Market Capitalization: $4.38 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Landstar’s Q2 Earnings Call
- Jonathan Chappell (Evercore ISI) asked about the impact of SG&A adjustments and supply chain fraud reclassifications on future costs. CFO James Todd clarified that the $55.7 million reported for SG&A included the P&L reclass and highlighted an expected convention-related tailwind next quarter.
- Daniel Imbro (Stephens) questioned exposure to end-market shifts, particularly in automotive and construction. CEO Frank Lonegro and Chief Corporate Sales Officer Jim Applegate reiterated ongoing weakness in automotive and housing, but highlighted optimism in data center and infrastructure-related freight.
- Scott Group (Wolfe Research) pressed for clarity on BCO count stability and carrier database changes. CEO Lonegro and VP Matt Dannegger attributed stability to targeted recruitment and fraud prevention measures, which led to the best gross additions in seven quarters.
- Jizong Chan (Stifel) probed the sustainability of Substitute Line Haul growth and the outlook for peak season demand. Management responded that demand is less diversified and highly dependent on a few large parcel customers, with expectations of a flat or modest peak season.
- Brian Ossenbeck (JPMorgan) asked about the implications of new trucking regulations and insurance cost trends. CEO Lonegro and Todd indicated minimal direct exposure to new regulations for Landstar but acknowledged ongoing insurance cost pressures and an upcoming trial that could impact results.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) whether heavy haul and infrastructure-related freight continues to offset softness in automotive and construction demand, (2) stabilization in insurance and claims costs as regulatory and legal risks evolve, and (3) the effectiveness of Landstar’s technology and safety investments in supporting its agent and BCO network. Key milestones will also include updates on cross-border freight trends and the outcome of ongoing litigation.
Landstar currently trades at $126.26, down from $137.93 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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