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Recently, Landstar System, Inc.(LSTR - Free Report) reported mixed third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate and revenues exceeded expectations. Strong truck pricing and higher freight volumes supported the top line, although elevated insurance and claims expenses pressured profitability.
Quarterly earnings of $1.89 per share beat the Zacks Consensus Estimate of $1.62 by 16.7%. Reported GAAP earnings were $1.42 per share, which surged 153.6% from 56 cents a year earlier. Revenues of $1.51 billion surpassed the consensus mark of $1.49 billion by 1.6% and increased 25.4% year over year. Truck revenue per load climbed 25.2%.
Given this backdrop, the question that naturally arises is: Should investors buy, hold, or sell LSTR stock now? A more in-depth analysis is needed to make that determination. Before diving into LSTR’s investment prospects, let’s take a glance at its latest quarterly numbers.
Highlights of LSTR’s Q3 Earnings
Truck transportation revenues increased 29.1% year over year to $1.41 billion and represented 93% of total revenues. The number of truckloads rose 3.1% year over year to 500,650, while revenue per truckload increased to $2,811 from $2,245.
Rail intermodal revenues increased 17.5% year over year to $27.81 million. Ocean and air-cargo revenues declined 23.4% year over year to $55.33 million. Other truck transportation revenues increased 8% to $103.71 million. Less-than-truckload revenues increased 1.9% to $24.93 million.
Gross profit increased 13.9% year over year to $126.55 million, while gross margin contracted 80 basis points to 8.4%. Variable contribution, which excludes purchased transportation and agent commissions, rose 24.6% to $212.07 million. The related margin declined 10 basis points to 14%.
Selling, general and administrative expenses increased 9.4% to $62.38 million, primarily reflecting higher incentive compensation and stock-based compensation. Operating income surged 149% to $65.54 million, partly reflecting the absence of $30.1 million in impairment charges recorded a year earlier.
Landstar ended the third quarter with cash and cash equivalents of $297.32 million compared with $396.69 million at the end of 2025, while long-term debt, excluding current maturities, stood at $56.90 million.
Cash flow from operations totaled $98.7 million during the first 39 weeks of 2026, while capital expenditures were $11.6 million. Free cash flow amounted to $87.1 million, down from $144.5 million in the corresponding 2025 period.
During the first 39 weeks, Landstar returned approximately $175 million to shareholders through dividends and share repurchases. The company also declared a quarterly dividend of 44 cents per share, payable Dec. 8, 2026, to shareholders of record as of Nov. 17
LSTR Stock’s Price Performance
Shares of Landstar stock have lost 21.6% over the past three months compared with the transportation-truck industry’s 17.4% loss, as well as that of other industry players, Old Dominion Freight Line, Inc. (ODFL - Free Report) and Knight-Swift Transportation Holdings Inc. (KNX - Free Report) within the same time frame.
LSTR Stock’s Three-Month Price Comparison
Image Source: Zacks Investment Research
Attractive Valuation Picture for Landstar Stock
Landstar looks cheap from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), LSTR is trading at a discount compared to the industry.
The stock has a forward 12-month P/S-F12M of 0.81X compared with 1.99X for the industry over the past five years. The company’s forward 12-month P/S-F12M ratio is also below the median level of 1.04X over the past five years. These factors indicate that the stock’s valuation is attractive.
LSTR P/S Ratio (Forward 12 Months) Vs. Industry
Image Source: Zacks Investment Research
What Do Earnings Estimates Say for Landstar?
The negative sentiment surrounding Landstar stock is evident from the fact that the Zacks Consensus Estimate for the fourth quarter of 2026 earnings has been revised downward in the past 60 days. The consensus mark for 2026 and 2027 earnings has also been projected downward in the past 60 days.
The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Image Source: Zacks Investment Research
Final Thoughts
Apart from being attractively valued, Landstar's efforts to develop its heavy haul services are commendable and should boost profitability. Cross-border transportation with Mexico also offers significant growth opportunities. A solid balance sheet allows the company to continue paying dividends and buying back shares, reflecting its pro-shareholder stance. Despite these positives, we advise investors not to buy Landstar due to concerns regarding reduced demand for freight services and increased truck capacity, low shipment volumes and rates due to demand weakness and driver shortage issues.
Considering all these factors, we advise investors to wait for a better entry point. For those who already own the stock, it will be prudent to stay invested. The company’s current Zacks Rank #3 (Hold) justifies our analysis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
How Should Investors Approach Landstar Stock Post Q3 Earnings?
Key Takeaways
Recently, Landstar System, Inc.(LSTR - Free Report) reported mixed third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate and revenues exceeded expectations. Strong truck pricing and higher freight volumes supported the top line, although elevated insurance and claims expenses pressured profitability.
Quarterly earnings of $1.89 per share beat the Zacks Consensus Estimate of $1.62 by 16.7%. Reported GAAP earnings were $1.42 per share, which surged 153.6% from 56 cents a year earlier. Revenues of $1.51 billion surpassed the consensus mark of $1.49 billion by 1.6% and increased 25.4% year over year. Truck revenue per load climbed 25.2%.
Given this backdrop, the question that naturally arises is: Should investors buy, hold, or sell LSTR stock now? A more in-depth analysis is needed to make that determination. Before diving into LSTR’s investment prospects, let’s take a glance at its latest quarterly numbers.
Highlights of LSTR’s Q3 Earnings
Truck transportation revenues increased 29.1% year over year to $1.41 billion and represented 93% of total revenues. The number of truckloads rose 3.1% year over year to 500,650, while revenue per truckload increased to $2,811 from $2,245.
Rail intermodal revenues increased 17.5% year over year to $27.81 million. Ocean and air-cargo revenues declined 23.4% year over year to $55.33 million. Other truck transportation revenues increased 8% to $103.71 million. Less-than-truckload revenues increased 1.9% to $24.93 million.
Gross profit increased 13.9% year over year to $126.55 million, while gross margin contracted 80 basis points to 8.4%. Variable contribution, which excludes purchased transportation and agent commissions, rose 24.6% to $212.07 million. The related margin declined 10 basis points to 14%.
Selling, general and administrative expenses increased 9.4% to $62.38 million, primarily reflecting higher incentive compensation and stock-based compensation. Operating income surged 149% to $65.54 million, partly reflecting the absence of $30.1 million in impairment charges recorded a year earlier.
Landstar ended the third quarter with cash and cash equivalents of $297.32 million compared with $396.69 million at the end of 2025, while long-term debt, excluding current maturities, stood at $56.90 million.
Cash flow from operations totaled $98.7 million during the first 39 weeks of 2026, while capital expenditures were $11.6 million. Free cash flow amounted to $87.1 million, down from $144.5 million in the corresponding 2025 period.
During the first 39 weeks, Landstar returned approximately $175 million to shareholders through dividends and share repurchases. The company also declared a quarterly dividend of 44 cents per share, payable Dec. 8, 2026, to shareholders of record as of Nov. 17
LSTR Stock’s Price Performance
Shares of Landstar stock have lost 21.6% over the past three months compared with the transportation-truck industry’s 17.4% loss, as well as that of other industry players, Old Dominion Freight Line, Inc. (ODFL - Free Report) and Knight-Swift Transportation Holdings Inc. (KNX - Free Report) within the same time frame.
LSTR Stock’s Three-Month Price Comparison
Attractive Valuation Picture for Landstar Stock
Landstar looks cheap from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), LSTR is trading at a discount compared to the industry.
The stock has a forward 12-month P/S-F12M of 0.81X compared with 1.99X for the industry over the past five years. The company’s forward 12-month P/S-F12M ratio is also below the median level of 1.04X over the past five years. These factors indicate that the stock’s valuation is attractive.
LSTR P/S Ratio (Forward 12 Months) Vs. Industry
What Do Earnings Estimates Say for Landstar?
The negative sentiment surrounding Landstar stock is evident from the fact that the Zacks Consensus Estimate for the fourth quarter of 2026 earnings has been revised downward in the past 60 days. The consensus mark for 2026 and 2027 earnings has also been projected downward in the past 60 days.
The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Final Thoughts
Apart from being attractively valued, Landstar's efforts to develop its heavy haul services are commendable and should boost profitability. Cross-border transportation with Mexico also offers significant growth opportunities. A solid balance sheet allows the company to continue paying dividends and buying back shares, reflecting its pro-shareholder stance. Despite these positives, we advise investors not to buy Landstar due to concerns regarding reduced demand for freight services and increased truck capacity, low shipment volumes and rates due to demand weakness and driver shortage issues.
Considering all these factors, we advise investors to wait for a better entry point. For those who already own the stock, it will be prudent to stay invested. The company’s current Zacks Rank #3 (Hold) justifies our analysis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.