Freight broker Landstar System reported strong flatbed demand in Q4, offsetting softness in dry van truckload market. Adjusted EPS of 75 cents was 56 cents worse y/y due to $22M in claims activity and $2.1M in impairment charges. Revenue declined 3% y/y to $1.17B, with 40% drop in ocean shipping revenue.

Truck transportation revenue flat y/y at $1.08B; load counts down 1% but revenue per load up 1%. Flatbed revenue up 11% y/y to $401M with load and revenue per load increases. Total truck revenue per load rose 6% Oct-Dec due to reduced truck capacity. BCO revenue up 2% y/y to $458M.

BCO truck count down 4% y/y to 8,514 units; retention improved with 8% higher truck utilization. BCO revenue per mile down 1% y/y in Q4 for dry van and flatbed shipments. Landstar expects BCO fleet growth in 2026. Variable contribution margin up 40 bps y/y to 14.1%.

Landstar didn’t provide formal guidance but expects low-single-digit revenue decline from Q4 to Q1. January truck loads down 1% y/y, revenue per load up 4% sequentially. Adjusted operating margin lower at 19%, insurance expenses up 560 bps y/y. Shares of LSTR down 1% in after-hours trading.

Read more at Yahoo Finance: Accident claims weigh on Landstar’s Q4