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Insurance Claims Drag Down Landstar's Strong Third Quarter

Truckload broker Landstar System reported robust third-quarter results overshadowed by insurance claims activity. Consolidated revenue reached $1.51 billion, up 25% year-over-year, with truck revenue climbing 29% to $1.41 billion. Dry van loads increased 6% and flatbed loads rose 4%, while revenue per load jumped 25% driven by higher diesel prices and improved truckload pricing. However, earnings per share of $1.42 missed consensus by 24 cents. The miss stemmed from $13 million in adverse claims reserve adjustments and $8 million in unfavorable prior-year claim developments. Landstar President and CEO Frank Lonegro noted, "If you skip one line known as insurance and claims, you'd have a lot of good news to write home about." October metrics showed continued momentum, with truck loads up 7% and revenue per load 29% higher. Data center buildout and capacity constraints are supporting demand fundamentals.