C.H. Robinson and Landstar Stocks Plunge as Insurance Costs Mount

C.H. Robinson and Landstar shares slammed as claims pressure overshadows strong earnings

Strong third-quarter financial results from C.H. Robinson and Landstar were overshadowed by concerns about insurance claims and the rising cost of covering losses across the transportation industry.

The companies did not report a broad deterioration in their operating businesses. Instead, investors focused on higher-than-usual claims charges, increased reserves and uncertainty about future insurance costs. The reaction was severe: C.H. Robinson shares fell 11.14%, or $15.99, to close at $127.60, while Landstar shares dropped 17.76%, or $29.98, to $138.80.

The selloff came as both companies face a more difficult legal and insurance environment for freight intermediaries. For professional drivers and carriers, the issue is significant because higher claims costs can affect broker expenses, carrier qualification procedures, contract terms and the prices paid to move freight.

Landstar’s earnings highlighted higher claim severity

Landstar started the discussion with its third-quarter earnings release after the market closed Oct. 27, 2026. The company reported total revenue of $1.512 billion, up 25.4% from the same quarter a year earlier. Truck revenue increased 29% to $1.407 billion, helped by a 25% increase in revenue per load.

Net income rose to $48 million from $19.4 million in the prior-year quarter. GAAP diluted earnings per share increased to $1.42 from 56 cents.

Despite those gains, the release showed heavier-than-usual claims charges. During Landstar’s earnings call, Chief Financial Officer Jim Todd said claim cost severity had been increasing at a “decent clip” and that reserves previously considered sufficient were being reassessed.

Todd said Landstar’s incurred-but-not-reported reserves increased 27% in gross dollars from the fourth quarter of 2022 to the fourth quarter of 2025, even as the company’s truck count declined. Incurred-but-not-reported reserves are amounts set aside for claims that have occurred but have not yet been fully reported or resolved.

Landstar said it intends to book higher loss estimates prospectively. Todd also said the company would no longer disclose its previous guidance regarding the percentage of revenue from business capacity owners that should be allocated to claim reserves, citing the complexity of estimating insurance and claims costs.

Two claims from the second quarter also drew attention because they involved federal jurisdictions where brokers had previously benefited from protections under the Federal Aviation Administration Authorization Act. Those protections were affected by the Montgomery v. Caribe Transport II decision, which has added to uncertainty surrounding broker liability.

C.H. Robinson faced questions about claims expenses

C.H. Robinson’s third-quarter results also showed stronger financial performance, but its disclosure on selling, general and administrative expenses raised concerns among analysts. SG&A expenses increased 29.7% from a year earlier, primarily because of higher claims expenses. The company also recorded a real estate impairment charge.

Chief Financial Officer Damon Lee said full-year SG&A expenses were now expected to range from $585 million to $590 million, compared with an earlier estimate of $540 million to $580 million. Lee noted that not all of the increase was related to insurance or claims, since depreciation and amortization also affect the total.

Operating cash flow was $124.1 million in the third quarter, down from $275.4 million a year earlier. However, the figure improved from $35.9 million in the second quarter. C.H. Robinson attributed the year-over-year change to unfavorable working-capital changes driven by higher transportation rates.

Several analysts focused on claims during the company’s earnings call. Lee said C.H. Robinson generally benchmarks total insurance and claims expenses at about 50 basis points of total gross revenue. He added that the company remained below that level year to date, even though third-quarter expenses were elevated.

“While our claims expenses are typically linear throughout our year, periodically, some quarters are higher than others, as demonstrated in Q3,” Lee said. He described the company’s claims expenses as manageable when viewed over a longer period.

Insurance renewal remains a key issue

Chief Executive Officer Dave Bozeman said C.H. Robinson was progressing through its 2027 insurance renewal process. He said the company expected the renewal to produce insurance inflation that would be “reasonable and manageable.”

Bozeman compared the expected insurance pressure with approximately $30 million in annual wage inflation that the company has absorbed while continuing to deliver earnings growth. The comparison prompted UBS analyst Tom Wadewitz to ask whether the expected increase in insurance costs could approach that amount.

Lee responded that the $30 million figure was intended only to provide a sense of scale for the recurring cost pressures C.H. Robinson manages. He said the company did not expect insurance inflation to derail its earnings trajectory.

Bozeman said the renewal process should be completed by the end of December, with an update on 2027 insurance costs expected once the company has greater certainty. He also said C.H. Robinson continues to manage its legal docket, with most cases dismissed or settled below the company’s deductible.

Broader implications for freight companies

The earnings reactions show how closely investors are watching liability exposure in the freight transportation sector. Higher claim severity can affect companies even when revenue, loads and earnings are growing, because claims may take years to resolve and can require larger reserves over time.

The issue also matters to carriers and drivers. Changes in liability costs can influence broker requirements, insurance documentation, carrier onboarding and the financial terms of transportation agreements. For now, both companies characterized the pressure as manageable, but Landstar’s decision to use higher loss estimates and C.H. Robinson’s elevated claims expenses underscored the uncertainty surrounding future costs.

The sharp declines in both stocks reflected that uncertainty rather than a collapse in reported freight activity. Investors are now waiting for clearer information on insurance renewals, claims development and the legal environment affecting freight intermediaries.