C.H. Robinson, Landstar Shares Plunge as Surging Insurance Costs Overshadow Strong Earnings

Shares of freight brokers C.H. Robinson (NASDAQ: CHRW) and Landstar (NASDAQ: LSTR) fell sharply after elevated insurance claims expenses overshadowed otherwise solid third-quarter results. C.H. Robinson closed down 11.14%, or $15.99, at $127.60, while Landstar dropped 17.76%, or $29.98, to $138.80. C.H. Robinson said SG&A expenses rose 29.7% year over year, primarily on higher claims costs, and raised its full-year SG&A guidance to $585 million-$590 million from $540 million-$580 million. Operating cash flow fell to $124.1 million from $275.4 million a year earlier. CFO Damon Lee said insurance and claims expenses remain below the company's 50-basis-point benchmark of gross revenue. Landstar CFO Jim Todd said claims cost severity has risen steadily and incurred-but-not-reported reserves climbed 27% from the fourth quarter of 2022 to the fourth quarter of 2025. Both carriers face expanded broker liability following the Montgomery vs. Caribe Transport II ruling. C.H. Robinson expects to disclose 2027 insurance renewal terms by mid-to-late December.