Landstar System (LSTR) investor relations material

Executive summary

• Fourth quarter 2025 revenue was $1,174.5 million, down 2.9% year-over-year, with EPS at $0.70, a 46.6% decline, and operating income at $29.6 million, down 48.8%.

• Truck transportation revenue remained nearly flat year-over-year, while heavy haul and unsided/platform equipment set new records, with heavy haul revenue up 23% and unsided/platform up 11%.

• Results were negatively impacted by elevated insurance and claims costs, including $16.7 million from three major accidents, and a $2.1 million non-cash impairment related to the Mexican subsidiary.

• Significant investments in AI and technology, with 50% of the 2026 IT CapEx dedicated to AI enablement, supporting productivity and risk reduction.

• The company returned $261 million to shareholders via buybacks and $245 million in dividends over two years.

Financial highlights

• Truck revenue for Q4 2025 was $1.08 billion, with 473,000 truck loadings and truck revenue per load at $2,280.

• Heavy haul revenue reached $170 million in Q4 2025, up 23% year-over-year, with a 16% increase in revenue per load and 7% higher volume.

• Gross profit for Q4 2025 was $85.6 million (7.3% margin), and variable contribution was $166.0 million (14.1% margin), both down from the prior year.

• Insurance and claim costs surged to $56.1 million in Q4 2025, up from $30.1 million in Q4 2024, due to major accident charges and increased reserves.

• Cash flow from operations for 2025 was $225 million; cash and short-term investments ended at $452 million.

Outlook and guidance

• No formal guidance provided; Q1 2026 revenue expected to be down low single digits sequentially if January's outperformance continues.

• January 2026 truck loads were about 1% below January 2025, but truck revenue per load was 4% higher.

• Pre-pandemic seasonality suggests a mid- to high-single-digit decrease in truck revenue and a 4% decline in both truck loads and revenue per load from Q4 to Q1.

• Variable contribution margin may not follow typical seasonal expansion due to strong Q4 BCO utilization and winter storm impacts.