Landstar System (LSTR) investor relations material

Executive summary

• Revenue grew 2% year-over-year to $1.171 billion, with gross profit up 14% and EPS up 36% to $1.16, reflecting improved profitability and a favorable rate environment.

• Heavy-haul revenue increased 18% year-over-year, driven by a 12% rise in revenue per load and 6% higher volume.

• AI initiatives are being piloted across the network, supporting efficiency in quoting, negotiations, dispatch, and fraud prevention.

• BCO utilization increased 10% year-over-year, marking the first annual increase in variable contribution since 3Q 2022.

• Safety performance improved, with accident frequency at 0.64 per million miles, below national averages.

Financial highlights

• Gross profit was $112.5 million (up from $98.3 million in Q1 2025), with gross margin at 9.6% (vs. 8.5%).

• Operating income rose 35% year-over-year to $53.2 million.

• Variable contribution margin increased to 14.7% from 14.0% year-over-year.

• Insurance and claims costs fell to $35.6 million (7.5% of BCO revenue) from $39.9 million (9.3%) due to lower claim frequency and severity.

• Cash and short-term investments totaled $411 million as of March 28, 2026.

Outlook and guidance

• No formal Q2 guidance; commentary suggests Q2 truck volumes and revenue per load are tracking in line or above normal seasonality.

• April 2026 truck revenue per load was about 13% above April 2025, with volumes flat year-over-year.

• Historical trends indicate a mid- to high-single-digit increase in truck revenue and a 7% increase in truck loads from Q1 to Q2.

• Variable contribution margin may compress 25–45 bps sequentially due to mix shift.

• Management highlighted a strengthening rate environment and optimism about continued improvement in variable contribution.