Here are 1-3 brief analogies for Landstar System (LSTR):

• Landstar is like Uber for trucking, connecting independent truck drivers and small carriers with companies needing freight moved, without owning most of the trucks themselves.
• Landstar is like Expedia for freight transportation, acting as a booking and brokerage platform that connects shippers with available freight carriers.
• Landstar is like RE/MAX for freight carriers, operating a large network of independent agents and owner-operators who utilize Landstar's brand and technology to serve shippers.

• Truckload Services: Provides full truckload transportation of various goods across North America, leveraging a network of independent owner-operators and agents.
• Less-than-Truckload (LTL) Services: Arranges for the consolidation and transportation of smaller freight shipments that do not require a full truckload.
• Intermodal Services: Offers integrated transportation solutions primarily combining truck and rail services for efficient long-distance freight movement.
• Heavy Haul/Specialized Services: Specializes in transporting oversized, overweight, or high-value cargo that requires specialized equipment and handling.
• Expedited and Logistics Services: Provides time-critical transportation solutions and comprehensive supply chain management, warehousing, and project logistics services.

Landstar System (symbol: LSTR) operates primarily as a business-to-business (B2B) company, providing integrated transportation management solutions, including truckload, less-than-truckload (LTL), and specialized freight services.

Landstar serves a highly diversified customer base across a broad range of industries, rather than having a few major customers that account for a significant portion of its revenue. According to its most recent annual report (10-K), Landstar's largest customer accounted for only 2.2% of its total revenue, and its top 10 customers collectively accounted for 11.2% of total revenue for the year ended December 30, 2023.

Due to this lack of significant customer concentration—where no single customer accounts for 10% or more of its revenue—Landstar System does not publicly disclose the names of its individual major customers. Its revenue is generated from thousands of customers across various sectors.

Frank Lonegro President and Chief Executive Officer

Frank Lonegro serves as the President and Chief Executive Officer for Landstar, having been appointed in January 2024. He possesses extensive strategic, financial, operational, and technology leadership experience within the freight transportation industry. Prior to joining Landstar, Mr. Lonegro was the Executive Vice President and Chief Financial Officer at Beacon Building Products, a Fortune 500 building products distribution company. He also spent nearly 20 years at CSX Corporation, a Fortune 500 rail and intermodal transportation company, where his roles included Executive Vice President and Chief Financial Officer from 2015 to 2019, President of CSX Technology, Vice President of Service Design, and Vice President of Mechanical. Earlier in his career, he practiced law privately and as in-house counsel.

Jim Todd Vice President and Chief Financial Officer

Jim Todd serves as Vice President and Chief Financial Officer for Landstar, responsible for safeguarding the company's assets and managing its financial and accounting operations, including accounting, finance, tax, treasury, and credit functions. Mr. Todd joined Landstar in 2013 and has held various management positions in finance within the company. Before his time at Landstar, he worked for three years in the audit division of KPMG LLP, where he served as an independent auditor on the Landstar account. He is a licensed Certified Public Accountant (CPA).

Joe Beacom President, Landstar System Holdings, Inc.

Joe Beacom was named President of Landstar System Holdings, Inc., effective December 1, 2024. He previously served as Vice President and Chief Safety and Operations Officer. Mr. Beacom joined Landstar in 1993 and has held various management positions supporting the company's efforts in capacity development and operational support. Prior to Landstar, he held sales and operations positions in the less-than-truckload sector of the transportation industry.

Ricardo S. Coro Vice President and Chief Information Officer

Ricardo S. Coro has been the Chief Information Officer and Vice President of Landstar System, Inc. since August 2017. Before joining Landstar, he served as Senior Vice President and Chief Information Officer of Southeastern Grocers LLC from 2012 to 2017. His prior experience also includes roles as Chief Information Officer and Senior Vice President of Advance Auto Parts Inc. from 2005 to 2012, and Vice President of North America Information Technology for Office Depot from 2002 to 2005. He also served as Vice President of Application Development at Eckerd Corp.

Aimee Cooper Vice President and Chief Administrative Officer

Aimee Cooper is the Vice President and Chief Administrative Officer of Landstar System, Inc. She joined the company in 2003. Her earlier career involved working in accounting manager and senior accountant positions at Supportkids, Inc., Atlantic Coast Airlines, and St. Anthony Publishing.

1. Supply Chain Fraud and Internal Control Weaknesses: Landstar System recently disclosed a significant supply chain fraud incident in its international freight forwarding operations. This led to a substantial revision of its first-quarter 2025 earnings guidance, a financial hit of approximately $12.5 million to $17.9 million, delayed SEC filings, and triggered investigations into potential securities fraud and corporate governance failures. This highlights vulnerabilities in the company's internal controls and could lead to further financial and reputational damage.
2. Regulatory and Legislative Changes, particularly regarding Zero-Emission Vehicles (ZEVs): Landstar faces significant risks from regulations mandating the adoption of zero-emission vehicles in the trucking industry. The economic feasibility of ZEVs for long-haul trucking remains unproven, and the necessary charging infrastructure is currently lacking. If enforced, such regulations could impose heavy costs on Landstar's independent contractors and third-party providers, potentially disrupting operations in key regions like California and escalating overall transportation expenses, which could adversely impact Landstar's financial health and operational capabilities if these costs cannot be passed on to customers.
3. Vulnerability to Economic Fluctuations in Transportation and Freight Markets: The company is highly susceptible to the cyclical nature of the transportation and freight markets. Significant volatility in the freight market, including declining freight rates, has directly impacted Landstar's revenue and financial performance. Decreased demand for transportation services due to economic downturns or other factors can lead to reduced freight volumes and pricing pressure, thereby negatively affecting the company's profitability.

Autonomous Trucking Technology

The rapid development and testing of autonomous trucking technology by companies such as Waymo Via, TuSimple, Aurora, and Kodiak Robotics represent a clear emerging threat. Landstar System's business model relies heavily on its network of independent owner-operators. As autonomous trucks approach commercial viability and widespread deployment, they could significantly reduce the demand for human drivers, offering potentially lower operating costs and increased efficiency to shippers or large asset-based carriers. This could erode Landstar's competitive advantage in sourcing capacity and maintaining its asset-light model. Evidence includes active testing programs, significant investment by major tech and automotive companies, and ongoing regulatory discussions aimed at commercialization.

Increased Regulation on Independent Contractor Classification

Landstar's operational model is predicated on classifying its owner-operators as independent contractors. There is an ongoing legislative and regulatory push, exemplified by laws like California's AB5 (and similar efforts) and the proposed federal PRO Act, to reclassify independent contractors as employees in various industries. If such regulations were to be broadly enacted and successfully applied to the trucking industry's owner-operators, it would significantly increase Landstar's operating costs through payroll taxes, benefits, and compliance requirements, fundamentally challenging its asset-light, independent contractor-centric business model. Evidence includes existing state laws, ongoing federal legislative proposals, and labor union advocacy highlighting a persistent trend to scrutinize and potentially alter independent contractor classifications.

Landstar System Inc. (LSTR) operates primarily as an asset-light, third-party logistics (3PL) provider focused on domestic truck brokerage, with additional services in intermodal, global air and ocean forwarding, warehousing, and expedited freight. The addressable markets for Landstar's main products and services are significant, predominantly within the United States.

For its core domestic truck brokerage services, which account for approximately 90% of its revenue, Landstar operates within the broader U.S. road freight transport market. This market encompasses both full-truckload (FTL) and less-than-truckload (LTL) services. The United States road freight transport market is valued at approximately USD 562.68 billion in 2025 and is projected to reach USD 674.49 billion by 2030.

• U.S. Full-Truckload (FTL) Market: The U.S. full-truckload market is estimated at USD 448.65 billion in 2025, with projections to reach USD 534.86 billion by 2030.
• U.S. Less-than-Truckload (LTL) Market: The U.S. less-than-truckload market is estimated at USD 114 billion in 2025 and is expected to reach USD 139.6 billion by 2030.

In addition to truckload services, Landstar provides intermodal freight transportation. The North America intermodal freight transportation market generated a revenue of USD 15.28 billion in 2023 and is projected to reach approximately USD 31.59 billion by 2030. Within this, the U.S. held the largest share in North America in 2023.

Landstar also offers integrated logistics services, which include warehousing, global air and ocean forwarding, and dedicated contract solutions. The overall U.S. logistics market, which encompasses these services, was valued at USD 455.4 billion in 2024, is expected to reach USD 484.06 billion in 2025, and is projected to be worth USD 795.7 billion by 2033. Another source estimates the U.S. logistics market size to reach USD 1,997.6 billion in 2025 and USD 3,814.7 billion by 2033.

Landstar System (LSTR) is poised for future revenue growth over the next two to three years, driven by several key factors:

1. Recovery in Truckload Market Rates and Pricing: Management commentary from recent earnings calls emphasizes that meaningful growth is contingent on a recovery in market rates. Despite a challenging freight environment, Landstar reported a 3.1% increase in truck revenue per load in the fourth quarter of 2024, indicating potential for strategic pricing adjustments to contribute to revenue as market conditions improve.
2. Continued Strength and Strategic Focus on Heavy Haul and Unsided/Platform Services: Landstar has consistently highlighted the strong performance of its heavy haul and unsided/platform equipment services. The company achieved a record nearly $498 million in heavy haul revenue during fiscal year 2024, driven by a 9% increase in revenue per load and a 3% increase in volume, making these specialized services a significant growth area.
3. Expansion of the Business Capacity Owner (BCO) Network: While facing past turnover challenges, Landstar has seen improved gross truck additions and declining turnover within its BCO network. Future growth in revenue is closely tied to an increase in the number of independent truck owners and third-party capacity providers, which is expected to materialize with a broader recovery in freight market rates.
4. Growth in Cross-Border Trade and Non-Truck Transportation Services: Landstar has identified cross-border trade as an area of relative strength and a potential catalyst for future growth. Additionally, non-truck transportation services, such as ocean revenue, have shown increases, with a 28% rise in ocean revenue per shipment in the third quarter of 2024.
5. Overall Improvement in the Freight Transportation Environment: Landstar's management expresses optimism about an improved freight transportation environment in 2025. A general upturn in the industrial economy and consumer spending is anticipated to alleviate the current softness in the truckload freight market, leading to increased demand and, consequently, higher revenue for Landstar.

Capital Allocation Decisions (Last 3-5 Years)

Share Repurchases

• Landstar System deployed approximately $143 million towards share repurchases, acquiring about 995,000 shares of common stock, during the first nine months of 2025.
• In fiscal year 2024, the company repurchased 452,019 shares of its common stock at a total cost of $82.1 million.
• As of the third quarter of 2025, Landstar was authorized to purchase up to an additional 1,552,813 shares of its common stock under its ongoing share purchase program.

Share Issuance

• No significant dollar amount of primary share issuances for capital raising purposes were identified within the last 3-5 years.

Inbound Investments

• No large inbound investments made in the company by third-parties (e.g., strategic partner or private equity firm) were identified within the last 3-5 years.

Outbound Investments

• Landstar made a minority equity investment of approximately $5.0 million in Cavnue, a privately held company focused on connected and autonomous vehicles, on April 1, 2022. However, in Q3 2025, the company recorded a $5.0 million non-cash impairment charge related to this investment.
• The company established its Mexican subsidiary, Landstar Metro, in 2017 with an initial investment of approximately $8.5 million. As of June 28, 2025, the carrying value of this investment was about $26 million. Landstar plans to sell Landstar Metro in 2025, anticipating non-cash impairment charges of $7.53 million to goodwill and $8.61 million on assets held for sale in Q3 2025.

Capital Expenditures

• For the first nine months of 2025, cash capital expenditures totaled $8 million.
• Expected capital expenditures for fiscal year 2025 include approximately $16 million on new trailing equipment and $14 million on information technology.
• A significant portion of capital expenditures in 2025 is focused on refreshing the fleet of trailing equipment, particularly unsided platform equipment, and investing in leading technology solutions for its network.