Core Insights - Landstar System experienced a strong demand in flatbed trucking, which helped mitigate the challenges faced in the dry van truckload market during the fourth quarter [1] - The company reported adjusted earnings per share of 75 cents for the fourth quarter, which was 56 cents lower compared to the previous year, impacted by unfavorable claims and impairment charges [2] - Consolidated revenue for Landstar was $1.17 billion, reflecting a 3% year-over-year decline, primarily due to a significant 40% drop in ocean shipping revenue [3] Revenue and Performance Metrics - Total truck revenue per load increased by 6% from October to December, attributed to reduced truck capacity, with a sequential increase of 1.5% in the fourth quarter, exceeding typical seasonal trends by 50 basis points [5] - Business capacity owners (BCOs) generated $458 million in revenue, a 2% increase year-over-year, despite a 2% decline in revenue per load [7] - Truck utilization among BCOs improved by 8% year-over-year, reaching nearly 24 loads per truck during the quarter, indicating better retention and operational efficiency [8] Market Trends - There was a noted softness in consumer durables revenue, down 2% year-over-year, along with declines in the automotive and construction sectors, down 7% and 3% respectively [5] - The substitute linehaul revenue decreased by 15% year-over-year, which typically rises when the market tightens and truck capacity becomes limited [6] - Landstar anticipates growth in its BCO fleet by 2026, as truck counts usually increase during periods of sustained higher truckload rates [8]

分组1 - Landstar System reported quarterly earnings of $1.24 per share, exceeding the Zacks Consensus Estimate of $1.19 per share, but down from $1.31 per share a year ago, resulting in an earnings surprise of +4.20% [1] - The company posted revenues of $1.17 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 1.15%, compared to $1.21 billion in the same quarter last year [2] - Landstar shares have increased approximately 5.6% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.15 on revenues of $1.18 billion, and for the current fiscal year, it is $5.55 on revenues of $5.08 billion [7] - The Zacks Industry Rank for Transportation - Truck is currently in the bottom 5% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8] - Landstar's Zacks Rank is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Truck transportation revenue in Q4 2025 was nearly flat year-over-year, with total revenue decreasing approximately 1% year-over-year when excluding certain items [11][12] - Heavy haul revenue set a new record of $569 million in FY 2025, approximately 14% above the previous year's record [8] - Gross profit for Q4 2025 was $85.6 million, down from $109.4 million in Q4 2024, with a gross profit margin of 7.3% compared to 9% in the prior year [36][38] Business Line Data and Key Metrics Changes - Heavy haul service revenue increased by 23% year-over-year in Q4 2025, with loadings up approximately 7% and revenue per load up 16% [15][31] - Non-truck transportation service revenue decreased by approximately $30 million, or 28%, compared to Q4 2024 [31] - Revenue per load on unsided platform equipment increased by 7.5% year-over-year, while van revenue per load decreased by 3.4% [28] Market Data and Key Metrics Changes - The freight environment in Q4 2025 was characterized by soft demand, with the ISM Index below 50 throughout the quarter [16] - The number of loads hauled via truck was down approximately 1% year-over-year, offset by a 1% increase in truck revenue per load [17] - Revenue hauled on behalf of other truck transportation companies was 15% below Q4 2024, indicating accessible capacity in the marketplace [35] Company Strategy and Development Direction - The company focuses on five key priorities: accelerating the model, executing growth strategy, managing risk, leveraging financial strength, and enhancing support [7] - Investment in AI solutions is a significant part of the strategy, with approximately 50% of the IT CapEx budget for 2026 dedicated to AI enablement [10][22] - The company aims to enhance its technology offerings to support agents and BCOs, improving efficiency and decision-making [20][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the freight recession has lasted longer than expected, but they remain optimistic about leveraging their strong network and strategic initiatives [5][11] - The company will provide revenue commentary for Q1 2026 instead of formal guidance due to the uncertain operating environment [44] - Management expressed confidence in the potential for fleet growth in 2026 if the rate environment improves [72] Other Important Information - The company returned approximately $261 million to shareholders through share repurchases and $245 million in cash dividends over the past two years [10] - The accident frequency rate was reported at 0.59 DOT reportable accidents per million miles, below the national average [25] - The effective income tax rate for Q4 2025 was 18.3%, down from 21.4% in Q4 2024, due to favorable resolutions of state tax matters [42] Q&A Session Questions and Answers Question: Impact of recent storms on BCO utilization - Management acknowledged challenges due to storms affecting loads but expressed optimism about recovery as weather conditions improve [49][51] Question: AI's role in improving bidding processes - Management highlighted that their AI strategy focuses on enabling agents to work more efficiently rather than reducing costs, differentiating their approach from competitors [54][55] Question: BCO count trends and retention - Management noted a slight decline in BCO count but emphasized improvements in retention and recruitment processes, expecting growth in 2026 if rates improve [66][70]

Financial Data and Key Metrics Changes - Truck transportation revenue in Q4 2025 was nearly flat year-over-year, with total revenue decreasing approximately 1% year-over-year when excluding certain items [11][12] - Heavy haul revenue reached a record $569 million in FY 2025, a 14% increase from FY 2024 [8] - Gross profit for Q4 2025 was $85.6 million, down from $109.4 million in Q4 2024, with a gross profit margin of 7.3% compared to 9% in the previous year [36][38] Business Line Data and Key Metrics Changes - Heavy haul service revenue increased by 23% year-over-year in Q4 2025, with loadings up approximately 7% and revenue per load up 16% [15][31] - Non-truck transportation service revenue decreased by 28% or $30 million compared to Q4 2024, with a 15% decrease when excluding a prior year fraud-related revenue [31][32] Market Data and Key Metrics Changes - The freight environment in Q4 2025 was characterized by soft demand, with the ISM Index below 50 throughout the quarter [15][16] - The number of loads hauled via truck decreased approximately 1% year-over-year, offset by a 1% increase in truck revenue per load [17][28] Company Strategy and Development Direction - The company has established the "Five Points of the Star" to guide its business strategy, focusing on accelerating the model, executing growth strategies, managing risk, leveraging financial strength, and enhancing support [7] - The company is investing approximately 50% of its IT CapEx budget for 2026 in AI enablement and solutions to enhance support for its network [10][22] Management's Comments on Operating Environment and Future Outlook - Management noted that the freight recession has lasted longer than expected, but they remain optimistic about leveraging their strategic growth initiatives when the environment improves [5][11] - The company will provide revenue commentary for Q1 2026 instead of formal guidance due to the uncertain operating environment [44] Other Important Information - The company returned approximately $261 million to shareholders through share repurchases and $245 million in cash dividends over the past two years [10] - The accident frequency rate was reported at 0.59 DOT reportable accidents per million miles during 2025, which is below the national average [25] Q&A Session All Questions and Answers Question: Impact of recent storms on BCO utilization - Management acknowledged challenges due to storms affecting dispatch loads but expressed confidence in recovery as weather clears [49][51] Question: AI initiatives compared to competitors - Management highlighted that their AI strategy focuses on enabling agents and BCOs rather than cost reduction, differentiating their approach from competitors [54][55] Question: BCO count and retention in the first quarter - Management indicated that while seasonality typically leads to a decrease in BCO count, they are optimistic about retention and growth in 2026 [66][72]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue decreased approximately 1% year-over-year, primarily due to decreased ocean revenue, while truck transportation revenue remained nearly flat [9][10] - Heavy haul revenue set a new record of $569 million in FY 2025, a 14% increase from FY 2024 [6] - Gross profit was $85.6 million in Q4 2025, down from $109.4 million in Q4 2024, with a gross profit margin of 7.3% compared to 9% in the prior year [31][33] Business Line Data and Key Metrics Changes - Heavy haul service revenue increased by 23% year-over-year in Q4 2025, with loadings up approximately 7% and revenue per load up 16% [12][27] - Non-truck transportation service revenue decreased by 28% year-over-year, or $30 million, in Q4 2025 [27] - Truck revenue per load increased approximately 1% year-over-year, driven by a 7.5% increase in revenue per load on unsided platform equipment [24] Market Data and Key Metrics Changes - The freight environment in Q4 2025 was characterized by soft demand, with the ISM Index below 50 throughout the quarter [12] - Revenue hauled on behalf of other truck transportation companies was 15% below Q4 2024, indicating accessible capacity in the marketplace [30] - The number of loads hauled via truck in January 2026 was approximately 1% below January 2025, while revenue per load was approximately 4% above January 2025 [39] Company Strategy and Development Direction - The company focuses on five key priorities: accelerating the model, executing growth strategy, managing risk, leveraging financial strength, and enhancing support [5] - Landstar is investing approximately 50% of its IT CapEx budget for 2026 in AI enablement and solutions [8] - The company aims to enhance its technology strategy through AI, improving decision-making and operational efficiency [20] Management's Comments on Operating Environment and Future Outlook - Management noted that the freight recession has lasted longer than expected, but they remain optimistic about leveraging their strategic growth initiatives when the environment improves [5][9] - The company will provide revenue commentary for Q1 2026 instead of formal guidance due to the uncertain operating environment [39] - Management expressed confidence in the ability to recover from weather-related disruptions impacting loads in early 2026 [45][47] Other Important Information - The company returned approximately $261 million to shareholders over the last two years through share repurchases and cash dividends [8] - The accident frequency rate was reported at 0.59 DOT reportable accidents per million miles in 2025, below the national average [22] - The effective income tax rate decreased to 18.3% in Q4 2025 from 21.4% in Q4 2024 due to favorable resolutions of state tax matters [37] Q&A Session Summary Question: Impact of recent storms on BCO utilization - Management acknowledged challenges due to storms affecting dispatch loads but expressed optimism about recovery as weather clears [45][46] Question: AI initiatives compared to competitors - Management highlighted that their AI strategy focuses on enabling agents and BCOs rather than cost reduction, differentiating from competitors like C.H. Robinson [51][52] Question: BCO count and retention in Q1 2026 - Management indicated that while seasonality typically leads to a decline in BCO count, they are optimistic about retention and recruitment efforts [62][63] Question: Variable contribution margin with increased BCO count - Management confirmed that an increase in BCO count and improved rates could positively impact variable contribution margin [71]

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4Q 2025 Executive Summary Frank Lonegro Chief Executive Officer 4 Slide header CEO Perspective R E S U L T S Dollars in Millions (except per share amounts) | Metric | | 4Q 2025 | | 4Q 2024 | Chg. | | --- | --- | --- | --- | --- | --- | | Revenue | $ | 1,174.5 | $ | 1,209.3 | (2.9%) | | Operating Income | $ | 29.6 | $ | 57.8 | (48.8%) | | Earnings per Share | $ | 0.70 | $ | 1.31 | (46.6%) | H I G H L I G H T S 4Q revenue performance Strong performance in our services hauled by unsided/platform equipment Over ...

Financial Performance - Total revenue for Q4 2025 was $1,174 million, a decrease from $1,209 million in Q4 2024, reflecting a year-over-year decline of approximately 2.9%[2] - Basic and diluted earnings per share (EPS) for Q4 2025 were $0.70, down from $1.31 in Q4 2024, representing a decline of approximately 46.6%[2] - Gross profit for Q4 2025 was $86 million, down from $109 million in Q4 2024, indicating a decline of approximately 21.1%[10] - Total revenue for the fiscal year ended December 27, 2025, was $4,743,760, a decrease of 1.6% from $4,819,245 in the previous year[21] - Gross profit margin decreased to 8.5% in 2025 from 9.5% in 2024, indicating a decline in profitability[25] Revenue Breakdown - Truck transportation revenue in Q4 2025 was $1,078 million, accounting for 92% of total revenue, compared to $1,081 million or 89% in Q4 2024[8] - Revenue generated from truck transportation was $4,336,014 in 2025, slightly down from $4,346,554 in 2024, a decrease of 0.2%[21] - Truck revenue per load increased by approximately 1% in Q4 2025 compared to Q4 2024, despite a 1% decrease in the number of loads hauled[9] - The number of loads for truck transportation decreased to 1,943,800 in 2025 from 1,960,960 in 2024, a decline of approximately 0.9%[21] Costs and Expenses - Insurance and claims costs in Q4 2025 were $56 million, significantly higher than the $30 million reported in Q4 2024, marking an increase of approximately 86.7%[4] - The company recorded $2.1 million in non-cash impairment charges related to the ongoing sales process of its wholly-owned Mexican subsidiary[4] Shareholder Actions - The company repurchased 286,695 shares at a cost of $37 million in Q4 2025, bringing the total for the fiscal year to 1,281,863 shares at approximately $180.9 million[5] - The company declared a quarterly dividend of $0.40 per share, payable on March 11, 2026, to stockholders of record as of February 18, 2026[5] Balance Sheet - Cash and short-term investments totaled approximately $452 million as of December 27, 2025, reflecting a strong balance sheet[11] - Total current assets decreased to $1,216,326 in 2025 from $1,319,867 in 2024, reflecting a reduction of approximately 7.8%[19] - Total liabilities increased to $840,520 in 2025 from $742,345 in 2024, representing an increase of about 13.2%[19] - Cash and cash equivalents decreased to $396,694 in 2025 from $515,018 in 2024, a decline of approximately 23%[19] - The company’s retained earnings slightly decreased to $2,852,680 in 2025 from $2,859,916 in 2024, reflecting a marginal decline[19] Operational Efficiency - Variable contribution margin remained stable at 14.1% for both fiscal years, indicating consistent operational efficiency[25] - The company reported a total of 36,852 approved and active truck brokerage carriers as of December 27, 2025, down from 43,718 in the previous year[21]

Core Viewpoint - Landstar System, Inc. reported a decline in total revenue and earnings per share for the fourth quarter of 2025 compared to the same period in 2024, primarily due to decreased ocean revenue, despite stable truck transportation revenue and improved truck revenue per load [1][2]. Financial Performance - Total revenue for Q4 2025 was $1,174 million, down from $1,209 million in Q4 2024, representing a decrease of approximately 2.9% [1][4]. - Basic and diluted earnings per share (EPS) were $0.70 for Q4 2025, compared to $1.31 in Q4 2024, reflecting a decline of approximately 46.6% [1][4]. - Gross profit for Q4 2025 was $85.6 million, down from $109.4 million in Q4 2024 [4][11]. - Operating income decreased to $29.6 million in Q4 2025 from $57.8 million in Q4 2024 [4][11]. Revenue Breakdown - Truck transportation revenue was $1,078 million in Q4 2025, nearly flat compared to $1,081 million in Q4 2024, accounting for 92% of total revenue [9]. - Revenue from ocean and air cargo carriers was $77 million, down from $107 million in Q4 2024, indicating a decline in this segment [9]. - Truckload transportation revenue via van equipment was $559 million in Q4 2025, down from $597 million in Q4 2024, while revenue from unsided/platform equipment increased to $401 million from $362 million [9]. Cost and Expenses - Insurance and claims costs rose significantly to $56 million in Q4 2025 from approximately $30 million in Q4 2024, impacting overall profitability [2][6]. - The company recorded additional non-cash impairment charges of $2.1 million related to its Mexican subsidiary [3]. Capital Management - Landstar continued its stock repurchase program, buying back 286,695 shares for $37 million in Q4 2025, totaling 1,281,863 shares for approximately $180.9 million in the fiscal year [5]. - A quarterly dividend of $0.40 per share was declared, payable on March 11, 2026 [8]. Balance Sheet Strength - As of December 27, 2025, Landstar had cash and short-term investments of approximately $452 million, with a trailing twelve-month return on average shareholders' equity of 13% [12].

Core Viewpoint - Landstar System is facing significant financial challenges due to elevated insurance and claims expenses, which are expected to impact its upcoming quarterly earnings report. Financial Impact - The company reported $22 million in insurance-related charges for the recent quarter, contributing to total insurance and claims costs of $56 million, which includes $22 million from unfavorable claims activity [1][2] - Landstar anticipates fourth-quarter earnings per share (EPS) of 70 cents, significantly lower than the previous consensus estimate of $1.22 and the EPS of $1.31 from the same quarter last year [6] - The updated consensus EPS estimate is now $1.04, with expected operating income of $30 million [6] Legal and Claims Developments - The company flagged $11 million in charges from two separate tragic vehicular accidents in the fourth quarter, along with an increase in self-insured claim reserves by $5.3 million following an actuarial review [2] - A Texas jury found Landstar Ranger liable for a portion of damages in a 2021 accident, assigning $3.42 million to Landstar, which is 15% of the total damages of $22.8 million [3] - Following a January 13 judgment, Landstar is now responsible for 100% of the monetary damages plus pre-judgment interest, leading to an additional charge of $5.7 million [4][5] Revenue Performance - Fourth-quarter revenue is projected to be $1.17 billion, slightly below the consensus estimate of $1.18 billion and the $1.21 billion reported in the previous year [6] - The revenue decline is attributed to a 1% year-over-year decrease in truck loads, partially offset by a 1% increase in revenue per load [6]