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Landstar System (LSTR)
NASDAQ:LSTR
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Landstar System (LSTR) AI Stock Analysis

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LSTR

Landstar System

(NASDAQ:LSTR)

Rating:67Neutral
Price Target:
$146.00
▲(10.54% Upside)
Landstar System's overall score reflects strong financial management and profitability, offset by revenue decline and valuation concerns. Technical indicators suggest cautious market sentiment, while the earnings call provides a mixed outlook with both achievements and challenges.
Positive Factors
Financial Performance
The company's operating income as a percent of net revenue improved to 33% from the first quarter's 31.8% excluding charges.
Load Performance
The number of loads hauled via truck exceeded the high end of the guidance issued in connection with the 4Q earnings release.
Revenue Growth
Truck revenue was up year-over-year for the first time since the third quarter of 2022, indicating some positive movement in the market.
Negative Factors
Insurance Costs
Ongoing insurance challenges and a preference among shippers for asset-based solutions contribute to a more cautious stock rating.
Legal Challenges
One of the company's operating companies is involved in a trial that could result in a substantial verdict against Landstar.
Operational Challenges
The company's BCO count of 8,611 was down 6% year-over-year, reflecting some challenges in maintaining its operator base.

Landstar System (LSTR) vs. SPDR S&P 500 ETF (SPY)

Landstar System Business Overview & Revenue Model

Company DescriptionLandstar System, Inc. provides integrated transportation management solutions in the United States, Canada, Mexico, and internationally. The company operates through two segments: Transportation Logistics, and Insurance. The Transportation Logistics segment offers a range of transportation services, including truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, intra-Mexico, intra-Canada, project cargo, and customs brokerage, as well as offers transportation services to other transportation companies, such as third party logistics, small package and less-than-truckload service providers. It provides truck services through dry and specialty vans of various sizes, unsided/platform trailers, temperature-controlled vans, and containers; rail intermodal services through contracts with domestic and Canadian railroads; and air and ocean services through contracts with domestic and international airlines and ocean lines. This segment serves the automotive parts and assemblies, consumer durables, building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, and military equipment industries. The Insurance segment reinsures certain risks of the company's independent contractors. The company markets its services through independent commission sales agents and third party capacity providers. Landstar System, Inc. was founded in 1968 and is headquartered in Jacksonville, Florida.
How the Company Makes MoneyLandstar generates revenue primarily through its extensive network of independent agents who provide logistics services and manage the transportation of freight. The company earns money by charging fees for the logistics solutions it offers, which include truckload, less-than-truckload, and intermodal transportation. Additionally, Landstar benefits from its ability to leverage the capacity of third-party transport providers, allowing it to expand its service offerings without significant capital investment. Key revenue streams include the commissions and fees received from freight transportation services, as well as revenue from value-added services such as supply chain consulting and inventory management. Landstar's strong relationships with its independent agents and capacity providers are crucial to its business model, as they enhance its operational efficiency and market reach.

Landstar System Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Landstar. While there were notable achievements in heavy haul revenue growth and truck revenue per load improvements, challenges remain with overall revenue decline, non-truck transportation setbacks, and increased insurance costs. The company's strong cash position and shareholder returns were positive, but headwinds such as political and macroeconomic uncertainties, and flat BCO truck count continue to pose challenges.
Q2-2025 Updates
Positive Updates
Heavy Haul Service Revenue Increase
Landstar's heavy haul service offering generated approximately $138 million in revenue during the 2025 second quarter, marking a 9% increase over the 2024 second quarter.
Truck Revenue Per Load Improvement
Truck revenue per load increased 2.6% in the 2025 second quarter compared to the 2024 second quarter, with a 3.2% increase in revenue per load on unsided platform equipment.
Strong Cash Position and Shareholder Returns
Landstar ended the quarter with $426 million in cash and short-term investments and returned $97 million in dividends and approximately $102 million in share repurchases during the 2025 first half.
Improved BCO Turnover Rate
The trailing 12-month truck turnover rate dropped from 34.5% as of fiscal year-end 2024 to 31.9% at the end of the 2025 second quarter.
Negative Updates
Overall Revenue Decline
Overall revenue was down 1% year-over-year for the 2025 second quarter, with a 1.5% decrease in the number of loads hauled via truck.
Challenges in Non-Truck Transportation
Non-truck transportation service revenue was 22% or $21 million below the 2024 second quarter, with significant decreases in ocean revenue and intermodal revenue per load.
Increased Insurance and Claims Costs
Insurance and claims costs were $30.4 million in the 2025 second quarter compared to $27.2 million in 2024, driven by increased severity of trucking accidents and cargo claims.
Flat BCO Truck Count
BCO truck count decreased approximately 6% year-over-year and was essentially flat sequentially, decreasing only 9 trucks in the second quarter from the first quarter.
Company Guidance
During the Landstar System, Inc. 2025 second quarter earnings call, several key metrics were highlighted. Truck revenue increased for the first time since the third quarter of 2022, with a year-over-year rise of 2.6% in truck revenue per load. The heavy haul segment saw a 9% revenue increase compared to the second quarter of 2024, driven by a 5% rise in revenue per load and a 4% increase in volume. Despite a 1% year-over-year decrease in overall revenue, the number of trucks provided by BCOs remained stable compared to the first quarter of 2025, marking the best sequential net BCO truck performance in 12 quarters. Additionally, Landstar's accident frequency rate was reported as 0.67 DOT reportable accidents per million miles, below the national average. The company also executed $103 million in capital buybacks and repurchased approximately 686,000 shares of common stock in the first half of 2025.

Landstar System Financial Statement Overview

Summary
Landstar System demonstrates strong profitability and a robust balance sheet with low leverage. However, the significant revenue decline is a concern, and the decrease in free cash flow could impact future investments.
Income Statement
78
Positive
Landstar System's income statement reveals strong profitability despite a recent decline in revenues. The gross profit margin for TTM is 12.9%, with a net profit margin of 3.7%, indicating effective cost management. However, revenue has declined from $7.44 billion in 2022 to $4.80 billion in TTM, marking a significant contraction. The EBIT margin stands at 4.8%, and the EBITDA margin at 5.8%, reflecting a resilient operational performance despite declining revenues. Overall, the company maintains healthy profitability, but the recent revenue decline is a concern.
Balance Sheet
80
Positive
Landstar System's balance sheet is robust, with a low debt-to-equity ratio of 0.16, indicating prudent financial management and low leverage. The return on equity (ROE) is 19.2%, showcasing efficient use of equity to generate profits. The equity ratio is 54.2%, reflecting strong capitalization with a good balance of assets funded by equity. The balance sheet strength is evident in the company's ability to maintain solid shareholder value and manage liabilities effectively.
Cash Flow
74
Positive
The cash flow statement demonstrates solid operational cash generation, with a free cash flow to net income ratio of 1.26, indicating that the company generates ample cash relative to its earnings. However, free cash flow has decreased by 12.2% from the previous annual period, which could constrain future investments or debt repayments. The operating cash flow to net income ratio is 1.39, signifying efficient cash conversion. The overall cash flow position remains healthy, despite a decline in free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.79B4.82B5.30B7.44B6.54B4.13B
Gross Profit728.83M624.51M714.24M960.23M866.08M553.50M
EBITDA261.32M305.64M392.16M628.54M555.28M298.81M
Net Income167.93M195.95M264.39M430.91M381.52M192.11M
Balance Sheet
Total Assets1.70B1.81B1.80B1.93B2.05B1.65B
Cash, Cash Equivalents and Short-Term Investments426.17M566.64M540.70M393.54M251.30M290.73M
Total Debt30.75M163.34M132.68M196.35M303.52M175.52M
Total Liabilities777.82M840.87M817.92M1.04B1.18B961.96M
Stockholders Equity921.83M972.44M983.92M887.22M862.01M691.84M
Cash Flow
Free Cash Flow183.79M255.56M367.96M596.65M253.48M180.09M
Operating Cash Flow199.92M286.56M393.65M622.66M276.74M210.72M
Investing Cash Flow1.13M-10.50M-6.48M-24.77M-73.34M-28.42M
Financing Cash Flow-219.06M-237.34M-247.97M-475.68M-232.95M-252.03M

Landstar System Technical Analysis

Technical Analysis Sentiment
Positive
Last Price132.08
Price Trends
50DMA
135.17
Negative
100DMA
136.43
Negative
200DMA
150.22
Negative
Market Momentum
MACD
-0.36
Negative
RSI
53.72
Neutral
STOCH
48.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSTR, the sentiment is Positive. The current price of 132.08 is above the 20-day moving average (MA) of 130.89, below the 50-day MA of 135.17, and below the 200-day MA of 150.22, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 48.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LSTR.

Landstar System Risk Analysis

Landstar System disclosed 15 risk factors in its most recent earnings report. Landstar System reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Landstar System Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$5.87B96.842.16%22.39%-54.71%
70
Outperform
$2.29B22.436.03%1.34%-5.37%-11.26%
69
Neutral
$14.95B43.5321.10%-0.11%-4.28%
69
Neutral
$15.10B29.3232.43%1.97%-2.55%59.07%
67
Neutral
$4.66B27.5517.47%2.62%-2.10%-22.19%
64
Neutral
$10.73B15.657.61%2.01%2.80%-14.92%
54
Neutral
$901.28M-78.76%0.86%30.12%79.23%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LSTR
Landstar System
132.08
-44.02
-25.00%
CHRW
CH Robinson
126.13
27.68
28.12%
XPO
XPO
130.83
29.13
28.64%
FWRD
Forward Air
29.74
-2.20
-6.89%
HUBG
Hub Group
37.35
-6.62
-15.06%
GXO
GXO Logistics
51.38
2.92
6.03%

Landstar System Corporate Events

M&A TransactionsLegal ProceedingsBusiness Operations and Strategy
Landstar System Markets Mexican Subsidiary for Sale
Negative
Aug 13, 2025

On August 11, 2025, Landstar System announced its decision to actively market its Mexican subsidiary, Landstar Metro, for sale as part of its annual strategic review. This decision is due to the subsidiary not meeting strategic or operational goals, and the company expects to record a non-cash impairment charge of $13 million to $17 million in the third quarter of 2025. Additionally, Landstar plans to wind down its Blue TMS platform, incurring a $9 million impairment charge, and may record a $5 million impairment related to its investment in Cavnue. Furthermore, a jury verdict on August 6, 2025, determined that Landstar Ranger, a subsidiary, was partially liable for damages in a vehicular accident, but this is not expected to impact the company’s financial standing significantly.

Stock BuybackDividendsFinancial Disclosures
Landstar System Reports Strong Q2 2025 Financial Results
Positive
Jul 29, 2025

On July 29, 2025, Landstar System, Inc. reported its financial results for the second quarter of fiscal 2025, with revenue totaling $1.211 billion and earnings per share of $1.20. The company highlighted a 3.2% sequential increase in truck revenue per load and maintained a stable BCO truck count, indicating strong performance in a challenging freight environment. Despite a slight decrease in total revenue compared to the previous year, Landstar continued its capital return initiatives, purchasing over 686,000 shares and declaring a quarterly dividend. The company’s balance sheet remains robust with $426 million in cash and short-term investments, and it achieved a 17% return on average shareholders’ equity.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 05, 2025