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Landstar System
(NASDAQ:LSTR)
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Rating:64Neutral
Price Target:
$198.00
▼(-1.14% Downside)
Action:Reiterated
Date:07/29/26
The score is driven primarily by strong financial resilience (notably a conservative balance sheet and solid cash generation) alongside improving operational momentum from the latest earnings update. Offsetting these positives are weak near-term technicals (below key moving averages) and a demanding valuation (P/E ~51), with insurance/claims and margin pressures remaining notable risks.
Positive Factors
Asset-light network & rising BCO utilization
Landstar's asset-light model combined with net BCO additions and rising utilization increases the company's ability to scale volumes without heavy capex. Strong owner-operator growth and higher loadings support durable operating leverage, pricing optionality and resilience in capacity-constrained freight markets over months.
Negative Factors
Sustained margin compression vs prior cycles
Margins remain materially below pre‑2025 levels, indicating the company has yet to regain prior operating leverage. Persistently lower net and gross margins reduce financial buffer against claims, SG&A inflation and pricing resets, constraining reinvestment capacity and shareholder return sustainability over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light network & rising BCO utilization
Landstar's asset-light model combined with net BCO additions and rising utilization increases the company's ability to scale volumes without heavy capex. Strong owner-operator growth and higher loadings support durable operating leverage, pricing optionality and resilience in capacity-constrained freight markets over months.
Read all positive factors
Landstar System Key Performance Indicators (KPIs)
Any
Revenue By Segment
Shows how sales are allocated across different segments over time, useful for spotting strategic shifts toward higher-margin services, assessing diversification, and identifying dependence on cyclical or regional markets that could affect future earnings.
Shows how sales are allocated across different segments over time, useful for spotting strategic shifts toward higher-margin services, assessing diversification, and identifying dependence on cyclical or regional markets that could affect future earnings.
Data provided by:
The Fly
The FlyLandstar System (LSTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.75B
Dividend Yield2.06%
Average Volume (3M)432.68K
Price to Earnings (P/E)45.3
Beta (1Y)0.79
Revenue Growth4.10%
EPS Growth-19.02%
CountryUS
Employees1,378
SectorIndustrials
Sector Strength72
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)3.62
Shares Outstanding33,936,924
10 Day Avg. Volume443,127
30 Day Avg. Volume432,680
Financial Highlights & Ratios
PEG Ratio-1.10
Price to Book (P/B)6.37
Price to Sales (P/S)1.07
P/FCF Ratio23.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$199.00Price Target Upside-0.64% Downside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)5.85
Revenue Forecast (FY)$5.25B
Landstar System Business Overview & Revenue Model
Company Description
Landstar System, Inc. delivers comprehensive logistics and transportation solutions, operating across North America (U.S., Canada, and Mexico) and globally. The company's operations are divided into two main divisions: Transportation Logistics and...
How the Company Makes Money
Landstar primarily makes money by brokering freight: it connects shippers with transportation capacity and earns the spread between what it charges customers and what it pays third-party capacity providers. Its key revenue stream is transportation...
Landstar System Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and financial momentum: strong top-line growth (revenue +18%), marked improvement in truck revenue per load (+17% YoY and +14.4% sequentially), robust heavy-haul performance (+18% YoY), improving BCO counts and utilization, and continued shareholder returns. Offsetting these positives were meaningful insurance and claims headwinds (including $10.5M of unfavorable prior-year development), brokerage margin compression, higher SG&A (notably incentive compensation), and short-term negative free cash flow driven by rapid growth and working capital. Management emphasized defensive actions on carrier vetting, successful insurance renewals, and strategic opportunities (agent recruitment, technology/AI investments) that may mitigate some risks. On balance, the favorable revenue/pricing and network trends materially outweigh the near-term cost and legal uncertainties.Positive Updates
Revenue Growth
Total revenue increased 18% year-over-year in 2026 Q2, driven by pricing and loadings improvements across equipment types.
Negative Updates
Insurance and Claims Headwinds
Insurance and claims costs increased to $39.4 million in Q2 from $30.4 million YoY. The quarter included ~$10.5 million of net unfavorable adjustments to prior-year claim estimates (vs $2.3 million in 2025 Q2). Insurance & claims were ~7% of BCO revenue vs 6.6% previously.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenue increased 18% year-over-year in 2026 Q2, driven by pricing and loadings improvements across equipment types.
Read all positive updates
Company Guidance
Landstar declined to give formal Q3 guidance and instead provided commentary: historically Q2→Q3 seasonality implies about +1.5% truck revenue per load and ≈−1.5% in number of loads (yielding a roughly flat top line and a de minimis change in variable contribution margin), but current trends are outperforming those norms — July loads were ≈+5% YoY on a dispatch basis and July revenue per load ≈+26% YoY (with the last three weeks of July showing loadings up about +1.5% to +3.5% YoY); month‑to‑month pricing outperformance versus typical was ~+640 bps in April, ~+400 bps in May, ~+400 bps in June and is holding about +150 bps in July, so truck revenue per load and volumes are tracking slightly ahead of normal seasonality into Q3.Landstar System Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.77B | 4.74B | 4.83B | 5.31B | 7.44B | 6.54B |
| Gross Profit | 821.79M | 621.63M | 974.88M | 1.13B | 1.51B | 1.32B |
| EBITDA | 237.67M | 197.97M | 304.05M | 397.73M | 625.59M | 553.45M |
| Net Income | 124.64M | 115.01M | 195.95M | 264.39M | 430.91M | 381.52M |
Balance Sheet | ||||||
| Total Assets | 1.60B | 1.64B | 1.81B | 1.80B | 1.93B | 2.05B |
| Cash, Cash Equivalents and Short-Term Investments | 410.95M | 452.23M | 566.64M | 540.70M | 393.54M | 251.30M |
| Total Debt | 26.12M | 133.48M | 163.34M | 132.68M | 299.75M | 303.52M |
| Total Liabilities | 803.22M | 840.27M | 840.87M | 817.92M | 1.04B | 1.18B |
| Stockholders Equity | 798.98M | 795.66M | 972.44M | 983.92M | 887.22M | 862.01M |
Cash Flow | ||||||
| Free Cash Flow | 233.60M | 215.00M | 255.56M | 367.96M | 596.65M | 253.48M |
| Operating Cash Flow | 247.40M | 224.88M | 286.56M | 393.65M | 622.66M | 276.74M |
| Investing Cash Flow | -9.30M | -2.36M | -10.50M | -6.48M | -24.77M | -73.34M |
| Financing Cash Flow | -303.48M | -343.14M | -237.34M | -247.97M | -475.68M | -232.95M |
Landstar System Risk Analysis
Landstar System disclosed 19 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $2.78B | 34.47 | 4.81% | 1.04% | -5.79% | -1.57% | |
67 Neutral | $23.40B | 58.59 | 21.57% | ― | 7.03% | 16.37% | |
64 Neutral | $5.75B | 45.28 | 15.87% | 1.80% | 4.10% | -19.02% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $17.32B | 27.82 | 36.01% | 1.35% | -0.09% | 19.50% | |
56 Neutral | $5.80B | 43.06 | 4.46% | ― | 10.38% | 84.52% | |
48 Neutral | $448.76M | -4.76 | -75.30% | ― | -3.22% | 90.10% |
* Industrials Sector Average
LSTR
Landstar System
174.77
49.26
39.24%
CHRW
CH Robinson
147.73
35.64
31.80%
XPO
XPO
200.97
82.18
69.18%
FWRD
Forward Air
14.05
-15.14
-51.87%
HUBG
Hub Group
46.53
13.36
40.29%
GXO
GXO Logistics
50.16
2.09
4.35%
Landstar System Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Landstar System Posts Strong Q2 Results, Raises Dividend
Positive
Jul 28, 2026
Landstar System reported strong results for the second quarter of fiscal 2026, released on July 28, 2026, with revenue rising 18% year-on-year to $1.432 billion and earnings per share increasing 20% to $1.44. Gross profit climbed 21% and variable ...
Business Operations and StrategyExecutive/Board Changes
Landstar System Announces New Commercial and Strategy Leadership
Positive
Jul 23, 2026
On July 23, 2026, Landstar System announced that veteran transportation executive William “Bill” Clement will become vice president and chief commercial officer effective August 1, 2026, joining the executive leadership team and report...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Landstar System Expands Revolving Credit Facility Agreement
Positive
Jul 6, 2026
On June 30, 2026, Landstar System, Inc. and Landstar System Holdings, Inc. entered into a Third Amended and Restated Credit Agreement that replaces their prior facility with a new unsecured revolving credit line of $300 million, plus an uncommitte...
Executive/Board ChangesShareholder Meetings
Landstar System Shareholders Back Board, Auditor and Pay
Positive
May 6, 2026
Landstar System, Inc. reported that its 2026 Annual Meeting of stockholders was held on May 5, 2026, with about 93% of outstanding common shares represented in person or by proxy. Shareholders elected nine directors, including Homaira Akbari and F...
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.