UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission | (I.R.S. Employer | ||
| of incorporation) | File Number) | Identification No.) |
| (Address of principal executive offices) | (Zip Code) |
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition |
On October 27, 2026, Landstar System, Inc. (“Landstar” or the “Company”) issued a press release announcing results for the thirteen-week period ended September 26, 2026 (the third quarter of fiscal 2026). A copy of the press release is attached hereto as Exhibit 99.1.
The information contained in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 hereto, concerning the presentation to Landstar investors is hereby incorporated into this Item 2.02 by reference.
The information furnished under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
| Item 7.01 | Regulation FD Disclosure |
A slide presentation, dated October 27, 2026, is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The slide presentation provides information that may be referred to by the Company on its conference call with investors scheduled to occur on October 27, 2026 in connection with the Company’s release of results for the third quarter of fiscal 2026.
The information furnished under Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
| Item 9.01 | Financial Statements and Exhibits |
| Exhibits |
||
| 99.1 | Press Release, dated October 27, 2026, of Landstar System, Inc. | |
| 99.2 | Slide Presentation, dated October 27, 2026, of Landstar System, Inc. | |
| 104 | Inline XBRL for the cover page of this Current Report on Form 8-K | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LANDSTAR SYSTEM, INC. | ||||||
| Date: October 27, 2026 | By: | /s/ James P. Todd | ||||
| Name: | James P. Todd | |||||
| Title: | Vice President, Chief Financial Officer and Assistant Secretary | |||||
Exhibit 99.1
| For Immediate Release | October 27, 2026 |
LANDSTAR SYSTEM REPORTS THIRD QUARTER
REVENUE OF $1.512B AND EARNINGS PER SHARE OF $1.42
Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported its financial results for the 2026 third quarter. The Company reported total revenue of $1.512 billion in the 2026 third quarter, an increase of 25% as compared to revenue of $1.205 billion in the 2025 third quarter, and basic and diluted earnings per share (“EPS”) of $1.42 in the 2026 third quarter, an increase of 154% as compared to EPS of $0.56 in the 2025 third quarter. It should be noted that EPS in the 2025 third quarter was negatively impacted by non-cash impairment charges of $30.1 million, or $0.66 per share, related to the previously disclosed strategic review of operations conducted during the 2025 third quarter, and, as further described below, the 2026 third quarter EPS was negatively impacted by highly elevated insurance and claim costs. The Company also reported a 14% increase in gross profit and a 25% increase in variable contribution (defined as revenue less the cost of purchased transportation and commissions to agents) in the 2026 third quarter, as compared in each case to the 2025 third quarter.
“The Landstar team of independent business owners and employees excelled in a freight transportation backdrop that continues to improve. Our network generated truck revenue of $1.407 billion, an increase of 29% compared to the 2025 third quarter, with revenue generated via van and unsided/platform equipment each increasing over 30% compared to the 2025 third quarter,” said Landstar President and Chief Executive Officer Frank Lonegro. “In addition, I was highly encouraged to see our net 165 Business Capacity Owner (BCO) truck additions during the third quarter, the strongest quarterly improvement since the third quarter of 2021. We are continuing to deliver safety, security and service for our customers, and our BCOs achieved a 5% year-over-year improvement in DOT accident frequency. Even so, we are not immune to the challenges of the insurance and claims inflation prevalent in our industry.”
LANDSTAR SYSTEM/2
| 3Q 2026 | 3Q 2025 | Change ($) | Change (%) | |||||||||||||
| Revenue |
$ | 1,511,787 | $ | 1,205,406 | $ | 306,381 | 25.4 | % | ||||||||
| Gross profit |
$ | 126,547 | $ | 111,060 | $ | 15,487 | 13.9 | % | ||||||||
| Variable contribution |
$ | 212,066 | $ | 170,241 | $ | 41,825 | 24.6 | % | ||||||||
| Operating income |
$ | 65,540 | $ | 26,326 | $ | 39,214 | 149.0 | % | ||||||||
| Basic and diluted earnings per share (“EPS”) |
$ | 1.42 | $ | 0.56 | $ | 0.86 | 153.6 | % | ||||||||
| (1) | Dollars above in thousands, except per share amounts. |
| (2) | Please refer to the Consolidated Statements of Income and the Reconciliation of Gross Profit to Variable Contribution included below. |
| (3) | Operating income and EPS during the 2025 third quarter were negatively impacted by $30.1 million and $0.66, respectively, as a result of non-cash impairment charges. |
Third quarter 2026 EPS reflected highly elevated insurance and claim costs of $55.3 million, an increase from $33.0 million of insurance and claim costs reported during the 2025 third quarter. The following items are reflected in insurance and claims for the 2026 third quarter:
| • | Approximately $13.0 million, or $0.29 per share, of adverse actuarial adjustments to insurance and claim reserves. |
| • | $8.0 million, or $0.18 per share, of prior year development attributable to settlements of a 2024 brokered truck accident claim and a 2025 BCO accident. |
During the 2026 third quarter, truck revenue was $1,407 million, an increase of 29%, as compared to the 2025 third quarter truck revenue of $1,090 million. Truck revenue per load increased approximately 25% in the 2026 third quarter compared to the 2025 third quarter, and the number of loads hauled via truck increased approximately 3% compared to the 2025 third quarter.
Truck transportation revenue hauled by independent business capacity owners (“BCOs”) and truck brokerage carriers in the 2026 third quarter was 93% of revenue, compared to 90% of revenue in the 2025 third quarter. Truckload transportation revenue hauled via van equipment in the 2026 third quarter was $760 million, compared to $583 million in the 2025 third quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2026 third quarter was $519 million, compared to $386 million in the 2025 third quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2026 third quarter was $104 million, compared to $96 million in the 2025 third quarter. Revenue hauled by rail, air and ocean cargo carriers was $83 million, or 5% of revenue, in the 2026 third quarter, compared to $96 million, or 8% of revenue, in the 2025 third quarter.
LANDSTAR SYSTEM/3
Gross profit in the 2026 third quarter was $127 million, as compared to $111 million in the 2025 third quarter. Variable contribution in the 2026 third quarter was $212 million, compared to $170 million in the 2025 third quarter. Reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2026 and 2025 third quarters and year-to-date periods are provided in the Company’s accompanying financial disclosures.
Landstar continues to return capital to stockholders through the Company’s share purchase program and dividends. During the 2026 third quarter, Landstar purchased 232,645 shares of its common stock at an aggregate cost of $41.4 million, bringing the total number of common shares purchased during the year-to-date period ended September 26, 2026 to 383,568 shares at an aggregate cost of approximately $64.0 million. The Company is currently authorized to purchase up to an additional 882,550 shares of the Company’s common stock under its longstanding share purchase program. Landstar also announced today that its Board of Directors declared a quarterly dividend of $0.44 per share payable on December 8, 2026, to stockholders of record as of the close of business on November 17, 2026. It is currently the intention of the Board to continue to pay dividends on a quarterly basis going forward.
The Company’s balance sheet continues to be very strong, with cash and short-term investments of approximately $351 million as of September 26, 2026. Trailing twelve-month return on average shareholders’ equity was 19%. Return on invested capital, representing net income divided by the sum of average equity plus average debt, was 18%.
Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 4:30 p.m. ET. To access the webcast, visit https://www.investor.landstar.com; click on “Webcasts,” then click on “Landstar’s Third Quarter 2026 Earnings Release Conference Call.” A slide presentation to accompany the webcast presentation is also available on Landstar’s investor relations website at https://investor.landstar.com/.
LANDSTAR SYSTEM/4
Contact:
Jim Todd
Chief Financial Officer
904-398-9400
About Landstar:
Landstar System, Inc., is a technology-enabled, asset-light provider of freight transportation and logistics solutions focused on safety, security and service to a broad range of customers utilizing a network of agents, third-party capacity providers and employees. Landstar transportation services companies are certified to ISO 9001:2015 quality management system standards and RC14001:2015 environmental, health, safety and security management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market® under the symbol LSTR.
Non-GAAP Financial Measures:
In this earnings release and accompanying financial disclosures, the Company provides the following information that may be deemed non-GAAP financial measures: variable contribution and variable contribution margin. The Company believes variable contribution and variable contribution margin are useful measures of the variable costs that we incur at a shipment-by-shipment level attributable to our transportation network of third-party capacity providers and independent agents in order to provide services to our customers. The Company also believes that it is appropriate to present each of the financial measures that may be deemed a non-GAAP financial measure, as referred to above, for the following reasons: (1) disclosure of these matters will allow investors to better understand the underlying trends in the Company’s financial condition and results of operations; (2) this information will facilitate comparisons by investors of the Company’s results as compared to the results of peer companies; and (3) management considers this financial information in its decision making.
LANDSTAR SYSTEM/5
Forward Looking Statements Disclaimer:
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements.” This press release contains forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “expects,” “plans,” “predicts,” “may,” “should,” “could,” “would,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: decreased demand for transportation services; U.S. trade relationships and potential or imposed tariffs; an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; substantial verdicts or settlements rendered in connection with accidents or other claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; the impact of the Russian conflict with Ukraine on the operations of certain independent commission sales agents, including the Company’s second largest such agent by revenue in the 2025 fiscal year; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber and other information security incidents; dependence on key vendors; potential changes in taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; regulations requiring the purchase and use of zero-emission vehicles; intellectual property; acquisitions and investments; increased exposure to broker liability claims; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2025 fiscal year; described in Part I, Item 1A Risk Factors; Landstar’s Form 10-Q for the 2026 second quarter, described in Item 1A Risk Factors; and in other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.
LANDSTAR SYSTEM/6
Landstar System, Inc. and Subsidiary
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
| Thirty-Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
| September 26, 2026 |
September 27, 2025 |
September 26, 2026 |
September 27, 2025 |
|||||||||||||
| Revenue |
$ | 4,115,342 | $ | 3,569,291 | $ | 1,511,787 | $ | 1,205,406 | ||||||||
| Investment income |
7,943 | 10,620 | 2,264 | 3,293 | ||||||||||||
| Costs and expenses: |
||||||||||||||||
| Purchased transportation |
3,212,442 | 2,775,761 | 1,182,045 | 936,472 | ||||||||||||
| Commissions to agents |
319,254 | 291,529 | 117,676 | 98,693 | ||||||||||||
| Other operating costs, net of gains on asset sales/dispositions |
53,971 | 46,996 | 21,226 | 15,572 | ||||||||||||
| Insurance and claims |
130,193 | 103,309 | 55,270 | 33,008 | ||||||||||||
| Selling, general and administrative |
191,534 | 174,303 | 62,376 | 57,015 | ||||||||||||
| Depreciation and amortization |
30,887 | 35,884 | 9,918 | 11,509 | ||||||||||||
| Impairment of intangible and other assets |
— | 30,104 | — | 30,104 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total costs and expenses |
3,938,281 | 3,457,886 | 1,448,511 | 1,182,373 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
185,004 | 122,025 | 65,540 | 26,326 | ||||||||||||
| Interest and debt expense |
1,692 | 756 | 362 | 217 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before income taxes |
183,312 | 121,269 | 65,178 | 26,109 | ||||||||||||
| Income taxes |
46,878 | 30,206 | 17,135 | 6,745 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 136,434 | $ | 91,063 | $ | 48,043 | $ | 19,364 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Basic and diluted earnings per share |
$ | 4.02 | $ | 2.61 | $ | 1.42 | $ | 0.56 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Average basic and diluted shares outstanding |
33,943,000 | 34,885,000 | 33,871,000 | 34,581,000 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Dividends per common share |
$ | 1.24 | $ | 1.16 | $ | 0.44 | $ | 0.40 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
LANDSTAR SYSTEM/7
Landstar System, Inc. and Subsidiary
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
| September 26, 2026 |
December 27, 2025 |
|||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 297,321 | $ | 396,694 | ||||
| Short-term investments |
53,683 | 55,531 | ||||||
| Trade accounts receivable, less allowance of $8,090 and $12,490 |
892,404 | 670,137 | ||||||
| Other receivables, including advances to independent contractors, less allowance of $15,314 and $18,759 |
77,898 | 52,784 | ||||||
| Assets held for sale |
— | 12,231 | ||||||
| Other current assets |
50,217 | 28,949 | ||||||
|
|
|
|
|
|||||
| Total current assets |
1,371,523 | 1,216,326 | ||||||
|
|
|
|
|
|||||
| Operating property, less accumulated depreciation and amortization of $494,295 and $473,642 |
268,570 | 261,322 | ||||||
| Goodwill |
34,005 | 34,005 | ||||||
| Other assets |
133,617 | 124,282 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 1,807,715 | $ | 1,635,935 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Cash overdraft |
$ | 68,713 | $ | 56,654 | ||||
| Accounts payable |
482,041 | 369,567 | ||||||
| Current maturities of long-term debt |
25,772 | 28,342 | ||||||
| Insurance claims |
87,393 | 87,343 | ||||||
| Dividends payable |
— | 68,117 | ||||||
| Liabilities held for sale |
— | 6,961 | ||||||
| Other current liabilities |
101,837 | 78,856 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
765,756 | 695,840 | ||||||
|
|
|
|
|
|||||
| Long-term debt, excluding current maturities |
56,899 | 48,480 | ||||||
| Insurance claims |
103,299 | 62,706 | ||||||
| Deferred income taxes and other non-current liabilities |
51,765 | 33,244 | ||||||
| Shareholders’ equity: |
||||||||
| Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,636,098 and 68,590,708 |
686 | 686 | ||||||
| Additional paid-in capital |
269,696 | 261,256 | ||||||
| Retained earnings |
2,947,019 | 2,852,680 | ||||||
| Cost of 34,927,155 and 34,531,982 shares of common stock in treasury |
(2,378,302 | ) | (2,313,245 | ) | ||||
| Accumulated other comprehensive loss |
(9,103 | ) | (5,712 | ) | ||||
|
|
|
|
|
|||||
| Total shareholders’ equity |
829,996 | 795,665 | ||||||
|
|
|
|
|
|||||
| Total liabilities and shareholders’ equity |
$ | 1,807,715 | $ | 1,635,935 | ||||
|
|
|
|
|
|||||
LANDSTAR SYSTEM/8
Landstar System, Inc. and Subsidiary
Supplemental Information
(Unaudited)
| Thirty-Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
| September 26, 2026 |
September 27, 2025 |
September 26, 2026 |
September 27, 2025 |
|||||||||||||
| Revenue generated through (in thousands): |
||||||||||||||||
| Truck transportation |
||||||||||||||||
| Truckload: |
||||||||||||||||
| Van equipment |
$ | 2,080,868 | $ | 1,769,440 | $ | 759,949 | $ | 583,369 | ||||||||
| Unsided/platform equipment |
1,379,319 | 1,127,276 | 518,582 | 386,006 | ||||||||||||
| Less-than-truckload |
73,845 | 72,229 | 24,933 | 24,480 | ||||||||||||
| Other truck transportation (1) |
289,298 | 288,807 | 103,707 | 96,041 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total truck transportation |
3,823,330 | 3,257,752 | 1,407,171 | 1,089,896 | ||||||||||||
| Rail intermodal |
74,881 | 63,183 | 27,806 | 23,668 | ||||||||||||
| Ocean and air cargo carriers |
153,047 | 188,696 | 55,334 | 72,270 | ||||||||||||
| Other (2) |
64,084 | 59,660 | 21,476 | 19,572 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 4,115,342 | $ | 3,569,291 | $ | 1,511,787 | $ | 1,205,406 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Revenue on loads hauled via BCO Independent Contractors (3) included in total truck transportation |
$ | 1,629,408 | $ | 1,345,852 | $ | 590,987 | $ | 457,363 | ||||||||
| Number of loads: |
||||||||||||||||
| Truck transportation |
||||||||||||||||
| Truckload: |
||||||||||||||||
| Van equipment |
870,347 | 850,047 | 294,875 | 277,893 | ||||||||||||
| Unsided/platform equipment |
375,093 | 369,495 | 128,398 | 123,254 | ||||||||||||
| Less-than-truckload |
95,729 | 115,692 | 29,834 | 38,862 | ||||||||||||
| Other truck transportation (1) |
143,311 | 135,606 | 47,543 | 45,421 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total truck transportation |
1,484,480 | 1,470,840 | 500,650 | 485,430 | ||||||||||||
| Rail intermodal |
23,600 | 21,960 | 8,490 | 7,990 | ||||||||||||
| Ocean and air cargo carriers |
20,840 | 24,370 | 6,970 | 7,810 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 1,528,920 | 1,517,170 | 516,110 | 501,230 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loads hauled via BCO Independent Contractors (3) included in total truck transportation |
644,870 | 597,010 | 212,660 | 199,010 | ||||||||||||
| Revenue per load: |
||||||||||||||||
| Truck transportation |
||||||||||||||||
| Truckload: |
||||||||||||||||
| Van equipment |
$ | 2,391 | $ | 2,082 | $ | 2,577 | $ | 2,099 | ||||||||
| Unsided/platform equipment |
3,677 | 3,051 | 4,039 | 3,132 | ||||||||||||
| Less-than-truckload |
771 | 624 | 836 | 630 | ||||||||||||
| Other truck transportation (1) |
2,019 | 2,130 | 2,181 | 2,114 | ||||||||||||
| Total truck transportation |
2,576 | 2,215 | 2,811 | 2,245 | ||||||||||||
| Rail intermodal |
3,173 | 2,877 | 3,275 | 2,962 | ||||||||||||
| Ocean and air cargo carriers |
7,344 | 7,743 | 7,939 | 9,254 | ||||||||||||
| Revenue per load on loads hauled via BCO Independent Contractors (3) |
$ | 2,527 | $ | 2,254 | $ | 2,779 | $ | 2,298 | ||||||||
| Revenue by capacity type (as a % of total revenue): |
||||||||||||||||
| Truck capacity providers: |
||||||||||||||||
| BCO Independent Contractors (3) |
40 | % | 38 | % | 39 | % | 38 | % | ||||||||
| Truck Brokerage Carriers |
53 | % | 54 | % | 54 | % | 52 | % | ||||||||
| Rail intermodal |
2 | % | 2 | % | 2 | % | 2 | % | ||||||||
| Ocean and air cargo carriers |
4 | % | 5 | % | 4 | % | 6 | % | ||||||||
| Other |
2 | % | 2 | % | 1 | % | 2 | % | ||||||||
| September 26, 2026 |
September 27, 2025 |
|||||||||||||||
| Truck Capacity Providers: |
||||||||||||||||
| BCO Independent Contractors (3) |
7,843 | 7,827 | ||||||||||||||
|
|
|
|
|
|||||||||||||
| Truck Brokerage Carriers: |
||||||||||||||||
| Approved and active (4) |
39,460 | 40,004 | ||||||||||||||
| Other approved |
28,455 | 27,461 | ||||||||||||||
|
|
|
|
|
|||||||||||||
| 67,915 | 67,465 | |||||||||||||||
|
|
|
|
|
|||||||||||||
| Total available truck capacity providers |
75,758 | 75,292 | ||||||||||||||
|
|
|
|
|
|||||||||||||
| Trucks provided by BCO Independent Contractors (3) |
8,709 | 8,618 | ||||||||||||||
| (1) | Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee. |
| (2) | Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro. |
| (3) | BCO Independent Contractors are independent contractors who provide truck capacity to the Company under exclusive lease arrangements. |
| (4) | Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end. |
LANDSTAR SYSTEM/9
Landstar System, Inc. and Subsidiary
Reconciliation of Gross Profit to Variable Contribution
(Dollars in thousands)
(Unaudited)
| Thirty-Nine Weeks Ended | Thirteen Weeks Ended | |||||||||||||||
| September 26, 2026 |
September 27, 2025 |
September 26, 2026 |
September 27, 2025 |
|||||||||||||
| Revenue |
$ | 4,115,342 | $ | 3,569,291 | $ | 1,511,787 | $ | 1,205,406 | ||||||||
| Costs of revenue: |
||||||||||||||||
| Purchased transportation |
3,212,442 | 2,775,761 | 1,182,045 | 936,472 | ||||||||||||
| Commissions to agents |
319,254 | 291,529 | 117,676 | 98,693 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Variable costs of revenue |
3,531,696 | 3,067,290 | 1,299,721 | 1,035,165 | ||||||||||||
| Trailing equipment depreciation |
19,108 | 20,829 | 6,489 | 6,985 | ||||||||||||
| Information technology costs (1) |
8,186 | 10,928 | 2,503 | 3,319 | ||||||||||||
| Insurance-related costs (2) |
130,955 | 104,622 | 55,301 | 33,305 | ||||||||||||
| Other operating costs |
53,971 | 46,996 | 21,226 | 15,572 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other costs of revenue |
212,220 | 183,375 | 85,519 | 59,181 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total costs of revenue |
3,743,916 | 3,250,665 | 1,385,240 | 1,094,346 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
$ | 371,426 | $ | 318,626 | $ | 126,547 | $ | 111,060 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit margin |
9.0 | % | 8.9 | % | 8.4 | % | 9.2 | % | ||||||||
| Plus: other costs of revenue |
212,220 | 183,375 | 85,519 | 59,181 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Variable contribution |
$ | 583,646 | $ | 502,001 | $ | 212,066 | $ | 170,241 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Variable contribution margin |
14.2 | % | 14.1 | % | 14.0 | % | 14.1 | % | ||||||||
| (1) | Includes costs of revenue incurred related to internally developed software including ASC 350-40 amortization, implementation costs, hosting costs and other support costs utilized to support the Company’s independent commission sales agents, third party capacity providers, and customers, included as a portion of depreciation and amortization and of selling, general and administrative in the Company’s Consolidated Statements of Income. |
| (2) | Primarily includes (i) insurance premiums paid for commercial auto liability, general liability, cargo and other lines of coverage related to the transportation of freight; (ii) the related cost of claims incurred under those programs; and (iii) brokerage commissions and other fees incurred relating to the administration of insurance programs available to BCO Independent Contractors that are reinsured by the Company, which are included in selling, general and administrative in the Company’s Consolidated Statements of Income. |
Date Landstar System, Inc. Earnings Conference Call 3Q 2026 Exhibit 99.2
Forward-Looking Statements Disclaimer The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements made in this slide presentation that are not based on historical facts are “forward-looking statements.” This presentation may make certain statements containing forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Such statements are by nature subject to uncertainties and risks, including but not limited to: the operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2025 fiscal year and Form 10-Q for the 2026 second quarter described in the section Risk Factors, and other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and the Company undertakes no obligation to publicly update or revise any forward-looking statements. 3Q 2026
In this slide presentation, the Company provides the following information that may be deemed a non-GAAP financial measure: variable contribution, variable contribution margin and operating income as a percentage of variable contribution. Management believes variable contribution and variable contribution margin are useful measures of the variable costs that we incur at a shipment-by-shipment level attributable to our transportation network of third-party capacity providers and independent agents in order to provide services to our customers. Management believes that operating income as a percentage of variable contribution is a useful measure as: (i) variable costs of revenue for a significant portion of the Company’s business are highly influenced by short-term market-based trends in the freight transportation industry, whereas other costs, including other costs of revenue, are much less impacted by short-term freight market trends; and (ii) this measure is meaningful to investors’ evaluations of the Company’s management of costs attributable to operations other than the purely variable costs associated with purchased transportation and commissions to agents that the Company incurs to provide services to our customers. Management also believes that it is appropriate to present each of the financial measures that may be deemed a non-GAAP financial measure, as referred to above, for the following reasons: (1) disclosure of these matters will allow investors to better understand the underlying trends in the Company’s financial condition and results of operations; (2) this information will facilitate comparisons by investors of the Company’s results as compared to the results of peer companies; and (3) management considers this financial information in its decision making. A tabulation of the expenses identified as costs of revenue as well as a reconciliation of gross profit to variable contribution and gross profit margin to variable contribution margin for the 2026 and 2025 third quarters and year-to-date periods is included in this slide presentation within the Appendix. Non-GAAP Financial Measures 3Q 2026
Frank Lonegro Chief Executive Officer 3Q 2026 Executive Summary
Slide header CEO Perspective R E S U L T S Dollars in Millions (except per share amounts) H I G H L I G H T S 3Q revenue performance 29% increase in truck transportation revenue over 3Q 2025 Strong performance in our services hauled by van and unsided/platform equipment Truck capacity Net 165 BCO truck count additions in 3Q; best performance since 3Q 2021 Operating income and EPS Negatively impacted by challenging insurance and claims environment Strong balance sheet Continuing to return meaningful capital to stockholders Investing through the cycle Supporting our network of entrepreneurs with continued investment in trailing equipment and technology Metric 3Q 2026 3Q 2025 Chg. Revenue $ 1,511.8 $ 1,205.4 25.4% Operating Income $ 65.5 $ 26.3 149.0% Earnings per Share $ 1.42 $ 0.56 153.6% Operating income and EPS during the 2025 third quarter were negatively impacted by $30.1 million and $0.66 per share, respectively, as a result of non-cash impairment charges.
Frank Lonegro Chief Executive Officer 3Q 2026 Network and Capacity
Slide header $1.41B Truck Revenue 501K Truck Loadings $2,811 Truck Revenue per Load 457 Million $ Agents* 8,709 BCO Trucks 67,915 Carriers 17,800+ Trailers 0.57 DOT Accidents per Million Miles** * Based on 2025 fiscal year ** Based on 3Q 2026 YTD; See definition of DOT Accidents within the Appendix 3Q R E S U L T S L A N D S T A R N E T W O R K Agents ~980 Customers ~20,000 Capacity 75,000+ Employees ~1,300 Landstar Network and 3Q Truckload Operating Results
Slide header Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end. Note: Fuel surcharges billed to customers on freight hauled by BCO Independent Contractors, which are paid 100% to the BCO and not included in either revenue or the cost of purchased transportation, were $262.2 million and $169.5 million in the 2026 and 2025 year-to-date periods, respectively, and $97.7 million and $58.8 million in the 2026 and 2025 third quarters, respectively. A V A I L A B L E T R U C K C A P A C I T Y P R O V I D E R S Type of Capacity Sep 26, 2026 Jun 27, 2026 Dec 27, 2025 Sep 27, 2025 BCO Independent Contractors 7,843 7,719 7,712 7,827 Truck Brokerage Carriers Approved and Active (1) 39,460 37,656 36,852 40,004 Other Approved 28,455 26,951 25,938 27,461 Total Truck Brokerage Carriers 67,915 64,607 62,790 67,465 Total Available Truck Capacity Providers 75,758 72,326 70,502 75,292 Trucks Provided by BCO Independent Contractors 8,709 8,544 8,514 8,618 Truck Capacity All information is provided as of the end of the applicable period
Jim Todd Chief Financial Officer 3Q 2026 Financial Results
Slide header Revenue Source Rate (1) Vol. (2) Chg. Truck 25.2% 3.1% 29.1% Rail Intermodal 10.6% 6.3% 17.5% Ocean/Air (14.2%) (10.8%)) (23.4%) Insurance Premiums N/A N/A 0.9% Total Revenue — — 25.4% R E S U L T S V A R I A N C E Percentage change in rate is calculated on a revenue per load basis. Percentage change in volume is calculated on the number of loads hauled. Revenue Dollars in Millions
Slide header Revenue Share Y-O-Y Change 3Q 2026 3Q 2025 Market Segment in Revenue 29.2 27.4 Consumer Durables 34 15.3 15.3 Machinery 26 9.1 9.0 Building Products 27 8.8 8.4 Electrical 31 8.0 9.0 Automotive 12 6.2 6.9 AA&E, Hazmat 14 5.2 4.8 Metals 35 4.2 2.9 Energy 79 1.2 1.6 Substitute Line Haul (8) 12.8 14.7 Other 10 Transportation logistics revenue up 26% Y-O-Y Revenue Variances by Industry Served with Revenue Share Indicated Amounts in Percent
Slide header Gross Profit Variable Contribution Amounts in % 3Q 2025 14.1 Revenue – Fixed (3) (0.3) Revenue – Variable 0.1 Change in Mix/Other 0.1 2026 14.0 C H A N G E I N V C M A R G I N Gross profit equals revenue less the cost of purchased transportation, commissions to agents and other costs of revenue. Gross profit margin equals gross profit divided by revenue. Variable contribution (VC) equals revenue less the cost of purchased transportation and commissions to agents. Variable contribution margin equals VC divided by revenue. Revenue on transactions where the Company’s variable contribution margin was based on a contractually pre-determined percentage of revenue accounted for 44% and 43% of revenue in the 2026 and 2025 third quarters, respectively. R E S U L T S 8.4% 9.2% 14.0% 14.1% Gross Profit (1) and Variable Contribution (2) with Associated Margins Dollars in Millions
Slide header Operating Income (1) Percentage of Gross Profit Variable Contribution C H A N G E I N P E R C E N T A G E of Variable Contribution R E S U L T S Amounts in % 3Q 2025 15.5) Impairment 17.7 SG&A 4.1 Depreciation and amortization 2.0 Other operating costs (0.9) Insurance and claims (7.5) 2026 30.9) Operating Income as a Percentage of Gross Profit and Variable Contribution Dollars in Millions Operating income during the 2025 third quarter was negatively impacted by $30.1 million as a result of non-cash impairment charges.
Slide header Return Type Sep 26, 2026 Sep 27, 2025 Equity 19% 15% Invested Capital 18% 13% Assets 9% 8% N E T C A S H (1) with Debt to Capital (2) as of date indicated S O U R C E S / U S E S O F C A S H Year-to-date as of date indicated Cash Flow Type 3Q 2026 3Q 2025 Cash flow from operations $ 98.7 $ 152.2 Capital expenditures $ 11.6 $ 7.7 Free cash flow (3) $ 87.1 $ 144.5 Share repurchases $ 65.2 $ 143.2 Dividends paid $ 110.2 $ 111.1 R E T U R N S Trailing 12 months as of date indicated Net cash is defined as cash and cash equivalents of $297.3 million plus short term investments of $53.7 million less outstanding debt of $82.7 million as of September 26, 2026. As of September 27, 2025, net cash was cash and cash equivalents of $375.2 million plus short term investments of $59.2 million less outstanding debt of $77.1 million. Capital is defined as total debt plus total shareholders’ equity. Free cash flow is defined as cash flow from operations less cash capital expenditures. 9% 8% Key Balance Sheet and Cash Flow Statistics Dollars in Millions
Frank Lonegro Chief Executive Officer 3Q 2026 Closing Remarks
Slide header Current Market Update and Historical Trends Ü Current Market Update - October 2026 business activity: – Truck Loads: October 2026 approximately 7% above October 2025 – Slightly above typical September to October month-to-month historical trends – Truck Revenue per Load: October 2026 approximately 29% above October 2025 – Slightly above typical September to October month-to-month historical trends Historical Trends - Pre-pandemic historical seasonality patterns would normally yield: – Truck Revenue: Slight increase from 3Q to 4Q – Truck Loads: Slight increase 3Q to 4Q – Truck Revenue per Load: Slight increase 3Q to 4Q
3Q 2026 Appendix
Slide header Revenue Breakdown by Service Type P E R C E N T A G E O F R E V E N U E 3Q 2 0 2 6 by Service Type LTL — 2% T R U C K L O A D Van — 50%, Unsided/Platform — 34% OTHER TRUCK — 7% T R U C K T R A N S P O R T A T I O N RAIL INTERMODAL — 2% OCEAN / AIR CARGO — 4% CHANGE IN SHARE SINCE 3Q 2025 Van Equipment Unsided/ Platform Equipment LTL Other Truck Transportation Rail Intermodal Ocean/ Air cargo All Other 48% Ü 50% 32% Ü 34% 2% Ü 2% 8% Ü 7% 2% Ü 2% 6% Ü 4% 2% Ü 1% ALL OTHER — 1%
Slide header Truckload Loadings and Revenue per Truckload Trends U N S I D E D / P L A T F O R M V A N NUMBER OF LOADS REVENUE PER LOAD NUMBER OF LOADS REVENUE PER LOAD
Slide header Revenue – Year-to-Date Dollars in Millions Revenue Source Rate (1) Vol. (2) Chg. Truck 16.3% 0.9% 17.4% Rail Intermodal 10.3% 7.5% 18.5% Ocean/Air (5.2%) (14.5%)) (18.9%) Insurance Premiums N/A N/A (1.2%) Total Revenue — — 15.3% R E S U L T S V A R I A N C E Percentage change in rate is calculated on a revenue per load basis. Percentage change in volume is calculated on the number of loads hauled.
Slide header Gross Profit and Variable Contribution – Year-to-Date with Associated Margins Dollars in Millions Gross Profit Variable Contribution Amounts in % 3Q YTD 2025 14.1 Change in Mix/ Other 0.2 Revenue – Variable 0.1 Revenue – Fixed (1) (0.2) 2026 14.2 C H A N G E I N V C M A R G I N Revenue on transactions where the Company’s variable contribution margin was based on a contractually pre-determined percentage of revenue accounted for 44% and 43% of revenue in the 2026 and 2025 year-to-date periods, respectively. R E S U L T S 9.0% 8.9% 14.2% 14.1%
Slide header Operating Income – Year-to-Date as a Percentage of Gross Profit and Variable Contribution Dollars in Millions Operating Income Percentage of Gross Profit Variable Contribution C H A N G E I N P E R C E N T A G E of Variable Contribution R E S U L T S Amounts in % 3Q YTD 2025 24.3) Impairment 6.0 Depreciation and amortization 1.9 SG&A 1.9 Other operating costs 0.1 Insurance and claims (2.5) 2026 31.7
Slide header Reconciliation of Gross Profit to Variable Contribution Dollars in Thousands Includes costs of revenue incurred related to internally developed software including ASC 350-40 amortization, implementation costs, hosting costs and other support costs utilized to support the Company’s independent commission sales agents, third party capacity providers, and customers, included as a portion of depreciation and amortization and of selling, general and administrative in the Company's Consolidated Statements of Income. Primarily includes (i) insurance premiums paid for commercial auto liability, general liability, cargo and other lines of coverage related to the transportation of freight; (ii) the related cost of claims incurred under those programs; and (iii) brokerage commissions and other fees incurred relating to the administration of insurance programs available to BCO Independent Contractors that are reinsured by the Company, which are included in selling, general and administrative in the Company’s Consolidated Statements of Income. 2010 2011 2009 % Proj % Plan % External Revenue #REF! #REF! #REF! Purchased Transportation 0 #REF! 0 #REF! #REF! #REF! Commissions to Agents 0 #REF! 0 #REF! #REF! #REF! Net Revenue #REF! #REF! #REF! #REF! #REF! #REF! Investment Income 0 #REF! #VALUE! #VALUE! #REF! 1.1% Other Operating Costs #REF! #REF! #REF! #REF! #REF! #REF! Insurance Expense #REF! #REF! #REF! #REF! #REF! #REF! SG&A #REF! #REF! #REF! #REF! #REF! #REF! Depreciation and Amortization #REF! #REF! #REF! #REF! #REF! #REF! Operating Income #REF! #REF! #REF! #REF! #REF! #REF! Interest and Debt Expense #REF! #REF! #REF! Income Before Income Taxes #REF! #REF! #REF! Income Taxes #REF! #REF! #REF! Net Income #REF! #REF! #REF! Diluted Earnings per Share Shares Diluted Earnings per Share % of 2013 % of 2013 % of Thirty-Nine Weeks Ended Thirteen Weeks Ended Sep 26, Sep 27, Sep 26, Sep 27, 2026 2025 2026 2025 2012 Rev/GP Plan Rev/GP Proj Rev/GP Revenue $4,115,342 $3,569,291 $1,511,787 $1,205,406 External Revenue #REF! #REF! #REF! Costs of revenue: Purchased Transportation #REF! #REF! #REF! #REF! #REF! #REF! Purchased transportation 3,212,442 2,775,761 1,182,045 ,936,472 Commissions to agents ,319,254 ,291,529 ,117,676 98,693 Variable costs of revenue 3,531,696 3,067,290 1,299,721 1,035,165 Interest and Debt Expense #REF! #REF! #REF! Income Before Income Taxes #REF! #REF! #REF! Trailing equipment depreciation 19,108 20,829 6,489 6,985 Information technology costs (1) 8,186 10,928 2,503 3,319 Insurance-related costs (2) ,130,955 ,104,622 55,301 33,305 Income Taxes #REF! #REF! #REF! Other operating costs 53,971 46,996 21,226 15,572 Other costs of revenue ,212,220 ,183,375 85,519 59,181 Total costs of revenue 3,743,916 3,250,665 1,385,240 1,094,346 Gross profit $,371,426 $,318,626 $,126,547 $,111,060 Gross profit margin 0.09 8.9% 8.4% 9.2% Plus: other costs of revenue ,212,220 ,183,375 85,519 59,181 Variable contribution $,583,646 $,502,001 $,212,066 $,170,241 Variable contribution margin 0.14199999999999999 0.14099999999999999 0.14000000000000001 0.14099999999999999 (1) Includes costs of revenue incurred related to internally developed software including ASC 350-40 amortization, implementation costs, hosting costs and other support costs utilized to support the Company’s independent commission sales agents, third party capacity providers, and customers, included as a portion of depreciation and amortization and of selling, general and administrative in the Company's Consolidated Statements of Income. (2) Primarily includes (i) insurance premiums paid for commercial auto liability, general liability, cargo and other lines of coverage related to the transportation of freight; (ii) the related cost of claims incurred under those programs; and (iii) brokerage commissions and other fees incurred relating to the administration of insurance programs available to BCO Independent Contractors that are reinsured by the Company, which are included in selling, general and administrative in the Company’s Consolidated Statements of Income. 2010 2011 2009 % Proj % Plan % External Revenue #REF! #REF! #REF! Purchased Transportation 0 #REF! 0 #REF! #REF! #REF! Commissions to Agents 0 #REF! 0 #REF! #REF! #REF! Net Revenue #REF! #REF! #REF! #REF! #REF! #REF! Investment Income 0 #REF! #VALUE! #VALUE! #REF! 1.1% Other Operating Costs #REF! #REF! #REF! #REF! #REF! #REF! Insurance Expense #REF! #REF! #REF! #REF! #REF! #REF! SG&A #REF! #REF! #REF! #REF! #REF! #REF! Depreciation and Amortization #REF! #REF! #REF! #REF! #REF! #REF! Operating Income #REF! #REF! #REF! #REF! #REF! #REF! Interest and Debt Expense #REF! #REF! #REF! Income Before Income Taxes #REF! #REF! #REF! Income Taxes #REF! #REF! #REF! Net Income #REF! #REF! #REF! Diluted Earnings per Share Shares Diluted Earnings per Share % of 2013 % of 2013 % of Thirty-Nine Weeks Ended Thirteen Weeks Ended Sep 26, Sep 27, Sep 26, Sep 27, 2026 2025 2026 2025 2012 Rev/GP Plan Rev/GP Proj Rev/GP Revenue $4,115,342 $3,569,291 $1,511,787 $1,205,406 External Revenue #REF! #REF! #REF! Costs of revenue: Purchased Transportation #REF! #REF! #REF! #REF! #REF! #REF! Purchased transportation 3,212,442 2,775,761 1,182,045 ,936,472 Commissions to agents ,319,254 ,291,529 ,117,676 98,693 Variable costs of revenue 3,531,696 3,067,290 1,299,721 1,035,165 Interest and Debt Expense #REF! #REF! #REF! Income Before Income Taxes #REF! #REF! #REF! Trailing equipment depreciation 19,108 20,829 6,489 6,985 Information technology costs (1) 8,186 10,928 2,503 3,319 Insurance-related costs (2) ,130,955 ,104,622 55,301 33,305 Income Taxes #REF! #REF! #REF! Other operating costs 53,971 46,996 21,226 15,572 Other costs of revenue ,212,220 ,183,375 85,519 59,181 Total costs of revenue 3,743,916 3,250,665 1,385,240 1,094,346 Gross profit $,371,426 $,318,626 $,126,547 $,111,060 Gross profit margin 0.09 8.9% 8.4% 9.2% Plus: other costs of revenue ,212,220 ,183,375 85,519 59,181 Variable contribution $,583,646 $,502,001 $,212,066 $,170,241 Variable contribution margin 0.14199999999999999 0.14099999999999999 0.14000000000000001 0.14099999999999999 (1) Includes costs of revenue incurred related to internally developed software including ASC 350-40 amortization, implementation costs, hosting costs and other support costs utilized to support the Company’s independent commission sales agents, third party capacity providers, and customers, included as a portion of depreciation and amortization and of selling, general and administrative in the Company's Consolidated Statements of Income. (2) Primarily includes (i) insurance premiums paid for commercial auto liability, general liability, cargo and other lines of coverage related to the transportation of freight; (ii) the related cost of claims incurred under those programs; and (iii) brokerage commissions and other fees incurred relating to the administration of insurance programs available to BCO Independent Contractors that are reinsured by the Company, which are included in selling, general and administrative in the Company’s Consolidated Statements of Income.
Slide header Free Cash Flow with Stock Purchases and Dividends Dollars and Shares in Millions 5 – Y E A R S U M M A R Y Cash Flow Item 2021 2022 2023 2024 2025 Cash flow from operations $ 277 $ 623 $ 394 $ 287 $ 225 Cash capital expenditures $ 24 $ 26 $ 26 $ 31 $ 10 Free cash flow $ 253 $ 597 $ 368 $ 256 $ 215 Share repurchases $ 123 $ 286 $ 54 $ 81 $ 180 Dividends paid $ 112 $ 116 $ 117 $ 120 $ 125 Common share count(1) 37.7 35.9 35.7 35.3 34.1 Common share count as of the end of the applicable period.
Slide header DOT Accident (1) Frequency per Million Miles Traveled by BCOs 5 – Y E A R S U M M A R Y A “DOT Accident” is defined, consistent with U.S. 49 CFR 390.5T, as an occurrence involving a commercial motor vehicle operating on a highway in interstate or intrastate commerce that results in a fatality, a bodily injury to a person who, as a result of the injury, immediately receives medical treatment away from the scene of the accident, or one or more motor vehicles incurring disabling damage as a result of the accident, requiring the motor vehicle(s) to be transported away from the scene by a tow truck or by other motor vehicle, but does not include an occurrence involving only boarding and alighting from a stationary motor vehicle or an occurrence involving only the loading or unloading of cargo.
AI Effort: AI Task Force Benefit: Accelerate the automation of routine agent & BCO workflows Unlock Growth Network Retention Improve Communications Enhance Decision Making Identify and Reduce Risk Improve Productivity Accelerate Workflow Automation Recruit, retain & grow network through enhanced technology AI Effort: BCO Retention Benefit: Targeted support for at risk BCOs AI Effort: AI agents embedded within agent portal; AI Task Force Benefit: Raise agent & BCO revenue thresholds through enhanced tools AI Effort: AI-Enhanced Fraud Detection Tool Benefit: Technology enhanced vetting to minimize fraudulent activity AI Effort: Pricing Tool; AI agents embedded within agent portal Benefit: Improve insights and decision support AI Effort: AI-Enabled Call Center; AI Task Force Benefit: Reduced network friction Improve productivity and unlock Agent & BCO growth Attract & retain Agents & BCOs Strengthen reputation as the leader in Safety, Security and Service AI For The Landstar Network of Entrepreneurs In-flight AI Efforts
AI Effort: AI-Enabled Contact Center; AI agents: AI Task Force Benefits: Synchronize agent, BCO and corporate workflows & communication Strengthen Brand Leverage Financial Strength Network Retention Enhance Decision Making Identify Risk Improve Productivity Improve Network Integration Grow network through enhanced support AI Effort: ERP; AI Enhanced Credit Benefit: Improve decision making AI Effort: AI-Enabled Contact Center; Microsoft Copilot corporate roll-out Benefit: Optimize internal resources, focus on higher value problem solving AI Effort: AI-Enhanced Fraud Detection Tool Benefit: Enhanced analytical tools to minimize fraudulent activity AI Effort: AI-Enabled Contact Center Benefit: Improve network support & access to information AI Effort: BCO Retention Tool Benefit: Improve toolkit to aid BCO retention Improve the experience for all Landstar Network stakeholders Optimize the deployment of resources Minimize risk and reduce friction throughout the Landstar Network AI For Landstar Corporate In-flight AI Efforts
Date Landstar System, Inc. Earnings Conference Call 3Q 2026