Slides
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Frank Lonegro Chief Executive Officer 4Q 2025 4 Executive Summary
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Slide header 5 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 4Q revenue performance Strong performance in our services hauled by unsided/platform equipment Overall truck revenue per load that outperformed pre-pandemic historical trends Operating income and EPS Negatively impacted by challenging insurance and claims environment (discrete insurance items of $0.49 per share); and additional Metro impairment ($0.05 per share) 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, including AI 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%)
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Jim Applegate Chief Corporate Sales, Strategy and Specialized Freight Officer 4Q 2025 6 AI Strategy
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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 related projects account for half of Landstar’s 2026 IT capital budget 7
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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 Co-Pilot 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 8
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Frank Lonegro Chief Executive Officer 4Q 2025 9 Network and Capacity
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Slide header 10 $1.08B Truck Revenue 473K Truck Loadings $2,280 Truck Revenue per Load 457 Million $ Agents** 8,514 BCO Trucks 62,790 Carriers 17,400+ Trailers 0.59 DOT Accidents per Million Miles*** ** Based on 2025 fiscal year *** Based on 2025 fiscal year; See definition of DOT Accidents within the Appendix 4Q R E S U L T SL A N D S T A R N E T W O R K 10 Agents ~960 Customers 20,000+ Capacity 70,000+ Employees* ~1,300 Landstar Network and 4Q Truckload Operating Results * Excluding LSTR Metro
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Slide header 11 (1) Active refers to truck brokerage carriers who hauled freight for Landstar in the 180-day period immediately preceding the period end. Note: Fuel surcharges billed to customers on freight hauled by BCO Independent Contractors, which are paid 100% to the BCO an d not included in either revenue or the cost of purchased transportation, were $228.9 million and $252.6 million in the 2025 and 2024 fiscal year periods, respectively, and $ 59.4 million and $ 55.4 million in the 2025 and 2024 fourth 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 Dec 27, 2025 Dec 28, 2024 BCO Independent Contractors 7,712 8,082 Truck Brokerage Carriers Approved and Active (1) 36,852 43,718 Other Approved 25,938 26,527 Total Truck Brokerage Carriers 62,790 70,245 Total Available Truck Capacity Providers 70,502 78,327 Trucks Provided by BCO Independent Contractors 8,514 8,843 Truck Capacity All information is provided as of the end of the applicable period
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Jim Todd Chief Financial Officer 4Q 2025 12 Financial Results
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Slide header 13 Revenue Source Rate (1) Vol. (2) Chg. Truck 0.5% (0.8%) (0.2%) Rail Intermodal 6.9% 22.3% 30.7% Ocean/Air (26.3%) (18.9%)) (40.2%) Insurance Premiums N/A N/A (4.4%) Total Revenue — — (2.9%) $1,174.5 $1,209.3 4Q 2025 4Q 2024 R E S U L T S V A R I A N C E (1) Percentage change in rate is calculated on a revenue per load basis. (2) Percentage change in volume is calculated on the number of loads hauled. Revenue Dollars in Millions
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Slide header 14 Revenue Share Y-O-Y Change 4Q 2025 4Q 2024 Market Segment in Revenue 27.8 27.4 Consumer Durables (2) 16.1 13.7 Machinery 14 9.6 10.1 Automotive (7) 9.4 9.4 Building Products (3) 7.4 6.5 AA&E, Hazmat 10 7.3 7.0 Electrical 1 4.8 5.0 Metals (8) 3.3 3.0 Energy 6 2.0 2.3 Substitute Line Haul (15) 12.3 15.6 Other (22) Transportation logistics revenue down 3% Y-O-Y Revenue Variances by Industry Served with Revenue Share Indicated Amounts in Percent
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Slide header 15 Gross Profit Variable Contribution $166.0 $166.5 4Q 2025 4Q 2024 Amounts in % 4Q 2024 13.8 Revenue – Variable 0.2 Change in Mix/Other 0.2 Revenue – Fixed (3) (0.1) 2025 14.1 C H A N G E I N V C M A R G I N (1) Gross profit equals revenue less the cost of purchased transportation, commissions to agents and other costs of revenue. Gro ss profit margin equals gross profit divided by revenue. (2) Variable contribution (VC) equals revenue less the cost of purchased transportation and commissions to agents. Variable cont ribution margin equals VC divided by revenue. (3) Revenue on transactions where the Company’s variable contribution margin was based on a contractually pre -determined percentage of revenue accounted for 44% and 42% of revenue in the 2025 and 2024 fourth quarters, respectively. R E S U L T S $85.6 $109.4 4Q 2025 4Q 2024 7.3% 9.0% 14.1% 13.8% Gross Profit (1) and Variable Contribution (2) with Associated Margins Dollars in Millions
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Slide header 16 Operating Income Percentage of Gross Profit Variable Contribution $29.6 $57.8 4Q 2025 4Q 2024 34.5% 52.8% 4Q 2025 4Q 2024 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 17.8% 34.7% 4Q 2025 4Q 2024 Operating Income as a Percentage of Gross Profit and Variable Contribution Dollars in Millions Amounts in % 4Q 2024 34.7) Insurance and claims (16.2) Non-cash impairment charges (1.2) SG&A (0.8) Other operating costs 0.0 Depreciation and amortization 1.3 2025 17.8
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Slide header 17 Return Type Dec 27, 2025 Dec 28, 2024 Equity 13% 20% Invested Capital 12% 18% Assets 7% 11% 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 4Q 2025 4Q 2024 Cash flow from operations $ 224.9 $ 286.6 Capital expenditures $ 9.9 $ 31.0 Free cash flow (3) $ 215.0 $ 255.6 Share repurchases $ 179.9 $ 81.4 Dividends paid $ 124.8 $ 120.5 R E T U R N S Trailing 12 months as of date indicated (1) Net cash is defined as cash and cash equivalents of $396.7 million plus short term investments of $55.5 million less outstand ing debt of $76.8 million as of December 27, 2025. As of December 28, 2024, net cash was cash and cash equivalents of $515.0 million plus short term investments of $51.6 million less outstanding debt of $102.3 million. (2) Capital is defined as total debt plus total shareholders’ equity. (3) Free cash flow is defined as cash flow from operations less cash capital expenditures. $375.4 $464.3 Dec 27, 2025 Dec 28, 2024 9% 10% Key Balance Sheet and Cash Flow Statistics Dollars in Millions
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Frank Lonegro Chief Executive Officer 4Q 2025 18 Closing Remarks
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Slide header 19 Current Market Update and Historical Trends Current Market Update - January 2026 business activity: – Truck Loads: January approximately 1% below January 2025 – Essentially in line with typical December to January month-to-month historical trends – Truck Revenue per Load: January approximately 4% above January 2025 – Modestly above typical December to January month-to-month historical trends Historical Trends - Pre-pandemic historical seasonality patterns would normally yield: – Truck Revenue: Mid-single digit to high-single digit decrease from 4Q to 1Q – Truck Loads: 4% decline 4Q to 1Q – Truck Revenue per Load: 4% decline 4Q to 1Q
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4Q 2025 20 Appendix
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Slide header 21 Revenue Breakdown by Service Type 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% P E R C E N T A G E O F R E V E N U E 4Q 2 0 2 5 by Service Type LTL — 2% T R U C K L O A D Van — 48%, Unsided/Platform — 34% OTHER TRUCK — 8% 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% C H A N G E I N S H A R E S I N C E 4 Q 2 0 2 4 Van Equipment Unsided/ Platform Equipment LTL Other Truck Transportation Rail Intermodal Ocean/ Air cargo All Other 49% 48% 30% 34% 2% 2% 8% 8% 2% 2% 7% 4% 2% 2% ALL OTHER — 2%
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Slide header 22 Truckload Loadings and Revenue per Truckload Trends 0 100,000 200,000 300,000 400,000 U N S I D E D / P L A T F O R MV A N $1,500 $1,900 $2,300 $2,700 $3,100 $3,500 NUMBER OF LOADS REVENUE PER LOAD 0 50,000 100,000 150,000 $1,500 $1,900 $2,300 $2,700 $3,100 $3,500 NUMBER OF LOADS REVENUE PER LOAD
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Slide header 23 Revenue – Fiscal Year Dollars in Millions Revenue Source Rate (1) Vol. (2) Chg. Truck 0.6% (0.9%) (0.2%) Rail Intermodal (3.5%) 7.2% 3.4% Ocean/Air (7.8%) (9.6%)) (16.7%) Insurance Premiums N/A N/A (7.3%) Total Revenue — — (1.6%) R E S U L T S V A R I A N C E (1) Percentage change in rate is calculated on a revenue per load basis. (2) Percentage change in volume is calculated on the number of loads hauled. $4,743.8 $4,819.2 2025 2024
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Slide header 24 Gross Profit and Variable Contribution – Fiscal Year with Associated Margins Dollars in Millions Gross Profit Variable Contribution $668.0 $681.3 2025 2024 Amounts in % 2025 2024 14.1 Revenue – Fixed (1) 0.0 Revenue – Variable 0.0 Change in Mix/Other 0.0 2025 14.1 C H A N G E I N V C M A R G I N (1) Revenue on transactions where the Company’s variable contribution margin was based on a contractually pre -determined percentage of revenue accounted for 43% of revenue in both the 2025 and 2024 fiscal year periods. R E S U L T S $404.2 $456.0 2025 2024 8.5% 9.5% 14.1% 14.1%
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Slide header 25 Operating Income – Fiscal Year as a Percentage of Gross Profit and Variable Contribution Dollars in Millions Operating Income Percentage of Gross Profit Variable Contribution 37.5% 54.6% 2025 2024 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 22.7% 36.5% 2025 2024 Amounts in % 2025 2024 36.5) Insurance and claims (7.3) Non-cash impairment charges (4.8) SG&A (2.5) Other operating costs (0.6) Depreciation and amortization 1.4 2025 22.7 $151.6 $248.9 2025 2024
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Slide header 26 Reconciliation of Gross Profit to Variable Contribution Dollars in Thousands Dec 27, Dec 28, Dec 27, Dec 28, 2025 2024 2025 2024 R evenue 4,743,760$ 4,819,245$ 1,174,469$ 1,209,330$ Costs of revenue: Purchased transportation 3,688,343 3,745,241 912,582 945,857 Commissions to agents 387,397 392,751 95,868 96,950 Variable costs of revenue 4,075,740 4,137,992 1,008,450 1,042,807 Trailing equipment depreciation 27,195 27,950 6,366 7,186 Information technology costs (1) 13,675 22,744 2,747 4,629 Insurance-related costs (2) 161,370 115,764 56,748 30,642 Other operating costs 61,586 58,781 14,590 14,643 Other costs of revenue 263,826 225,239 80,451 57,100 Total costs of revenue 4,339,566 4,363,231 1,088,901 1,099,907 Gross profit 404,194$ 456,014$ 85,568$ 109,423$ Gross profit margin 8.5% 9.5% 7.3% 9.0% Plus: other costs of revenue 263,826 225,239 80,451 57,100 Variable contribution 668,020$ 681,253$ 166,019$ 166,523$ Variable contribution margin 14.1% 14.1% 14.1% 13.8% Fiscal Years Ended Fiscal Quarters Ended (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 de preciation 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 Con solidated Statements of Income.
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Slide header 27 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 (1) Common share count as of the end of the applicable period.
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Slide header 28 DOT Accident (1) Frequency per Million Miles Traveled by BCOs 5 – Y E A R S U M M A R Y (1) 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. 0.65 0.62 0.60 0.59 0.59 0.50 0.55 0.60 0.65 0.70 2021 2022 2023 2024 2025
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Date Landstar System, Inc. Earnings Conference Call 4Q 2025