Company Reports

Landstar System ranks among the largest third-party logistics providers in the highly fragmented $120 billion-plus domestic asset-light truck brokerage space. Since Landstar doesn't own tractors, only a fleet of trailers, it has lower operating leverage than asset-based truckload carriers. Thus, it enjoys a variable cost structure with low capital intensity, generating impressive capital returns near 31% on average over the past five years. Moreover, as one of the largest providers, Landstar has built a vast network of shippers, asset-based truckload carriers, and independent sales agents that support a wide economic moat, in our view.

Truck brokerage specialist Landstar’s second-quarter gross revenue jumped 18% year over year on strong recovery in truckload-market spot pricing and modest volume improvement. Net operating margin also increased thanks to positive operating leverage.

Landstar System ranks among the largest third-party logistics providers in the highly fragmented $120 billion-plus domestic asset-light truck brokerage space. Since Landstar doesn't own tractors, only a fleet of trailers, it has lower operating leverage than asset-based truckload carriers. Thus, it enjoys a variable cost structure with low capital intensity, generating solid capital returns near 31% on average over the past five years. Moreover, as one of the largest providers, Landstar has built a vast network of shippers, asset-based truckload carriers, and independent sales agents that support a wide economic moat, in our view.

Truck brokerage specialist Landstar’s first-quarter gross revenue flipped positive year over year (up 2%) on recovering trucking-segment pricing conditions. Net revenue—gross revenue less purchased transportation—outpaced gross revenue growth as gross margin (net revenue/gross revenue) expanded.

Landstar System ranks among the largest third-party logistics providers in the highly fragmented $120 billion-plus domestic asset-light truck brokerage space. Since Landstar doesn't own tractors, only a fleet of trailers, it has lower operating leverage than asset-based truckload carriers. Thus, it enjoys a variable cost structure with low capital intensity, generating solid capital returns near 31% on average over the past five years. Moreover, as one of the largest providers, Landstar has built a vast network of shippers, asset-based truckload carriers, and independent sales agents that support a wide economic moat, in our view.

Landstar System ranks among the largest third-party logistics providers in the highly fragmented $120 billion-plus domestic asset-light truck brokerage space. Since Landstar doesn't own tractors, only a fleet of trailers, it has lower operating leverage than asset-based truckload carriers. Thus, it enjoys a variable cost structure with low capital intensity, generating solid capital returns near 32% on average over the past five years. Moreover, as one of the largest providers, Landstar has built a vast network of shippers, asset-based truckload carriers, and independent sales agents that support a wide economic moat, in our view.

Several North American freight brokerage names, including truck brokers and global forwarders, sold off on Feb. 12. We suspect this was driven by speculative concerns over potential AI-related disruption—a dynamic that seems to be making its way around several sectors of the economy.

Truck brokerage specialist Landstar’s fourth-quarter gross revenue was down 3% year over year as lower rail, air, and ocean revenue more than offset flattish core truck transportation revenue. Net revenue fell slightly less than gross revenue as gross margin (net revenue/gross revenue) expanded.

Landstar System ranks among the largest third-party logistics providers in the highly fragmented $120 billion-plus domestic asset-light truck brokerage space. Since Landstar doesn't own tractors, only a fleet of trailers, it has lower operating leverage than asset-based truckload carriers. Thus, it enjoys a variable cost structure with low capital intensity, generating solid capital returns near 33% on average over the past five years. Moreover, as one of the largest providers, Landstar has built a vast network of shippers, asset-based truckload carriers, and independent sales agents that support a wide economic moat, in our view.

Truck brokerage specialist Landstar’s third-quarter gross revenue fell 1% year over year as lower rail, air, and ocean revenue more than offset flattish core truck transportation revenue. Net revenue also fell 1%, while gross margin (net revenue/gross revenue) held mostly steady.

Landstar System ranks among the largest third-party logistics providers in the highly fragmented $120 billion-plus domestic asset-light truck brokerage space. Since Landstar doesn't own tractors, only a fleet of trailers, it has lower operating leverage than asset-based truckload carriers. Thus, it enjoys a variable cost structure with low capital intensity, generating solid capital returns near 33% on average over the past five years. Moreover, as one of the largest providers, Landstar has built a vast network of shippers, asset-based truckload carriers, and independent sales agents that support a wide economic moat, in our view.

Landstar’s second-quarter gross revenue fell 1% year over year as lower rail, air, and ocean revenue more than offset a 1% increase in core truck transportation revenue. Net revenue fell 2% on slight gross margin (net revenue/gross revenue) deterioration from higher capacity rates.

Landstar System ranks among the largest third-party logistics providers in the highly fragmented $120 billion-plus domestic asset-light truck brokerage space. Since Landstar doesn't own tractors, only a fleet of trailers, it has lower operating leverage than asset-based truckload carriers. Thus, it enjoys a variable cost structure with relatively low capital intensity that generates solid capital returns near 33%, on average, over the past five years. Moreover, as one of the largest providers, Landstar has built a vast network of shippers, asset-based truckload carriers, and independent sales agents that support a wide economic moat, in our view.

Truck brokerage specialist Landstar’s first-quarter gross revenue fell 2% year over year on the continued soft pricing and demand backdrop across the truckload shipping landscape. Net revenue fell 4% on gross margin (net revenue/gross revenue) deterioration, driven mostly by mix.

President Donald Trump announced sweeping tariffs on all US imports. For the trucking and freight brokerage sectors, the key threat is the tariffs' impact on macroeconomic growth in terms of US real goods spending and industrial production.

Landstar System ranks among the largest third-party logistics providers in the highly fragmented $120 billion-plus domestic asset-light truck brokerage space. Since Landstar doesn't own tractors, only a fleet of trailers, it has lower operating leverage than asset-based truckload carriers. Thus, it enjoys a variable cost structure with relatively low capital intensity that generates solid capital returns in excess of 35%, on average, over the past five years. Moreover, as one of the largest providers, Landstar has built a vast network of shippers, asset-based truckload carriers, and independent sales agents that support a wide economic moat, in our view.

Landstar System ranks among the largest third-party logistics providers in the highly fragmented $120 billion-plus domestic asset-light truck brokerage space. Since Landstar doesn't own tractors, only a fleet of trailers, it has lower operating leverage than asset-based truckload carriers. Thus, it enjoys a variable cost structure with relatively low capital intensity that generates solid capital returns in excess of 35%, on average, over the past five years. Moreover, as one of the largest providers, Landstar has built a vast network of shippers, asset-based truckload carriers, and independent sales agents that support a wide economic moat, in our view.

Landstar System’s fourth-quarter gross revenue rose 0.5% year over year as an encouraging uptick in pricing (revenue per load) was mostly offset by lower dry van volume. Net revenue fell 5%, however, on gross margin (net revenue/gross revenue) deterioration from rising spot rates paid for capacity.

Landstar System ranks among the largest third-party logistics providers in the highly fragmented $120 billion-plus domestic asset-light truck brokerage space. Since Landstar doesn't own tractors, only a fleet of trailers, it has lower operating leverage than asset-based truckload carriers. Thus, it enjoys a variable cost structure with relatively low capital intensity that generates solid capital returns in excess of 30%, on average, over the past seven years. Moreover, as one of the largest providers, Landstar has built a vast network of shippers, asset-based truckload carriers, and independent sales agents that support a wide economic moat, in our view.

Wide-moat truck broker Landstar's third-quarter gross revenue fell 6% year over year, falling short of our expected run rate, as we were anticipating a more meaningful sequential uptick in pricing (average revenue per load). Relative to the same period last year, the operating backdrop continued to face sluggish industrial end markets and abundant truck-load-market capacity, which has pressured Landstar's spot volumes and pricing on dry van and flatbed business since late 2022. Additionally, shipments the company handles for other logistics providers continued to decline because of persistent excess capacity across the trucking marketplace.