Landstar System, Inc. · NASDAQ:LSTR
Landstar System — Investor Presentation (April 2025)
47 slides from Landstar System's investor presentation, Apr 2, 2025
Slide 1: Research Analysts Presentation
Research Analysts Presentation 2025 Agent Convention Hollywood, FL April 2, 2025 Date 1
Slide 2: Forward-Looking Statements Disclaimer
Research Analysts Presentation 2025 Agent Convention Hollywood, FL April 2, 2025 Forward-Looking Statements Disclaimer The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements made during this presentation that are not based on historical fact
Slide 3: Landstar's Executive Leadership Team
Landstar’s Executive Leadership Team Research Analysts Presentation 2025 Agent Convention Frank Lonegro President & CEO Joe Beacom President of Landstar System Holdings, Inc. Jim Applegate Chief Corporate Sales, Strategy and Specialized Freight Officer Aimee Cooper Chief Administrative Officer Rick
Slide 4: Key messages for today
Key messages for today Research Analysts Presentation 2025 Agent Convention The Landstar model is unique, strong and resilient with 485 Successful Model million-dollar agents and ~8,600 trucks provided by BCOs Spanning North America and offering all transportation modes Leveraging Scale with access
Slide 5: Landstar's network supports loyal customer base
Landstar’s network supports loyal customer base Research Analysts Presentation 2025 Agent Convention LANDSTAR NETWORK CUSTOMER PROFILE Agents Customers Capacity Employees Revenue Generation ~1,050 23,000+ 78,000+ ~1,400 Customer Segment Percent of Revenue* Largest single customer ~6% Top 100 custome
Slide 6: Representing widely diversified commodity groups
Representing widely diversified commodity groups Research Analysts Presentation 2025 Agent Convention 2024 REVENUE by Market Segment Consumer Durables Hazmat, Highly diversified end-markets including Consumer Munitions Consumer Retail, Appliances, Furniture & Staples Automotive & Explosives Metals 2
Slide 7: Utilizing multiple equipment types and service offerings
Utilizing multiple equipment types and service offerings Research Analysts Presentation 2025 Agent Convention Total Revenue (Billions) Percents of Total Annual Totals in BOLD Van Unsided Other Van Unsided Other Detail of “Other” shown below $7.44 50.8% $6.54 $1.78 $1.46 $5.30 $4.62 $4.82 $4.08 $4.13
Slide 8: Benefitting from the Landstar customer value proposition
Benefitting from the Landstar customer value proposition Research Analysts Presentation 2025 Agent Convention Experienced Agents 1,000+ agents geographically dispersed throughout North America Blended capacity solution with vast, 78,000+ network of Landstar BCOs Blended Capacity and third-party carr
Slide 9: Driving volume growth of 2.4% CAGR since 2010
Driving volume growth of 2.4% CAGR since 2010 Research Analysts Presentation 2025 Agent Convention TOTA L L A N D S TA R V O L U M E S (Millions) 2.65 2.52 2.20 2.14 2.08 2.05 2.02 1.97 1.82 1.76 1.63 1.53 1.50 1.46 1.47 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 9
Slide 10: Importantly, Landstar typically grows faster than the market
Importantly, Landstar typically grows faster than the market Research Analysts Presentation 2025 Agent Convention LSTR TRUCKLOADS VS. FTR SUPER LONG -HAUL INDEX Base Year of 2010 = 100% LSTR Truck Loads FTR Super Long-Haul Index (550 + mil LOH) 200% 182% 175% 172% 152% 150% 146% 142% 139% 139% 135%
Slide 11: Multi-faceted array of growth initiatives
Multi-faceted array of growth initiatives Research Analysts Presentation 2025 Agent Convention S T R AT E G I C G R O W T H A R E A S In Flight Evaluating How to Scale Plan Under Development Accelerating the model Contract market Hazmat Heavy Haul Cold chain Cross-border Expedited 11
Slide 12: Execute Growth Strategy
Execute Growth Strategy Jim Applegate ⚫ Matt Dannegger Date 12
Slide 13: Landstar model anchored by the million-dollar agents
Landstar model anchored by the million-dollar agents Research Analysts Presentation 2025 Agent Convention MILLION DOLLAR AGENTS NUMBER OF AGENTS KEY POINTS 625 608 593 542 555 525 512 524 504 504 478 502 508 485 Loyalty 468 Million Dollar Agents are loyal with a 97+% annual retention rate since 2010
Slide 14: Supporting our million dollar agents is paramount
Supporting our million dollar agents is paramount Research Analysts Presentation 2025 Agent Convention MILLION DOLLAR AGENTS AVG. REVENUE / AGENT KEY POINTS (Millions) Production Annual revenue per agent has grown ⚫ The agent family has been empowered by a 5.3% CAGR since 2010 through the investment
Slide 15: Recruiting new agents provides multi-year growth supplement
Recruiting new agents provides multi-year growth supplement Research Analysts Presentation 2025 Agent Convention N E W A G E N T I M PA C T 10-Year Study Revenue in Millions (Full Fiscal Year) New agent recruiting is important Had we stopped recruiting agents effective 12/31/14, our 2024 consolidate
Slide 16: Developing agents through Grow Your Star
Developing agents through Grow Your Star Research Analysts Presentation 2025 Agent Convention AGENT DEVELOPMENT 2022 2023 2024 2025+ Grow Your Star Grow Your Star Next Level & Next Generation Grow Your Star Grow Your Star Mexico Heavy Haul Launched Year 2 Agent Segmentation Segmentation Action Plans
Slide 17: Grow Your Star successful in driving growth, profitability
Grow Your Star successful in driving growth, profitability Research Analysts Presentation 2025 Agent Convention GY S C O H O R T S V E R S U S E X I ST I N G AG E N T S Fiscal Year Results 2024 versus 2023 Since inception in 2022, GYS attendees have outperformed existing agents Class Agencies Financ
Slide 18: Landstar is the industry leader in heavy, specialized freight
Landstar is the industry leader in heavy, specialized freight Research Analysts Presentation 2025 Agent Convention HEAVY HAUL FREIGHT REVENUE KEY POINTS Millions $498 ⚫ Ranked #1 in the 2024 ACT Transport 50 $438 $441 ⚫ Markets served include: $395 – Data center $385 $378 – Machinery – Aerospace and
Slide 19: U.S. Mexico cross-border
U. S. Mexico cross - border Research Analysts Presentation 2025 Agent Convention U.S. / MEXICO CROSS-BORDER FREIGHT REVENUE KEY POINTS Millions $742 ⚫ Early mover advantage from 2017 transload facility investment $643 $579 ⚫ Agent, capacity and employee expertise $544 ⚫ Long-term secular tailwinds,
Slide 20: Evaluating the sizable contract freight opportunity
Evaluating the sizable contract freight opportunity Research Analysts Presentation 2025 Agent Convention Freight Traffic Mix Addressable Market 100% $90 - $105B 90% 80% Spot 70% $15-$25B Contract Freight 60% 50% 40% 30% Contract $75-$80B 20% 10% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Spot Market F
Slide 21: Hazmat naturally fits the Landstar model
Hazmat naturally fits the Landstar model Research Analysts Presentation 2025 Agent Convention All Landstar BCO’s are hazmat certified Certifications – Transport criteria – All State permits Federal Hazmat Safety Permit Permitting – PIH & TIH clearance – Less than 1% of all U.S. motor carriers are sa
Slide 22: Cold chain
Cold chain Research Analysts Presentation 2025 Agent Convention Types of Services Market Overview Market Definition High Temperature sensitive shipments requiring superior safety, security, and service Temperature Temperature Controlled Validated Transportation Target Market Value High value pharmac
Slide 23: Expedited freight
Expedited freight Research Analysts Presentation 2025 Agent Convention Types of Services Market Overview Market Definition Smaller shipments that require additional safety, Time sensitive, exclusive use Specialized security and timeliness handling and transportation cargo securement Target Market Pl
Slide 24: Capacity Strategy
Capacity Strategy Matt Miller Date 24
Slide 25: Growth strategy leverages best-in-class BCO fleet
Growth strategy leverages best-in-class BCO fleet Research Analysts Presentation 2025 Agent Convention Freedom & Loading Cost Industry-Leading The Opportunities Savings Support Landstar Brand BCO value proposition attracts seasoned owner operators 25
Slide 26: BCO profile
BCO profile Research Analysts Presentation 2025 Agent Convention T H E L A N D S TA R B C O Entrepreneur Experienced Exceptional BCOs haul Characteristics Safety, Security and Service ⚫ What they want ⚫ Owns and operates 10+ y/o tractor ⚫ 6,964 safety award recipients ⚫ Where they want, and ⚫ Driven
Slide 27: Walter Jackson
TCA Professional Driver of the Year Research Analysts Presentation 2025 Agent Convention Landstar BCO Walter Jackson 27
Slide 28: Landstar relentlessly pursues risk mitigation
Landstar relentlessly pursues risk mitigation Research Analysts Presentation 2025 Agent Convention D OT R E P O R TA B L E C R A S H F R E Q U E N C Y per Million Miles Driven 1.00 2021 National Average – 0.96 0.75 0.65 0.62 0.60 0.57 0.57 0.57 0.59 0.56 0.56 0.50 Landstar Performance 0.25 0.00 2016
Slide 29: BCO fleet poised to recover as cycle turns and rates rise
BCO fleet poised to recover as cycle turns and rates rise Research Analysts Presentation 2025 Agent Convention B C O T R U C K C O U N T & VA N R AT E P E R M I L E 2016 - 2024 Ending BCO truck count BCO van rate per mile = Freight Recession Ending BCO Truck Count BCO Van Rate per Mile 12,000 $4.50
Slide 30: Industry leading stickiness of the Landstar model
Industry leading stickiness of the Landstar model Research Analysts Presentation 2025 Agent Convention BCO TURNOVER A N N UA L R AT E S KEY POINTS 2010 - 2024 FY24 VS. FY23 41.0% Improvement BCO turnover improved 650 basis points, FY24 versus 35.3% 35.6% 34.5% the high-water mark of 41.0% in FY23. 3
Slide 31: Focus areas
Focus areas Research Analysts Presentation 2025 Agent Convention ⚫ Expand reach through agent engagement Recruiting ⚫ Focused nurturing / re-engagement of former BCOs ⚫ Lean into strengths – freedom and opportunity ⚫ Technology – easier to do business Qualifications ⚫ People – restructure + capacity
Slide 32: Technology Update
Technology Update Jim Applegate ⚫ Joe Beacom ⚫ Rick Coro Date 32
Slide 33: Landstar technology
Landstar technology Research Analysts Presentation 2025 Agent Convention KEY POINTS Steadfast commitment to tech-enabled experience for agents, BCOs, Leadership customers and employees Investment We’ve invested nearly $200 million since 2016 – no disruption as a result We have significantly increase
Slide 34: Digital transformation protected the Landstar model
Digital transformation protected the Landstar model Improving productivity and effectiveness of agents and capacity Research Analysts Presentation 2025 Agent Convention T R A N S F O R M AT I O N O V E R V I E W Timeframe Investment 2016 — 2024 ~$200M* Investment Purpose Cloud-based modular platform
Slide 35: Technology investment has been focused on agents and capacity
Technology investment has been focused on agents and capacity Research Analysts Presentation 2025 Agent Convention KEY BENEFITS 1. Table Stakes – Disrupt the Disruptors 2. Increase Revenue 3. Agent/Capacity Productivity 4. Corporate Efficiencies 35
Slide 36: Future investment focused on core systems and AI
Future investment focused on core systems and AI Research Analysts Presentation 2025 Agent Convention 1. Entering maintenance and enhancement mode on agent TMS and capacity tools & Extensions ERP Billing & Settlements 2. Pivoting focus to HQ technology to improve efficiency and ease of doing busines
Slide 37: AI-enabled platform (AIP) and AI in-flight
AI-enabled platform (AIP) and AI in-flight Research Analysts Presentation 2025 Agent Convention AI Use-Cases 1. Pricing 2. BCO Retention 3. Agent Co-Pilot 4. Image Processing 5. Software Development 37
Slide 38: Financial Review & Investment Thesis
Financial Review & Investment Thesis Frank Lonegro ⚫ Jim Todd Date 38
Slide 39: Variable contribution margins reflect cycle, mix
Variable contribution margins reflect cycle, mix Research Analysts Presentation 2025 Agent Convention $7.44 $6.54 $5.30 $4.62 $4.82 $4.08 $4.13 Revenue $3.17 $3.65 (Billions) 2016 2017 2018 2019 2020 2021 2022 2023 2024 11.50 11.76 10.53 10.41 10.55 Average BCO Tractor Count 9.48 9.50 10.14 9.24 (Th
Slide 40: Restoring margins as cycle returns/inflects
Restoring margins as cycle returns/inflects Research Analysts Presentation 2025 Agent Convention TA R G E T PA S T P E R F O R M A N C E Return to Target Near 70% Achieved Misses incremental 2021 – 74.2%* 2022 – 64.1% variable contribution dollars 2018 – 71.2% 2015 – 65.1% pushed through to operatin
Slide 41: Significant cash generating capabilities
Significant cash generating capabilities Research Analysts Presentation 2025 Agent Convention KEY CASH FLOW METRICS 2010 — 2024 Amounts in Millions Net income from continuing operations Free cash flow FCF conversion Net income from continuing operations and free cash flow FCF conversion $600 150% $5
Slide 42: Robust capital return program
Robust capital return program Research Analysts Presentation 2025 Agent Convention C A P I TA L R E T U R N S 2010 — 2024 Total amounts shown below are in millions and represent the sum of both share repurchases and dividends paid Purchases of common stock Dividends paid $450 $401.7 $400 $350 $297.0
Slide 43: Committed to patiently and opportunistically repurchasing shares
Committed to patiently and opportunistically repurchasing shares Research Analysts Presentation 2025 Agent Convention NET INCOME AND AVERAGE DILUTED SHARE COUNT 2010 — 2024 Amounts in Millions Net income from continuing operations (bar) DWASO (line) $500 50 $450 48 $400 46 $350 44 $300 42 $250 40 $2
Slide 44: Investment thesis supports strong future returns
Investment thesis supports strong future returns Research Analysts Presentation 2025 Agent Convention ⚫ Growing faster than the market Growth ⚫ Multiple paths to growth ⚫ Safety and security Focus ⚫ Service and efficiency ⚫ Demonstrated ability to push 70% of incremental variable Leverage contributi
Slide 45: First Quarter Preliminary Results
First Quarter Preliminary Results Jim Todd Date 45
Slide 46: 1Q Preliminary Results
1Q Preliminary Results Research Analysts Presentation 2025 Agent Convention ⚫ Expect revenue to be at or near the mid-point of guidance range ⚫ First eight weeks of 1Q, variable contribution margin was within the guidance range ⚫ Highly elevated insurance and claims costs, primarily due to cargo the
Slide 47: Research Analysts Presentation
Research Analysts Presentation 2025 Agent Convention Hollywood, FL April 2, 2025 Date 47