LANDSTAR SYSTEM Business Summary

Landstar System, Inc. (LSTR) operates as a premier asset-light provider of integrated transportation management solutions, generating revenue primarily through a variable-cost business model centered on commissions from its extensive network of independent sales agents and third-party capacity providers. The company’s primary business segment, Transportation Logistics, accounts for the vast majority of revenue, offering a suite of services including truckload, less-than-truckload, intermodal, rail, air, and ocean freight. Unlike traditional carriers, Landstar does not own a fleet of trucks, instead utilizing a unique model that leverages over 1,200 independent agents and approximately 10,000 BCO (Business Capacity Owner) independent contractors. Its primary competitors include C.H. Robinson Worldwide, J.B. Hunt Transport Services, and Knight-Swift Transportation. Within this landscape, Landstar distinguishes itself by maintaining lower capital expenditure requirements than asset-heavy peers like Knight-Swift while offering more specialized, heavy-haul, and high-value equipment options than pure-play brokers like C.H. Robinson. The company is currently led by President and CEO Frank Lonegro, who assumed the role in early 2024 following a distinguished 23-year tenure at CSX Corporation, where he served as Executive Vice President and CFO. Supporting the executive suite is James P. Todd, who serves as Vice President and Chief Financial Officer, bringing deep expertise in transportation finance, and Joseph J. Beacom, the Vice President and Chief Safety & Operations Officer, who has been instrumental in maintaining the company’s industry-leading safety standards for over two decades. Landstar was originally formed in 1988 through the acquisition of several regional trucking companies and has since evolved into a Fortune 500 mainstay. The company’s board is characterized by strong institutional backing, with major stakeholders including The Vanguard Group, BlackRock, and State Street Corporation, reflecting its status as a highly disciplined, dividend-paying entity with a focus on shareholder returns through its unique agent-centric ecosystem.