# Landstar System Inc. (LSTR) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/LSTR/thesis · /stocks/LSTR/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: LSTR
step: "04"
title: Financial Snapshot
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Three-Year Income Statement Summary

| Metric | FY2021 | FY2022 | FY2023 |
|--------|--------|--------|--------|
| Revenue | $5,756M | $7,209M | $4,758M |
| Purchased Transportation | ($4,735M) | ($6,085M) | ($3,940M) |
| **Gross Profit** | **$1,021M** | **$1,124M** | **$818M** |
| Gross Margin | 17.7% | 15.6% | 17.2% |
| SG&A + Other | ($430M) | ($430M) | ($400M) |
| **Operating Income** | **$591M** | **$694M** | **$418M** |
| Operating Margin | 10.3% | 9.6% | 8.8% |
| Interest & Other | ($5M) | ($8M) | ($10M) |
| Pre-tax Income | $586M | $686M | $408M |
| Income Tax (~24%) | ($141M) | ($165M) | ($98M) |
| **Net Income** | **$445M** | **$521M** | **$310M** |
| Diluted Shares | ~37.5M | ~36.2M | ~35.5M |
| **Diluted EPS** | **$11.87** | **$14.38** | **$8.73** |

*Note: All figures approximate; sourced from Landstar 10-K filings and standardized financial databases. Minor rounding applied.*

#### Revenue Trend Narrative

**FY2021 ($5.76B)**: Strong recovery from COVID-19 disruption. Freight demand surged as goods spending exploded and supply chains buckled. Revenue per load rose sharply; load counts recovered toward pre-pandemic levels. Gross profit expanded meaningfully.

**FY2022 ($7.21B — Peak)**: Historic cycle peak. Revenue per truck load reached record levels (~$3,500–$4,000) driven by unprecedented carrier pricing power in a capacity-constrained, demand-surging freight market. Landstar achieved all-time high revenue and EPS. Operating income of $694M was nearly double the pre-pandemic baseline.

**FY2023 ($4.76B — Trough)**: Freight recession. Carriers had over-invested in capacity; consumer spending shifted back from goods to services; inventory destocking reduced shipper demand. Revenue per truck load fell ~35% from peak. Load counts also declined. Revenue fell 34% from the FY2022 peak. Despite this severe top-line contraction, operating income of $418M remained well above pre-pandemic levels and operating margin held at 8.8% — demonstrating the resilience of the variable cost model.

#### Gross Margin Analysis

Landstar's gross margin is the most important margin metric. Its relative stability (15–18% across very different revenue environments) is the clearest evidence of the business model's structural advantage.

| Year | Rev/Load | Gross Margin | Op Margin |
|------|----------|-------------|-----------|
| FY2019 | ~$2,000 | 16.5% | 8.2% |
| FY2020 | ~$2,100 | 17.8% | 9.1% |
| FY2021 | ~$3,000 | 17.7% | 10.3% |
| FY2022 | ~$3,600 | 15.6% | 9.6% |
| FY2023 | ~$2,500 | 17.2% | 8.8% |

The inverse relationship between revenue per load and gross margin % is logical: in a hot market, carrier costs rise faster than Landstar's ability to expand its spread, compressing margins. In a soft market, carrier costs fall and Landstar's spread widens slightly. The result is a natural margin stabilizer.

#### Operating Expense Structure

Below gross profit, Landstar's fixed cost base is lean:
- **Insurance/Claims**: Signature Insurance subsidiary; roughly $60–75M/year depending on accident frequency
- **SG&A (Corporate)**: Technology, executive team, legal/compliance, finance; ~$120–140M/year
- **Depreciation**: Minimal (asset-light); primarily technology infrastructure; ~$20–30M/year
- **Total below-gross costs**: ~$400–430M/year — relatively stable regardless of revenue cycle

This lean fixed cost base means that gross profit is the primary driver of operating income variability. A $100M swing in gross profit flows almost entirely to operating income.

#### Earnings Per Share

| Year | Diluted EPS | YoY Change |
|------|------------|-----------|
| FY2019 | $5.56 | — |
| FY2020 | $5.45 | -2.0% |
| FY2021 | $11.87 | +117.8% |
| FY2022 | $14.38 | +21.1% |
| FY2023 | $8.73 | -39.3% |
| FY2024E | ~$9.50–$10.50 | +9–20% est. |

EPS benefited from consistent share count reduction: ~2–3% annually through buybacks, providing a small but consistent tailwind to per-share metrics.

#### Cash Flow Profile

| Metric | FY2021 | FY2022 | FY2023 |
|--------|--------|--------|--------|
| Operating Cash Flow | ~$520M | ~$570M | ~$400M |
| CapEx | (~$30M) | (~$35M) | (~$25M) |
| Free Cash Flow | ~$490M | ~$535M | ~$375M |
| FCF Margin | 8.5% | 7.4% | 7.9% |
| FCF Conversion (net income) | ~110% | ~103% | ~121% |

FCF conversion consistently exceeds 100% of net income because the business is not capital-intensive and working capital is generally a source of cash (carriers paid on longer cycles than shippers pay Landstar).

#### Balance Sheet Snapshot (FY2023 Year-End)

| Item | Amount |
|------|--------|
| Cash & Equivalents | ~$620M |
| Receivables (net) | ~$500M |
| Total Current Assets | ~$1,200M |
| PP&E (net) | ~$75M |
| Goodwill | ~$52M |
| Total Assets | ~$1,600M |
| Accounts Payable / Carrier Payables | ~$450M |
| Long-term Debt | ~$150M |
| Total Stockholders' Equity | ~$800M |
| Net Debt (Debt - Cash) | **Net Cash ~$470M** |

The balance sheet is fortress-class: net cash position, minimal debt (legacy senior notes, manageable), and goodwill that is not material. The business generates more cash than it needs to operate.

#### Valuation Context

At a ~$170–$180 share price (approximate 2024 mid-year range):
- Market Cap: ~$5.8–$6.2B
- Enterprise Value: ~$5.3–$5.7B (net cash position reduces EV)
- P/E (FY2023): ~20x trough earnings
- EV/EBITDA (FY2023): ~12–13x trough EBITDA
- P/FCF (FY2023): ~16x trough FCF

On normalized earnings (estimated $11–13 EPS mid-cycle), the stock trades at roughly 14–16x normalized earnings — reasonable for a high-quality, asset-light industrial compounder.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/LSTR/fundamental

## Navigation

- Overview: /stocks/LSTR
- Financials (this page): /stocks/LSTR/financials
- Thesis: /stocks/LSTR/thesis
- Investment Memo: /stocks/LSTR/memo
- Coverage universe: /stocks