Landstar System Inc Underlying Markets Strengthening

Research evidence excerpt

Landstar System Inc Underlying Markets Strengthening

Global Research

28 July 2026ab

Landstar System Inc Equities

United StatesUnderlying Markets Strengthening

Trucking

12-month rating Neutral *

Pricing and loads showing improvement; we would like follow-through

LSTR reported 2Q26 EPS of $1.44/share below consensus of $1.48/ share and in-line 12m price target US$195.00

with our estimate of $1.44/share. Total revenue was above our forecast with strength in Prior : US$185.00

unsided/platform equipment and van equipment, while revenue on BCOs was 1,370 bp

Price (28 Jul 2026) US$185.32

stronger than our forecast. LSTR's adj OR of 95.6% was ~30 bp weaker than our

forecast, negatively impacted by higher purchased transportation costs. Truck RIC: LSTR.O BBG: LSTR US

transportation pricing (+17.0%) was stronger than our +7.4% estimate. LSTR also

Trading data and key metrics

continued to face pressure from ocean and air segment in 2Q26.

52-wk range US$225.37-120.68

BCO truck count is starting to inflect as the freight environment improves Market cap. US$6.34b

Shares o/s 34.2m (ORD)

LSTR’s BCO truck count remained below prior-year levels, but the sequential trend

Free float 100%

turned positive, with net 68 BCO truck additions in 2Q, the strongest quarterly

improvement since 1Q22. Management also noted that the trailing 12-month BCO Avg. daily volume ('000) 493

truck turnover rate improved to 28.3% at the end of 2Q vs. 31.4% as of year end 2025, Avg. daily value (m) US$98.9

while gross additions increased 4.2% sequentially and cancellations declined 13.6%. Common s/h equity (12/26E) US$0.75b

The trend also extended into July, with net 49 BCO trucks added in the first four weeks, P/BV (12/26E) 8.3x

and management noted that cancellation improvement typically leads additions.