Landstar System Reports 9% Revenue Decline to $4.82 Billion for Fiscal Year 2024

Landstar System, Inc. reported a revenue of $4.82 billion for the fiscal year ending December 28, 2024, marking a decrease of 9% from the previous year's revenue of $5.30 billion. The decline in revenue was primarily attributed to a reduction in the number of loads hauled, which fell by approximately 8%, alongside a slight decrease in revenue per load. The company's net income also decreased to $195.9 million, or $5.51 per share, down from $264.4 million, or $7.36 per share, in fiscal year 2023.

The company's transportation logistics segment, which is its primary revenue driver, generated $4.76 billion in external revenue, a decrease of 10% compared to the prior year. This segment accounted for 90% of total revenue, with truck transportation services provided by BCO Independent Contractors and Truck Brokerage Carriers making up the majority of this revenue. The insurance segment contributed approximately $63.2 million, representing about 1% of total revenue, which also saw a decline due to fewer trucks being provided by independent contractors.

Landstar's operational metrics reflected a challenging market environment, with the number of Million Dollar Agents—those generating at least $1 million in revenue—decreasing to 485 from 524 in the previous year. The average revenue generated per Million Dollar Agent also fell to $9.39 million, down from $9.65 million in fiscal year 2023. The company maintained a network of approximately 1,050 independent commission sales agents and over 78,000 third-party capacity providers, which are crucial for its asset-light business model.

In terms of strategic developments, Landstar continued to invest in technology, allocating approximately $34 million in fiscal year 2024 to enhance its digital tools and applications. The company has focused on improving its operational efficiency and customer service through these technological advancements. Additionally, Landstar declared a special cash dividend of $2.00 per share, payable in January 2025, reflecting its commitment to returning value to shareholders despite the recent decline in profitability.

Looking ahead, Landstar's management expressed cautious optimism, emphasizing the importance of adapting to market conditions and enhancing its agent network to drive future revenue growth. The company aims to recruit new agents and increase the revenue opportunities for existing agents while continuing to leverage its technology to improve operational efficiencies. However, the ongoing economic uncertainties and competitive pressures in the transportation and logistics industry may pose challenges to achieving these objectives.