Landstar System Reports Fourth Quarter Revenue of $1.209B and Earnings Per Share of $1.31

Core Insights - Landstar System, Inc. reported a basic and diluted earnings per share (EPS) of $1.31 for the fourth quarter of 2024, with total revenue of $1.209 billion, marking a year-over-year revenue growth for the first time since Q3 2022 [1][4] - The company experienced a sequential increase in truck pricing and strong performance in its unsided/platform service offering, contributing to the revenue growth [1][4] - Landstar continues to return capital to shareholders through stock buybacks and dividends, purchasing approximately 452,000 shares for $82.1 million and paying $120.5 million in dividends during the fiscal year [1][4] Financial Performance - Total revenue for Q4 2024 was $1,209 million, slightly up from $1,204 million in Q4 2023 [2][4] - Gross profit decreased to $109 million in Q4 2024 from $125 million in Q4 2023, while variable contribution fell from $178 million to $167 million [2][6] - Operating income also declined from $74.6 million in Q4 2023 to $57.8 million in Q4 2024 [2][6] Revenue Breakdown - Truck transportation revenue accounted for 89% of total revenue in Q4 2024, totaling $1,081 million, compared to $1,085 million (90%) in Q4 2023 [4][15] - Truckload transportation revenue via van equipment decreased from $619 million in Q4 2023 to $597 million in Q4 2024, while revenue from unsided/platform equipment increased from $340 million to $362 million [4][15] - Revenue from rail, air, and ocean cargo carriers rose to $107 million (9% of revenue) in Q4 2024, up from $89 million (7%) in Q4 2023 [4][15] Operational Metrics - The number of loads hauled via truck declined by 3.4% year-over-year in Q4 2024, although truck revenue per load increased by 3.1% [5][6] - Insurance and claims costs represented 6.7% of BCO revenue in Q4 2024, significantly higher than the historical average of 4.7% from 2019 to 2023, driven by increased cargo claim costs related to fraud and theft [5][6] Shareholder Returns - Landstar's Board of Directors declared a quarterly dividend of $0.36 per share, payable on March 11, 2025, to shareholders of record as of February 18, 2025 [1][4] - The company has authorization to repurchase an additional 2,547,981 shares under its share purchase program [1][4] Balance Sheet Strength - As of December 28, 2024, Landstar had cash and short-term investments totaling approximately $567 million, with a trailing twelve-month return on average shareholders' equity of 20% [7][14]