LANDSTAR SYSTEM INCLSTR
LANDSTAR SYSTEM INC Segments Disclosure
(12) Segment Information
Landstar markets its integrated transportation management solutions primarily through independent commission sales agents and exclusively utilizes third party capacity providers to transport customers’ freight. Landstar’s independent commission sales agents enter into contractual arrangements with the Company and are responsible for locating freight, making that freight available to Landstar’s capacity providers and coordinating the transportation of the freight with customers and capacity providers. The Company’s third party capacity providers consist of BCO Independent Contractors, unrelated trucking companies who provide truck capacity to the Company under
non-exclusive
contractual arrangements (the “Truck Brokerage Carriers”), air cargo carriers, ocean cargo carriers and railroads. Through this network of agents and capacity providers linked together by Landstar’s ecosystem of digital technologies, Landstar operates an integrated transportation management solutions business primarily throughout North America with revenue of $4.7 billion during the most recently completed fiscal year. The Company reports the results of two operating segments: the transportation logistics segment and the insurance segment. The transportation logistics segment provides a wide range of integrated transportation management solutions. Transportation services offered by the Company include truckload, less-than-truckload and other truck transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, hazardous materials
(“haz-mat”),
cold chain/temperature-controlled, U.S.-Canada and U.S.-Mexico cross-border, intra-Mexico, intra-Canada, project cargo and customs brokerage. Examples of the industries serviced by the transportation logistics segment include automotive parts and assemblies, consumer durables, building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, military equipment and general commodities. In addition, the transportation logistics segment provides transportation services to other transportation companies, including third party logistics and less-than-truckload service providers. The independent commission sales agents market services provided by the transportation logistics segment. Billings for freight transportation services are typically charged to customers on a per shipment basis for the physical transportation of freight and are referred to as transportation revenue. The results of operations from Landstar Blue and Landstar Metro are presented as part of the Company’s transportation logistics segment. The insurance segment is comprised of Signature Insurance Company (“Signature”), a wholly owned offshore insurance subsidiary, and Risk Management Claim Services, Inc. The insurance segment provides risk and claims management services to certain of Landstar’s operating subsidiaries. In addition, it reinsures certain risks of the Company’s BCO Independent Contractors and provides certain property and casualty insurance and reinsurance directly to certain of Landstar’s operating subsidiaries. Revenue at the insurance segment represents reinsurance premiums from third party insurance companies that provide insurance programs to BCO Independent Contractors where all or a portion of the risk is ultimately borne by Signature. Internal revenue for premiums billed by the insurance segment to the transportation logistics segment is calculated each fiscal period based primarily on an actuarial calculation of historical loss experience and is believed to approximate the cost that would have been incurred by the transportation logistics segment had similar insurance been obtained from an unrelated third party.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company’s chief operating decision maker (“CODM”) is our Chief Executive Officer. The CODM evaluates each segment’s performance and makes decisions about resource allocations primarily based on operating income, which is the principal financial metric utilized to monitor budgeted versus actual results by segment of the Company. Asset information by segment is not regularly provided to the CODM for purposes of evaluating performance or allocating resources, and therefore such information has not been presented.
No single customer accounted for more than 10% of the Company’s consolidated revenue in fiscal years 2025, 2024 and 2023. Substantially all of the Company’s revenue is generated in North America, primarily through customers located in the United States.
The following tables summarize information about the Company’s reportable business segments as of and for the fiscal years ending December 27, 2025, December 28, 2024 and December 30, 2023 (in thousands):
Transportation |
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Logistics |
Insurance |
Total |
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2025 |
||||||||||||
External revenue |
$ | 4,685,115 | $ | 58,645 | $ | 4,743,760 | ||||||
Internal revenue |
— | 57,694 | 57,694 | |||||||||
Total revenue |
4,685,115 | 116,339 | 4,801,454 | |||||||||
Investment income |
13,685 | 13,685 | ||||||||||
Purchased transportation |
3,688,343 | 3,688,343 | ||||||||||
Commissions to agents |
387,397 | 387,397 | ||||||||||
Other operating costs, net of gains on asset sales/dispositions |
61,586 | 61,586 | ||||||||||
Insurance and claims |
102,336 | 114,794 | 217,130 | |||||||||
Selling, general and administrative |
219,006 | 11,542 | 230,548 | |||||||||
Depreciation and amortization |
46,388 | 46,388 | ||||||||||
Impairment of intangible and other assets (1) |
32,170 | 32,170 | ||||||||||
Operating income |
147,889 | 3,688 | 151,577 | |||||||||
Goodwill |
34,005 | 34,005 | ||||||||||
Transportation |
||||||||||||
Logistics |
Insurance |
Total |
||||||||||
2024 |
||||||||||||
External revenue |
$ | 4,756,008 | $ | 63,237 | $ | 4,819,245 | ||||||
Internal revenue |
— | 57,476 | 57,476 | |||||||||
Total revenue |
4,756,008 | 120,713 | 4,876,721 | |||||||||
Investment income |
14,810 | 14,810 | ||||||||||
Purchased transportation |
3,745,241 | 3,745,241 | ||||||||||
Commissions to agents |
392,751 | 392,751 | ||||||||||
Other operating costs, net of gains on asset sales/dispositions |
58,781 | 58,781 | ||||||||||
Insurance and claims |
92,712 | 78,693 | 171,405 | |||||||||
Selling, general and administrative |
204,089 | 13,619 | 217,708 | |||||||||
Depreciation and amortization |
56,738 | 56,738 | ||||||||||
Operating income |
205,696 | 43,211 | 248,907 | |||||||||
Goodwill |
40,933 | 40,933 | ||||||||||
Transportation |
||||||||||||
Logistics |
Insurance |
Total |
||||||||||
2023 |
||||||||||||
External revenue |
$ | 5,230,846 | $ | 72,476 | $ | 5,303,322 | ||||||
Internal revenue |
— | 67,977 | 67,977 | |||||||||
Total revenue |
5,230,846 | 140,453 | 5,371,299 | |||||||||
Investment income |
10,141 | 10,141 | ||||||||||
Purchased transportation |
4,068,262 | 4,068,262 | ||||||||||
Commissions to agents |
462,668 | 462,668 | ||||||||||
Other operating costs, net of gains on asset sales/dispositions |
54,191 | 54,191 | ||||||||||
Insurance and claims |
101,179 | 81,039 | 182,218 | |||||||||
Selling, general and administrative |
197,819 | 13,980 | 211,799 | |||||||||
Depreciation and amortization |
58,153 | 58,153 | ||||||||||
Operating income |
288,574 | 55,575 | 344,149 | |||||||||
Goodwill |
42,275 | 42,275 | ||||||||||
(1) |
Included in the $32,170,000 impairment of intangible and other assets was a goodwill impairment of $7,530,000 within the transportation logistics segment. |
Fiscal Years Ended |
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December 27, 2025 |
December 28, 2024 |
December 30, 2023 |
||||||||||
Total revenue |
$ | 4,801,454 | $ | 4,876,721 | $ | 5,371,299 | ||||||
Elimination of internal revenue |
(57,694 | ) | (57,476 | ) | (67,977 | ) | ||||||
Total consolidated revenue |
4,743,760 | 4,819,245 | 5,303,322 | |||||||||
Operating income |
$ | 151,577 | $ | 248,907 | $ | 344,149 | ||||||
Interest and debt expense (income) ( 2 ) |
996 | (5,419 | ) | (3,946 | ) | |||||||
Income before income taxes |
150,581 | 254,326 | 348,095 | |||||||||
(2) |
Interest and debt expense (income) includes (1) interest income earned on cash balances held by the transportation logistics segment of $4,590, $9,495 and $7,811 in 2025, 2024 and 2023, respectively and (2) consolidated total interest expense of $5,586, $4,076 and $3,865 in 2025, 2024 and 2023, respectively. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 19, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.