Question · Q4 2025
Bascomee Majors from Susquehanna asked whether BCO utilization serves as a leading indicator for fleet growth, or if historical trends primarily show rates as the main driver. He also requested a detailed overview of Landstar's expense outlook for 2026, including pacing and key considerations.
Answer
VP and CFO Jim Todd clarified that BCO utilization generally increases with rising rates, noting a positive surprise in Q4 2025 utilization. Regarding expenses, he outlined a potential $12 million headwind in 2026 from variable compensation programs (incentive and stock comp) if financial targets are met, or a $2-$3 million headwind from stock-based compensation otherwise. He also highlighted potential offsets from gains on disposal of used trailers and reduced maintenance costs due to a van trailer refresh, and expressed hope for tailwinds in insurance costs.
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