Peter Sullivan's questions to Landstar System Inc (LSTR) leadership • Q4 2024
Question
Peter Sullivan of Jefferies, calling for Stephanie Moore, asked for Landstar's perspective on capital allocation priorities for 2025, focusing on share buybacks, dividends, and potential M&A activity.
Answer
CEO Frank Lonegro affirmed Landstar's consistent strategy of a regular, growing dividend and a special dividend, which was recently paid. He described the buyback approach as 'patient and opportunistic,' designed to capitalize on market volatility. On M&A, he stated that the unique nature of Landstar's asset-light model significantly limits the pool of suitable acquisition targets, making a deal unlikely unless a target is a perfect strategic fit.