Reed [Analyst]'s questions to Landstar System Inc (LSTR) leadership • Q4 2024
Question
On behalf of Daniel Imbro, Reed from Stephens Inc. asked if recent weather events could benefit the company through rebuilding efforts and requested details on Landstar's presence in California. He also asked for a breakdown of expense drivers for 2025.
Answer
CEO Frank Lonegro responded that any benefit from rebuilding will likely be long-term and gradual, not a near-term spike. He noted Landstar has few BCOs domiciled in California due to regulations but still services the state. Executive James Todd outlined 2025 expenses, citing a ~$14 million headwind from restored incentive compensation, offset by potential tailwinds from lower contractor bad debt, gains on trailer sales, and reduced maintenance on a refreshed fleet.