Financial Analysis

(11) Commitments and Contingencies Short-term investments include $53,352,000 in current maturities of investments held by the Companys insurance segment at June 27, 2026. The non-current portion of the bond portfolio of $95,748,000 is included in other assets. The short-term investments, together with $30,349,000 of non-current investments, provide collateral for the $75,331,000 of letters of credit issued to guarantee payment of insurance claims. As of June 27, 2026, Landstar also had $34,886,000 of additional letters of credit outstanding under the Companys Credit Agreement. The Company is involved in certain claims and pending litigation arising from the normal conduct of business. Many of these claims are covered in whole or in part by insurance. Based on knowledge of the facts and, in certain cases, opinions of outside counsel, management believes that adequate provisions have been made for probable and reasonably estimable losses with respect to the resolution of all such claims and pending litigation and that the ultimate outcome, after provisions therefor, will not have a material adverse effect on the financial condition of the Company, but could have a material effect on the results of operations in a given quarter or year. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

(10) Debt Other than the finance lease obligations as presented on the consolidated balance sheets, the Company had no outstanding debt as of June 27, 2026 and December 27, 2025. On June 30, 2026, and as previously disclosed in a Form 8-K filed with the SEC on July 6, 2026, Landstar entered into a third amended and restated credit agreement, dated June 30, 2026 , with a bank syndicate led by JPMorgan Chase Bank, N.A., as administrative agent (the Third Amended and Restated Credit Agreement), which amended and restated the existing second amended and restated credit agreement. The Third Amended and Restated Credit Agreement, which matures June 30, 2031 , provides for borrowing capacity in the form of a revolving credit facility of $ 300,000,000 , $ 100,000,000 of which may be utilized in the form of letters of credit. The Third Amended and Restated Credit Agreement also includes an uncommitted accordion feature permitting up to an additional $500,000,000 in increases to the revolving credit facility. The Third Amended and Restated Credit Agreement is referred to herein as the Credit Agreement. As of June 27, 2026, the Company had no borrowings outstanding under the Credit Agreement. The revolving credit loans under the Credit Agreement, at the option of Landstar, bear interest at (i) a forward-looking term rate based on the secured overnight financing rate and an applicable margin ranging from 1.25% to 2.00%, or (ii) an alternate base rate plus an applicable margin ranging fro …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes (i) the percentage of consolidated revenue generated by mode of transportation and (ii) the total amount of truck transportation revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers generated by equipment type during the twenty-six-week and thirteen-week periods ended June 27, 2026 and June 28, 2025 (dollars in thousands): Twenty-Six Weeks Ended Thirteen Weeks Ended Mode June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Truck BCO Independent Contractors 40 % 38 % 39 % 38 % Truck Truck Brokerage Carriers 53 % 54 % 54 % 54 % Rail intermodal 2 % 2 % 2 % 2 % Ocean and air cargo carriers 4 % 5 % 3 % 4 % Truck Equipment Type Van equipment $ 1,320,919 $ 1,186,071 $ 717,513 $ 591,276 Unsided/platform equipment $ 860,737 $ 741,270 $ 492,168 $ 400,862 Less-than-truckload $ 48,912 $ 47,749 $ 25,124 $ 25,313 Other truck transportation (1) $ 185,591 $ 192,766 $ 99,073 $ 100,687 (1) Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

(2) Share-based Payment Arrangements As of June 27, 2026, the Company has an employee equity incentive plan, the 2011 equity incentive plan (the 2011 EIP). The Company also has a stock compensation plan for members of its Board of Directors, the 2022 Directors Stock Compensation Plan (the 2022 DSCP). 6,000,000 shares of the Companys common stock were authorized for issuance under the 2011 EIP and 200,000 shares of the Companys common stock were authorized for issuance under the 2022 DSCP. The 2011 EIP and 2022 DSCP are each referred to herein as a Plan, and, collectively, as the Plans. Amounts recognized in the financial statements with respect to these Plans are as follows (in thousands): Twenty-Six Weeks Ended Thirteen Weeks Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Total cost of the Plans during the period $ 5,420 $ 3,657 $ 2,933 $ 1,619 Amount of related income tax benefit recognized during the period (1,341 ) (792 ) (883 ) (344 ) Net cost of the Plans during the period $ 4,079 $ 2,865 $ 2,050 $ 1,275 Included in income tax benefits recognized in the twenty-six-week periods ended June 27, 2026 and June 28, 2025 were tax (benefits) deficiencies from stock-based awards of ($14,000) and $104,000, respectively. As of June 27, 2026, there were 161,928 shares of the Companys common stock reserved for issuance under the 2022 DSCP and 2,600,923 shares of the Companys common stock reserved for issuance under the 2011 EIP. Restricted Stock Units The following ta …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

(3) Income Taxes The provisions for income taxes for the 2026 and 2025 twenty-six-week periods were based on estimated annual effective income tax rates of 25.1% and 24.3%, respectively, adjusted for discrete events, such as excess tax benefits or deficiencies resulting from stock-based awards. The effective income tax rate for the 2026 twenty-six-week period was 25.2%. The effective income tax rate was higher than the statutory federal income tax rate of 21% in the 2026 period primarily attributable to state taxes. The effective income tax rate for the 2025 twenty-six-week period was 24.7%. The effective income tax rate was higher than the statutory federal income tax rate of 21% in the 2025 period primarily attributable to state taxes.

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(6) Segment Information The Company reports the results of two operating segments: the transportation logistics segment and the insurance segment. The Companys chief operating decision maker (CODM) is our Chief Executive Officer. The CODM evaluates each segments 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 typically provided to the CODM for purposes of evaluating performance or allocating resources, and therefore such information has not been presented. The following tables summarize information about the Companys reportable business segments as of and for the twenty-six-week and thirteen-week periods ended June 27, 2026 and June 28, 2025 (in thousands): Twenty-Six Weeks Ended June 27, 2026 June 28, 2025 Transportation Logistics Insurance Total Transportation Logistics Insurance Total External revenue $ 2,574,766 $ 28,789 $ 2,603,555 $ 2,334,432 $ 29,453 $ 2,363,885 Internal revenue 51,623 51,623 53,093 53,093 Total revenue 2,574,766 80,412 2,655,178 2,334,432 82,546 2,416,978 Investment income 5,679 5,679 7,327 7,327 Purchased transportation 2,030,397 2,030,397 1,839,289 1,839,289 Commissions to agents 201,578 201,578 192,836 192,836 Other operating costs, net of gains on asset sales/dispositions 32,745 32,745 31,424 31,424 Insurance and claims 61,461 65,085 126,546 63,373 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

(1) Significant Accounting Policies Revenue from Contracts with Customers Disaggregation of Revenue The following table summarizes (i) the percentage of consolidated revenue generated by mode of transportation and (ii) the total amount of truck transportation revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers generated by equipment type during the twenty-six-week and thirteen-week periods ended June 27, 2026 and June 28, 2025 (dollars in thousands): Twenty-Six Weeks Ended Thirteen Weeks Ended Mode June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Truck BCO Independent Contractors 40 % 38 % 39 % 38 % Truck Truck Brokerage Carriers 53 % 54 % 54 % 54 % Rail intermodal 2 % 2 % 2 % 2 % Ocean and air cargo carriers 4 % 5 % 3 % 4 % Truck Equipment Type Van equipment $ 1,320,919 $ 1,186,071 $ 717,513 $ 591,276 Unsided/platform equipment $ 860,737 $ 741,270 $ 492,168 $ 400,862 Less-than-truckload $ 48,912 $ 47,749 $ 25,124 $ 25,313 Other truck transportation (1) $ 185,591 $ 192,766 $ 99,073 $ 100,687 (1) Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee. …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing