How Landstar Makes Money

Landstar earns money by billing shippers for freight moves and paying most of that revenue out as variable costs. Independent commission sales agents find shippers and book loads. The freight is hauled either by BCO independent contractors who lease their own trucks onto Landstar's operating authority (38% of FY2025 revenue) or by unrelated truck brokerage carriers (53%). Rail, air, ocean, and insurance revenue make up the rest. Landstar keeps the difference between what it bills and what it pays for purchased transportation and agent commissions, which it reports as variable contribution, and supplies the operating authority, insurance, credit and collections, safety compliance, technology, and trailing equipment.

Under CEO Frank Lonegro, Landstar is focused on recruiting agents and BCOs, growing heavy-haul and other specialized freight, tightening carrier vetting, and building technology and AI tools that support agents rather than replace them. It decided in 2025 to sell Landstar Metro, its Mexican subsidiary, to refocus on the core North American network, and in July 2026 it added a Chief Commercial Officer, Bill Clement (effective August 1, 2026), along with a new strategy and transformation role to speed up growth initiatives.