Rush Enterprises, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues reached $2.113 billion for the quarter ended September 30, 2026, a 12.4% increase from $1.881 billion in the same period of 2025.
• Net income attributable to Rush Enterprises, Inc. was $78.0 million ($0.65 per diluted share), compared to $66.7 million ($0.55 per diluted share) in the prior year quarter.
• Aftermarket products and services revenues totaled $679.9 million, up 5.8% year-over-year, accounting for approximately 62.8% of total gross profit.
• Gross profit was $386.966 million, compared to $374.752 million in the prior year quarter.
• Operating income was $107.999 million, up from $100.030 million in the prior year quarter.
• The absorption ratio was 128.3%, compared to 129.3% in the third quarter of 2025.
• Cash and cash equivalents ended the quarter at $226.4 million, up from $212.645 million at year-end 2025.
• Total GAAP debt was $1.345 billion, while Adjusted Total Debt (excluding floor plan notes payable and lease/rental fleet debt) was $3.3 million.
• Adjusted Net Debt (cash) was $(223.1) million.

Guidance and Future Outlook:

• Management expects revenue and earnings growth to continue into the fourth quarter, driven by improving freight markets.
• New truck deliveries from the current backlog are expected to generate strong sales in the fourth quarter of 2026 and first quarter of 2027, though supply capacity constraints may affect delivery timing.
• Quoting and new order activity have slowed as the industry awaits EPA finalization of 2027 emissions regulations; management expects orders to resume shortly after rules are finalized.
• Medium-duty sales are expected to remain strong in the fourth quarter and early 2027, despite potential production delays and limited manufacturer availability.
• Rental demand is expected to remain strong through the fourth quarter and early 2027, though leasing demand may soften in the first quarter of 2027 due to customers purchasing replacement vehicles ahead of anticipated 2027 model price increases.
• Aftermarket demand is expected to gradually improve through the remainder of the year, subject to normal seasonal patterns.

Business Segments and Product Lines:

• Commercial Vehicle Sales: New U.S. Class 8 retail truck sales totaled 59,616 units (up 10.2% YoY); Rush sold 3,880 units, capturing 6.5% of the U.S. market. New U.S. Class 4-7 retail sales totaled 53,580 units (up 0.8% YoY); Rush sold 3,265 units, capturing 6.1% of the U.S. market.
• Used Vehicles: The company sold 1,913 used commercial vehicles, a 5.5% increase from the prior year quarter.
• Aftermarket: Parts, service, and collision center revenues grew 5.8% to $679.9 million, with growth across all customer segments, including energy and wholesale.
• Leasing and Rental: Revenue was $98.2 million, up 5.3% year-over-year, driven by higher rental utilization and profitability. The segment operates 72 franchises with over 10,000 trucks in the fleet and over 2,400 under contract maintenance.
• Strategic Expansion: Completed a 50% joint venture with MCT Companies, operating 17 dealerships and three mobile service locations across six states, entering the refrigerated transportation sector.

Market and Competitive Landscape:

• Rush outpaced the industry in Class 8 truck sales, gaining market share driven by stronger freight rates and customer needs to replace aging equipment.
• Industry-wide order intake has slowed as manufacturers and customers await EPA 2027 emissions regulations.
• ACT Research forecasts U.S. retail sales of new Class 8 trucks to total 229,400 units in 2026 (up 7.8% from 2025).
• ACT Research forecasts U.S. retail sales of new Class 4-7 commercial vehicles to total 218,575 units in 2026 (up 0.5% from 2025).
• Used truck demand remains healthy due to limited new truck availability and anticipated price increases for 2027 models.

Risks and Challenges:

• Supply capacity constraints and manufacturer production delays may affect the timing of new commercial vehicle deliveries.
• Uncertainty regarding EPA finalization of 2027 emissions regulations may cause customers to delay purchasing decisions and keep manufacturer pricing fluid.
• Potential challenges from limited availability of medium-duty equipment from certain manufacturers.
• Leasing demand may soften in the first quarter of 2027 if customers purchase replacement vehicles ahead of 2027 model price increases.
• Forward-looking statements note risks including competitive factors, economic conditions, inflation, interest rates, fuel prices, and governmental regulation.

Management Commentary and Tone:

• Chairman and CEO W.M. "Rusty" Rush expressed pride in the team's execution and the results achieved, citing solid growth in revenues and earnings.
• Management emphasized the strength of the diversified business model and the "total solutions" strategy as key differentiators.
• Rush highlighted the importance of the joint venture with MCT Companies in expanding the company's service offerings into the refrigerated transportation sector.
• The tone was confident regarding the continued improvement of freight markets and the ability to capture aftermarket business through disciplined account management.

Other Key Points:

• The Board declared a cash dividend of $0.14 per share of Class A and Class B common stock, payable December 10, 2026, to shareholders of record as of November 11, 2026.
• A three-for-two stock split was effected via stock dividend on August 31, 2026, with all per-share data restated to reflect this split.
• The company repurchased $10.3 million of common stock during the quarter.
• Total cash dividends paid during the quarter were $16.4 million.
• Rush Truck Leasing added vehicles under contract maintenance agreements during the quarter to generate additional service business.
• The company operates over 160 locations in 24 states and Ontario, Canada.