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Rush Enterprises, Inc. Stock Price: Quote, Forecast, Splits & News (RUSHA)

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Company Profile

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Rush Enterprises, Inc. Price & Performance (RUSHA)

Stock Performance

Updated Mar 14, 8:00 PM UTC

RUSHA:NASDAQ

$53.60USD

3.06% · $1.59

After Hours

+0.02% · $0.01

Open

$52.28

High

$53.74

Low

$51.99

Market Cap

$4.26B

P/E Ratio

14.4

Volume

361.32K

Year High

$65.43

Year Low

$40.99

Dividend Yield

1.32%

News & Market Insights

Rush Enterprises Anticipates Recovery in Truck Sales by Late 2025
Feb 21, 2025
Rush Enterprises foresees a challenging start to 2025 for its truck sales but expects a recovery in the second half as freight rates improve. The company reported $7.8 billion in 2024 revenue and a $304.2 million net income, despite industry headwinds, and declared a $0.18 per share dividend for shareholders.12
Stephens Adjusts Rush Enterprises' Stock Target Amid Strong Earnings
Mar 4, 2025
Stephens revised its price target for Rush Enterprises to $67 from $69, maintaining an Overweight rating. This adjustment follows strong fourth-quarter results, with $2.01 billion in revenue surpassing expectations. Analysts highlight the company’s robust free cash flow and resilience, anticipating shareholder value through buybacks in 2025.23
Victory Capital Expands Stake in Rush Enterprises
today
Victory Capital Management recently acquired 5,581 shares of Rush Enterprises, reflecting confidence in the company’s performance. With a market cap of $4.25 billion and a 14.37 P/E ratio, the company has shown steady growth, supported by strong earnings and a $0.91 EPS for the last quarter, exceeding estimates.45

What's Happening

Peers

Earnings

Report Date

—

Rev Estimate

—

Avg 1d Change

5.21%

Report Period

Q4 2024

EPS Estimate

—

Implied Move 1d

—

Transcript

11m 48s

Because these statements include risks and uncertainties, our actual results may differ materially from those expressed or implied by such forward looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements include, but are not limited to, those discussed in our annual report on Form 10 ks for the year ended December 31, 2023, in our other filings with the Securities and Exchange Commission.

12m 13s

As we mentioned in our news release, we had $7,800,000,000 in annual revenues for 2024. And our net income was $304,200,000 or $3.72 per diluted share. For the fourth quarter, our revenues were $2,000,000,000 and our net income was $74,700,000 or $0.91 per diluted share. We are also happy to announce a cash dividend of $0.18 per common share. 2024 was a challenging year for the industry. We which faced persistent headwinds, including the ongoing freight recession, high interest rates, and economic uncertainty, These factors hit over the road carriers hard leading to weak demand for new Class A trucks from that customer segment. However, our strength in public sector and vocational markets helped balance things out and we managed to over our ground in a tough Class eight in the Marfork. Our Class four through seven truck sales were strong. Across various customer segments and we outperformed the market in the medium duty truck sales. The used truck market remains challenging, but we continue to execute well on our sales strategy and we're able to deliver strong profits. The same challenging operating conditions that impacted new Class A truck sales also impacted the aftermarket But our sales force's dedication to our strategic initiatives helped us to slightly outperform the industry.

13m 34s

Despite the difficult operating environment that we faced in 2024. I am very proud of our financial results. Focusing on the aftermarket, our parts, service and body shop revenues $2,500,000,000 last year, down 1.8% from 2023. Our absorption ratio was 132.2% Rush, compared to 135.3% in 2023 Rush. Even though our aftermarket revenues were slightly down. We grew our market share by expanding our national account sales force which allowed us to enhance our service to large strategic accounts. Demand was sluggish, worthy over the road. Energy and wholesale customers. But we saw strong sales in vocational, public sector and medium duty leasing desk. In 2025, we expect aftermarket demand to remain soft the first few months due to the freight market continuing to struggle.

14m 28s

Which results in lower over the road fleet utilization rates. However, we are optimistic that that demand will pick up as the year goes on and the freight market improves.

14m 40s

And we believe that our focus on growing our national account customer base and our other aftermarket strategic initiatives will result in revenue growth this year. We are also committed to expanding our technician workforce in 2025. Particularly mobile technicians, which will allow us to reduce vehicle dwell time in our shops. Better serve our customers, increase back counter part sales and grow market share. Regarding truck sales, we sold fifteen thousand four hundred and six sixty five new Class A trucks in 2024, down 11.4% year over year. Representing 6.1% of The U. S. Market, and 1.7% of the Canadian market.

15m 21s

Market conditions were tough with high inventory levels and competitive price. However, our sales to specialty market customers help offset weak demand from our over the road customers.

15m 33s

ACT Research forecast U. S. And Canadian sales of new Class eight trucks to be 277,200 units in 2025. Basically flat with 2024. And we expect sales to be challenging in the first half of twenty twenty five. We anticipate the demand will improve from the second half of the year as freight rates recover. In addition, despite uncertainty around engine, emissions regulations, we believe the EPA's clean diesel regulations will drive some prebuy activity later this year. We are optimistic that pre buys along with strong vocational sales will allow us to achieve strong new Class eight truck sales and keep pace with the market in 2025. Our Class IV through VII new truck sales were up 5.1% year over year with 13,935 units sold in 2024. Representing 5.3% of The U. S. Market and 3.1% of the Canadian Medium duty vehicle production stabilized and delivery lead times improved. Throughout the year. Our strategic focus on diversifying our customer base and focusing on large national accounts paid off. And we outperformed the market in new Class four through seven truck sales. ACT Research forecasts U. S. To Canadian sales of new Class four through seven trucks to be 282,250 units in 2025, up 5.3% from 2024 Rush.

17m 4s

However, supply has caught up with demand, and we believe the medium duty market may begin to slow in 2025. Nevertheless, we believe that our expertise in the medium duty sector and our ready to roll program will help us achieve strong medium duty commercial sales in 2025. We sold 7,110 used trucks in 2024. Basically flat year over year.

17m 28s

The U. S. Rush market was challenged due to values continuing to default and die credit. But our disciplined inventory and pricing strategies helped us deliver strong results. With freight rates showing signs of improvement and used truck value stabilizing. We are cautiously optimistic about 2025. Leasing and rental revenue It was 354,900,000.0 basically flat for 2023. Our restaurant leasing division continues to be a key contributor to our overall performance. While rental revenue was slightly down in the fourth quarter. Leasing revenue increased as we replaced 1,500 units in our fleet. At the age At the age of our leasing and rental fleet, decreases, we should recognize higher revenue and lower maintenance and operating costs going forward. We expect our lease and rental business to remain strong in 2025. I wanted to remind everyone that due to seasonal increases in employee benefits and favorable taxes, that occur in the first quarter of every year. We expect our G and A expenses to be sequentially higher in the first quarter of twenty twenty five. Compared to the fourth quarter of twenty twenty four. Lastly, I wanted to take make a final comment. On the proposed tariffs that may impact vehicles and component parts manufactured in Canada, Mexico or China.

18m 55s

We are currently monitoring this situation closely. If such tariffs are enacted and significantly in increase the aggregate price of new commercial vehicles or Barts, We believe the demand for new commercial vehicles and parts could decrease in 2025. Before we wrap up, I want to thank our employees for their hard work and dedication in 2024. Despite the challenges, they stayed focused on our strategic initiatives and expense reduction goals, helping us achieve strong financial results. With that, I will take your questions. Thank you. At this time, we'll conduct a question and answer session. And our first question comes from the line of Andrew Obin of Bank of America. Your line is now open. Yes. Good morning. Can you hear me?

19m 59s

Yes. We've got you, Andrew.

20m 1s

Excellent. Rusty, given your commentary about second half recovery, how should we think about earnings seasonality in 2025? Versus a normal seasonal pattern And I'll just throw in and specifically when does parts and service turn positive again? So two part question. Thank you. You got it.

20m 23s

No, Andrew, it's going to be an interesting year. The first half of the year, we're still believing in the lingering effects of freight recession. Okay, without question here in the first quarter. We do expect though, but we are seeing signs of activity, right? Regardless of what the numbers showed back in December, then their order numbers were down in January. We are seeing the last few weeks signs of activity that don't tell me that we're going to get better in the over the road business and the back half. Vocational businesses are still strong.

20m 55s

But we believe that you're getting I say if you check with the larger over the road guys, they're starting to get low single to maybe up to try to get maybe the mid single digit on the contracts that are coming up. So that has to take hold, right? That has to take effect, right? And it just doesn't happen overnight. But it shows it breached confidence in the over the road carriers And the fact that, okay, we are we should have sure thought about in the back half of last year, like we talked about it prior. Well, now we started getting confidence going forward and where we're at going into going on into later into this year. And then I'll talk a little more in a minute, if someone would like me to, about what we see when it comes to the government regulations and all with everything up in the air right now. But I do believe I'll get to the parts and service here in a second. I do believe that when you ask about what the year is going to look like, the year is going to ramp up from the beginning to the end, okay?

22m 1s

A tougher start. But I do see and believe that by the time we get into the back half of the year, we're definitely going to be on the upswing. Again when it comes to I looked at the overall deliveries in retail in The U. S. In January, were down 2,000 units from last January. So [indiscernible] A little softer in January from where you were last year. But we do firmly believe that the back half of the year will continue to ramp up And I think that you're still it's hard to talk about pre buys and all. Because we got too many regulation uncertainties out there, which I don't mind getting into if someone would like in a minute. That are still to be we've got to figure them out. We've got to see what the government does right after the administration. It's only been in office what thirty days now. The new administration. And obviously, I don't have to tell everyone that there's a lot of uncertainties to a lot of things.

22m 59s

Whether it's tariffs or EPA regulations or any of this stuff. Are going to shake out right now. We've got thoughts about it. We're not sure. But I do believe that overall, it's going to be a ramp up throughout the year from beginning to end. Maybe was a better flows than what we had in twenty 'twenty four. That would be my plan. So back half will definitely should be stronger than the 'twenty four back half front half. We're just going to work our way through it. Look, we had to work last year extremely hard You remember I always called it hand to mouth, man. We were back in normal regular times where you could get it if you didn't have allocation, right? You were working to get trucks and you could get them in sixty to ninety days. Well, guess what, that's still the environment we're in right now.

23m 43s

From a parts and service perspective, it's going to it goes right along with what I see. From when I talk about where we're at, it goes right along with Rush sales to be honest with ramping up throughout the year. I think we may get a little bit more inflation, which will have going to have a sometimes a positive effect on margin service. Totals when you get through them all, but we'll have to see how that all shakes out again. But we do believe that it will ramp up in We will get up into maybe not the first half of the year, I look like I said, the first few months fairly flat but ramping up to mid single digits and growth when we get into the back half of the year is how I'd look at it. You don't want to do more, but right now I don't want to get you all to be conservative in my outlook. I'm not one to really get out over my skis too far. As you've known me for twenty eight years. So but we have confidence that we'll be all over the market as it begins to ramp back up and we'll continue to drive.

24m 51s

We still got there's still runway left. In a lot of our strategic initiatives and we're always working on others. Behind the scenes. I mean, I talk about So anyway, that would be my take on the year. And it's pretty similar both sides. Ramping up especially once we get settled out with all these uncertainties that are out there right now.

25m 12s

Rusty, and just a follow-up question. As things ramp up, how should we think about SG and A was one of the sources of upside in the quarter? How do we think about SG and A control as you ramp into the next cycle? Will it look similar to the prior cycle? Or are there any incremental savings as you get efficiency? And that will be it Rush me. Thank you.

25m 35s

There you go, put the heat on me on G and A. Remember one thing, S is S. S is directly tied to Zayla drugs, Rush?

25m 42s

So we run the business all with 25% range or so all the time related to the gross profit of trucks. The G and A piece is what we manage on a daily basis I mean, you can look back at that was a big contributor this last year. Big contributor. We were down almost 5%. We were down 4.9%. Year over year. In Q4. If I'm not mistaken, it was similar like seven and usually And it was sequentially, we were sequentially flat with three and four.

26m 16s

But three was down like 5.2% if I remember right over to So we did an outstanding job from my perspective in managing that G and A As it ramps up, as you ramp up parts and service, it's not like loan to cash. Loan and money to someone. It does come with a G and A expense. And our goals will be to try to keep the gross profit dollars recreated on the back ends we're going to try to keep 40% or so of that. I've [indiscernible] it averages out if you go in the ramp up period over [indiscernible] percent range, 50% because we're handling parts, we're doing this, we're doing that. We're working with whole goods, right? So So it takes people to do all that work, but that's a great situation to be in.

27m 8s

And if we can say close to that 50% number, in a ramp up period, then I will be very happy about it. And we'll continue to we're looking for that. Okay. I'm looking to get back. We were 135 down to 132 in absorption. And that's a direct correlation obviously with growth swapping on parts and expenses. We lost some gross profit last year but we managed our expenses well to keep it that tight of a number to produce a year like that. When you're going negative on your parts and service and that's not easy, Okay. So I would expect us to even do a better job I'm not going to get into specifics as to why I believe that. But the world continues to evolve. E commerce continues to evolve, which actually helps. When it comes to expenses, it's not all the way there. But it's only going one direction. So always, we should be able to do business, hopefully, cheaper, okay, in the future. It's not all the way there yet. We're in the truck business. We're not the most highly technical business in the world. So but it is evolving. And I think there will be opportunities for us to take some of that normal what we see in expenses when the cycle ramps up.

28m 24s

Hopefully, we'll be able to take some of that out. With technology as we move forward. It's not ever going to go all the way. But at the same time, we ought to be able to do a better job of trying to squeeze those expenses. But it's still we still have three ninety outside salespeople, Rush? On the parts and service side. So they're not going away. But as business, I can see a shift in our business Now this is over a longer period to get it continues to shift right now. More towards e commerce, etcetera, etcetera, which you would hope you could take some costs out. But it can also bring in, make it a more competitive landscape too. So there's a there's a hang and a yang there that you've got going with it. But I know I'm giving you a long winded answer, but you're used to my long winded answers. So trust me, we'll likely do a better job on G and A at the ramp up Thank you so much. You bet you, Rimm.

29m 25s

Thank you. One moment for our next question. Our next question comes from the line of Daniel Imbro of Stephens. Your line is now open. Yes. Thanks. Good morning, everyone. This is Brady on for Daniel.

29m 43s

Rusty, I wanted to start by asking about your different end markets.

29m 46s

You've talked about how resilient vocational has been for you in recent years. How did that market end the year while we've talked about how Class eight fleet sales probably likely take until the back half of the recover. How are you thinking about that vocational side of the business in 2025?

30m 3s

Okay.

30m 4s

Yes. No, we believe it was Duvernay strong. I mean, we haven't seen I would say we're starting to fulfill some of that but there is still strength in vocational.

30m 18s

I mean, our construction business I could possibly see a I can't believe I'm saying this, a little more in the oilfield pickup, which we haven't had. Offset anything else. The revenues business is still strong. In 2025. So I mean, I see [indiscernible] backlog right at the moment, but still straight in demand. Right? So because you had a you had a transmission issue for a while a year ago, that actually pushed and we weren't able to get to all of it. Now we're chewing away at that, but we still got good demand And you never know, like I said, it's crazy for me to think well, with oil and gas, what the last four years that was a bad word. But I with the Dimmer administration there, you're seeing some activity around that sector too, which we have [indiscernible] feel pretty good about it. Again though, look, we're staying we're not backlogged with our you can build yourself up in sixty days if you want Okay. It's not like we've got these huge one year backlogs like we had in '23. That's not the case at all. So there's no such thing as allocation. There's plenty of plenty of opportunity for build trucks out there right now.

31m 47s

Because most factories, I don't believe we're running full tilt at the moment. I mean, they're running. Shutdown days and things like that, but they could ramp up build if demand came in line, which is something remember in this industry when demand hits that over the roadside, it abbs fast. And it happened really quick. So as we get into the back half of the year, I wouldn't be surprised to see I'm not going to call for allocation in 2026 yet. But I could see it getting there. A lot has to do with regulations. And things. But back to your original question, vocational is still strong, man. And so we feel good about it.

32m 35s

Okay, great. I wanted to switch gears a bit Rush my second question and see if we could touch on medium duty. Medium duty has been very strong for you guys in recent years. Could you just talk a little bit about what's driving that strength and what you're expecting from medium duty in 2025?

32m 52s

Sure. What drove that strength? Now listen, we went into the year, Medium Duty was had a big backlog, right? They shoot away at it. It all happens. You have to go back when we had supply issues in 2022 and 2023. Because manufacturers that built both medium and heavy chose two tech componentry and put it towards heavy because they make more money on it. Well, that gave the medium to we so you had pent up demand. We medium duty was really stretched out. They weren't running in this fast and hard to many of us to do both. Well, guess what, once Class eight slowed down last [indiscernible] chewed out the medium duty backlog. So medium duty right now is just like Class eight, I can get you one in sixty days, okay? It's not that hard to get a medium duty drug at the moment. So while we expect I mentioned in the call I know that an ACT has medium duty of five something percent. Kenny is a great friend of mine. I'm not sold on all that right the moment for 2025 to be honest. This is the first 1,000,000,000 yen But I do expect we're going to have a good year We've got some I know in the back half, we've got some business up working in the fourth quarter, but that's a particular transaction.

34m 15s

And but we're still should remain I expect to be flat if you want to know the truth in medium throughout the year. That would be about where I would think our medium is. So that's wrong.

34m 26s

Like you said, we've got strong results. I expect from the marine storm, Is there a lot more to get this year there? I don't think so. I don't see it right now. [indiscernible] because we've caught up with that pent up demand that was created by mainly not being the focus, but Class eight being the focus of the supply side, the supply side is caught up. So medium duty is caught up. So but there's still good demand out there. It's just you don't have these end up big backlogs like they used to have. So I hope that sheds a little color on it. So I'm just personally, I'm thinking it's going to be probably flat. I think both sides of it. But I do expect to be somewhat back loaded, okay, especially in AIDS.

35m 9s

I'm not sure about medium, I can say that for sure. But for sure, on the backlogs in the back half, back to the eight, that's [indiscernible] Quite through and hopefully ramping up throughout the back half of the year. And medium duty probably pretty constant through the year. But looking at a flat year over year Okay, great. Thanks for the [indiscernible] Go ahead, Rusty.

35m 37s

Okay.

35m 37s

No, I mean, as I said, and I'd like to talk about it in a minute, right? There's another goal. I'm going I'll ramble on here in a minute about some of the uncertainties and things that are out there that will really dictate the year right now.

35m 51s

But I have confidence in the year. But there are things surrounding our environment Rush like there have been in the last thirty days.

35m 59s

We're all waiting to get clarity on.

36m 1s

So which regulations, tariffs and all that wonderful stuff, which can create a little bit of hesitation for folks out there. But I did say, as I mentioned, earlier, we're seeing some activity better in the last couple of three weeks. In spite of all the non clarity. It's not real clear in the asset uncertainty. About where rules and regs and how things are going to fall out here. Which have a very direct correlation on the decisions that the business people make in business.

36m 37s

Maybe if I could just add one quick one quick final one. Built a lot of cash on the balance sheet in recent quarters. Can you just talk about use of cash, Rusty? Are you seeing anything in the M and A pipeline?

36m 49s

What are you seeing there for 2025? Well, M and A is always my first option to spend money, right?

36m 58s

We have a committed shoot for seven, eight years, nine, years. We've committed to return 35%, 40% and back to shareholders, which we've been doing. Some years might be 50%, some might be 30. It just depends. We try to be opportunistic. In repurchasing. We've been consistently raising our oh, I think our dividend, 8%, 9%, 10% or somewhere in that range, we raised it in the second dividend in the second in Q2. We take a look at it. Yes, we're in pretty good shape. I've got we read for your information, we redid all our credit lines in December and got a five year run on all that [indiscernible] we can Rush, we can pull cash. We got good cash on the balance sheet and I have great structure to get cash if need. Quickly. So we're set up to do it and they've just got to find it, right? And trust me, that responsibility falls on me I probably need to get a fair find a couple of deals that do work for Rush. Don't have anything imminent, I wouldn't tell you if it did. So but I mean, I wouldn't say that I always look at them.

38m 10s

I talked to them to other people, you better believe it. But there's nothing huge. There's some small deals. We've added a store up in Nebraska a couple of stores in Nebraska back in the summer. Really haven't added anything, but Greenfield since couple of Greenfield places. But yes, I'm always in conversation But as I said, even if it was imminent, I probably wouldn't tell you. So that is the first choice of cash and then the second choice is return to shareholders. We didn't Depurchase isn't much last year as we did the prior year. But understand our approval is we approved it on the December 1. So when I look at what we repurchased last year, I throw in a $65,000,000 repurchase that we had in December of twenty three. And really matter that price when we approved, we approved we approved a new $150,000,000 every December 1. So we are repurchasing currently. Every day we do our 10b5. So we repurchased to a quite very consistently all the time right now. So I would expect our repurchase unless I spend it on M and A will be more than the calendar year 2024 should probably end up being more I'm pretty sure I know it will.

39m 23s

In 2025 because we still believe outside giving you handing shareholders a dividend, but repurchasing our stock is a clear direction from management and the belief in this organization. And we've shown that throughout the last eight or nine years, consistently doing it. And we will consistently do it.

39m 44s

And continue because I still believe we're a great value and we've got a lot in front of us and there you go. There's your cash answer. Okay, great. Thanks for the time this morning, Rusty. I'll pass it along. Thank you, Brent. You bet.

39m 59s

Thank you. One moment for our next question. Our next question comes from the line of Eric Yoss Wicks of UBS. Your line is now open. Hey, good morning.

40m 15s

Good morning. Good morning. It sounds like sounds like you're interested in talking about some of the policy uncertainties. So interested in unpacking some of that. So starting with the emissions regulations and the engine changeover What are the latest customers Like conversations with customers looking like around the pre buy You're hearing any more uncertainty or less?

40m 40s

Yes. Well, I mean, it's interesting, right? Because you got to know a map, right? When you go someplace, and you're going into unknown territories, it's always good to have a map where you can go with. Well, we thought we had a very clear map. As to where things were headed, as clear as mud is anyway. As to what was going to happen and what happened in 2024 in California. What was going to happen in 2027. Well, the new and I'm going to say I want to speak like I'm a customer. Because I am a customer.

41m 11s

Okay? I'm the middle guy. I am a customer also. So clarity, not right now. If you look back in the last So back in prior to the new [indiscernible] Rush trucks, that was for our customer base. They were going to have to roll in electric, bev trucks and stuff over a time frame. That was thrown out. Okay? Right now as of last Friday for Valentine's Day, The EPA is challenging ACT or Clean Drug which affects all the OEMs. Which is how they're going to have to sell this many electric and do this much all these rules and regs. I'm not going to get in all detail or I got a lot of people I got three or four people on my staff that are way more intelligent about it than I am. I know just enough to be dangerous, okay? So that is up in the air. Because it got approved outside of Congress. They're saying it should have been approved in Congress Rush. So they're taking it to Congress. Now how it all were sorted and sold out, that's the new administration, which is obviously totally different than the prior administration, okay? They're promoting big promoters.

42m 27s

Meanwhile, still we understand there's an environment issue, but [indiscernible] the carpet fuels for longer, right? While we still work on the technology piece, which in truth is the right thing. So I don't know how it's going to shake out. I don't expect the diesel emissions regs that are in place to go into place in 2027. To change. I think it could line up. We had a point two and an appointment was refi. I personally think I'm going to be wrong, They'll probably end up settling and this is just my personal thing. [indiscernible] Well, that's still you got to clean it up more, okay? Remember, we're just talking about diesel. It's still diesel. We're taking the BEVs and data the electric piece and pushing it out.

43m 25s

What's going to happen. That then taking some of your greenhouse gas stuff and which is tied to the bev and 02/1930 and all these other years, I expect all that to get stretched out. That's my opinion, okay? I do expect the new rules of regs around diesel to stay Now are they going to stay in the same context the way they're written now?

43m 49s

Where you've got these huge long warranties on after treatment that have never existed, that are They take up a lot of the cost You're talking nobody's really given a price of it. Like all manufacturers, all manufacturers wait and then surprise you. But we're talking about $15,000 $20,000 in with after treatment. Now a lot of that is around is written is because of the warranties. Could those change I hear rumors all the time.

44m 23s

That they might that they might change a lot of that cost. So that would change some of the costing of it. I don't know that it will or it won't. But all those types of issues are what are going to be vetted here pretty quickly. We are still we've been cleaning diesel up. For a long time. I mean, go back to 1988, [indiscernible] Produce what one truck produced back then when it comes to NOx and things like that. That's a crazy number to me. We cleaned it up in 02/2004, we cleaned it up in 02/2007, we cleaned it up in 2010. So we're going to clean it up again. I don't, but we're going to slow down what those numbers turn out to be, what those warranties, I can't tell you yet. Because as that was Friday, it was Happy Valentine's Day. They just announced the EPA did they're going and trying to run this all back to Congress. Rush the OEMs have spent way too much money aftertreatment stuff. Preparing for this. I don't see it going away. That's just my all we're doing is cleaning up diesel, man. We've done it a lot We've done it for decades, okay.

45m 37s

So there's nothing that's the right thing to do. The right thing to do is to do that Rush out some of these BEV requirements because they're way ahead I mean, look, we got 100 Rush sorry, I'm just talking Blaine. We got one hundred and twenty years hundred and twenty years of infrastructure around internal combustion. And we're going to change it. In six, seven years. Give me a break. Okay. We don't have a grid. We don't have the infrastructure. There are so many is it the right thing probably to do long term? Yes. But also doing it with automotive is different. Than trucks. Trucks do so many different application. You know what a car does? I don't care if it's a Kia or Ferrari. It goes from point A to point B. Okay? That's what the car does. Trucks, I don't care if it could get up garbage, pouring concrete, hanging signs in the oil field, over the road. They do so many different applications that I expected to be in moldy. [indiscernible] when we get there but it doesn't get done in this short period of time. So there you can get Russy scrambling on about his own thoughts.

46m 46s

We'll get it done in twenty eight years. We'll get Bev will be more. Bev will be for a lot of applications around town and this and that and the other. But we don't have the necessary components I mean, I use this in my simple way. I was Some people think it's like plugging in a hair dryer. Let me tell you something. It's not. Okay. It's way more complicated than that. Because of the grid of an infrastructure and everything else. We can't even catch up on the cars. Right? Automobiles will be way easier to do in Rush because of all the different applications. So you're getting a long rambling answer, as I always say, but I expect we're going to go through with the diesel changes They could tweak them But if we could tweak the warranties, but we're not going to change flipping the diesels, which again in 2017, because there's been too much spent. But what will happen is the other stuff will get pushed out to give to give our industries time to refine the technology and the things that are needed to do it properly, okay? We're not there, man. And to do all that we were trying to do.

47m 58s

It was that I get understand we got to do a better job of cleaning the environment up. But we got to do it within the bounds of reality. There is your answer. I think there Rush be a free buy. Don't know how it all shake out to how much, because anytime you come with new after treatment and stuff, boy, do I remember 2010, Okay. Everything was all this DPS clogged everywhere, etcetera, etcetera. I'm not saying that that will be the case. I'm saying there always is issues. We'll be dealing with issues with all the new diesel technology. Which is typical okay, when you do things like this. That's how it works, But it's something we can work on and do, something we've got Rush hundred plus years dealing with, right? So we'll figure all that while behind the scenes we do the right things. To get into these other technologies, whether whether it is not everything is going to be electric and hydrogen and fuel cell and all this other while that continues to progress it will take its place over the next twenty years.

49m 2s

Got you. Makes sense. Me and I appreciate Shifting over to tariffs, so I know you noticed that The uncertainty around that and The prospect that it could really increase the price of trucks and squeeze demand. Oh, man. So I guess two things there. One, just frame for us what that impact beyond the cost of a new Rush? And also with the [indiscernible] are you doing anything differently this year in terms of managing your risk?

49m 41s

Well, first off, About seventeen days ago, maybe eighteen.

49m 49s

On a Saturday, I'm going, are you kidding me?

49m 53s

Okay. We're really going to put 25% tariffs on Mexico and Canada Rush.

49m 58s

I understand the Chinese part. But the automotive sector and I'm not just talking Rush, there is nothing more tied to Mexico than the automotive sector, okay? I mean, all the suppliers, all the manufacturers, everybody's got plans down there and stuff. And it's like you got to be kidding me.

50m 20s

I understand I don't understand fentanyl, but I read about it. And I understand Rush immigration issues, but you're messing with an economy now, let me tell you. You're talking it's manufactured down there, you're talking $30,000 $40,000 in a truck. And even if trucks that are manufactured in The U. S, they'll have components for you in them. If you put a 25% tariff on there, that'd probably be another 10,000 Automobiles will be 6,000, 8,000 depending on who and where and what. I mean, it gets always remember the devil's in the detail on the fine print, right? So I'm not the expert on all of that. I got to tell you, that makes absolutely zero sense to me. I believe I've told everybody since new administration was announced back in November that it's a negotiation. I cannot believe that we would go do that. Look, those factories, it's not like China. I'm on the border. I've been on the border. I'm one of the residents in Texas, okay? I have the old border for Peterbilt all the way from Tijuana to Brownsville. I understand. We built those Makena door plants back in the '80s. Okay? There are stuff and more and more and more.

51m 40s

I do not see doing that. I just truly can't see that we own them. It's not like '75 and Giant, we own those factories, okay? It just makes absolutely zero sense to me. We need a strong solid neighbor on the South. And it's just a labor position.

52m 2s

We build all that stuff out there, but it's all our stuff. So it really doesn't make any sense to me. Would there be a disruption? Yes. Is there something I can do? [indiscernible] I got two weeks. Okay, no, I can't do anything in two weeks. We would just deal with it. But you talk about Cripple and then there's You got to realize like Laredo, Texas, that's the biggest pork in The United States. I don't care about these ocean ports. There's more freight coming through out of Mexico than the EBA. I'm on I-thirty 5. I'd look out my window right back. Over half of vehicles are Rush. Going up and down the highway, okay? And it's all from manufacturing that goes on in the South. And I don't know what we'd come up with a workforce to do it all anyway. As we work our way through it. But I'm getting into my own personal views here about all that, but you're going to know because I don't mind telling them. So it just makes no sense to me. I've got to believe it's saber rattling in negotiations. Maybe there will be some hand slaps and things like that on the risk or something.

53m 9s

I'm not close enough to the government to really know what they're thinking.

53m 15s

But I don't see doing that with your two bordering neighbors, one to the Northern, one to the South, the only ones you border. Okay. I don't I have a hard time making sense out of that personally, especially when we build it all. Okay. So I think we drove all that ourselves. It wasn't driven by it. [indiscernible] Do people have plans Yes, OEMs have contingency plans. Around how they would get around it. It would be costly and it would be cumbersome to implement and take time, but sure they do. When OEMs are thinking about it, they have to, I have to. Yes, I thought about it. But I have a hard time believing we're really going to do this with next one. Again, that's just my opinion. I could be deadass wrong, just confused me, dead wrong. But don't worry that we thought about it We're behind the scenes. Yes, there are plans as to what we would do. How would we react just have a hard time believing we really do That makes sense. I guess moving a little bit away from the uncertainty around OpEx, towards what we're seeing today. So I know second half last year there was a bit of discounting on new truck pricing.

54m 42s

And so just wondering if that's something that we should be expecting here for the first half of twenty twenty five as well?

54m 49s

No, I expect most of the stuff that we're doing right now is pretty flat.

54m 56s

Slight, I mean, slight maybe increase. I don't see a lot of discounting Maybe a one off deal here or there, but there's not broad based discounting going on. I mean, we'd already taken margin out last year, okay? Somewhat when I say that, the manufacturers and through us and we've managed to maintain a good blended margin as well as tell folks, remember, we don't sell just Avid Beauty, we sell media, we sell used So we've done a pretty good job I'll keep it over 9% or better of blended margin. So was new compressed a little bit, yes. Do I see it getting compressed a whole lot more? [indiscernible] I think we'll be pretty we've already been a little bit compressed on it. So I don't I'd say most OEMs with what we've been planning on having a pre buy, right? So they were trying to maintain what they felt. Many can look their margins are off some. You can look at it later in the back half of last year, there's no question. [indiscernible] don't know how much more there is to take out of that. I think there will be enough demand to keep things pretty flat to be honest with you without getting any increases in anything. [indiscernible] All right.

56m 13s

Very helpful. That's it for me. Appreciate the time. Thank you.

56m 17s

You bet. Thank you, sir. [indiscernible] I'm showing no further questions at this time. I would now like turn it back to Rusty Rush for closing remarks. Okay. I guess, look forward to talking to everybody in April Rush. This is the shortest time between calls. I'm about to talk to everybody in about two months.

56m 34s

And thank you for your participation today.

56m 38s

Thank you for your participation today's conference. This does conclude the program. You may now disconnect.

Key Insights

RUSHA reported $7.8 billion in annual revenues for 2024, with a net income of $304.2 million or $3.72 per diluted share. Fourth-quarter revenues were $2 billion, with a net income of $74.7 million or $0.91 per diluted share.
The company announced a cash dividend of $0.18 per common share and highlighted challenges in 2024, including a freight recession, high interest rates, and economic uncertainty, which impacted Class 8 truck sales. However, strong performance in public sector and vocational markets helped offset these challenges.
For 2025, RUSHA expects aftermarket demand to remain soft in the first half due to continued freight market struggles but anticipates improvement in the second half as freight rates recover. The company plans to expand its technician workforce and focus on growing its national account customer base.
Class 8 truck sales in 2024 were down 11.4% year-over-year, while Class IV through VII truck sales increased by 5.1%. The company expects flat Class 8 truck sales in 2025 but anticipates potential pre-buy activity later in the year due to EPA clean diesel regulations.
RUSHA is cautiously optimistic about the used truck market and leasing/rental business in 2025, with expectations of stable demand and improved revenue as fleet maintenance costs decrease. The company is also monitoring potential tariffs on vehicles and parts from Canada, Mexico, and China, which could impact demand if enacted.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$4.7B	$5.1B	$7.1B	$7.9B	$7.8B
Cost of Revenue	$3.9B	$4B	$5.6B	$6.3B	$6.3B
Gross Profit	$875M	$1.1B	$1.5B	$1.6B	$1.5B
Gross Profit %	18%	21%	21%	20%	20%
R&D Expenses	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Revenue

$4.7B

$5.1B

$7.1B

$7.9B

$7.8B

Cost of Revenue

$3.9B

$4B

$5.6B

$6.3B

Gross Profit

$875M

$1.1B

$1.5B

$1.6B

$1.5B

Gross Profit %

18%

21%

20%

R&D Expenses

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$115M	$241M	$392M	$347M	$305M
Dep. & Amort.	$177M	$169M	$199M	$221M	$236M
Def. Tax	-$38M	$14M	$4.3M	$7.6M	$20M
Stock Comp.	$19M	$22M	$25M	$30M	$30M
Chg. in WC	$496M	-$18M	-$299M	-$311M	$30M

2020

2021

2022

2023

2024

Net Income

$115M

$241M

$392M

$347M

$305M

Dep. & Amort.

$177M

$169M

$199M

$221M

$236M

Def. Tax

-$38M

$14M

$4.3M

$7.6M

$20M

Stock Comp.

$19M

$22M

$25M

$30M

Chg. in WC

$496M

-$18M

-$299M

-$311M

$30M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$312M	$148M	$201M	$184M	$228M
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$312M	$148M	$201M	$184M	$228M
Receivables	$172M	$140M	$221M	$259M	$345M
Inventory	$858M	$1B	$1.4B	$1.8B	$1.8B

2020

2021

2022

2023

2024

Cash

$312M

$148M

$201M

$184M

$228M

ST Investments

Cash & ST Inv.

$312M

$148M

$201M

$184M

$228M

Receivables

$172M

$140M

$221M

$259M

$345M

Inventory

$858M

$1B

$1.4B

$1.8B

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Earnings

Report Date

—

Rev Estimate

—

Avg 1d Change

5.21%

Report Period

Q4 2024

EPS Estimate

—

Implied Move 1d

—

Transcript

11m 48s

12m 13s

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14m 28s

Which results in lower over the road fleet utilization rates. However, we are optimistic that that demand will pick up as the year goes on and the freight market improves.

14m 40s

15m 21s

Market conditions were tough with high inventory levels and competitive price. However, our sales to specialty market customers help offset weak demand from our over the road customers.

15m 33s

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18m 55s

19m 59s

Yes. We've got you, Andrew.

20m 1s

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23m 43s

24m 51s

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25m 35s

There you go, put the heat on me on G and A. Remember one thing, S is S. S is directly tied to Zayla drugs, Rush?

25m 42s

26m 16s

27m 8s

28m 24s

29m 25s

29m 43s

Rusty, I wanted to start by asking about your different end markets.

29m 46s

30m 3s

Okay.

30m 4s

Yes. No, we believe it was Duvernay strong. I mean, we haven't seen I would say we're starting to fulfill some of that but there is still strength in vocational.

30m 18s

31m 47s

32m 35s

32m 52s

34m 15s

And but we're still should remain I expect to be flat if you want to know the truth in medium throughout the year. That would be about where I would think our medium is. So that's wrong.

34m 26s

35m 9s

35m 37s

Okay.

35m 37s

35m 51s

But I have confidence in the year. But there are things surrounding our environment Rush like there have been in the last thirty days.

35m 59s

We're all waiting to get clarity on.

36m 1s

36m 37s

36m 49s

What are you seeing there for 2025? Well, M and A is always my first option to spend money, right?

36m 58s

38m 10s

39m 23s

39m 44s

39m 59s

Thank you. One moment for our next question. Our next question comes from the line of Eric Yoss Wicks of UBS. Your line is now open. Hey, good morning.

40m 15s

40m 40s

41m 11s

42m 27s

43m 25s

43m 49s

44m 23s

45m 37s

46m 46s

47m 58s

49m 2s

49m 41s

Well, first off, About seventeen days ago, maybe eighteen.

49m 49s

On a Saturday, I'm going, are you kidding me?

49m 53s

Okay. We're really going to put 25% tariffs on Mexico and Canada Rush.

49m 58s

50m 20s

51m 40s

52m 2s

53m 9s

I'm not close enough to the government to really know what they're thinking.

53m 15s

54m 42s

And so just wondering if that's something that we should be expecting here for the first half of twenty twenty five as well?

54m 49s

No, I expect most of the stuff that we're doing right now is pretty flat.

54m 56s

56m 13s

Very helpful. That's it for me. Appreciate the time. Thank you.

56m 17s

56m 34s

And thank you for your participation today.

56m 38s

Thank you for your participation today's conference. This does conclude the program. You may now disconnect.

Key Insights

RUSHA reported $7.8 billion in annual revenues for 2024, with a net income of $304.2 million or $3.72 per diluted share. Fourth-quarter revenues were $2 billion, with a net income of $74.7 million or $0.91 per diluted share.
The company announced a cash dividend of $0.18 per common share and highlighted challenges in 2024, including a freight recession, high interest rates, and economic uncertainty, which impacted Class 8 truck sales. However, strong performance in public sector and vocational markets helped offset these challenges.
For 2025, RUSHA expects aftermarket demand to remain soft in the first half due to continued freight market struggles but anticipates improvement in the second half as freight rates recover. The company plans to expand its technician workforce and focus on growing its national account customer base.
Class 8 truck sales in 2024 were down 11.4% year-over-year, while Class IV through VII truck sales increased by 5.1%. The company expects flat Class 8 truck sales in 2025 but anticipates potential pre-buy activity later in the year due to EPA clean diesel regulations.
RUSHA is cautiously optimistic about the used truck market and leasing/rental business in 2025, with expectations of stable demand and improved revenue as fleet maintenance costs decrease. The company is also monitoring potential tariffs on vehicles and parts from Canada, Mexico, and China, which could impact demand if enacted.

Rush Enterprises, Inc. Price & Performance (RUSHA)

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Dividend Yield

News & Market Insights

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Peers

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Transcript

Key Insights

Income Statement

Cash Flow

Balance Sheet

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News & Market Insights

Earnings

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Implied Move 1d

Transcript

Key Insights