Key Highlights

  • Revenue rose 12.4% to $2,113.1 million in the third quarter, from $1,880.8 million.
  • Diluted EPS was $0.65, up from $0.55 on a split-adjusted basis.
  • New heavy-duty truck sales rose to 3,994 units from 3,215.
  • Aftermarket revenue grew 5.8% to $679.9 million, about 62.8% of gross profit.
  • A quarterly dividend of $0.14 per share is payable December 10.

Rush Enterprises Earnings: Is the Truck Cycle Turning Up?

Rush Enterprises (NASDAQ:RUSHA) reported third-quarter results on Tuesday, October 27, with revenue of $2,113.1 million, up 12.4% from $1,880.8 million. Diluted EPS was $0.65, against $0.55 a year earlier, after restating for the three-for-two stock split distributed on August 31. The earnings screen shows an estimate of $0.65, a surprise of 0.38% as screened.

Net income attributable to Rush was $78.0 million, against $66.7 million. Operating income rose to $108.0 million from $100.0 million, a calculated margin of 5.1% against 5.3%, as gross profit of $387.0 million rose more slowly than revenue. The company gave no numeric full-year guidance.

Class 8 and Medium-Duty Sales: What Is Driving Unit Growth?

New and used commercial vehicle revenue rose to $1,324.9 million from $1,134.9 million. New heavy-duty units reached 3,994 from 3,215, new medium-duty units 3,819 from 3,427, and new light-duty units 1,418 from 858. Used units rose 5.5% to 1,913.

In the United States, Rush sold 3,880 new Class 8 trucks, up 24.4%, for a 6.5% share of industry retail sales of 59,616 units, which rose 10.2%. Class 4 to 7 sales rose 9.6% to 3,265 units, a 6.1% share.

Management said Class 8 gains came from over-the-road customers replacing aging fleets, supported by stronger freight rates. Medium-duty gains came from larger fleets that delayed purchases until the second half. Used demand benefited from limited new truck availability, expected 2027 price increases and improved lender willingness to extend credit.

Aftermarket and Leasing: Why Does Service Carry the Profit?

Aftermarket parts, service and collision revenue grew 5.8% to $679.9 million, with gross profit of $243.1 million, against $238.8 million. The segment produced about 62.8% of total gross profit, and the absorption ratio was 128.3%, against 129.3%.

Lease and rental revenue rose 5.3% to $98.2 million, with gross profit of $28.5 million, against $25.8 million. The company completed a 50% joint venture with MCT Companies, a Carrier Transicold dealer with 17 full-service dealerships, marking its entry into refrigerated transportation.

Cash Flow and Dividend: How Strong Is the Balance Sheet?

Trailing twelve-month operating cash flow was $372.3 million, against $1,139.6 million, and free cash flow was $61.3 million, against $692.0 million. Capital expenditures fell to $311.0 million from $447.6 million. Adjusted EBITDA was $419.8 million, against $426.0 million.

Cash was $226.4 million and GAAP total debt was $1,344.7 million. In the quarter the company repurchased $10.3 million of stock and paid $16.4 million of dividends. The board declared $0.14 per share, up from $0.13, payable December 10 to holders of record on November 11.

What to Watch Next: Will 2027 Emissions Rules Slow Orders?

Management expects the freight recovery to continue into the fourth quarter and new Class 8 sales to be strong through the first quarter of 2027, though supply constraints may affect delivery timing. Order activity has slowed while the EPA finalizes its 2027 emissions rules, and leasing demand may soften in the first quarter after pre-buying ahead of price increases. The company's earnings call is scheduled for Wednesday, October 28.