RUSHA

Overall Financial & Capital Allocation Updates

• Total Q2 2026 revenues reached $1.9 billion, with net income of $72.8 million ($0.91 per diluted share).
• The board approved a 3-for-2 stock split for Class A and Class B common stock, and a 10.5% increased post-split quarterly dividend of $0.14 per share, continuing the strategy of returning capital to shareholders while maintaining a strong balance sheet.

Market Cycle & Recovery Update

• Management reaffirms that Q1 2026 was the trough of the multi-year industry downcycle, with encouraging improvement in market conditions through Q2. Early-stage recovery is supported by rising freight rates, higher customer confidence, increased quoting activity, and significantly stronger new truck order intake.
• The company's diversified business model demonstrated resilience through the downturn, and the team successfully capitalized on improving conditions to deliver solid results.

Strategic Growth Initiatives

• Completed acquisition of 5 Peterbilt dealerships in Louisiana, expanding the Rush Truck Center network across the Gulf Coast region.
• Completed acquisition of 5 commercial dealerships in southwestern Ontario, Canada, strengthening the company's presence in one of Canada's largest transportation markets.
• Announced a signed agreement to form a 50% owned joint venture with MCT Companies to enter the refrigerated transportation market, an adjacent business that complements core dealership operations. The transaction is expected to close in Q3 2026, subject to customary closing conditions. The company will continue evaluating additional acquisition or investment opportunities in commercial vehicle adjacent businesses.

• Full-year 2026 Class 8 sales are expected to be considerably stronger in the second half than the first half, with sequential ramping through Q3 and Q4 2026, and backlog already extending into Q1 2027.
• Aftermarket revenue and activity are expected to continue gradual improvement through the second half of 2026, as fleet utilization rises, small customer spending normalizes after three years of declines, and new truck deliveries create additional parts and service demand from vehicle upfit and trade-in preparation.
• Medium-duty sales are expected to improve through 2026 and end the year roughly in line with 2025 full-year sales levels.
• Used truck demand is expected to remain healthy for the remainder of 2026, supported by higher new truck prices and the 2027 emissions regulation timeline.
• Leasing and rental operations are expected to continue delivering steady long-term growth, supported by healthy demand and potential future manufacturing capacity constraints as new truck demand rises.
• Management sees potential upside to 2027 full-year Class 8 sales following the EPA's 2027 emissions framework, which avoids a cliff-style technology transition and eases adoption of new emissions standards.

1. Aftermarket (Parts, Service, Collision Centers): Revenues of $645.7 million, up 1.5% year-over-year. The segment accounts for approximately 64% of total gross profit, with a strong absorption rate of 130.8%.
2. New Heavy-Duty (Class 8) Truck Sales: 3,172 units sold in the U.S., flat year-over-year even as the overall market declined. U.S. Class 8 market share increased to 5.8%.
3. New Medium-Duty (Class 4-7) Commercial Vehicle Sales: 3,165 units sold in the U.S., down 12.7% year-over-year, impacted by delayed large fleet purchasing decisions.
4. Used Commercial Vehicle Sales: Demand continued to improve through the quarter, with June 2026 as the strongest month of the year to date, supported by healthier freight conditions and customer preference for cost-effective options.
5. Rush Truck Leasing & Rental: Revenues of $94.8 million, up 1.9% year-over-year. The segment delivered consistent solid performance.

• The industry recovery remains in early stages, and aftermarket activity has been slower to recover than new truck order intake, with ongoing pricing competitiveness pressuring margins in the segment.
• New truck production capacity is constrained by OEM and second/third-tier supplier limitations, which may limit near-term sales volume even as demand rises.
• New 2027 emissions technology carries inherent uncertainty around reliability and uptime for customers, which could drive demand for proven older technology and create market volatility around the transition.
• Ongoing tariffs and geopolitical factors create additional pricing and supply chain uncertainty for OEMs and the company.
• Actual results may differ materially from forward-looking guidance due to inherent industry and market risks, as noted in the safe harbor statement for forward-looking statements.

Q: How is customer pre-buy activity shaping up for 2027 emissions rules, and what is your outlook for second half 2026 Class 8 sales?

A: The company's Class 8 backlog is the largest it has been in two years, and Rush is essentially sold out of current build allocation for 2026, with limited remaining inventory. The EPA's finalized framework includes non-conformance penalties (NCPs) that allow OEMs to sell proven older-technology engines into 2027, avoiding a cliff-style transition. This eases customer adoption of new technology, which management expects to support solid 2027 demand, with upside potential compared to prior forecasts. Second half 2026 sales will ramp up sequentially from the first half, hitting near the 10-year annual average for U.S. Class 8 retail sales.

Q: How will NCPs for 2027 affect Rush's pricing and margins, and what early trends do you see for July activity and small customer segments?

A: NCPs are fixed, government-mandated costs that will be passed directly through to customers, with minimal impact on Rush's margins. The cost (~$6,800 plus FET for Class 8 engines) is manageable for customers relative to total truck purchase prices, and the transition to new technology will be gradual through 2027-2028. July 2026 trends show continued sequential improvement across both new truck deliveries and aftermarket activity. Small unassigned customers, a segment that saw three straight years of double-digit declines, appear to have troughed, with small single-digit sequential growth in aftermarket demand, which is a positive leading indicator for ongoing aftermarket improvement.

Q: What is the strategic vision for the new MCT joint venture in refrigerated transportation, and will this be a platform for ongoing growth?

A: The MCT joint venture is not a one-off transaction; it is a launch point for long-term growth in the adjacent refrigerated transportation space, which the company has evaluated for over a year. The business model has strong overlap with Rush's core commercial vehicle dealership operations, and shares the same customer base, allowing Rush to leverage its existing national customer relationships and large service network. The joint venture will pursue additional growth opportunities in the space after closing, which is targeted for the end of Q3 2026. Rush will continue evaluating other adjacent opportunities that align with its core expertise of serving commercial transportation customers.

Q: How much room for growth does Rush have in Canada, and will growth be aligned with its existing OEM partners?

A: There is meaningful room for additional growth in Canada within the framework of Rush's existing agreements with its OEM partners. All recent and future acquisitions are coordinated with and approved by OEM partners. Rush has already grown its Canadian JV (originally 50/50, now 80% Rush-owned) successfully following the 2025 acquisition of a Canadian International school bus dealership, and will continue pursuing complementary opportunities in the market.