RUSHB

• Achieved third quarter revenues of $1.9 billion and net income of $66.7 million or $0.83 per diluted share.
• Board of Directors approved a $0.19 per share cash dividend.
• Aftermarket operations accounted for ~63% of total gross profit, with parts, service, and collision center revenues up 1.5% y-o-y.
• Sold 3,120 new Class 8 trucks in U.S., 11% y-o-y decrease but outperformed market in vocational.
• Medium-duty results outpaced broader market due to bus sales from IC Bus acquisition in Canada.
• Rush Truck Leasing had record revenues of $93.3 million, up 4.7% y-o-y.
• Repurchased $9.2 million of common stock and paid a $14.8 million cash dividend.

• Anticipate continued challenges in aftermarket due to seasonal trends and industry headwinds.
• Weak demand for new Class 8 trucks to continue for at least next 2 quarters, but potential improvement in second half of 2026 if emission laws effective and capacity exits.
• Medium-duty commercial vehicle sales expected to remain stable through remainder of year.
• Used truck sales expected to be in line with third quarter.
• Rush Truck Leasing performance solid for remainder of year.

In the third quarter, aftermarket operations accounted for approximately 63% of total gross profit. Parts, service, and collision center revenues reached $642.7 million, an increase of 1.5% compared to the third quarter of 2024. For truck sales, 3,120 new Class 8 trucks were sold in the U.S. during the third quarter, representing an 11% year-over-year decrease and 5.8% of the total U.S. market. Medium-duty commercial vehicle sales included 2,979 Class 4 through 7 in the U.S., an 8.3% year-over-year decrease and 5.6% market share, and 448 Class 5 through 7 in Canada, 10.7% of the Canadian market. Used commercial vehicle sales were 1,814 units, essentially flat compared to the same period in 2024. Rush Truck Leasing achieved record revenues of $93.3 million in the third quarter, up 4.7% year-over-year.

• Commercial vehicle industry faces challenging operating conditions with depressed freight rates and overcapacity.
• Economic uncertainty and regulatory ambiguity, especially with engine emissions regulations.
• Tariffs impacting customer vehicle replacement decisions.
• Potential impact of emission regulations on warranties and costs.
• Uncertainty around driver regulations affecting smaller carriers.

Q: Could you expand on when things might bottom and the path forward regarding the cyclical malaise?

A: W. Rush discussed freight recession lasting 3 years, supply not exiting market as expected, driver regulations potentially taking out 15% of drivers, emission laws and tariffs impacting, expecting better back half of 2026 with rightsized fleet and potential freight growth.

Q: What's your read on the macro outside of customer base?

A: W. Rush worries about unemployment affecting consumer demand and not seeing full effect of tariffs, concerned about inflation if tariffs pushed through and companies draining inventories.

Q: How is your parts and service business trending into year-end?

A: Flat to slightly up for third quarter, September softer than expected, expecting October to be close to flat with last year, noting seasonality and fewer working days.

Q: Outlook for remainder of '25 and first half of '26, reasons for customers not placing orders?

A: Next couple of quarters tough due to low order intake, uncertainty around tariffs and emissions regulations, need for clarity on these to improve sales.

Q: What are you seeing in medium-duty into end of year and 2026?

A: Expected to be fairly flat in Q4, more stable than Class 8, weathering downturn better due to diverse markets served but will still suffer some.

Q: What's the trend in used truck market?

A: Pricing fairly stable, depreciation in line with normal, inventory managed well, used trucks not affected by tariffs or emissions, volumes solid going forward.

Q: Thoughts on parts and service business picking up more share in a softer market?

A: More challenging, holding own, balancing share, margin, and results, technology and investments in mobile service and technicians as key areas for growth