- Revenues of
$1.9 billion , net income of$72.8 million - Earnings per diluted share of
$0.91 - Absorption ratio 130.8%
- Board declares three-for-two stock split with respect to both Class A and Class B common stock
- Board declares a post-stock split cash dividend of
$0.14 per share of Class A and Class B common stock, representing a 10.5% increase - Company announces acquisitions expanding network and signing joint venture agreement with MCT Companies, a
Carrier Transicold dealer
The Company’s Board of Directors declared a three-for-two stock split with respect to both the Company’s Class A and Class B common stock. The stock split will be effected in the form of a stock dividend payable on
“I am proud of the results our team delivered during the second quarter. As I mentioned at the end of April, we believe the first quarter represented the trough of the extended industry downcycle, and during the second quarter we continued to see signs of gradual improvement in market conditions. While the recovery remains in its early stages, improving freight rates, improving customer sentiment, increased commercial vehicle quoting activity and significantly higher order intake all contributed to better business conditions as the quarter progressed,” said Rush.
“Our diversified business model once again demonstrated its resilience while our team's ability to execute allowed us to capitalize on improving market conditions, meet our customers’ growing demand and deliver solid financial results. Orders for new commercial vehicles increased significantly as the quarter progressed and used truck sales remained strong. Although we expect the recovery to be gradual, we are encouraged by increased order activity, strengthening market fundamentals and improved customer confidence, all of which we believe position
During the second quarter, the Company completed its acquisition of five
On
"We continue to search for and invest in opportunities that strengthen
Aftermarket Products and Services
Aftermarket products and services accounted for approximately 64.0% of the Company’s total gross profit in the second quarter of 2026, with parts, service and collision center revenues totaling
“Demand for parts and services improved gradually as the quarter progressed, particularly among over-the-road fleets, reflecting healthier freight markets, improving fleet sentiment and the gradual return of maintenance activity as more miles are driven,” Rush said. “While the aftermarket recovery is trailing the improvement we are seeing in commercial vehicle sales and quoting activity, we are encouraged by the positive momentum in our aftermarket business and believe those trends signal continued improvement throughout the remainder of the year,” he continued.
“Looking ahead, we expect our aftermarket business to continue improving as fleet utilization increases and new commercial vehicle deliveries accelerate, which historically has generated additional service and parts opportunities as customers upfit new vehicles and prepare to sell the commercial vehicles they are replacing,” Rush stated. “We remain focused on operational efficiency, increasing our managed and national accounts, and delivering exceptional service to our customers. We believe our aftermarket business is well positioned to benefit as commercial vehicle market conditions continue to strengthen,” he added.
Commercial Vehicle Sales
New
“Industry-wide retail sales of new Class 8 trucks remained below normal replacement levels during the second quarter, but we were pleased with our performance given the challenging business environment,” said Rush. “Our ability to maintain essentially flat Class 8 truck sales while the broader market declined compared to the second quarter of 2025 allowed us to increase market share. We believe our performance reflects the strength of our customer relationships, our diversified customer base and our disciplined approach to inventory management. More importantly, customer quoting activity and order intake improved significantly as the quarter progressed, reinforcing our belief that the recovery we anticipated earlier this year is beginning to take shape,” he continued.
“Looking ahead, we believe the second half of 2026 will be considerably stronger than the first half of the year with respect to Class 8 truck sales,” Rush stated. “Improving freight rates, stronger fleet profitability and increasing customer confidence are supporting higher quoting activity and order intake, and we continue to see customers planning equipment purchases ahead of the 2027 emissions regulations. While we expect the industry's overall recovery to remain gradual, we believe
New
“Our medium-duty business continued to improve during the second quarter, although our year-over-year sales comparison was impacted by the timing of both orders and deliveries to several of our larger fleet customers,” Rush said. “Sales strengthened considerably as the quarter progressed, particularly in June, and our Ready-to-Roll inventory program continues to differentiate us in the marketplace as demand for medium-duty trucks increases. While
The Company sold 1,788 used commercial vehicles in the second quarter of 2026, an increase of 4.3% compared to the second quarter of 2025. “Used truck demand continued to improve during the second quarter, with activity strengthening as the quarter progressed and June representing our strongest month of the year,” Rush stated. “Improving freight rates and healthier market conditions are supporting customer demand, particularly among buyers seeking a cost-effective alternative to new equipment, and we believe our disciplined approach to used truck inventory and pricing continues to serve us well as market conditions normalize. While financing remains a challenge for some customers, we believe the combination of higher new truck prices and the approaching 2027 federal emissions regulations will continue to make quality used trucks an attractive option. As a result, we expect demand for used trucks to remain healthy throughout the remainder of the year,” he added.
Leasing and Rental
Leasing and Rental revenue in the second quarter of 2026 was
“Looking ahead, we continue to see healthy demand for our leasing and rental services as fleets replace aging equipment. As new commercial vehicle orders increase across the industry, manufacturers may eventually reach capacity constraints, which historically supports leasing and rental activity,” Rush added. “Combined with improving rental utilization and continued growth in our contract maintenance business, we believe that our leasing and rental business is well positioned to continue to deliver stable growth and make a meaningful contribution to our overall financial performance in the years ahead,” he concluded.
Financial Highlights
In the second quarter of 2026, the Company’s gross revenues totaled
Aftermarket products and services revenues were
During the second quarter of 2026, the Company repurchased
“We are proud of our ability to generate solid earnings and return value to our shareholders, while maintaining a strong cash position and balance sheet despite difficult industry conditions over the past few years. Further, we believe our continued focus on operational excellence and growth opportunities has helped us improve our quality of earnings and invest in our future,” Rush said. “Our second quarter results reflect the strength of
“Finally, I want to thank our employees for their unwavering commitment to our customers and to one another. Their professionalism, dedication and focus on operational excellence continue to distinguish
Conference Call Information
Participants may register for the call at:
https://register-conf.media-server.com/register/BI030c1199c7fb4699a4181094d3a3be52
While not required, it is recommended that you join the event 10 minutes prior to the start.
For those who cannot listen to the live broadcast, the webcast replay will be available at:
http://investor.rushenterprises.com/events.cfm.
Certain statements contained in this release, including those concerning current and projected market conditions, sales forecasts, market share forecast and anticipated demand for the Company’s services, are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements only speak as of the date of this release and the Company assumes no obligation to update the information included in this release. Because such statements include risks and uncertainties, 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, competitive factors, general U.S. economic conditions, economic conditions in the new and used commercial vehicle markets, customer relations, relationships with vendors, inflation and the interest rate environment, increased fuel prices as a result of the conflict in Iran, governmental regulation and supervision, including engine emission regulations, U.S. and global trade policies, product introductions and acceptance, changes in industry practices, one-time events and other factors described herein and in filings made by the Company with the Securities and Exchange Commission, including in our annual report on Form 10-K for the fiscal year ended December 31, 2025. In addition, the declaration and payment of cash dividends and authorization of future share repurchase programs remains at the sole discretion of the Company’s Board of Directors and the issuance of future dividends and authorization of future share repurchase programs will depend upon the Company’s financial results, cash requirements, future prospects, applicable law and other factors that may be deemed relevant by the Company’s Board of Directors. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual business and financial results and could cause actual results to differ materially from those in the forward-looking statements. All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.
-Tables and Additional Information to Follow-
RUSH ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Shares and Per Share Amounts)
(Unaudited)
| 2026 | 2025 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash, cash equivalents and restricted cash | $ | 264,937 | $ | 212,645 | ||
| Accounts receivable, net | 304,665 | 277,784 | ||||
| Note receivable, affiliate | 8,031 | 11,576 | ||||
| Inventories, net | 1,687,607 | 1,534,471 | ||||
| Prepaid expenses and other | 27,995 | 54,662 | ||||
| Total current assets | 2,293,235 | 2,091,138 | ||||
| Property and equipment, net | 1,690,261 | 1,694,738 | ||||
| Operating lease right-of-use assets, net | 125,180 | 124,130 | ||||
| 468,959 | 441,615 | |||||
| Other assets, net | 81,894 | 78,915 | ||||
| Total assets | $ | 4,659,529 | $ | 4,430,536 | ||
| Liabilities and shareholders’ equity | ||||||
| Current liabilities: | ||||||
| Floor plan notes payable | $ | 961,057 | $ | 917,955 | ||
| Current maturities of long-term debt | 1,736 | 127 | ||||
| Current maturities of finance lease obligations | 29,180 | 34,519 | ||||
| Current maturities of operating lease obligations | 21,036 | 19,285 | ||||
| Trade accounts payable | 299,119 | 230,763 | ||||
| Customer deposits | 108,074 | 112,149 | ||||
| Accrued expenses | 159,299 | 177,292 | ||||
| Total current liabilities | 1,579,501 | 1,492,090 | ||||
| Long-term debt, net of current maturities | 280,979 | 274,798 | ||||
| Finance lease obligations, net of current maturities | 84,027 | 88,149 | ||||
| Operating lease obligations, net of current maturities | 107,135 | 107,698 | ||||
| Other long-term liabilities | 40,046 | 34,225 | ||||
| Deferred income taxes, net | 213,354 | 207,733 | ||||
| Shareholders’ equity: | ||||||
| Preferred stock, par value | – | – | ||||
| Common stock, par value | 847 | 835 | ||||
| Additional paid-in capital | 667,442 | 634,266 | ||||
| (336,548) | (331,150) | |||||
| Retained earnings | 2,008,525 | 1,904,091 | ||||
| Accumulated other comprehensive income (loss) | (8,878) | (4,813) | ||||
| Total | 2,331,388 | 2,203,229 | ||||
| Noncontrolling interest | 23,099 | 22,614 | ||||
| Total shareholders’ equity | 2,354,487 | 2,225,843 | ||||
| Total liabilities and shareholders’ equity | $ | 4,659,529 | $ | 4,430,536 | ||
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Revenues | ||||||||||||
| New and used commercial vehicle sales | $ | 1,148,992 | $ | 1,191,504 | $ | 2,104,135 | $ | 2,322,274 | ||||
| Aftermarket products and services sales | 645,659 | 636,258 | 1,272,853 | 1,255,326 | ||||||||
| Lease and rental sales | 94,847 | 93,124 | 187,124 | 183,377 | ||||||||
| Finance and insurance | 6,364 | 5,552 | 11,975 | 10,764 | ||||||||
| Other | 3,817 | 4,269 | 7,777 | 9,796 | ||||||||
| Total revenue | 1,899,679 | 1,930,707 | 3,583,864 | 3,781,537 | ||||||||
| Cost of products sold | ||||||||||||
| New and used commercial vehicle sales | 1,056,096 | 1,087,644 | 1,930,000 | 2,118,177 | ||||||||
| Aftermarket products and services sales | 414,116 | 397,011 | 813,906 | 794,754 | ||||||||
| Lease and rental sales | 67,798 | 66,381 | 134,489 | 131,175 | ||||||||
| Total cost of products sold | 1,538,010 | 1,551,036 | 2,878,395 | 3,044,106 | ||||||||
| Gross profit | 361,669 | 379,671 | 705,469 | 737,431 | ||||||||
| Selling, general and administrative expense | 245,474 | 251,981 | 488,104 | 500,784 | ||||||||
| Depreciation and amortization expense | 19,068 | 17,611 | 37,786 | 34,867 | ||||||||
| Gain (loss) on sale of assets | 59 | 127 | (186) | 295 | ||||||||
| Operating income | 97,186 | 110,206 | 179,393 | 202,075 | ||||||||
| Other income (loss), net | (526) | (372) | (990) | (812) | ||||||||
| Interest expense, net | 4,383 | 12,726 | 10,737 | 25,589 | ||||||||
| Income before taxes | 92,277 | 97,108 | 167,666 | 175,674 | ||||||||
| Income tax provision | 19,257 | 24,119 | 32,966 | 42,068 | ||||||||
| Net income | 73,020 | 72,989 | 134,700 | 133,606 | ||||||||
| Less: Net income attributable to noncontrolling Interest | 259 | 551 | 486 | 846 | ||||||||
| Net income attributable to | $ | 72,761 | $ | 72,438 | $ | 134,214 | $ | 132,760 | ||||
| Net income attributable to per share of common stock: | ||||||||||||
| Basic | $ | 0.93 | $ | 0.93 | $ | 1.73 | $ | 1.68 | ||||
| Diluted | $ | 0.91 | $ | 0.90 | $ | 1.68 | $ | 1.63 | ||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 77,963 | 78,300 | 77,637 | 78,975 | ||||||||
| Diluted | 80,215 | 80,487 | 80,045 | 81,445 | ||||||||
| Dividends declared per common share | $ | 0.19 | $ | 0.18 | $ | 0.38 | $ | 0.36 | ||||
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under
Management believes the presentation of these non-GAAP financial measures provides useful information about the results of operations of the Company for the current and past periods. Management believes that investors should have the same information available to them that management uses to assess the Company’s operating performance and capital structure. These non-GAAP financial measures should not be considered in isolation or as a substitute for the most comparable GAAP financial measures. Investors are cautioned that non-GAAP financial measures utilized by the Company may not be comparable to similarly titled non-GAAP financial measures used by other companies.
| Three Months Ended | ||||||
| Commercial Vehicle Sales Revenue(in thousands) | ||||||
| New heavy-duty vehicles | $ | 623,501 | $ | 632,213 | ||
| New medium-duty vehicles (including bus sales revenue) | 374,206 | 413,662 | ||||
| New light-duty vehicles | 49,431 | 42,573 | ||||
| Used vehicles | 99,134 | 94,993 | ||||
| Other vehicles | 2,720 | 8,063 | ||||
| Absorption Ratio | 130.8% | 135.5% | ||||
Absorption Ratio
Management uses several performance metrics to evaluate the performance of its commercial vehicle dealerships and considers Rush Truck Centers’ “absorption ratio” to be of critical importance. Absorption ratio is calculated by dividing the gross profit from the parts, service and collision center departments by the overhead expenses of all of a dealership’s departments, except for the selling expenses of the new and used commercial vehicle departments and carrying costs of new and used commercial vehicle inventory. When 100% absorption is achieved, then gross profit from the sale of a commercial vehicle, after sales commissions and inventory carrying costs, directly impacts operating profit.
| Debt Analysis(in thousands) | ||||||
| Floor plan notes payable | $ | 961,057 | $ | 1,088,779 | ||
| Current maturities of long-term debt | 1,736 | 128 | ||||
| Current maturities of finance lease obligations | 29,180 | 36,332 | ||||
| Long-term debt, net of current maturities | 280,979 | 412,845 | ||||
| Finance lease obligations, net of current maturities | 84,027 | 87,045 | ||||
| Total Debt (GAAP) | 1,356,979 | 1,625,129 | ||||
| Adjustments: | ||||||
| Debt related to lease & rental fleet | (392,590) | (532,853) | ||||
| Floor plan notes payable | (961,057) | (1,088,779) | ||||
| Adjusted Total Debt (Non-GAAP) | 3,332 | 3,497 | ||||
| Adjustment: | ||||||
| Cash and cash equivalents | (264,937) | (211,106) | ||||
| Adjusted Net Debt (Cash) (Non-GAAP) | $ | (261,605) | $ | (207,609) | ||
Management uses “Adjusted Total Debt” to reflect the Company’s estimated financial obligations less debt related to lease and rental fleet (L&RFD) and floor plan notes payable (FPNP), and “Adjusted Net (Cash) Debt” to present the amount of Adjusted Total Debt net of cash and cash equivalents on the Company’s balance sheet. The FPNP is used to finance the Company’s new and used inventory, with its principal balance changing daily as vehicles are purchased and sold and the sale proceeds are used to repay the notes. Consequently, in managing the business, management views the FPNP as interest bearing accounts payable, representing the cost of acquiring vehicles financed as collateral through a banking institution or the vendor’s financing arm and is required to be repaid as the collateral is sold. The Company has the capacity to finance all of its new and used inventory under its lines of credit established for these purposes but may choose to only partially finance them depending on business conditions and its management of cash and interest expense. The Company’s lease and rental fleet inventory are either: (i) leased to customers under long-term lease arrangements; or (ii) to a lesser extent, dedicated to the Company’s rental business. In both cases, the lease and rental payments received fully cover the capital costs of the lease and rental fleet (i.e., the interest expense on the borrowings used to acquire the vehicles and the depreciation expense associated with the vehicles), plus a profit margin for the Company. The Company believes that excluding the FPNP and L&RFD from the Company’s total debt for this purpose provides management with supplemental information regarding the Company’s capital structure and leverage profile and assists investors in performing analysis that is consistent with financial models developed by Company management and research analysts. “Adjusted Total Debt” and “Adjusted Net (Cash) Debt” are both non-GAAP financial measures and should be considered in addition to, and not as a substitute for, the Company’s debt obligations, as reported in the Company’s consolidated balance sheet in accordance with
| Twelve Months Ended | ||||||
| EBITDA(in thousands) | ||||||
| Net Income attributable to | $ | 265,230 | $ | 286,644 | ||
| Provision for income taxes | 70,726 | 87,310 | ||||
| Interest expense | 31,383 | 59,010 | ||||
| Depreciation and amortization | 74,055 | 71,174 | ||||
| (Gain) loss on sale of assets | 69 | (1,002) | ||||
| EBITDA (Non-GAAP) | 441,463 | 503,136 | ||||
| Adjustment: | ||||||
| Less Interest expense associated with FPNP and L&RFD | (36,441) | (60,396) | ||||
| Adjusted EBITDA (Non-GAAP) | $ | 405,022 | $ | 442,740 | ||
The Company presents EBITDA and Adjusted EBITDA, for the twelve months ended for each period presented, as additional information about its operating results. The presentation of Adjusted EBITDA that excludes the addition of interest expense associated with FPNP and the L&RFD to EBITDA is consistent with management’s presentation of Adjusted Total Debt, in each case reflecting management’s view of interest expense associated with the FPNP and L&RFD as an operating expense of the Company, and provides management with supplemental information regarding operating results and assists investors in performing analysis that is consistent with financial models developed by management and research analysts. “EBITDA” and “Adjusted EBITDA” are both non-GAAP financial measures and should be considered in addition to, and not as a substitute for, net income of the Company, as reported in the Company’s consolidated statements of income in accordance with
| Twelve Months Ended | ||||||
| Free Cash Flow(in thousands) | ||||||
| Net cash provided by operations (GAAP) | $ | 674,625 | $ | 885,188 | ||
| Acquisition of property and equipment | (325,887) | (482,801) | ||||
| Free cash flow (Non-GAAP) | 348,738 | 402,387 | ||||
| Adjustments: | ||||||
| Draws on floor plan financing, net | 38,928 | (154,716) | ||||
| Cash used for L&RF purchases | 255,164 | 385,624 | ||||
| Non-maintenance capital expenditures | 33,990 | 31,361 | ||||
| Adjusted Free Cash Flow (Non-GAAP) | $ | 676,820 | $ | 664,657 | ||
“Free Cash Flow” and “Adjusted Free Cash Flow” are key financial measures of the Company’s ability to generate cash from operating its business. Free Cash Flow is calculated by subtracting the acquisition of property and equipment included in the Cash flows from investing activities from Net cash provided by operating activities. For purposes of deriving Adjusted Free Cash Flow from the Company’s operating cash flow, Company management makes the following adjustments: (i) adds back draws (or subtracts payments) on the floor plan financing that are included in Cash flows from financing activities, as their purpose is to finance the vehicle inventory that is included in Cash flows from operating activities; (ii) adds back proceeds from notes payable related specifically to the financing of the lease and rental fleet that are reflected in Cash flows from financing activities; (iii) subtracts draws on floor plan financing, net and proceeds from L&RFD related to business acquisition assets that are included in Cash flows from investing activities; (iv) subtracts scheduled principal payments on fixed rate notes payable related specifically to the financing of the lease and rental fleet that are included in Cash flows from financing activities; (v) subtracts lease and rental fleet purchases that are included in acquisition of property and equipment and not financed under the lines of credit for cash and interest expense management purposes; and (vi) adds back non-maintenance capital expenditures that are for growth and expansion (i.e. building of new dealership facilities) that are not considered necessary to maintain the current level of cash generated by the business. “Free Cash Flow” and “Adjusted Free Cash Flow” are both presented so that investors have the same financial data that management uses in evaluating the Company’s cash flows from operating activities. “Free Cash Flow” and “Adjusted Free Cash Flow” are both non-GAAP financial measures and should be considered in addition to, and not as a substitute for, net cash provided by (used in) operations of the Company, as reported in the Company’s consolidated statement of cash flows in accordance with
| Total | $ | 2,331,388 | $ | 2,153,831 | ||
| Adjusted net debt (cash) (Non-GAAP) | (261,605) | (207,609) | ||||
| $ | 2,069,783 | $ | 1,946,222 | |||
“Adjusted Invested Capital” is a key financial measure used by the Company to calculate its return on invested capital. For purposes of this analysis, management excludes L&RFD, FPNP, and cash and cash equivalents, for the reasons provided in the debt analysis above and uses Adjusted Net Debt in the calculation. The Company believes this approach provides management with a more accurate picture of the Company’s leverage profile and capital structure and assists investors in performing analysis that is consistent with financial models developed by Company management and research analysts. “Adjusted Net (Cash) Debt” and “Adjusted Invested Capital” are both non-GAAP financial measures. Additionally, these non-GAAP measures may vary among companies and may not be comparable to similarly titled non-GAAP measures used by other companies.
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