Rush Enterprises Reports 10-Q, Predicts 10.5% Drop in Class 8 Truck Sales

By Bobby Samwell • Saturday, August 09 15:34 • Permanent Link

RUSH ENTERPRISES INC \TX\ has recently released its 10-Q report, providing insight into the company's financial performance and operations. Rush Enterprises, Inc. operates as an integrated retailer of commercial vehicles and related services in the United States and Canada. The company's network of commercial vehicle dealerships, Rush Truck Centers, primarily sells commercial vehicles manufactured by various brands including Peterbilt, International, Hino, Ford, Isuzu, IC Bus, Blue Bird, Dennis Eagle, Blue Arc, and Battle Motors. In addition to vehicle sales, the company offers aftermarket parts, service and repair, financing, leasing, rental services, and insurance products.

In ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, the company discusses its outlook for the commercial vehicle industry. A.C.T. Research Co., LLC forecasts a 10.5% decrease in new U.S. Class 8 retail truck sales in 2025, impacting the company's market share and sales projections. Additionally, the company expects a 10.2% decrease in new U.S. Class 4 through 7 retail commercial vehicle sales in 2025. Despite these projections, Rush Enterprises, Inc. anticipates solid demand for medium-duty commercial vehicles and potential growth in lease and rental revenue during 2025.

The report also highlights the company's critical accounting estimates and results of operations. For the three months ended June 30, 2025, total revenues decreased by 4.8% compared to the same period in 2024. The gross profit from the sale of new and used commercial vehicles, aftermarket products and services, lease and rental sales, and finance and insurance are detailed, providing a comprehensive view of the company's financial performance.

One key performance indicator mentioned in the report is the absorption ratio, which measures the gross profit from the company's Aftermarket Products and Services departments relative to overhead expenses. In the second quarter of 2025, the company achieved a 135.5% absorption ratio, indicating the impact of gross profit on operating profit.

The 10-Q report provides investors and stakeholders with detailed insights into RUSH ENTERPRISES INC \TX\'s financial condition, industry outlook, and operational performance, offering a comprehensive view of the company's position in the commercial vehicle retail and services sector. Following these announcements, the company's shares moved -0.07%, and are now trading at a price of $55.16. For more information, read the company's full 10-Q submission here.

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