Inquired about H2 parts and service revenue growth expectations, given the sequential step-up in Q2, and whether supply-driven freight market improvement creates headwinds.

Rush acknowledged slower recovery and margin compression in aftermarket due to competitiveness but noted pickup as Q2 progressed and continued improvement in July. He highlighted the troughing of the small customer base (unassigned accounts), which represents 30-32% of service business, as a positive driver, along with increased new truck activity. “Parts and service, I already said, I expect it to continue to get better. And I've listed a multitude of reasons why, right, with the small user being one of them.”

Asked how NCPs would impact pricing and margins if OEMs sell current model trucks with NCPs next year.

Rush stated that NCPs (around $6,800 plus 12% FET) would be a known, federally driven number, making it hard to mark up, thus likely a pass-through. He views it as a fair transition mechanism for customers, allowing them to buy proven technology without a significant price increase, avoiding a 'cliff event.' “At the end of the day, an NCP is going to be a known number, right? It's going to be hard to mark up a known number driven by the federal government.”

Asked for an update on July trends across sales and aftermarket, and further details on small unassigned vs. national accounts.

Rush reiterated expectations for continued ramping of truck deliveries and sequential improvement in parts and service. He emphasized the positive shift in the small unassigned accounts, which had seen double-digit declines for three years, now showing a slight increase, indicating a trough. This segment is crucial as it represents 30-32% of service business. “The small -- well, the small guys, if they missed out from a truck sales perspective, tell them I might have some inventory they can buy from a parts and service perspective.”

RUSHA

Rush Enterprises (RUSHA) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Jul 29, 2026

Source: earnings call transcript

Executive summary

Rush Enterprises Q2 FY26 — Strong Aftermarket and Strategic Acquisitions Drive Resilience

Rush Enterprises delivered resilient Q2 FY26 results, demonstrating improving market conditions and strategic execution. The company saw encouraging signs of recovery in freight markets, increased quoting activity, and stronger new truck order intake, particularly in Class 8 sales. Strategic acquisitions and a new joint venture expand its market presence and diversify offerings, positioning the company for a stronger second half of the year despite some lingering challenges in medium-duty sales and aftermarket competitiveness.

Highlights

Aftermarket operations accounted for 64% of total gross profit, with revenues of $645.7 million, up 1.5% YoY.
U.S. Class 8 market share increased to 5.8% despite overall market decline, selling 3,172 trucks, flat YoY.
Declared a 3-for-2 stock split and increased post-split quarterly cash dividend by 10.5% to $0.14 per share.
Completed acquisition of 5 Peterbilt dealerships in Louisiana and 5 commercial dealerships in Ontario, Canada.
Entered into a 50% owned joint venture with MCT Companies to establish presence in refrigerated transportation market.

Concerns

New Class 4-7 commercial vehicle sales decreased 12.7% YoY to 3,165 units due to delayed purchasing decisions by large fleet customers.
Aftermarket recovery is trailing improvements in commercial vehicle quoting and new truck orders, with margin compression due to market competitiveness.
Financing remains challenging for some used commercial vehicle customers.

Guidance & targets

Category	Target	Timeline	Confidence
Class 8 truck sales	considerably stronger than the first half high materiality	H2 FY26	High
Medium-duty commercial vehicle sales	continue to improve as the year progresses and will be roughly in line with our sales during 2025 medium materiality	FY26	Medium
Used commercial vehicle demand	remain healthy throughout the remainder of the year medium materiality	H2 FY26	High
Aftermarket business improvement	continue improving as fleet utilization increases and new truck deliveries ramp up high materiality	Ongoing	High
Class 8 backlog coverage	3 quarters of solid backlog high materiality	Q3 FY26 - Q1 FY27	High
Truck deliveries (Q3 FY26)	up 15% or something medium materiality	Q3 · FY26	Medium
Freight recovery duration	should have 24 months on it or so high materiality	Next 24 months · FY28	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Aftermarket Operations Demand improved gradually across much of the business, particularly among over-the-road fleet customers. Recovery is still trailing other market improvements but momentum is building. Absorption rate: 130.8%	$645.7 million	+1.5%	—	64% of total gross profit
Class 8 Truck Sales (U.S.) Sales remained below normal replacement levels but performance increased market share. Customer quoting activity and order intake improved significantly throughout the quarter. Units sold: 3,172U.S. Class 8 market share: 5.8%	—	Flat	—	—
Class 4-7 Commercial Vehicle Sales (U.S.) Year-over-year comparison impacted by timing of orders and deliveries to several larger fleet customers who delayed purchasing decisions. Sales improved steadily as the quarter progressed. Units sold: 3,165	—	-12.7%	—	—
Rush Truck Leasing Consistent contributor to financial performance with a stable revenue model, helping offset cyclicality in new commercial vehicle sales. Healthy demand for leasing and rental services continues.	$94.8 million	+1.9%	—	—

RUSHA operating KPIs by quarter

RUSHA operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Class 8 trucks sold US	2,964 We sold 2,964 Class 8 trucks in the US and captured a 7.2% market share. Source: earnings call transcript	3,172 But despite that environment, we sold 3,172 Class 8 trucks in the United States, essentially flat with the second quarter of last year, while the overall market declined. Source: earnings call transcript	+7%
Class 8 market share US	7.2% We sold 2,964 Class 8 trucks in the US and captured a 7.2% market share. Source: earnings call transcript	5.8% That performance increased our US Class 8 market share to 5.8%, reflecting the strength of our customer relationships, our diversified customer base and our disciplined inventory management. Source: earnings call transcript	-1.4 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Class 8 backlog 3 quarters of solid backlog Q2 FY26

Expected to carry into Q1 FY27, potentially Q2 FY27.

Medium-duty backlog growing backlog Q2 FY26

Positioning the company to meet anticipated customer demand.

Deals & partnerships

Peterbilt dealerships Acquisition of 5 dealerships

Expanded Rush Truck Centers network through the Gulf Coast region in Louisiana.

Commercial dealerships Acquisition of 5 dealerships

Expanded Canadian operations in Southwestern Ontario, strengthening presence in a large transportation market.

MCT Companies Forming a 50% owned joint venture to establish presence in the refrigerated transportation market.

MCT Companies is one of the nation's largest Carrier Transicold dealer groups. The transaction is subject to customary closing conditions.

Risks & headwinds

Aftermarket competitiveness and margin compression Past few years, ongoing

very, very competitive environment

Mitigation:Improving operational efficiency, growing managed and national accounts, delivering exceptional service.

Financing challenges for used commercial vehicle customers Ongoing

Financing remains challenging for some customers

Mitigation:Disciplined approach to inventory management and pricing.

Challenging medium-duty market FY26

broader medium-duty market to remain challenging during 2026 (ACT Research)

Mitigation:Growing backlog, anticipated deliveries, and available inventory position the company to meet anticipated customer demand.

Production constraints limiting new truck sales H2 FY26 and potentially into 2027

fairly sold out

Mitigation:Maximizing current build rates, working weekends, but constrained by second and third-tier suppliers.

Technology change risks with new engine regulations 2027-2028

possible question marks that always come with new technologies

Mitigation:EPA's non-conformance penalties (NCPs) allow for a smoother transition, enabling customers to purchase proven technology while new technologies mature.

Tariff impacts on OEMs Last year, ongoing

tariffs and things like that, that affect different OEMs, different ways

What to watch in Q3 FY26

Class 8 truck deliveries

Q3 FY26 and beyond

Current up 15% or something (Q3 estimate)

Target Continued ramp-up

Why it matters

Indicates the pace of market recovery and ability to convert backlog.

I expect July, August, September and throughout to continue to ramp. It's not going to double or anything like that. But if you were to ask me about truck in this quarter, will be up 15% or something.

Find out whether RUSHA delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked about customer sentiment regarding EPA 2027 regulations, prebuy activity, and expected Class 8 sales growth for H2.

Rusty Rush stated that the backlog is the largest in years, essentially sold out for large customers, and expects a strong H2 2026 for Class 8 sales. He explained that EPA's non-conformance penalties (NCPs) for 2027 will allow for a smoother transition, avoiding a 'cliff event' and potentially making 2027 a better year. He does not consider 2026 a prebuy year, as sales will be around the 10-year average.

“I would tell you, we've got 3 quarters of solid backlog probably right now currently.”

asked by Brady Lierz · answered by W. Rush

2 min read 6 chapters

Detailed narrative

Market Recovery and Outlook

Management believes Q1 FY26 represented the trough of the industry's down cycle, with Q2 showing encouraging signs of improvement. Stronger freight rates, increased customer confidence, and significantly higher new truck order intake contributed to better business conditions as the quarter progressed.

The company anticipates a considerably stronger second half of 2026, particularly for Class 8 truck sales, and expects the freight recovery to have legs for approximately 24 months.

Strategic Growth Initiatives and Acquisitions

Rush Enterprises is actively pursuing strategic growth. During Q2, the company acquired 5 Peterbilt dealerships in Louisiana and 5 commercial dealerships in Southwestern Ontario, Canada, expanding its network. Additionally, it announced a 50% owned joint venture with MCT Companies, a Carrier Transicold dealer group, to enter the refrigerated transportation market.

This JV is expected to close in Q3 FY26 and is viewed as a launching point for further growth in adjacent businesses.

Aftermarket Performance and Drivers

Aftermarket operations demonstrated resilience, accounting for 64% of total gross profit. Parts, service, and collision center revenues totaled $645.7 million, a 1.5% increase YoY, with a strong absorption rate of 130.8%. Demand improved gradually, especially from over-the-road fleets, as freight markets improved and deferred maintenance began to return. The company expects continued improvement as fleet utilization increases and new truck deliveries ramp up.

Class 8 Sales and EPA Regulations Impact

Despite overall market decline, Rush sold 3,172 Class 8 trucks in the U.S., flat YoY, increasing its market share to 5.8%. Management highlighted that new EPA regulations for 2027 emissions, including non-conformance penalties (NCPs) estimated at $6,800 per engine, will allow for a smoother transition. This approach, combined with improving customer health, is expected to avoid a significant prebuy

Medium-Duty and Used Truck Market Dynamics

New Class 4-7 commercial vehicle sales decreased 12.7% YoY to 3,165 units, primarily due to delayed purchasing decisions by large fleet customers. However, sales improved steadily through Q2, and the company expects full-year medium-duty sales to be roughly in line with 2025.

Used commercial vehicle demand also improved, with June being the strongest month, driven by healthier freight markets and the attractiveness of used trucks as a cost-effective alternative to higher-priced new equipment.

Rush Truck Leasing Contribution

Rush Truck Leasing delivered a solid quarter, generating revenues of $94.8 million, a 1.9% increase YoY. This segment provides a stable revenue model, helping to offset the cyclicality of new commercial vehicle sales and consistently generating healthy returns. The company anticipates continued steady growth in leasing and rental operations, supported by healthy demand, improving rental utilization, and growth in contract maintenance business.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.