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    RUSHA
    Earnings call· Jun 2026(Q2 FY26)

    RUSH ENTERPRISES INC \TX\ Q2 FY26 earnings call RUSHA

    Jul 29, 2026 Source

    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

    5

    • 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

    3

    • 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

    7
    CategoryTargetConfidence
    Class 8 truck sales
    considerably stronger than the first half
    high materiality
    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
    Medium
    Used commercial vehicle demand
    remain healthy throughout the remainder of the year
    medium materiality
    High
    Aftermarket business improvement
    continue improving as fleet utilization increases and new truck deliveries ramp up
    high materiality
    High
    Class 8 backlog coverage
    3 quarters of solid backlog
    high materiality
    High
    Truck deliveries (Q3 FY26)
    up 15% or something
    medium materiality
    Medium
    Freight recovery duration
    should have 24 months on it or so
    high materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    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%——

    Operational metrics

    13
    Net income
    $72.8 million
    Q2 FY26
    Diluted EPS
    $0.91
    Q2 FY26
    Stock split
    3-for-2
    Q2 FY26

    Declared by the Board.

    Quarterly cash dividend (post-split)
    $0.1410.5% increase
    Q2 FY26

    Represents a 10.5% increase compared to the prior quarterly dividend.

    Class 8 engine Non-Conformance Penalty (NCP)
    $6,800 range
    2027

    EPA announced NCPs for 2027 emissions regulations, allowing a transition period for OEMs to produce older engines. This is expected to be a pass-through cost.

    New technology engine cost increase
    $4,000-$5,000
    2028

    Estimated potential cost increase for new engine technology in 2028, as opposed to the 2027 NCP.

    Potential 10-year warranty cost (not implemented)
    $6,000-$8,000
    Future

    A previously discussed potential warranty cost that was not implemented by the government, which would have been priced in.

    Commercial vehicle cost
    $200,000
    Current

    Reference to the approximate cost of a commercial vehicle in the context of NCPs.

    Truck price increase
    35%
    Last 6 years

    Overall increase in truck prices over the past six years.

    U.S. Class 8 sales (H1)
    95,000
    H1 FY26

    Total U.S. Class 8 sales in the first half of the year.

    U.S. Class 8 sales (10-year average)
    230,000
    Annual

    Average annual U.S. Class 8 sales over the last 10 years.

    Small customer base (unassigned accounts) share of service business
    30-32%
    Current

    This segment has seen double-digit declines for the past three years but showed a slight sequential increase in Q2 FY26.

    Small customer base (unassigned accounts) sequential increase
    4%sequential
    Q1 to Q2 FY26

    Sequential increase in the small customer base, indicating a trough after years of decline.

    Industry KPIs

    3
    MetricValueDetails
    Used equipment sales—
    End market growth mix—
    Market volume mro market benchmark—

    Orderbook & backlog

    2
    Class 8 backlog3 quarters of solid backlogQ2 FY26

    Expected to carry into Q1 FY27, potentially Q2 FY27.

    Medium-duty backloggrowing backlogQ2 FY26

    Positioning the company to meet anticipated customer demand.

    Deals & partnerships

    3
    Peterbilt dealershipsAcquisition of 5 dealerships

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

    Commercial dealershipsAcquisition of 5 dealerships

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

    MCT CompaniesForming 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

    6
    Aftermarket competitiveness and margin compressionPast 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 customersOngoing

    Financing remains challenging for some customers

    Mitigation: Disciplined approach to inventory management and pricing.

    Challenging medium-duty marketFY26

    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 salesH2 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 regulations2027-2028

    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 OEMsLast year, ongoing

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

    What to watch in Q3 FY26

    5

    Class 8 truck deliveries

    Q3 FY26 and beyond
    Currentup 15% or something (Q3 estimate)
    TargetContinued 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.

    Q&A highlights

    6

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.