Q2 2025 Rush Enterprises Inc Earnings Call

Yeah.

Good day, and thank you for standing by.

Welcome to the Rush Enterprises Q2 earnings release Conference call.

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Please be advised that today's conference is being recorded I would now like to hand, the conference over to your first speaker today.

C. Ross CEO. Please go ahead.

W.M. Rush: Vice President, Controller, and Michael Goldstone, Senior VP, General Counsel, and Corporate Secretary. Turn it over to Steve for a few comments.

Steven Keller: Mr. President Control and Michael Goldstone, Senior VP, General Counsel, and Corporate Secretary. I don't know Steve for a few comments. Certain statements we will make today are considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Because these statements include risk and uncertainties, our 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, those discussed in our annual report on Form 10-K for the year ended December 31st, 2024, and in our other filings with the Securities and Exchange Commission. As indicated in our news release, we achieved second quarter revenues 1.9 billion and net income 72.4 million or 90 cents per diluted share.

Fraser and controller, and Michael Goldstone, Senior VP General Counsel and corporate Secretary.

Michael Goldstone: Certain statements we will make today are considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Because these statements include risk and uncertainties, our 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, those discussed in our annual report on Form 10-K for the year ended 31 December 2024, and in our other filings with the Securities and Exchange Commission.

I don't know Steve for a few comments certain statements. We will make today are considered forward looking statements as defined in the private Securities Litigation Reform Act of 1995.

These statements include risks and uncertainties, our 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 those discussed in our annual report on Form 10-K for the year ended December 31.

2024, and in our other filings with the Securities and Exchange Commission.

W.M. Rush: As indicated in our news release, we achieved Q2 revenues of $1.9 billion and net income of $72.4 million, or $0.90 per diluted share. I'm pleased to announce that the board of directors approved a $0.19 per share cash dividend, a 1% increase over our prior quarterly dividend and our ninth increase since announcing our intent to begin paying a quarterly cash dividend in July 2018. Market conditions remained difficult in Q2 as the industry continues to face a freight recession that has persisted for more than 2 years and continues to face uncertainty with respect to trade policies and engine emissions regulations. As a result of these factors, many of our customers are delaying vehicle acquisitions and maintenance decisions.

As indicated in our news release, we achieved second quarter revenue was $1 9 billion and net income of $72 4 million or <unk> 90 cents per diluted share.

Steven Keller: I am pleased to announce that the board of directors approved a 19-cent per share cash dividend, a 1% increase over our prior quarterly dividend and our ninth increase since announcing our intent to begin paying a quarterly cash dividend in July 2018. Market conditions remain difficult the second quarter as the industry continues to face a frank recession that has persisted for more than two years and continues to face uncertainty with respect to trade policies and engine emissions regulations. As a result of these factors, many of our customers are delaying vehicle acquisitions and maintenance decisions. However, despite these many challenges, our employees remain focused on the operational discipline and customer service in the quarter, which helped us deliver solid results. So I want to thank them for their hard work and dedication.

Pleased to announce that the board of directors approved a <unk> 19 per share cash dividend.

A 1% increase over our prior quarterly dividend and our ninth increase since announcing our intent to begin paying a quarterly cash dividend in July 2018.

Market conditions remain difficult in the second quarter as the industry continues to face a freight recession proof.

Persisted for more than two years and continues to face uncertainty with respect to trade policies and engine emissions regulations. As a result of these factors many of our customers are delaying vehicle acquisition.

W.M. Rush: Despite these many challenges, our employees remained focused on the operational discipline and customer service in Q2, which helped us deliver solid results. I want to thank them for their hard work and dedication. Our aftermarket operations accounted for approximately 63% of our total gross profit in Q2, with parts, service, and collision center revenues reaching $636.3 million, an increase of 1.4% compared to Q2 2024, and our absorption ratio was 135.5%. In Q2, aftermarket revenues reached their highest level in the past 12 months, and we saw sequential growth from owner-operators and small fleets, which we hope and believe may be early indicators of improving demand. Technician turnover reached a 12-month low, and we expanded our aftermarket sales force, further strengthening our ability to support our customers.

Precision.

However, despite these many challenges our employees remain focused on the operational discipline and customer service in the quarter.

Which helped us deliver solid results.

Want to thank them for their hard work and dedication.

Steven Keller: Our aftermarket operations accounted for approximately 63% of our total gross profit in the second quarter, with parts, service, and collision center revenues reaching 636.3 million, an increase of 1.4% compared to the second quarter of 2024. And our absorption ratio was 135.5%. In the second quarter, aftermarket revenues reached their highest level in the past 12 months, and we saw sequential growth from owner-operators and small fleets, which we hope and believe may be early indicators of improving demand. Technician turnover reached a 12-month low, and we expanded our aftermarket sales force, further strengthening our ability to support our customers. Looking ahead, we expect stable aftermarket demand in the third quarter, with potential for modest sequential growth. With respect to truck sales, we sold 3,178 new Class 8 trucks in the US during the second quarter, accounting for 5.4% of the total US market.

Our aftermarket operations guidance of approximately 63% of our total gross profit in the second quarter with parts service and collision Center revenues Brexit $636 3 million, an increase of one 4% compared to the second quarter of 2000.

Function ratio was 135, 5%.

And the second quarter aftermarket revenues reached their highest level in the past 12 months and we saw sequential growth from owner operators and small fleets, which we hope and believe maybe early indicators of improving demand.

Mentioned turnover reached the 12 month low and we expanded our aftermarket sales force further strengthening our ability to support our test.

W.M. Rush: Looking ahead, we expect stable aftermarket demand in Q3, with potential for modest sequential growth. With respect to truck sales, we sold 3,178 new Class 8 trucks in the US during Q2, accounting for 5.4% of the total US market. While this represents a 20% year-over-year decrease, it is important to note that it's primarily due to the timing of several large fleet deliveries that occurred in Q2 of last year, which made for a difficult year-over-year comparison. In Canada, Class 8 sales totaled 81 units, representing a 1.2% of the market. Although demand from large over-the-road fleets remains weak, we achieved strong sales in the Class 8 vocational market, highlighting the strength of our diversified customer base. We expect vocational demand to remain solid for the remainder of the year.

Looking ahead, we expect stable aftermarket demand in the third quarter.

With potential for modest sequential growth.

With respect to truck sales, we sold 30 178, new class eight trucks in the U S. During the second quarter accounting for five 4% of the total U S market.

Steven Keller: While this represents a 20% year-over-year decrease, it is important to note that it's primarily due to the timing of several large fleet deliveries that occurred in the second quarter of last year, which made for a difficult year-over-year comparison. In Canada, Class 8 sales totaled 81 units, representing a 1.2% of the market. Although demand from large over-the-road fleets remains weak, we achieved strong sales in the Class 8 vocational market, highlighting the strength of our diversified customer base. We expect vocational demand to remain solid for the remainder of the year. However, due to ongoing uncertainty around trade policy and engine emissions regulations, new Class 8 truck sales may decline sequentially in the third quarter, and the market outlook beyond the third quarter is difficult to project at this point.

While this represents a 20% year over year decrease it is important to note. It is primarily due to the timing of several large fleet deliveries that occurred in the second quarter of last year.

It made for a difficult year over year comparison.

In Canada. The class eight sales totaled 81 units, representing a one 2% of the market.

Although demand from large over the road fleets remains weak we achieved strong sales in the class eight vocational markets.

I think the strength of our diversified customer base, we expect vocational demand to remain solid for the remainder of the year.

W.M. Rush: However, due to ongoing uncertainty around trade policy and engine emissions regulations, new Class 8 truck sales may decline sequentially in Q3, and the market outlook beyond Q3 is difficult to project at this point. In the medium-duty market, we delivered 3,626 new Class 4 through 7 commercial vehicles in the US in Q2, representing a 1% year-over-year increase and 6.2% market share. We sold 177 medium-duty vehicles in Canada, which represents 4.6% of the Canadian Class 5 through 7 market. Our medium-duty results were solid in Q2, with both year-over-year and quarter-over-quarter sales growth. Demand was broad-based across all our customer segments, and we saw particular strength with lease and rental customers. We believe that our Ready to Roll inventory program continues to differentiate us, enabling faster delivery and improved flexibility for customers.

However, due to ongoing uncertainty around trade policy and engine emissions regulations, New class eight truck sales may decline sequentially in the third quarter and the market outlook beyond the third quarter is difficult to project at this point.

Steven Keller: In the medium-duty market, we delivered 3,626 new Class 4 through 7 commercial vehicles in the US in the second quarter, representing a 1% year-over-year increase and 6.2% market share. We sold 177 medium-duty vehicles in Canada, which represents 4.6% of the Canadian Class 5 through 7 market. Our medium-duty results were solid in the second quarter, with both year-over-year and quarter-over-quarter sales growth. Demand was broad-based across all of our customer segments, and we saw particular strength with lease and rental customers. We believe that our ready-to-roll inventory program continues to differentiate us, enabling faster delivery and improved flexibility for customers. Looking ahead, we expect Class 4 through 7 truck sales in the third quarter to be consistent with our second quarter. We sold 1,715 used commercial vehicles in the second quarter, essentially flat compared to the same period in 2024.

In the medium duty market, we delivered 3600 26, new class four through seven commercial vehicles in the U S. In the second quarter, representing a 1% year over year increase and six 2% market share. We sold 177 medium duty vehicles in Canada, which represents four 6% in the Canadian class five through seven market.

Our medium duty results were solid in the second quarter with both year over year and quarter over quarter sales growth demand was broad based across all of our customer segments, and we saw particular strength with lease and rental desk.

We believe that our ready to roll inventory program continues to differentiate us enabling faster faster delivery and improved flexibility for customers. Looking ahead, we expect class four through seven truck sales in the third quarter to be consistent with our second quarter.

W.M. Rush: Looking ahead, we expect Class 4 through 7 truck sales in Q3 to be consistent with our Q2. We sold 1,750 used commercial vehicles in Q2, essentially flat compared to the same period in 2024. While financing remained a challenge for used truck buyers, we believe our inventory is right-sized and our used truck strategy is on track. Unlike the new truck market, the used truck market is less exposed to trade and regulatory uncertainty, which could give truck buyers more confidence and incentive to consider used trucks as part of their fleet mix in the near term. We expect Q3 used truck sales to be in line with the Q2. Rush Truck Leasing achieved record revenues of $93.1 million in Q2, up 6.3% year-over-year.

We sold 1700 50 50, you used commercial vehicles in the second quarter essentially flat compared to the same period in 2020.

Steven Keller: While financing remained a challenge for used truck buyers, we believe our inventory is right-sized and our used truck strategy is on track. Unlike the new truck market, the used truck market is less exposed to trade and regulatory uncertainty, which could give truck buyers more confidence and incentive to consider used trucks as part of their fleet mix in the near term. We expect third-quarter used truck sales to be in line with the second quarter. Rush truck leasing achieved record revenues of 93.1 million in the second quarter, up 6.3% year-over-year. Our full-service leasing revenue increased as we brought new units into service, which also helped lower operating costs and increased profitability. Rental utilizations were lower year-over-year but improved sequentially, and we are confident our leasing and rental performance will be solid for the remainder of the year.

While financing remain a challenge for used truck buyers. We believe our inventory is right sized and our used truck strategy is on track.

Unlike the new direct market the used truck market is less exposed to trade and regulatory uncertainty.

Which could give truck buyers more confidence and incentives to consider used trucks as part of their fleet mix in the near term.

We expect third quarter used truck sales to be in.

The second quarter.

Restaurants leasing achieved record revenues of $93 1 million in the second quarter up six 3% year over year.

W.M. Rush: Our full-service leasing revenue increased as we brought new units into service, which also helped lower operating costs and increase profitability. Rental utilizations were lower year-over-year but improved sequentially, and we are confident our leasing and rental performance will be solid for the remainder of the year. On the capital allocation front, we remain focused on returning value to shareholders. During Q2, we repurchased $83.9 million of our common stock as part of our expanded $200 million repurchase authorization. We also paid a cash dividend of $14.5 million in the quarter. As I previously mentioned, we just increased our quarterly dividend by 5.6%. In summary, I am proud of our team's performance in Q2. Through disciplined execution, we continue to deliver solid financial results and return value to shareholders.

For our full service leasing revenue increased as we brought new units into service, which also helped lower operating costs and increase profitability rental utilizations will lower year over year, but improved sequentially and we are confident our leasing and rental performance will be solid for the remainder of the year.

Steven Keller: On the capital allocation front, we remain focused on returning value to shareholders. During the second quarter, we repurchased 83.9 million of our common stock as part of our expanded $200 million repurchase authorization. We also paid a cash dividend of 14.5 million in the quarter. And as I previously mentioned, we just increased our quarterly dividend by 5.6%. In summary, I am proud of our team's performance in the second quarter. Through disciplined execution, we continue to deliver solid financial results and return value to shareholders. As we move forward, we will continue to remain focused on operational efficiency and providing our customers with best-in-class service. With that, I'll take your questions.

On the capital allocation front, we remain focused on returning value to shareholders.

The second quarter, we repurchased $83 9 million of our common stock as part of our expanded $200 million repurchase authorization. We also paid cash dividends of $14 5 million in the quarter and as I. Previously mentioned, we just increased our quarterly dividend by five 6%.

In summary, I am proud of our team's performance in the second quarter through disciplined execution, we continued to deliver solid financial results and return value to shareholders. As we remain really as we move forward. We will continue to remain focused on operational efficiency and providing our customers with best in class service.

W.M. Rush: As we move forward, we will continue to remain focused on operational efficiency and providing our customers with best-in-class service. With that, I'll take your questions.

With that I'll take your questions.

Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Daniel Imbro with Stephens Inc. Your line is now open.

Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one-one on your telephone and wait for your name to be announced. To withdraw your question, please press star one-one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Daniel Embro with Stevens Inc. Your line is now open.

Thank you at this time, we will conduct a question and answer session.

A reminder to ask a question you will need to press star one one on your telephone and wait.

Your name to be announced.

With Charlie Your question. Please press Star one again, please standby, while we compile the Q&A roster.

Our first question comes from the line of Daniel <unk> with Stephens, Inc. Your line is now open.

Daniel Imbro: Yeah. Hey, good morning, guys. Thanks for taking our questions.

W.M. Rush: You bet, Daniel. Good morning to you, sir.

Yeah, Hey, good morning, guys. Thanks for taking my questions.

Rusty Rush: You bet, Daniel. Good morning to you, sir.

Daniel Imbro: Morning. Well, Rusty, I'll start maybe on the industry a little bit. I'm sure visibility into orders is about as clear as mud, but how are you thinking about the third quarter as we sit today? And then from a strategic standpoint just related to that, with the lack of visibility, I guess, what are the OEMs communicating? Are they taking down production? Are they still pumping out new trucks and telling you guys to deal with them? Kind of what's the order backdrop and how is that changing with the OEMs?

Daniel Imbro: Morning. Well, Rusty, I'll start maybe on the industry a little bit. I'm sure visibility into orders is about as clear as mud, but how are you thinking about Q3 as we sit today? From a strategic standpoint, just related to that, with the lack of visibility, I guess, what are the OEMs communicating? Are they taking down production? Are they still pumping out new trucks and telling you guys to deal with them? Kind of what's the order backdrop, and how is that changing with the OEMs?

You bet, Danny and good morning to you Sir.

Good morning, Rusty I'll start maybe on the industry, a little bit I'm sure visibility into orders is about as clear as mud, but how are you thinking about the third quarter as we sit today and then from a strategic standpoint, just related to that with the lack of visibility I guess what are the Oems communicating or they are taking down production or are they still pumping out new trucks in telling you guys deal with them.

Kind of what's what's the order backdrop, and how is that changing with the Oems.

W.M. Rush: Well, good question, sir. Dramatically different in the H2 from the H1. Every OEM is taking production down. Every OEM has shutdown days. I'm not going to get into specifics, but you can broadly say across all brands, all manufacturer, you're going to see a lot less trucks built. Okay? You say, So what causes all that? Well, as I talked about, it's the uncertainty. I'll get to the emissions stuff and if anybody wants to know my opinions on all that and where we stand from a 232 and a tariff perspective there, but let's just look at April, May, and June. April, May, and June were the worst 3 months of order intake since 2009. Okay? The US, Canada, and Mexico took in less than 30,000 Class 8 trucks. Okay?

Rusty Rush: Well, good question, sir. Dramatically different in the back half of the year from the first half of the year. Every OEM is taking production down. Every OEM has shutdown days. I'm not going to get into specifics, but you can broadly say across all brands, all manufacturers, you're going to see a lot less trucks built, okay? You know, you say, so what causes all that? Well, as I talked about, it's the uncertainty. I mean, I'll get to the emissions stuff if anybody wants to know my opinions on all that and you know where we stand from a 232 and a tariff perspective there. But let's just look at April, May, and June. April, May, and June were the worst three months of order intake since 2009, okay? The US, Canada, and Mexico took in less than 30,000 Class 8 trucks, okay?

Well.

Good question Sir.

Dramatically different.

Back half of the year from the first half of the year.

Every OE.

Taking production down every OEM has shutdown days I'm not going to get into the specifics, but you can broadly say across all brands all manufacturer.

It is going to youre going to see a lot less trucks built okay.

You say, so what causes all that well as I talked about the uncertainty I mean.

I'll get to the admission Steph.

I wanted to know my opinions on all that.

Where we stand from a June 32, a tariff perspective, there, but let's just look at April May and June April May and June where the worst three months of order intake since 2009 the U S.

S, Canada, and Mexico to again less than 30000 class eight trucks, okay that eventually.

Rusty Rush: That eventually, you know, comes to fruition inside of the build, that we see. There's just still so much uncertainty to to know what what you know we had it. We built a lot of trucks. Actually, Q2 retail deliveries were flat to slightly up, for the whole country. But I think that everyone pulled everything forward that they could. And right now, production is going to take is dramatically hit from quarter to sequentially as we've seen since COVID, okay? when you and I I I'm putting COVID as an outlier. Really, since you go back way further than that to see you're going to see from a production, not necessarily all the way through retail. Retail will be down too, but production will be drastically down across all OEMs currently because there's just not any demand out there because uncertainty is there.

W.M. Rush: That eventually comes to fruition inside of the build that we see. There's just still so much uncertainty to know what. We built a lot of trucks. Actually, Q2 retail deliveries were flat to slightly up for the whole country. I think that everyone pulled everything forward that they could, and right now, production is dramatically hit from core sequentially as we've seen since COVID. Okay. I'm putting COVID as an outlier. Really, since you go back way further than that, you're going to see from a production, not necessarily all the way through to retail. Retail will be down, too. Production will be drastically down across all OEMs currently, because there's just not any demand out there because uncertainty is there. I guess, what was it.

Thanks Chip.

Inside of the build.

We see there's just still so much uncertainty.

No.

What we have.

Both have a lot of drugs actually Q2 retail deliveries were flat to slightly up.

For the whole country, but I think that everyone pulled everything forward that they could.

Right now.

Production is going to take as dramatic of a hit from port sequentially as we've seen since COVID-19. Okay.

Cove as outliers really essentially go back wafer than that youre going to see.

From a production not necessarily all the way through to retail retail will be down but production, we drastically down across all Oems currently because there's just not any demand out there because uncertainty is there.

Rusty Rush: I mean, I don't look, you know, I guess what was it? Tuesday, we pulled the, you know, the GHG3 stuff, but that still has not given you any clarity as to, you know, what we're going to get from an emissions perspective. Is it going to stay 200? Is it going to be 0.035? Is it going to go to somewhere in the middle? These four engine manufacturers and OEMs don't even have direction yet from the government. So by by what we're dealing with creates uncertainty all through the all through the chain to the end user on top of the fact that we're still in a freight recession, etc. So you know, buddy, I, you know, as I've said in the in the release, you know, for sure I'm expecting to be down in third quarter.

W.M. Rush: Tuesday, we pulled the GHG3 stuff, that still has not given any clarity as to what we're going to get from an emissions perspective. Is it going to stay 200? Is it going to be 0.035? Is it going to go to somewhere in the middle? These 4 engine manufacturers and some OEMs don't even have direction yet from the government. What we're dealing with creates uncertainty all through the chain to the end user, on top of the fact that we're still in a freight recession, et cetera. Buddy, as I've said in the release, for sure, I'm expecting to be down in Q3. Don't even ask me what the Q4 is going to look like, because it's hand-to-mouth.

I don't look I guess, what was it Tuesday, we bought the <unk> III.

But thats still.

Not giving any clarity as to.

What we're going to get from an admissions perspective is going to stay 200 is it going to be pointed out three five going to go to somewhere in the middle <unk>.

<unk> engine manufacturers and Oems told even direction yet from the government. So bye bye.

What we're dealing with.

Is creates uncertainty alternatives alternative chain to the end user on top of the fact that were snowed, a freight recession et cetera. So.

Body.

As I've said in the release for sure are expected to be down in third quarter don't even ask me what the fourth quarter. So I will look like.

Rusty Rush: Don't even ask me what the fourth quarter is going to look like because, you know, it's it's it's hand-to-mouth and with less trucks for sure going to be built with people canceling shifts, folks, laying off employees, folks taking shutdown days, large numbers of these taking two, three weeks off. Every manufacturer has their own philosophy, but no one is right now currently as we sit. everybody's handling it the same, to be honest with you, but differently, but different but the same because there really is not any demand because there's still no firm, you know, firm knowledge of where we're going to be from an EPA perspective in January of '27. Is it going to stay at 0.035? Is it going to stay at 200?

Because you know.

W.M. Rush: With less trucks for sure are going to be built, with people canceling shifts, folks laying off employees, folks taking shutdown days, large numbers of these, taking 2, 3 weeks off. Every manufacturer has their own philosophy, but no one is right now currently, as we sit, everybody's handling it the same, to be honest with you. Different, but the same, because there really is not any demand, because there's still no firm knowledge of where we're going to be from an EPA perspective. January of 2027, is it going to stay at 0.035? Is it going to stay at 200? Is it going to stay at 200, go to 0.035, which is what the rule and the law says it is right now. That is very much in question right at the moment. Buddy, I have no exact idea.

Hand to mouth.

With less trucks for sure going to be built with people canceling shifts folks.

Laying off employees folks taking shutdown days.

Large numbers of these taking two three weeks off every manufacturer has their own philosophy, but no. One is right now currently as we sit.

Everybody's analysts say to be honest with you differently.

Different per se.

There really is not any demand because theres still no firm.

Knowledge of where we're going to be from an EPA perspective.

January of 2007 is it going to stay.

Rusty Rush: You know, stay at 200, go to 0.035, which is what the rule and the law says it is right now, but that is very much in question right at the moment. It's somewhere in the, yeah, buddy, I have no exact idea. And I, and so customers by nature, are just waiting to get some direction. Now, I think I said somewhere in the release that, well, maybe things will start shaking out and looking a little better. And what I'm talking about is activity. I'm not saying orders. I'm saying by the time we get to Q4, I hope in the latter part of the year that we can finally get some solid trade stuff down from a tariff perspective.

1035 is it going to stay at 200.

200, <unk>, which is what the rule and the loss as it is right now but that is.

Very much in question right at the moment somewhere in there.

But I have no exact ideas and so customers by nature.

W.M. Rush: Customers, by nature, are just waiting to get some direction. Now, I think I said somewhere in the release that, well, maybe things will start shaking out and looking a little better. What I'm talking about is activity. I'm not saying orders. I'm saying by the time we get to Q4, I hope in the latter part of the year that we can finally get some solid trade stuff down from a tariff perspective, as the Congress and the administration is looking at the 232 rule. If that gets where we stand on that, if we get where we stand from an emission perspective, you know how to play your game, right? You know what to do with your business. If it goes and stays at 0.35, we're probably going to see, well, probably we will see a pickup next year, I think, in order demand.

Are just waiting to give some direction.

Now.

I think I said somewhere in the release that well, maybe things will start shaking and looking a little better than what I'm talking about is activity im not saying orders I'm, saying by the time, we get to Q4 I hope in the latter part of the year.

Yes, we can finally.

It's a solid trade stuff down from a tariff perspective.

Rusty Rush: And you know, as the Congress and the administration is looking at the 232 rule, if that gets where we stand on that and we get where we stand from an emission perspective, then you can, then you know how to play your game, right? You know what to do with your business. I mean, if it goes and stays at 0.35, we're probably going to see a, well, probably we will see a pickup next year, I think, in order demand. If it stays at 200, not sure what that means, right? You won't have the additional cost. You won't have, you know, the change in technology to deal with. So, you know, fleets won't be looking. I mean, I hate to use the word, I haven't heard anybody use the word in a while, pre-buy, but I hate to say it.

Congress.

Australia is looking at 232 rule.

Yes.

We stand on that and we get where we stand from a mission perspective, then you can have a brighter day right you know what to do with your business I mean, if it goes and stays at 0.35, we're probably going to see probably.

Probably we will see a pickup next year I think in order demand.

W.M. Rush: If it stays at 200, not sure what that means, right? You won't have the additional cost. You won't have the change in technology to deal with. Fleets won't be looking. I hate to use the word. I hadn't heard anybody use the word in a while, pre-buy. I hate to even say it. There might be a slight pre-buy if we stay at 0.35 next year. I know I'm answering, I'm trying to give you a broader answer. You know me, I can't help myself. Maybe your question. Trying to give you some outlook beyond where we are right now in Q3 and Q4, into next year, I think that's what's important to understand, is to try to get an outlook into where it's really going to go.

Phase 200, not sure what that means you won't have the additional cost you won't have the <unk>.

And technology to deal with so.

<unk> won't be looking at.

I hate to use the word.

I heard the word you used.

Rusty Rush: There might be a slight pre-buy if we go to 0.3, stay at 0.35 next year. I mean, and I know I'm answering, I'm trying to give you a broader answer. You know me, I can't help myself. This may be your question, but trying to give you some outlook beyond where we are right now in Q3 and Q4, but you know, into next year, because I think that's what's important to understand is to try to get an outlook into where it's really going to go. But I can't tell you because I don't have the answers to these questions right now, right? And so all that does is create uncertainty. And we're finally seeing, you know, the fulfillment, true fulfillment of the uncertainty we talked about in the last call back in April.

The wording of why <unk>.

There might be a slight pre buy if we go to <unk> III stay at 35 next year I mean, I don't want to Im answering I'm trying to give you a broader answer me again help myself.

And your question, but trying to give you some outlook beyond where we are right now in Q3 and Q4, but into next year, because I think that's what's important to understand is to try to get at.

W.M. Rush: I can't tell you, because I don't have the answers to these questions right now, right? All it does is create uncertainty. We are finally seeing the fulfillment, true fulfillment of the uncertainty we talked about on the last call back in April. It only continues to intensify because the further down. You still don't know, right? It just continues to breed this, Well, what do I do? What should I do? Are engines going to go up X? We need some clarification. I think once we get that, I think we should maybe be able to, regardless of how much activity, I'm not going to get into, it'll depend on what some of these rulings are. Also, some of these tariff and trade policy decisions. I think we'll be able to get kicked off, really.

Outlook into where it's really going to go.

What I can't tell you because I don't have access to these questions right now right and so all of that does great uncertainty and we're finally seeing.

The fulfillment.

Through fulfillment of the uncertainty we talked about in the last call back in April.

Rusty Rush: but it only continues to intensify because the further down the, you still don't know, right? And it just continues to breed. You know, this, well, what do I do? What should I do? Are engines going to go up X? Are they going to, you know, we need some clarification. I think once we get that, I think we should maybe be able to, regardless of how much activity, I'm not going to get into, you know, it'll depend on what some of these, you know, some of these rulings are, some of these tariffs, also some of these trade policy decisions. But I think we'll be able to get kicked off, really. I think we're almost at a lull till we still get these answers, to be honest with you.

But it only continues to intensify it because of the further down there we still don't know Ryan just continues to breed.

Well, what do I do what should I do our engine is going to go up X.

We need some clarification I think once we get that I think we should may we held regardless of what much activity.

It will depend on what some of these some of these rulings are some Easter also for some of these tariff or trade policy decisions, but I think we'll be able to get.

W.M. Rush: I think we're almost in a lull till we get these answers, to be honest with you. Besides, remember, I would tell you from what I've been reading in the last couple of weeks, most of your public carriers, I would say the reports are slightly better than they were in Q1. They're not outstanding by any stretch, but I think more people have gotten to their numbers, as depressed as they are. You can see slight green shoots in there, but not a lot. It's still a tough road out there, because we're still out of balance, right? I know I keep throwing out all these things, but we still got too much capacity. I think it's continuing to come out slowly out of the marketplace and to meet the demand level that's out there. There you go. I'll shut up.

It kicked off really I think we're almost at a law, Chile still we get these answers to be honest with you.

Rusty Rush: It's, and besides, remember, I would tell you from what I've been reading in the last couple of weeks, most of your public carriers, I would say the reports are slightly better than they were in Q1. They're not outstanding by any such, you know, but I think more people have gotten to their numbers as depressed as they are, than what, you know, you can see slight green shoots in there, but not a lot. There's still, it's still a tough road out there, because we're still out of balance, right? And I know I'm eco on all these things, but we're still, we still, we still got too much capacity. You know, I think it's continuing, continuing to come out slowly out of the marketplace and, and, to meet the demand level that's out there. But you know, there you go. I'll shut up.

And besides remember I would tell you from what Ive been reading in the last couple of weeks.

Most of your public carriers.

I would say the reports are slightly better than they were in Q1, they're not outstanding by any stretch.

More people.

Gotten further numbers as depressed as they are.

Then what you can see slight green shoots in there, but not a lot. We're still it's still a tough road out there.

Because we're still out about Skype and I don't know try and all these things, but we're still we're still we still got too much capacity I think is continuing and continuing to slack cannot slow out of the marketplace.

To meet the demand level, that's out there but.

Daniel Imbro: No, always helpful and appreciate the answer there. I guess maybe on what is more in your control right now, I guess the parts and service improvement in Q2 was notable. I think revenue was up. It sounds like technician retention got better. I guess, one, can you talk about what you guys changed to actually drive that or improve retention and hiring?

Daniel Imbro: No, no, always helpful and, appreciate the the the answer there. I guess maybe on what is more in your control right now, I guess the parts and service improvement in 2Q was notable, I think revenue was up. It sounds like technician retention got better. I guess one, can you talk about what you guys changed to actually drive that or improve retention and hiring? And then two, if you were to size up maybe what the earnings power or revenue uplift you can get from the hiring you've done, like how should we think about the earnings power that you could add that's more in your control from growing parts and service over the next year, relative to everything else not in your control, like the class A demand?

There you go I'll shut up.

Now always helpful and I appreciate it.

Answer there I guess, maybe on what is more in your control right now I guess, the parts and service improvement.

<unk> was notable I think revenue was up it sounds like they initiated retention got better I guess, one can you talk about what you guys changed to actually drive that or improve retention and hiring and then two if you were to size up maybe what.

W.M. Rush: Yes.

Daniel Imbro: 2, if you were to size up maybe what the earnings power or revenue uplift you can get from the hiring you've done, how should we think about the earnings power that you could add that's more in your control from growing parts and service over the next year, relative to everything else out of your control, like the Class 8 demand?

The earnings power revenue uplift you can get from the hiring you've done like how should we think about the earnings power that you could add that's more in your control from growing parts and service over the next year.

Relative to everything else out of your control like the class eight demand.

W.M. Rush: Well, I think right now, by maintaining flat to slightly up, I think we're growing compared to the market. Okay? I think we're doing better than the aftermarket from the reports. Remember, getting aftermarket comps is probably the most difficult thing there is, because you get them from different sources, right? It's not like vehicles. Vehicles are real simple, they're titled, right? It's easy to count those, getting to understand what the overall aftermarket is. I think we're doing slightly better than the overall aftermarket. I would tell you that I think our historical, traditional way we go to market is what's allowing us to be fairly good. I would tell you that we're working really hard.

Rusty Rush: Well, I think, you know, I think right now by maintaining flat to slightly up, I think we're growing compared to the market, okay? I think we're doing better than the aftermarket, from the purports. And remember, getting aftermarket comps is probably the most difficult thing there is because, you get them from different sources, right? It's not like vehicles. Vehicles are real simple. They're titled, right? It's easy to count those. getting to understand what the overall aftermarket is, but I think we're doing it slightly better than the overall aftermarket. I would tell you that, you know, I think our historical traditional way we go to market is what's allowing us to be fairly good. I would tell you that we're working really hard.

Well.

Right now.

Maintaining flat to slightly up I think we're growing compared to the market. Okay. I think we're doing better than the aftermarket.

Ports, and where we're getting aftermarket comps is probably the most difficult there is because.

Because you get them from different sources right, it's not like there's.

Zero separately titled Brian Z to count those.

Getting to understand what the overall aftermarket is but I think we're doing slightly better than the overall aftermarket.

I'd tell you that I think are.

Historical traditional way we go to market is what's allowing us to be fairly good I would tell you that we're working really hard we just finished a strategic outside here in June to really try to.

Rusty Rush: We just finished the strategic offside here in June, to really try to, you know, re-focus, not refocus, but even more double up, with some more, you know, strategic initiatives to try to really accelerate the growth in our aftermarket business, especially going into next year. Right now, if we can maintain, which I will tell you, you know, since I'm on the box, I guess I can say what I want now that I've released earnings. You know, July continued and maybe a little better than June. Not great. Let's just call it flat. We're continuing to maintain with, you know, from a company perspective, given the environment, I almost feel like we're growing, okay? I mean, it may have said 1.4 to revenue with a little expanded margin. Well, to me, it was better than that just given the environment, right?

W.M. Rush: We just finished a strategic off-site here in June to really try to not refocus, but even more double up with some more strategic initiatives to try to really accelerate the growth in our aftermarket business, especially going into next year. Right now, if we can maintain, which I will tell you, since I'm on the box, I guess I can say what I want now that I've released earnings. July continued, maybe a little better than June. Not great. Let's just call it flat. We're continuing to maintain, which from a company perspective, given the environment, I almost feel like we're growing. Okay. It may have said 1.4 to revenue with a little expanded margin. Well, to me, it was better than that, just given the environment, right. To quantify it exactly what those. Because they were slight. We grew our sales force slightly.

Reed recurring spoken out refocus, but even more double up.

With some more strategic initiatives to try to really accelerate the growth in our aftermarket business, especially going into next year right. Now if we can maintain which I will tell you.

So as that model box I guess I can say what I want now that have released earnings July continue and maybe a little better than great. Let's just call. It flat, we're continuing to maintain which from a company perspective, given the environment I almost feel like we're growing okay.

I mean, it may have said one forward the revenue were below expanded margin well to me it was better than that just given the environment right.

Rusty Rush: so we're to quantify it exactly what those, because they were slight. We grew our sales force slightly. I'm not going to sit here and kid you. We didn't, we didn't add double digits or anything like that because I'm not sure the market's accepting of that right now. but I'll tell you what, we're positioned to do things like that. And we've got a few other things, but again, some of this stuff's proprietary, from my perspective. So I'm not going to get into everything. But trust me, we're, we're, we're hands down, committed to, continue to do what we have traditionally done, plus throw a few new things, throw a new few things at it, a few new things at it, as we move forward, especially into '26 and '27.

So.

To quantify it exactly what those because they were slightly as we grew our salesforce slide I'm not going to sit here.

W.M. Rush: I'm not going to sit here and kid you. We didn't add double digits or anything like that, because I'm not sure the market's accepting of that right now. I'll tell you what, we're positioned to do things like that, and we've got a few other things. Again, some of this stuff's proprietary from my perspective, so I'm not going to get into everything. Trust me, we're hands down committed to continue to do what we have traditionally done, plus throw a few new things at it as we move forward, especially into 2026 and 2027. Like I said, I believe we can maintain where we're at in parts and service based on what I'm seeing. We haven't seen anything go way out of whack or out of line.

We didn't add double digits or anything like that because I am not sure. The market is accepting of that right now.

But today, what we're positioned to do things like that and we've got a few other things, but again some of this is proprietary.

From my perspective, I'm, not going to get into everything but.

Trust me, we're hands down.

Committed to continue to do what we have traditionally done plus throw off units.

Thanks, Ed.

As we move forward, especially into 2006 and 2007.

Rusty Rush: You know, like I said, I'll, I believe we can maintain where we're at in parts and service based on what I'm seeing. we haven't seen any things go way out of whack or out of line. And as you know, as I was saying in the earnings, you know, anywhere 63% last quarter of our profits come from parts and service. So that being the much more stable, that's why sometimes I think our, our business model is underappreciated in the fact whether it's truck sales, it's new, it's heavy, it's used, it's medium, you know, our leasing operations and what they contribute to the company.

Like I said.

I believe we can maintain.

Where we're at in parts and service based on what I'm, saying.

We haven't seen any fed go way out of whack or out of line and as you know as I was heading.

W.M. Rush: As you know, as I was saying earlier, anywhere 63% last quarter of our profits come from parts and service, that being the much more stable. That's why sometimes I think our business model is underappreciated in the fact whether it's truck sales, it's new, it's heavy, it's used, it's medium, our leasing operations and what they contribute to the company. Obviously, our parts and service operations and the stability, and then our ability to manage expenses where, if you look at the earnings this quarter, it's the first quarter out of the last three or four that we weren't down 4% or 5% in G&A. We were slightly up but basically flat. You have to go back and understand that we made those cuts over a year ago. Being able to maintain that, I'm very proud of the people.

63% last quarter of our profits come from parts and service so that being the much more stable.

<unk> I think.

Our business model is underappreciated and the fact, whether it's truck sales.

It's heavy it's used it's medium or.

Our leasing operations in what they contribute to the company.

Rusty Rush: Our, obviously, our parts and service operations and the stability of, and then our ability to manage expenses where, you know, if you look at the earnings, this quarter, it's the first quarter of the last three or four that we weren't down 4 or 5% in GNA. We were slightly up, but basically flat. But you have to go back and understand that we made those cuts over a year ago. So, but being able to maintain that, I'm very proud of people, you know, in spite of inflationary pressures and things like that, we've been able to maintain that piece of it. So it's usual, like I say, I'm rambling off on other tangents, but at the same time, I'm trying to give you a flavor. I was really proud of the quarter.

Obviously, our parts and service operations and stability.

And then our ability to manage expenses were.

If you look at the earnings.

This quarter is the first quarter over the last three or four that we werent down four 5% and G&A.

We were slightly up but basically flat, but you have to go back and understand that we've made those cuts over a year ago, so but be able being able to maintain that I'm very proud of people.

W.M. Rush: In spite of inflationary pressures and things like that, we've been able to maintain that piece of it. As usual, like I said, I'm rambling off on other tangents, but at the same time, I'm trying to give you a flavor. I was really proud of the quarter. When you look at the truck sales pressures that we had and compare them into year-over-year, be less than 10% off of what we were last year with 25% less trucks or so. I was Class 8, saying. I was really proud of that, and it was driven by the parts and service operations, right. I do believe we have growth, back to your original question, in there. I'm not sure that it takes place dramatically this year, but I am very comfortable.

Despite inflationary pressures and things like that we've been able to maintain that piece of it. So excuse me like I say I'm rambling off on other packages, but at the same time I'm trying to give you a flavor I was really proud of the quarter. When you look at.

Rusty Rush: When you look at the truck sales pressures that we had, then compare them and to year over year, be less than 10% off of what we were last year with 25% less trucks or so. I was, Class 8's saying, I was really proud of that. And it was driven by the parts and service operations, right? And I do believe we have growth back to your original question in there. I'm not sure that it takes place dramatically this year, but I am very comfortable. Like I said, what makes me feel good is even though we're only slightly up, I feel like it's more than that given the environment that we're dealing with, man.

<unk> sales pressures that we add and compare them.

Year over year less than 10% off of what we were last year with 25% less trucks or so.

H Sag.

I was really proud of that and it was driven by the parts and service operations right and.

I do believe we have growth back to your original question in there.

I'm not sure.

It takes place dramatically this year.

W.M. Rush: Like I said, what makes me feel good is even though we're only slightly up, I feel like it's more than that given the environment that we're dealing with, man.

I am very comfortable like I said, what makes me feel good even though were only slightly up I feel like it's more than that given the environment that we're dealing with them.

Daniel Imbro: No, always helpful. Appreciate all the color. I'll leave it there, and best of luck, guys.

Daniel Imbro: No, always helpful. Appreciate all the color. I'll leave it there. And best of luck, guys.

No.

That's helpful. I appreciate all the color I'll leave it there.

W.M. Rush: Thank you, Daniel. Any other questions, I'll be happy to take.

Rusty Rush: Thank you, Daniel. Any other questions, I'll be happy to take.

Best of luck guys.

Thank you any other questions I'll be happy to take.

Operator: Thank you. Again, as a reminder, to ask a question, you will need to press star one one on your telephone. Our next question comes from Andrew Obin of Bank of America. Your line is now open.

Operator: Thank you. Again, as a reminder, to ask a question, you will need to press star one-one on your telephone. Our next question comes from Andrew Oben of Bank of America. Your line is now open.

Thank you again as a reminder to ask a question you will need to press star one on your telephone.

Our next question comes from Andrew <unk> with Bank of America. Your line is now open.

Andrew Obin: Good morning, gentlemen.

Daniel Imbro: Good morning, gentlemen.

W.M. Rush: Well, good morning, Mr. Obin.

Rusty Rush: Well, good morning, Mr. Owen.

Good morning, gentlemen.

Good morning, Mr. <unk>.

Andrew Obin: Just to follow up on the parts and service question. As it seems that, a lot of the production shutdowns have to do with the fact that, it's more regulatory uncertainty more than anything else. Meanwhile, your parts and service business would indicate that people will continue to utilize the trucks in the field. Wouldn't this setup result in more wear and tear on older trucks, just lack of natural replacement? Wouldn't it drive an uptick in parts and service over the next 6 to 12 months?

Daniel Imbro: Just to follow up on the parts and service question, you know, as it seems that, you know, a lot of the production shutdowns have to do with the fact that, you know, it's more regulatory uncertainty more than anything else. You know, meanwhile, your parts and service business would indicate that people will continue to utilize the trucks in the field. You know, wouldn't this setup result, in more wear and tear and older trucks, you know, just lack of natural replacement? Wouldn't it drive an uptick in parts and service over the next 6 to 12 months?

Just a follow up on the parts and service question.

As it seems that.

A lot of the production shutdowns have to do is the fact that.

It's more regulatory uncertainty more than anything else.

Meanwhile, your parts and service business would indicate that people will continue to utilize the trucks in the field.

This setup resolved.

And more wear and tear and all the trucks.

Just lack of natural replacement.

I have an uptick in parts and service over the next six to 12 months.

W.M. Rush: You're right on, Andrew. That's what we're hoping for. Okay. Theoretically, you're correct. There's one caveat. What's your business like? Okay. Theoretically, you're 100% correct, you'll have to take into account, what does a customer's business truly look like, right. Are they squeezing it down because their business isn't that good? Where for sure, you're going to drive older age trucks, first you got to make sure you're utilizing all of them too. What's your utilization and how is your business? If all those align, there's no question what you're saying is totally correct. Those are caveats to that you have to take into account also. Yes, without question, I mentioned it, yeah, in the back of my mind, that's what I'm hoping for. Okay. I've got these caveats that have to then ride with it, right.

Rusty Rush: You're right on, Andrew. That's what we're hoping for, okay? Theoretically, you're correct. The other, but there's one caveat. What's your business like, okay? Theoretically, you're 100% correct, but you'll have to take into account, you know, what does a customer's business truly look like, right? Are they squeezing it down because their business isn't that good? So where for sure, you're going to drive older age trucks, but first you got to make sure you're utilizing all of them too. What's your utilization and how is your business? And if all those align, then there's no question what you're saying is totally correct. But those are caveats to that that you have to take into account also. So yes, without question, I'm interested in it, but yeah, in the back of my mind, that's what I'm hoping for, okay?

Jurado, Andrew that's what we're hoping for.

Theoretically youre correct, the other but there's one caveat.

What's your business like Okay, theoretically, you're 100% correct, but you'll have to take into account.

What is what are the customers business truly look like are they squeezing it down because their business is good so we're for sure.

Youre going to Drybulk rates trucks, but first you've got to make sure you're utilizing all of them do what's your utilization and how is your business and if all those alive. Then there is no question, what Youre, saying is totally correct, but those are caveat to that would you have to take into account also so yes.

Without question.

But yes back in my mind, that's what I'm, hoping for but but I've got these caveat.

Rusty Rush: But I've got these caveats that have to ride with it, right? So.

Andrew Obin: No, yeah, I totally get it.

Daniel Imbro: I totally got it.

And ride with it right.

Alright, guys.

W.M. Rush: Their business has to be decent.

Rusty Rush: Their business has to be decent, so.

I totally got it.

That business as a big data set.

Andrew Obin: Another question for you. I appreciate, sort of the fact that you accelerated buyback. If you look at your track record, if you look where we are in the cycle, can you share with us the latest thoughts of the board on maybe stepping up the buyback? Historically, you've been very conservative with your balance sheet, and I appreciate the reasons for it. The pushback we get is, the execution is fantastic, stock's inexpensive. They have capacity on the balance sheet. How is the board's and your thinking is evolving on the share buyback?

Daniel Imbro: Another question for you, and I appreciate, you know, sort of the fact that you've accelerated buyback. But you know, if you look at your track record, if you look where we are in the cycle, you know, can you share with us the latest thoughts of the board on maybe stepping up the buyback? Because historically, you've been very conservative with your balance sheet, and I appreciate the reasons for it. But you know, the pushback we get is, you know, the execution is fantastic. Stock's inexpensive. They have capacity on the balance sheet. You know, how is the board's and your thinking evolving on the share buyback?

Another question for you and I appreciate it.

That was sort of the fact that you've accelerated buyback.

But if you look at your track record if you look where we are in the cycle.

Can you share with us the latest thoughts of the board on maybe stepping up the buyback because.

Historically, we've been very conservative with your balance sheet and I appreciate the reasons for it but.

The pushback we get is.

The execution is fantastic socs and expensive they have capacity on the balance sheet.

How is the board and your thinking is evolving on a per share buyback.

W.M. Rush: Well, I think we announced during the quarter that we added $50 million to it. Okay? I think I've got about $75 million or so left to spend of the $200. I would hope that the opportunities present themselves. We wouldn't be approving it if we didn't plan on trying to spend it. We do it prudently. I'm just not out there, and we do it under a 10b5-1, so, right. What happens sometimes is you set prices, and you don't touch it for a while because we're in a quiet period. Now, Steve and I'll be re-looking at that tomorrow as we reset the matrixes up to continue making sure we're purchasing, right? The stock fluctuated some in the quarter.

Rusty Rush: Well, I think we announced during the quarter that we added 50 million to it, okay? I think I've got about 75 million or so left to spend of the 200. I would hope that the opportunities present themselves. We wouldn't be approving it if we didn't plan on trying to spend it. But you know, we do it prudently. You know, I'm just not out there, and we do it under a 10B5. So right. So you know what happens sometimes is you set prices and you know, you don't touch it for a while because we're in a quiet period. Now, we will be, Steven, I'll be relooking at that tomorrow as we reset the matrixes up to continue making sure we're purchasing, right? the stock fluctuates some in the quarter. You know, it got down a little bit and back up.

Well I think we announced during the quarter, we added 50 million to it okay.

We had about $75 million or so left to spend of the 200.

And hoped when the opportunities present themselves, we would be improving it if we didn't plan on trying to spend it.

We do it prudently.

I'm just not out there and we do it under a <unk> five so right. So what happens sometimes as you set prices.

You don't touch it for a while because we're in a quiet period and that we will reach.

Steve and I will be looking at that tomorrow.

We reset the matrix's up to continue making sure we're purchasing right.

W.M. Rush: It got down a little bit, then back up and we set a matrix 10 June. We don't touch it till now, and we'll be looking at it. We wouldn't approve the money that we've got out there if we didn't want to spend it. We feel real good here in our cash position. Heck, we'll pick up, I don't know, $35 million, $40 million with a big, beautiful bill in cash, from a tax perspective this year. As you know, our balance sheet's nice and flush and we have the capability to do it. As you said, we have been, over time, we've been typically fairly conservative. I think we have proven the ability and the want to, and the desire to buy stock back.

Stock fluctuated some in the quarter got that a little bit and back up.

Rusty Rush: And you know, we set a matrix June the 10th, and we'll be, don't touch it till now. And we'll be looking at it, but we wouldn't approve the the money that we've got out there if we didn't want to spend it. so you know, we feel real good to get our cash position. Heck, we'll pick up, I don't know, 35, 40 million with a big, beautiful bill in cash, from a tax perspective this year. So I, as you know, our balance sheet's nice and flush, and we have, we have the capability to do it. So, but as you said, we have been over time, we've been typically fairly conservative. I'm not going to go out and, you know, but we, I think we have proven the ability and the want to and the desire to buy stock back.

We set a matrix in June the 10th and we will be don't touch it till now and we'll be looking at it but we wouldn't approve that the money that we've got out there we didn't want to spend it.

So we feel real good cash position.

I'll pick up.

35, 40 million with a big beautiful Bill and cash.

From a tax perspective this year, so as you know our balance sheet nice inflation.

We have the capability to do it so but as you said we have been overtime, we've been typically fairly conservative.

Not going to go out.

I think we have proven the ability and the one two and the desire to buy stock back maybe not at the pace that some people want maybe at the pace and some do maybe too much for others, but it's at the pace that we feel comfortable with we believe in this organization, we think it's a great opportunity to buy stock.

W.M. Rush: Maybe not at the pace that some people want, maybe at the pace that some do, maybe too much for others. It's at the pace that we feel comfortable with. We believe in this organization. We think it's a great opportunity to buy stock back at every moment. Look, I'll just let the track record.

Rusty Rush: Maybe not at the pace that some people want. Maybe at the pace that some do. Maybe too much for others. But it's at the pace that we feel comfortable with. We believe in this organization. We think it's a great opportunity to buy stock back at every moment. I mean, look, I'll just let the track record.

Back every moment I mean look.

Andrew Obin: 20-year history says there's never one a bad moment to lever up and buy back Rush stock.

Daniel Imbro: 20-year history says 20-year history says there's never one bad moment to lever up and buy back for our stock.

I'll just let the track record of your Hess curious has 20 year history says Theres never want a bad moment to lever up and buy back our stock.

W.M. Rush: You used a word you're not going to ever get me to do. Lever up. Let's step back here a minute, Andrew.

Rusty Rush: don't, you used the word you're not going to ever get me to do lever up. Let's, let's, let's step back here a minute, Andrew.

Do you use the word youre not going to need to do.

Lever up.

Andrew Obin: I know. I get it. I get it. I know. I know.

Daniel Imbro: I got it. I got it. I know.

Let's step back here and it Andrew.

W.M. Rush: Lever up is not Rush. I'm sorry.

Rusty Rush: It's not rust.

I got it.

Daniel Imbro: I know. I appreciate it.

Andrew Obin: I appreciate-

W.M. Rush: I'm too conservative. Fire me. I'm too conservative, okay?

Rusty Rush: Fire me. I'm too conservative.

I'm sorry, I appreciate fire me I'm very conservative a little bit more leverage.

Andrew Obin: A little bit more leverage.

Daniel Imbro: A little bit more leverage. A little bit more leverage. A little bit more leverage.

W.M. Rush: I'm not going to lever up, okay?

Andrew Obin: A little bit more leverage.

W.M. Rush: I will buy stock.

Rusty Rush: I will buy stock.

Andrew Obin: How about a little bit more leverage?

Daniel Imbro: A little bit more leverage. Let me ask, look, that you, as I said, the execution has been stellar. We appreciate it. Thank you. Can you just talk about, can you talk about just what are you seeing on macro? I keep asking this question. You have fantastic systems. Just maybe walk us across key verticals, across key geographies. And more importantly, how has your thinking evolved over the past, you know, let's call it three, four months since we've been liberated? Thanks so much.

Okay, a little bit more leverage.

W.M. Rush: I will buy.

Andrew Obin: Let me ask, look. As I said, the execution has been stellar. We appreciate it. Thank you.

A little bit more leverage.

Let me ask Mark.

As I said the execution has been stellar we appreciate it thank you.

W.M. Rush: You're funny.

Andrew Obin: Can you talk about, just what are you seeing, on macro? I keep asking this question. You have fantastic systems. Just maybe walk us across key verticals, across key geographies, and more importantly, how has your thinking evolved over the past, let's call it three, four months since we've been liberated. Thanks so much.

Can you just talk about can you talk about.

Just what are you seeing.

On macro I keep asking this question.

Fantastic systems, just maybe walk us across key verticals across key geographies and more importantly, how has your thinking evolved over the past.

Call. It three four months since we've been liberated thanks, so much.

W.M. Rush: Oh, gosh. I always look back to the 1st of April every day, Andrew, and think of what a liberation it's been. Okay. More uncertainty than you can shake a stick at. How have I changed in three to four months? Well, I know this. You asked about geographies. I know one thing, I don't want to be like the whole country, like California's been the last year and a half, let's just say that, okay? No disrespect to my lovely California stores and anyone out there. From a business perspective, an industry-specific perspective, it has been very difficult on the truck sales side. It's almost like gridlock. If the whole country was to act like California's been from a truck sales perspective, it'd be really tough. Fortunately, obviously, we're doing different things here than the rest of the country is.

Rusty Rush: Oh, gosh. I always look back to the 1st of April every day, Andrew, and think of what a liberation it's been. Okay. The more uncertainty you shake a stick at. All right. How have I changed in three to four months? Well, I know this. You asked about geographies. I know one thing. I don't want to be like the whole country, like California has been the last year and a half. Let's just say that, okay? No disrespect to my love of California stores and anyone out there. But from a business perspective, an industry-specific perspective, it has been very, very difficult on the truck sales side. No one, it's almost like gridlock. I mean, no one has been, I'd like if the whole country was to act like California has been, from a truck sales perspective, it'd be really, we'd be woo. It'd be really tough.

Yes.

Always look back to the FERC rate pool every day.

Oh Boy deliberation.

Okay.

That and more uncertainty the shake a stick at.

Hi.

I exchanged in three to four months well I know this.

You asked about geography, I don't want to think I don't want to be like the whole country like California has been the last year to add let's just say that okay, no disrespect to myeloma, California stores.

Anyone out there but.

Our business perspective is industry specific.

It has been very very difficult on the truck sales side no one it's almost like.

Gridlock.

I mean, no one is better.

All good.

But as the AG Californias Ben.

From a truck sales perspective, it would be we'd be rule it really cuts, but unfortunately, obviously, we are doing different things here, but the rest of the country as they as the political size fight it out with the feds.

Rusty Rush: But fortunately, obviously, we're doing different things here with the rest of the country. The political sides fight it out with the Feds. You know, I mean, obviously, a difference of opinion than than carb does out there, but I'm staying out of that. but fortunately, you know, that's loosening up and going to a little, you know, a more what I would call realistic look. You ask what's changed? That's a lot that's changed. No quick, no matter where the EPA ends up, it is way different than what it was November 5th or whatever it was, of last year, okay? And it's moved to what I would say, I'm not going to get it's moved too far or whatever, but it's moved in the right direction to a more realistic view of what the involvement should be from the EPA's perspective that makes sense for this country, okay?

W.M. Rush: As the political sides fight it out with the feds, obviously a difference of opinion than CARB does out there, but I'm staying out of that. Fortunately, that's loosening up and going to a little, more what I would call realistic look. You asked what's changed. That's a lot that's changed. No matter where the EPA ends up, it is way different than what it was 5 November or whatever it was, of last year. Okay? It's moved to what I would say, I'm not going to get, it's moved too far or whatever, but it's moved in the right direction to a more realistic view of what the involvement should be from the EPA's perspective that makes sense for this country. Okay? I'm not going to get into how far each way, but I'm going to say that's obviously changed a lot over the last few months.

I mean, obviously a difference of opinion.

Carb guys out there, but I'm staying out of that.

But unfortunately.

That's loosening up and going to a little.

A more what I would call realistic.

Look.

We ask what's changed that's a lot that's changed no.

Matter, where the EPA ends up it is way different than what it was November fred's or whatever it was.

Last year, Okay, and its move to what I would say I'm not going to get too far or whatever but it's moved in the right direction to a more realistic view of what the involvement should be from the <unk> perspective, It makes sense for this country. Okay.

Rusty Rush: Not, I'm not going to get into how far each way, but I'm going to say that's, you know, obviously changed a lot over the last few months. Now, it has, the problem is it hasn't settled down, okay? So once that gets settled down, I think we'll all be able to play the game, right? It's like, tell me the rules, and then I'll play the game. I don't care if they're good or bad or whatever, whatever the tariff is, stop changing all this stuff. If I'm a manufacturer, it's, and I know manufacturers had to hire 20 people just to try to figure this stuff out on a daily basis, right? as to where they're at. We need a little stability with a little, you know, looking forward. And I think that'll be good for everyone.

I'm not going to get into how far each way, but I'm going to say that's all.

W.M. Rush: Now, the problem is it hasn't settled down. Okay? Once that gets settled down, I think we'll all be able to play the game, right? It's like, tell me the rules, and then I'll play the game. I don't care if they're good or bad or whatever the tariff is. Stop changing all this stuff. If I'm a manufacturer, I know a manufacturer that hired 20 people just to try to figure this stuff out on a daily basis, right, as to where they're at. We need a little stability with a little looking forward, and I think that'll be good for everyone. I really do believe that we're going to get some of that later this year. I couldn't have told you in April. I feel like it's coming.

Obviously changed a lot over the last few months has the problem is it hasnt settled down.

So once that gets settled down I think we'll all be able to play the game right. It's like tell me the rules and then I'll play the game I don't care, if they're good or bad or whatever whatever the tariff is stopped changing all of this stuff if I'm a manufacturer I don't manufacturer or 20 people.

To figure this stuff out on a daily basis right.

As to where they're at we need a little stability with a little looking forward and I think that'll be good for everyone I really do believe.

Rusty Rush: I really do believe that we're going to get some of that later this year. So I couldn't have told you in April. I feel like it's coming. I feel like we're closer to no's from the EPA and firm trade policies, I hope. So that, you know, whether it's the inflow or outflow of freight for our customer base or for a manufacturer trying to figure out what vehicles cost or what they have to spend and what they have to have their engines, we just need some stability. We need some, this is what it's going to be. But we're in the middle of, but we're getting closer, I think, to getting those answers a whole lot closer than we were in April, right?

That we're going to get some of that later this year. So I Couldnt have told you in April.

W.M. Rush: I feel like we're closer to knows from the EPA and firm trade policies, I hope, so that whether it's the inflow or outflow of freight for our customer base or for a manufacturer trying to figure out what vehicles cost or what they have to spend and what they have to have their engines, we just need some stability. We need some, "This is what it's going to be." We're getting closer, I think, to getting those answers. A whole lot closer than we were in April, right? That's why I'm kind of proud of the quarter is just because, hey, we took a 25% hit in truck sales, and we took way more than $0.07 difference in gross profit from trucks from Q2 of last year to Q2 of this year. Hey, we went from 97 to 90.

I feel like it's coming I feel like we're closer to note from the EPA and foreign trade policies I hope so.

Whether it's the inflow or outflow of freight for our customer base, our four manufacturing trying to figure out what vehicles cost or what they have to spend and what they have to have their edges. We just need some stability we need.

This is what it's going to be but we're in the middle of but we're getting closer I think to getting those answers a whole lot closer than we were in a right.

Rusty Rush: And that's why I'm kind of proud of the quarter is just because, hey, we took a 25% hit in truck sales, but we took way more than seven cents difference in gross profit from trucks from Q2 of last year to Q2 of this year. But hey, we went from 97 to 90. Why? Because we executed like hell on everything else that we have in our touch. And so that's why I know this organization will continue to be fluid enough to be able to keep managing. If this is proving anything to me, it's that we do have that ability. I'll put our numbers up against anybody's numbers. but I'm the only public, really, anyway, singular public truck dealer out there, of execution in Q2. And we plan on doing it beyond, Q2 and into the future, Andrew.

And that's why I'm kind of proud of the quarter is just because we took a 25% hit and drug sales.

But and we took way more than seven cents difference in gross profit from trucks from Q2 of last year to Q2 of this year.

W.M. Rush: Why? Because we executed like hell on everything else that we have in our touch. That's why I know this organization will continue to be fluid enough to be able to keep managing. If this has proven anything to me, it's that we do have that ability. I'll put our numbers up against anybody's numbers, but I'm the only public, really. Well, anyway, singular front dealer out there, of execution in Q2, and we plan on doing it beyond Q2 and into the future, Edgar. I feel closer to knowing the rules. Once customers know the rules, they'll be able to make decisions. We don't have the rules of the game yet, and I think what you see right now is just gridlock on folks ordering trucks. They want to know what's going to happen. You know, what do they need to do?

We went from 97% 90 flat because we executed on everything else that we have in archives and so thats why I notice organization will continue to be fluid enough.

Keep managing efficient proven anything to me is that we do have that ability I'll put our numbers up against anybody's numbers.

The only problem.

Cynthia.

People are out there.

Execution in Q2, and we plan on doing it beyond.

Rusty Rush: I just, you know, it's just, I feel closer to knowing the rules. And once I, once we do, and it's not just, once customers know the rules, they'll be able to make decisions. But we don't have the rules of the game yet. And I think what you see right now is just gridlock on folks ordering trucks. They want to know what's going to happen.

Q2 and into the future.

It's just I feel closer to knowing the rules once that west we didn't it's not just once customers know the rules there'll be able to make decisions, but we don't have the rules of the game, yet and I think what you see right now is just gridlock.

Folks ordering trucks, they want to know what's going to happen.

Daniel Imbro: Right. So that trumps everything, right? So it's hard to get a read what the macro sentiment acts at because this uncertainty.

Andrew Obin: Right. That trumps everything, right? It's hard to get a read what the macro sentiment acts at because this uncertainty.

So that trial, so that trumps everything right. So it's hard to get a read what the macro sentiment ex that because theres no question that our farms.

W.M. Rush: No question.

Rusty Rush: No question. That trumps everything right now. What is, are they going to do, am I going to have to go to, is it going to, is it going to stay at 0.35? Is it going to, oh, excuse me, is it going to stay at 200 milligrams? I mean, there's a very good chance it could stay from, look, I don't know. I'm not involved. I'm not in Washington, DC. I don't have a phone number to anybody at the EPA. But I know a lot of people that do. I get a lot, and by the way, those opinions I'm getting are varied. So, you know, I'm just trying to form an opinion when it's, you know, secondhand, information. But I am pretty close to a lot of folks. The funny part is that, you know, I, you know, it's, they're not all the same thought processes, right?

Andrew Obin: Okay.

W.M. Rush: That trumps everything right now. Am I going to have to go to, is it going to stay at 0.35? Is it going to, oh, excuse me, is it going to stay at 200 milligrams? There's a very good chance it could stay. Look, I don't know. I'm not involved. I'm not in Washington, DC. I don't have a phone number to anybody at the EPA. I know a lot of people that do. By the way, those opinions I'm getting are varied. I'm just trying to form an opinion when it's secondhand information. I am pretty close to a lot of folks. The funny part is that they're not all the same thought processes, right? When you hear this, if you put yourself in my shoes, well, I understand why a customer is stuck in gridlock. Okay. I get it.

Everything right now what are they going to am I going to have to go to is it going to is going to stay at three five.

Excuse me is going to stay at 200 milligrams.

There is a very good chance it could stay for look I don't know im not involved in Washington D. C. I don't know how its own number a day by the EPA, but I know a lot of people to do.

And by the way those opinions I am getting at varied. So I'm just trying to form an opinion when its second hand.

Information, but I am very close to a lot of folks the funny part is that.

Rusty Rush: So, we, and when you hear this, if you put yourself in my shoes, well, I understand why a customer is stuck in gridlock, okay? I get it. You know, besides my business being somewhat tough, I'm going to buy what I have to buy. And I mean, I just really have to buy. I'm not going to step out till I know. And at the same time, you know, I want my business to get, if I'm an over-the-road carrier, which is still 65% of everything out there or better, you know, I want my business to also be a little better. So I, you know, even though we, retail was good, right now we've hit that screech point. But I do believe, as I said, just get us some stuff. And I think activity, now that activity will start. Remember, for me, it's next year business.

They are now.

Not all the same thought process is right. So we.

When you hear this if you put yourself in my shoes.

Well I understand why customers stuck in gridlock, Okay I get it.

W.M. Rush: Besides my business being somewhat tough, I'm going to buy what I have to buy, and I just really have to buy. I'm not going to step out till I know. At the same time, if I'm an over-the-road carrier, which is still 65% of everything out there or better, I want my business to also be a little better. Even though retail was good, right now we've hit that screech point. I do believe, as I said, just get us some stuff. I think activity. Now, that activity will start. Remember, for me, it's next year business. Okay, Rusty's not saying this is all Q4 great business for us. I'm the tail of the dog. Guess what? It's got to start with activity.

Besides my business being somewhat tough I'm going to buy what I have to buy.

Just really.

Tobias I'm not going to step out.

No.

And at the same time.

With over the road carriers, which is still 65% of everything out there better.

I want my business to also be a little better so even though we retail was good right now we've hit that screech point, but I do believe as I said, just give us some stuff and I think activity now that activity will start remember for me. It's next year business. Okay.

Rusty Rush: So, okay, Rusty's not saying this is all fourth quarter great business for us. I'm on, I'm the tail of the dog. So, but you guess what? It's got to start with activity. Then it starts with pricing and quoting and orders. And, you know, then manufactured, and then all of a sudden it has to be done to a truck sometimes after it comes off the line till it gets to that retail space. But I do believe, not said that volumes of it, how much will be determined. If it goes to 0.35, stays at 0.3, stays where the law is right now, not where we're, not the 200 we're at, then you're probably going to get, you're going to get some uptick without question. Now, I don't know about the ability to be able to volume-wise produce because we're getting so late in the game.

You're not saying it isn't all fourth quarter, great business for us.

On the tail of the Dol so.

But guess, what it's going to start with activity.

W.M. Rush: It starts with pricing and quoting and orders and then manufactured, and then all of a sudden, it has to be done to a truck sometimes after it comes off the line till it gets to that retail space. I do believe, not so the volumes of it, how much will be determined. If it goes to 0.35, stays at 0.3, stays where the law is right now, not the 200 we're at, then you're going to get some uptick, without question. Now, I don't know about the ability to be able to, volume-wise, produce, because we're getting so late in the game. I'm confident the administration will come with something, I hope, in the next 60 days, just to give clarity to everybody out there. This is from a truck sales perspective.

And it starts with pricing and quoting orders and then manufactured all of that has to be done to a truck sometimes after it comes offline until it gets to that retail space, but I do believe.

<unk> not said that volumes are down.

<unk> will be determine if it goes to three five stages points phase, where the lawyers right now not where we're not the 200 were at then you're probably going to get you're going to get some uptick without question.

I don't know about the ability to be able to volume wise produce because we're getting so late in the game.

Rusty Rush: But, you know, I'm confident the administration will come with something I hope in the next 60 days just to give clarity to everybody out there. This is from a truck sales perspective. Thank God two-thirds of my profits come from parts and service, though, as a company, but I do need that other piece too, okay? I want that other piece with it, that truck sale piece at the same time. But again, our leasing business is solid. We expect it to remain solid. Not going to grow exponentially, but guarantee it's pretty good. And, you know, keep our parts and service stock, maintain discipline inside our expense base. I don't really want to go out there and rip this place apart. I did not, you know, we cut it back last year. It was the right thing to do.

I am confident the administration will come was up and I hope in the next 60 days just to give clarity to everybody out there from that business from a truck sales perspective, <unk> got two thirds of our province cover parts and service.

W.M. Rush: Thank God two-thirds of my profits come from parts and service, though, as a company. I do need that other piece, too, okay? I want that other piece with it, that truck sale piece at the same time. Again, our leasing business is solid. We expect it to remain solid. Not going to grow exponentially, but guaranteed it's pretty good. Keep our parts and service solid, maintain discipline inside our expense base. I don't really want to go out there and rip this place apart. We cut it back last year. It was the right thing to do. We've maintained basically exact flat headcount other than adding revenue creation positions. We're just going to keep hanging in there, producing solid results till we see a catalyst to drive the market to better than what it's been right now, the truck, the sales market.

As a company, but I do need that other piece too okay.

I want that other piece with it that <unk> piece of it but.

But again, our leasing business is solid we expect it to remain solid and not going to grow exponentially, but.

It's pretty good.

Yeah.

Keep our parts and service style maintained discipline inside of our expense base.

Really wanted to go out there and rip this place apart.

Rusty Rush: We've maintained basically exact flat headcount other than adding revenue creation positions. And, you know, we're just going to keep hanging in there, producing solid results till we see a catalyst to really, you know, to really drive the market to better than what it's been right now. You know, the truck, the sales market. And also, like you said, guess what? When you talked earlier, your first question earlier, well, hey, Rusty, if they get older, should you work on them more? True, right? As long as their business is in line with the expenditures needed as the fleet ages, without question, people will have to do more parts and service. That benefits us too. It's a better margin business. But we do want to sell trucks. We need that whole thing working.

We cut it back last year. It was the right thing to do we've maintained basically exact flat head count rather than adding revenue creation positions.

And.

<unk>.

We're just going to keep hanging in there producing solid results until we see a catalyst to really to really drive a market better than what it what it's been right now.

W.M. Rush: Also, like you said, guess what. When you talked earlier, your first question earlier, Well, hey, Rusty, if they get older, should you work on them more. True, right. As long as their business is in line with the expenditures needed, as the fleet ages, without question, people have to do more parts and service. That benefits us, too. It's a better margin business. We do want to sell trucks. We need that whole thing working. The truck sales side is just on a little bit of a hold right now till we get a little more clarity.

Sales market and also like you said guess, what when you talked earlier in your first question earlier.

As they get older should you work on a more true right as long as their business.

We'll be expenditures needed as the fleet ages without question.

People have been more parts and service that benefits us to better margin business, but we do want to sell trucks, we need that whole thing work it but the truck sales side is just on a little bit of a hold right now until we get a little more clarity.

Rusty Rush: But the truck sales side is just on a little bit of a hold right now till we get a little more clarity.

Andrew Obin: Thank you very much, Rusty. Really appreciate it.

Daniel Imbro: Thank you very much, Rusty. Really appreciate it.

W.M. Rush: You're more than Always, sir.

Rusty Rush: You're more than always certain.

Thank you very much Rusty really appreciate it.

Always sir.

Operator: Okay, I'm showing no further questions at this time.

Operator: Okay, I'm showing no further questions at this time. I would now like to turn it back to Rusty Rush for closing remarks.

Okay, I'm showing no further questions at this time.

W.M. Rush: Okay.

Operator: I would now like to turn it back to W.M. Rush for closing remarks.

Now I'd like to turn it back to Rusty Ross for closing remarks.

W.M. Rush: Sure. Nothing big here. We appreciate everybody's participation. We will look forward to speaking to everyone in late October, I do believe. Take care. We'll see you then.

Rusty Rush: Sure. Nothing big here. We appreciate everybody's participation. We will look forward to speaking to everyone in late October, I do believe. So take care. We'll see you now.

Sure.

Big here, we appreciate everybody's participation, we will look forward to speaking to everyone.

Late October I do believe so.

Take care.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Okay, I'm going to go ahead and stop the conference.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Okay, I'm going to go ahead and stop the conference.

Okay.

Thank you for your participation in today's conference. This does conclude the program you may now disconnect.

Go ahead Tom.

Thanks.

Okay.

[music].