Q2 2025 Rush Enterprises Inc Earnings Call
Ruin.
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Welcome to The Rush Enterprises.
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Rusty Rush 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.
Rusty Rush: Mr. President, good roll. 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 of $1.9 billion and net income of $72.4 million, or 90 cents per diluted share.
President control and my goals, 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.
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 are actual results May differ materially from those expressed or implied by such forward-looking statements.
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.
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, 10K for the year. Into December, 31st 2024 and in our other filings with the Securities and Exchange Commission,
Rusty Rush: 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 in 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.
As indicated in our news release. We achieve second quarter revenues 1.9 billion and net income 72.4 million or 90 cents per diluted share. 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 freight recession? That is persisted for more than 2 years and continues to face uncertainty, with respect to trade policies and engine emissions regulations.
W.M. Rush: Despite these many challenges, our employees remain focused on the operational discipline and customer service in the quarter, which help 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 of 2024. 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.
As a result of these factors, many of our customers are delaying vehicle acquisition and maintenance decisions. However, despite these many challenges, our employees remain focused on the operational discipline and customer service in the quarter.
Rusty Rush: 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.
Which helped us deliver solid results. So, I want to thank them for their hard work and dedication.
Our aftermarket operations accounting for approximately 63% of our total gross profit in the second quarter with parts service and collision center revenues, reaching 636.3 million and increase in 1.4% compared to the second quarter of 2024.
And absorption ratio was 135.5%.
W.M. Rush: 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 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 1.2% of the market.
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 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.
Rusty Rush: 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. And 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.
With respect to Truck Sales, we sold 3,178. New class A trucks in the US during the second quarter accounting for 5.4% of the total US market.
While this represents a 20% year-over-year, decrease it is important to note that this primarily due to the timing of several large sleep. Deliveries that occurred in the second quarter of last year, which made for a difficult year-over-year comparison.
W.M. Rush: 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 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.
All of the man from large over the road fleets remains weak. We achieve strong sales in the class a vocational Market highlighting the strengths of our Diversified customer base.
We expect vocational demand to remain solid for the remainder of the year.
Rusty Rush: 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.
However due to ongoing uncertainty around trade policy and engine emissions regulations, New Classic drug sales May decline sequentially in the third quarter and the Market Outlook beyond the third quarter is difficult to project at this point.
W.M. Rush: 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. Looking ahead, we expect Class 4 through 7 truck sales in Q3 to be consistent with our Q2. We sold 1,715 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.
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 media beauty results were solid, the second quarter with both year-over-year and quarter over quarter sales reps.
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 fast 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.
Rusty Rush: While financing remained a challenge for used truck buyers, we believe our inventory is the right size, 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.
We sold 1750 15 used commercial vehicles in the second quarter, essentially, flat compared to the same period in 2024.
W.M. Rush: 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 Q2. Rush Truck Leasing achieved record revenues of $93.1 million in Q2, 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 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.
While financing remained a challenge for used truck buyers. We believe our inventory is the right size 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 use Truck Sales to being like be in line with the second order.
Rusty Rush: 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.
Rush truck leasing achieved record revenues of 93.1 million. The second quarter of 6.3% year-over-year off 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.
W.M. Rush: 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. 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 during the second quarter. We repurchased 83.9 million shares 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 remain. 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.
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 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 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 the question and answer session. As a reminder, to ask a question, you will need to press star 1, 1 on your telephone and wait for your name to be announced.
To withdraw your question. Please press star, 1 1 1, again please, stand by while we compile the Q&A roster,
Daniel Imbro: Yeah. Hey, good morning, guys. Thanks for taking our questions.
Daniel Imbro: Yeah. Hey, good morning, guys. Thanks for taking our questions.
Our first question comes from the line of Daniel. Embro with Stevens Inc. Your line is now open.
W.M. Rush: You bet, Daniel. Good morning to you, sir.
Rusty Rush: You bet, Daniel. Good morning to you, sir.
Yeah. Hey, good morning guys, thanks for taking our questions.
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 Rush, I'll start maybe on the industry a little bit. I'm sure visibility into orders is about as clear as mud. 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, Daniel. Good morning to you, sir.
W.M. Rush: Well, good question, sir. Dramatically different in the H2 of the year from the H1 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 manufacturer, you're going to see a lot less trucks built. Okay? You say, 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 three 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?
Good morning. Well Rusty. Uh I'll start maybe on 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 or are they still pumping out new trucks and telling you guys to deal with them kind of what's what's the order back drop? And and how is that changing with the oems?
Well.
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 put 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. We've 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 quarter 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?
I'll get to the admissions stuff and 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. Mansion were the worst 3 months of order intake since 2009? Okay, the US Canada and Mexico took in less than 30,000 Class A trucks. Okay. That eventually, you know, comes to fruition inside of the bill, uh, that we see there's just still so much uncertainty.
To to know where what what, you know we had we, you know, we built a lot of trucks so actually Q2 retail deliveries were flat to slightly up uh for the whole country. But I think that everyone pulled everything forward that they could. And right now uh, production is going to take is dramatically, hit from poor and sequentially. Is we've seen since Co? Okay? Uh, when you and I I I put CO as an outlier really since you go back way further than that to see if you're going to see.
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 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 on through the on through the chain to the end user on top of the fact that we're still in a frank 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 the third quarter.
W.M. Rush: Tuesday, we pulled the GHG3 stuff, but that still has not given any clarity as to what we're going to get from an emissions perspective. Is it going to stay at 200? Is it going to be 0.035? Is it going to go to somewhere in the middle? These poor 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.
From 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. The uncertainty is there. I mean.
I don't look, you know, I guess what was it Tuesday? We pulled the, you know, the gc3 stuff but that still has not giving any Clarity is to. You know what we're gonna what we're going to get from an admissions perspective is going to stay 200. Is it going to be 0035? Is it going to go to somewhere in the middle?
These poor engine manufacturers and oems don't even have Direction yet from the government. So, by by what what we're dealing with.
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, with 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. And January of '27, is it going to stay at 0.035? Is it going to stay at 200?
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 into January 2027. Is it going to stay at 0.035? Is it going to stay at 200? 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. Is it somewhere in the, Buddy, I have no exact idea.
Is creates uncertainty on through the on, through the chain to the end user, on top of the fact that we're still in a freight recession, Etc. So, you know, nobody, 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. Don't even ask me what the fourth quarter is going to look like. Because, you know, it it's it's it's hand to mouth and with less trucks for sure, going to be billed with people, canceling shifts, folks, uh, laying off, employees folks. Taking shutdown days. Uh, larger numbers of these, taking 2 3 weeks off, every manufacturer has their own philosophy. But no 1 is right now currently as we sit
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.
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, then 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.
Everybody's handling it the same to be honest with you with 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, into January of 27, is it going to stay at 0035? Is it going to stay at 200? You know, stay at 200, go to 0035, which is what the rule. And the law says it is right now, but that is in very much in question, right? At the moment, it's somewhere in the, but I have no exact guy idea. And I, and so customers by Nature.
Uh, 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.
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 0.035, 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 hadn't heard anybody use the word in a while, pre-buy. But I hate to say it.
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, free buy, but I need to say it. There might be a slight free buy if we stay at .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, 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 an outlook into where it's really going to go.
That we can finally get some solid trade stuff down from a tariff perspective. And, you know, it's the, the Congress and, and the, 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.
Rusty Rush: There might be a slight pre-buy if we go to 0.35, 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.
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're 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 trade policy decisions. I think we'll be able to. It's kicked off, really.
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 tariff 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 get these answers, to be honest with you.
Was great uncertainty. And we are finally seeing, you know, the Fulfillment true fulfillment of the uncertainty we talked about in the last call, back in April. Uh, 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, or engines going to go up X? So they're going to, you know,
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, than what 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.
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 keep throwing out 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.
It's we need some clarification. I think, once we get that, I think we should 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 also for some of these terrorists policy decisions. But I think we'll be able to get kicked off really. I think we're almost in a law. Till we still, we get these answers, to be honest with you. It's and, and and besides remember, I would tell you from what I've been reading in the last couple of weeks, most of your public carriers
Um, 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 is depressed as they are. Um, then what, you know, I you can see slight green shoots in there but not a lot. There's still it's still a tough road out there uh because we're still out of balance right? And I know I'm he's throwing out all these things but we're still, we're still
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, always helpful, and I appreciate the the answer there. I guess maybe on what is more in your control right now, I guess the parcel 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 out of your control, like the class A demand?
Say that too much capacity, you know, I think it's continuing continuing to slight come out slowly out of the marketplace and uh to meet the demand level that's out there. But you know, there you go, I'll shut up. Oh no always helpful and uh 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
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?
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 reports. 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.
Into Q was notable. I think Revenue was up. It sounds like technician and retention got better. I guess 1 can talk about what you guys changed to actually drive that or or improve retention and hiring. And then 2, if if you were to size up, maybe what 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 uh relative to everything else out of your control like the Class 8 demand.
Well, I mean, you know, I think right now by maintaining flat but slightly up, I think we're growing compared to the market. Okay. I think we're doing better than the aftermarket. Uh, some of the reports and remember getting aftermarket comps is probably the most difficult thing there is because uh you can 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 uh, getting to understand what the overall aftermarket is. But I think we're doing a slightly better than the overall aftermarket. I would tell you that, you know, I think our historical
Rusty Rush: We just finished the strategic offside here in June, to really try to, you know, re, re, re, refocus, 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, which, 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 at the 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 offsite here in May and 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 in 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.
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.
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 the Strategic gulf side here in June to really try to, you know, read read re refo, not refocus, but even more double up uh with some more, you know, strategic initiatives to try to really accelerate the growth in our aftermarket business, especially doing it next year, right? Now, if we can maintain which I 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 a great. Let's just call it flat. We're in continuing to maintain which, 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 at the revenue with a little expanded margin. Well to me it was better than that just giving the environment, right?
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 the 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.
Um, so we're to quantify it exactly what what those because they were slightly, we grew our sales force slightly. I'm not going to sit here and get 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. Uh, 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 the stuff for priority, uh, for my perspective. So I'm not going to get into everything but
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, say, 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.
Trust me. We're, we're, we're hands down, uh, 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. Uh, as we move forward, especially into 26 and 27, you know, like I said, I, I believe we can maintain
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. 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.
Rusty Rush: Our, obviously, our parts and service operations and the stability, 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 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.
Then go way out of whack or out of line. And as you know, as I was saying earlier, 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, our parts and service operations, and the stability. Um, and then our ability to manage expenses where, you know, if you look at the earnings,
Uh this quarter, it's the first quarter of the last 3 or 4 that we weren't down 4 or 5% in DNA.
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, I'm 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.
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 a Class 8 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 mean, 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.
We were a slightly up but basically flat, but you have to go back and understand that we made those cuts over a year ago, so but be able being able to maintain that. I'm very proud of people, you know, in the Spider-Man inflationary pressures, and things like that. We've been able to maintain that piece of it. So it's usually, 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 Court. When you look at the the truck sales pressures that we had and 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 saying, uh, 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 the original
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.
Daniel Imbro: No. Always helpful. Appreciate all the color. I'll leave it there. Best of luck, guys.
Daniel Imbro: No, always helpful. Appreciate all the color. I'll leave it there. And best of luck, guys.
A question in there. Um, I'm not sure that it takes place dramatically this year, but I, 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.
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.
No, uh, always helpful. I appreciate all the color. Uh, I'll leave it there. Best of luck, guys.
Thank you, Daniel. 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. Um again, as a reminder to ask the question, you will need to press star 1 1 on your telephone.
Andrew Obin: Good morning, gentlemen.
Andrew Obin: Good morning, gentlemen.
Our next question comes from Andrew. Oen of Bank of America. Your line is now open.
W.M. Rush: Well, good morning, Mr. Obin.
Rusty Rush: Well, good morning, Mr. Owen.
Uh, good morning, gentlemen.
Andrew Obin: Just to follow up on the parts and service question. 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 that drive an uptick in parts and service over the next six to 12 months?
Andrew Obin: 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 the 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?
Well, good morning Mr. Rogan.
Uh, 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
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 the 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 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 the 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 mentioned it, but yeah, in the back of my mind, that's what I'm hoping for, okay?
Uh, you know, it's more regulatory uncertainty more than anything else. You know, meanwhile, you know, parts and service business would indicate that people will continue to utilize the trucks in the field, you know, wouldn't this setup result uh, in more wear and tear and all the trucks. Uh, you know, just lack of natural replacement, wouldn't it drive an uptick in parts and service over the next 6 to 12 months?
You're right on Andrew. That's what we're hoping for. Okay theoretically, you're correct the other but there's 1 caveat
What's your business? Like, okay, theoretically, you're 100% correct, but you'll have to take into account, you know? What is a, what is a customer's business? Truly look like, right? Are they squeezing it down because their business, isn't that good? So, where for sure, the the it 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 aligned 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, um,
Without question.
Rusty Rush: But I've got these caveats that have to ride with it, right?
Andrew Obin: I totally got it.
Andrew Obin: No, totally. I totally get it.
W.M. Rush: Their business has to be decent, so.
Rusty Rush: Their business has to be decent, so.
I interested, but yeah, in the back of my mind, that's what I'm hoping for. Okay. But but I've got these caveats that have to that ride with it, right? So I I I totally get it.
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 evolving on the share buyback?
Andrew Obin: 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?
Your business has to be decent. So,
uh, another question for you and I appreciate, uh, you know, sort of the fact that you accelerated buyback.
but you know, if you look at your track record, if you look where we are in the cycle,
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. 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 relooking 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, Steven, I'll be relooking at that tomorrow as we reset the matrixes up to continue making sure we're purchasing, right? the stock fluctuated some in the quarter. You know, it got down a little bit and back up.
Uh, you know, 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 you know the push back we get is you know the execution is fantastic, stocks and expensive. They have capacity on the balance sheet. You know, how is the boards and your thinking is evolving on the share buyback?
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. Uh,
W.M. Rush: It got down a little bit, then back up. We set a matrix 10 June. We don't touch it till now. 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 of a big, beautiful bill in cash from a tax perspective this year. As you know, our balance sheet's nice and flush. 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, the want to, and the desire to buy stock back.
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. We got our cash position. Heck, we'll pick up, I don't know, 35, 40 million with a big, beautiful build 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.
You know, I'm just not out there and we do it under a 10 B 5. 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 were reading, Stephen, I'll be relooking at that tomorrow. As we reset the matrixes up to continue making sure we're purchasing, right? Uh, stock fluctuated. Some in the quarter, you know, you got down a little bit and back up 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. We didn't want to spend it. Uh, so, you know, we feel real good. We got our cash position. Heck, we'll pick up. I don't know 35.40 million with the big beautiful bill in cash, uh, from a tax perspective this year. So as you know, our balance sheet is 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.
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.
I'm not going to go out and, you know, but we we I think we have proven the ability and the want to and the desire to buy stock back maybe not as 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
Andrew Obin: 20-year history says there's never a bad moment to lever up and buy back Rush stock.
Andrew Obin: 20-year history says, 20-year history says there's never been a bad moment to lever up and buy back for 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: All right. 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.
Andrew Obin: I know. I get it. I get it. I know.
Andrew Obin: I got it. I got it.
Rusty Rush: I know. I know. It's not risk.
W.M. Rush: Lever up is not Rush. I'm sorry.
Andrew Obin: I appreciate-
Andrew Obin: I'm so conservative. Fire me. I'm too conservative.
W.M. Rush: I'm too conservative. Fire me. I'm too conservative, okay?
Andrew Obin: A little bit more leverage.
Rusty Rush: A little bit more leverage. A little bit more leverage. A little bit more leverage. I will buy stock.
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.
Andrew Obin: How about a little bit more leverage?
Andrew Obin: How about 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.
W.M. Rush: I will buy-
Andrew Obin: Look, as I said, the execution has been stellar. We appreciate it. Thank you.
Stock back at every moment. I mean, look, I'll just let the track 20 year history, it says 20 year history it says there's never want to bad moment to lever up and buy back for our stock. All right, nope you use 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, I get, I get it. I know, it's not Rusty, I'm sorry. I appreciate fire me. I'm too conservative a little bit more. Leverage, a little bit more leverage, a little bit more leverage. I will buy a little bit more leverage.
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. More importantly, how has your thinking evolved over the past, let's call it 3, 4 months since we've been liberated. Thanks so much.
W.M. Rush: Oh, gosh. I always look back to the first of April every day, Andrew, and think of what a liberation it's been. Okay. No more uncertainty to 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, 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 has been from a truck sales perspective, we'd be woo. 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. I think of what a liberation it's been. Okay. I'm more uncertain than you can 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 the 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.
Uh, let me ask look that. You, as I said, the execution has been Stellar. We appreciate it. Thank you. Uh, can you just talk about? Can you talk about? Uh just what are you seeing? Uh, on macro I I keep asking this question. Uh, you have fantastic systems just maybe walk us across key articles, across key geographies and more importantly how has your thinking evolved over the past? You know, let's call it 3 4 months since we've been liberated. Thanks so much.
Oh God.
I always look back to the first of April every day. Andrew and think of what a Liberation it's been
Okay. Uh, I'm more uncertain than shake. A stick at all. I, I how have I changed in 3 to 4 months? Well, I know this.
You asked about geographies. I don't want to think 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 lovely. California stores. Um, anyone out there but
Rusty Rush: It'd be really tough. But fortunately, obviously, we are 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 guns 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?
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, a more what I would call realistic look. You 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 5 November or whatever it was, of last year, okay? It's moved to what I would say, I'm not going to get this 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?
From a business perspective, as in Industries specific perspective, it has been very, very difficult on the truck sales side. No 1. It's almost like gridlock. They I mean no 1 has spent. I like if the whole country wants to act like California has been uh from a Truck Sales perspective. It'd be really we'd be woo. It'd be really tough but fortunately obviously we are doing different things here but the rest of the country is they as uh the political size 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. Uh, but fortunately, you know that's loosening up and going to a little, you know, a more. What I would call realistic look I we asked what's changed? That's a lot that's changed. No quit. No, no matter where the EPA ends up.
Rusty Rush: And it's moved to where 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? Not, I'm not going to get into how far of 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.
It is way different than what it was, November 5th or whatever it was uh of last year, okay? And it's moved to what I would say. I'm not going to get to move too far or whatever but it's moved in the right direction.
W.M. Rush: 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. 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.
Rusty Rush: If I'm a manufacturer, it's kind of, 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 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 nose 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.
Whatever the Tariff is, stop changing all this stuff. If I'm a manufacturer it's I know manufacturing at the higher 20 people just to try to figure this stuff out on a daily basis, right? Uh, 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 really do believe.
W.M. Rush: I couldn't have told you in April. I feel like it's coming. I feel like we're closer to nos from the EPA and firm trade policies, I hope. 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.
That we're going to get some of that later this year. So I I couldn't have told you in April.
Rusty Rush: 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? 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.
I feel like it's coming. I feel like we're closer to knows from the EPA and firm trade policies. I hope so that you know, whether it's whether it's the inflow or outflow of freight for our customer base or for manufacturing, 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 a right. And that's why I'm kind of proud of the quarter is just because hey, we took a 25% hit in drug sales.
W.M. Rush: Hey, we went from 97 to 90. 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 wheel out there, of execution in Q2, and we plan on doing it beyond Q2 and into the future, Andrew Obin. I feel closer to knowing the rules. It's not just 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.
But we took way more than a 7-cent difference in growth 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 at our touch. And so that's why. I know this organization will continue to be fluid enough to be able to keep managing.
Rusty Rush: 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 end of the future, Andrew. 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.
Ing. If this is proven anything to me is that we do have that ability. I'll put our numbers up against anybody's numbers, uh, but I'm the only public really anyway, singular out there of execution in Q2 and we plan on doing it Beyond uh a Q2 and and and and the end of the future. And I just you know it's just I feel closer to knowing the rules and once I, once we do it's not just it once. Customers know the rules, they'll be able to make decisions.
W.M. Rush: You know, what are they going to do.
Andrew Obin: Right. So that trumps everything, right? So it's hard to get a read what the macro sentiment exists at because this uncertainty.
Andrew Obin: Right. That trumps everything, right? It's hard to get a read what the macro sentiment acts at.
W.M. Rush: No question.
Rusty Rush: No question. That trumps everything right now. What is, are they going to go, 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. Is it going to stay at 0.35? 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.
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. You know what, what? So that trumps everything, right? So it's hard to get a read. What the macro sentiment X? That because this uncertainty, no question that. Trumps everything.
Are they going to go?
Excuse me. He's 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, uh, information, but I am pretty close to a lot of folks that funny part is that, you know, I, you know, I I
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, you know, even though 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're not all the same thought processes, right? So we and when you hear this, if you put yourself in my shoes,
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, W.M. Rush’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.
Rusty Rush: So, okay, Rusty's not saying this is all fourth quarter great business for us. 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, now I've said the volumes of 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.
W.M. Rush: It starts with pricing and quoting and orders and then manufacturing and then all the stuff that has to be done to a truck sometimes after it comes off the line till it gets to that retail space. I do believe Now, the volumes of 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. Thank God two-thirds of my profits come from parts and service, well, as a company.
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 should have to buy it. I'm not going to step out till I know. And and, and at the same time, you know, I want my business to get with. If I'm an over the road carrier, which is still 65% of everything out there, or better. Um, 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 to your business. So okay. Rusty is not saying this is all fourth quarter of great business for us. I'm, I'm, I'm a tale 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,
they didn't 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 the knot to the volumes of the how 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
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. From my, 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 that it grows 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, I, you know, we cut it back last year. It was the right thing to do.
W.M. Rush: 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 guarantee 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 really drive the market to better than what it's been right now, the truck, the sales market. Also, like you said, guess what?
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.
Parts and service though as a as a company but I do need that other piece too. Okay. I want that other piece with it. That truck sale piece with the same time, but again, my leasing business is solid. We expect it to remain solid, not going to grow exponentially, but guarantee is pretty good. And, you know, keep our parts in service dog, maintain discipline, inside our expense base. I don't really want to go out there and rip this place apart. I did I, you know, we cut it back last year, it was the right thing to do. We've maintained basically exact Flathead count other than adding Revenue creation positions.
W.M. Rush: 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.
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.
Andrew Obin: Thank you very much, Rusty. Really appreciate it.
And, you know, uh, we're just going to keep hanging in there producing solid results till we see a catalyst to really, you know, to really, to, to drive the market to better than what it, 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 they're business and is in line with the expenditures needed is the fleet ages without question. People have to do more parts and service that benefits us too. It's better margin business but we do want to sell trucks, we need that whole thing working, but the truck sales side is just on a little bit of a hold right now, till we get a little more clarity.
W.M. Rush: You're more than always, sir.
Rusty Rush: You're more than always, sir.
Thank you very much Rusty, really appreciate it. You're more than 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.
W.M. Rush: Okay.
Operator: I would now like to turn it back to Rusty Rush for closing remarks.
Okay, I'm showing no further questions at this.
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 now.
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.
Time I would now like to turn it back to Rusty rush for closing remarks.
Sure.
Nothing big here. We appreciate everybody's participation.
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.
Speaking to everyone in late October, I do believe. So, take care. We'll see you now.
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.