Q3 2025 Rush Enterprises Inc Earnings Call

October 30, 2025

Operator: 2025 earnings results. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by 1 on your telephone keypad. If you would like to withdraw your question, again, press the star 1. I would now like to turn the conference over to W.M. Rush, President, CEO, and Chairman of the Board. You may begin.

Operator: 2025 earnings results. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by one on your telephone keypad. If you would like to withdraw your question, again, press the star one. I would now like to turn the conference over to Rusty Rush, President, CEO, and Chairman of the Board. You may begin.

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question. During this time can be breast star followed by the number one on your telephone keypad. If you would like to withdraw your question again press the star one.

I would now like to turn the conference over to Rusty Rush President.

CEO and chairman of the Board you may begin.

Good morning, and welcome to our third quarter 2020.

W.M. Rush: Good morning, welcome to our Q3 2025 Earnings Release Call. With me this morning are Jason Wilder, Chief Operating Officer, Steve Keller, Chief Financial Officer, Jay Hazelwood, Vice President and Controller, and Michael Goldstone, Senior Vice President, General Counsel, and Corporate Secretary.

Rusty Rush: Good morning, welcome to our Q3 2025 earnings release call. With me this morning are Jason Wilder, Chief Operating Officer, Steve Keller, Chief Financial Officer, Jay Hazelwood, Vice President and Controller, and Michael Goldstone, Senior Vice President, General Counsel, and Corporate Secretary.

Release call with me. This morning are adjacent Walter Chief Operating Officer, Steve Keller, Chief Financial Officer, Jay Hazelwood, Vice President Controller, and Michael Goldstone, Senior Vice President General Counsel and corporate sector.

Certain statements we will make today are considered forward looking statements as defined in the private Securities Litigation Reform Act of 1095, because these statements include risks and uncertainties. Our actual results may differ materially from those expressed or implied by such forward looking statements important factors that could cause actual results to differ materially from those <unk>.

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 risks and uncertainties, our actual results may differ materially from those expressed and 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.

Breast or implied by such forward looking statements include but are not limited to those discussed in our annual report on Form 10-K for the year ended December 31, 2024, and in our other filings with the Securities and Exchange Commission.

As indicated in our news release, we achieved third quarter revenues of $1 9 billion and net income was $66 7 million or <unk> 83 per diluted share.

W.M. Rush: As indicated in our news release, we achieved Q3 revenues of $1.9 billion and net income of $66.7 million or $0.83 per diluted share. I am pleased to announce that our board of directors approved a $0.19 per share cash dividend. The commercial vehicle industry continued to face challenging operating conditions in Q3 2025. Freight rates remain depressed and overcapacity continues to weigh on the market. In addition, while the industry gains some clarity regarding the tariffs that will be imposed on certain commercial vehicles and parts beginning 1 November, economic uncertainty and regulatory ambiguity remains, especially with respect to engine emissions regulations. These factors are impacting our customers' vehicle replacement decisions. Despite these headwinds, I am proud of the financial performance our team delivered in Q3.

Rusty Rush: As indicated in our news release, we achieved Q3 revenues of $1.9 billion and net income of $66.7 million or $0.83 per diluted share. I am pleased to announce that our Board of Directors approved a $0.19 per share cash dividend. The commercial vehicle industry continued to face challenging operating conditions in Q3 2025. Freight rates remain depressed and overcapacity continues to weigh on the market. In addition, while the industry gains some clarity regarding the tariffs that will be imposed on certain commercial vehicles and parts beginning 1 November, economic uncertainty and regulatory ambiguity remains, especially with respect to engine emissions regulations. These factors are impacting our customers' vehicle replacement decisions. Despite these headwinds, I am proud of the financial performance our team delivered in Q3.

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

Commercial vehicle industry continued to face challenging operating conditions in the third quarter of 2020 for freight rates remain depressed and overcapacity continues to weigh on the market.

In addition, while the industry gain some clarity regarding the tariffs that will be imposed on certain commercial vehicles and parts beginning November one economic uncertainty and regular regulatory ambiguity remains especially with respect to engine emissions regulations. These factors are impacting our customers' vehicle replacement decisions.

Despite these headwinds I am proud of the financial performance our team delivered in the third quarter, our employees' commitment to operational discipline and customer service was evident in our ability to maintain strong aftermarket results and manage expenses effectively and I am deeply grateful for their dedication.

W.M. Rush: Our employees' commitment to operational discipline and customer service was evident in our ability to maintain strong aftermarket results and manage expenses effectively. I am deeply grateful for their dedication. Our aftermarket operations accounted for approximately 63% of our total gross profit in Q3, with parts service and collision center revenues reaching $642.7 million, an increase of 1.5% compared to Q3 2024. Our absorption ratio was 129.3. In Q3, our aftermarket products and service businesses remained resilient despite ongoing market challenges. Our strategic focus on technician recruiting and retention, expanding our aftermarket sales force, and identifying new customer segments helped offset weak demand.

Rusty Rush: Our employees' commitment to operational discipline and customer service was evident in our ability to maintain strong aftermarket results and manage expenses effectively. I am deeply grateful for their dedication. Our aftermarket operations accounted for approximately 63% of our total gross profit in Q3, with parts service and collision center revenues reaching $642.7 million, an increase of 1.5% compared to Q3 2024. Our absorption ratio was 129.3. In Q3, our aftermarket products and service businesses remained resilient despite ongoing market challenges. Our strategic focus on technician recruiting and retention, expanding our aftermarket sales force, and identifying new customer segments helped offset weak demand.

Our aftermarket operations accounted for approximately 63% of our total gross profit in the third quarter with parts service and collision center revenues, reaching $642 7 million, an increase of one 5% compared to the third quarter of 2024, and our absorption ratio was 129 point.

Speaker #1: Andrew .

Speaker #2: Ladies and gentlemen , thank you for standing by . At this time , I would like to welcome everyone to the Rosh Enterprises , Inc. .

In the third quarter, our aftermarket products and service business has remained resilient despite ongoing market challenges, our strategic focus on technician recruiting and retention expanding our aftermarket sales force and identifying new customer segments.

Speaker #2: Reports third quarter 2020 earnings results . All lines have been placed on mute to prevent any background noise . After the speakers remarks , there will be a question and answer session .

Speaker #2: If you would like to ask a question during this time , simply press star , followed by the number one on your telephone keypad .

He helped to offset weak demand looking ahead, we anticipate continued challenges in our aftermarket business due to seasonal trends and broader industry headwinds, but we remain confident that our diversified customer base and operational discipline will allow us to successfully navigate the remainder of the year.

W.M. Rush: Looking ahead, we anticipate continued challenges in our aftermarket business due to seasonal trends and broader industry headwinds, but we remain confident that our diversified customer base and operational discipline will allow us to successfully navigate the remainder of the year. With respect to truck sales, we sold 3,120 new Class 8 trucks in the US during Q3, accounting for 5.8% of the total US market. While this represents an 11% year-over-year decrease, we outperformed the market primarily due to stable demand from our vocational customers, underscoring the strength of our diversified customer base. Looking forward, economic and regulatory uncertainty continues to dampen customer demand, particularly with respect to new Class 8 trucks. We believe that the weak demand the industry is currently experiencing will negatively impact new Class 8 truck sales for at least the next 2 quarters.

Rusty Rush: Looking ahead, we anticipate continued challenges in our aftermarket business due to seasonal trends and broader industry headwinds, but we remain confident that our diversified customer base and operational discipline will allow us to successfully navigate the remainder of the year. With respect to truck sales, we sold 3,120 new Class 8 trucks in the US during Q3, accounting for 5.8% of the total US market. While this represents an 11% year-over-year decrease, we outperformed the market primarily due to stable demand from our vocational customers, underscoring the strength of our diversified customer base. Looking forward, economic and regulatory uncertainty continues to dampen customer demand, particularly with respect to new Class 8 trucks. We believe that the weak demand the industry is currently experiencing will negatively impact new Class 8 truck sales for at least the next two quarters.

With respect to truck sales, we sold 30 120, new class eight trucks in the U S. During the third quarter.

Donnie for five 8% of the total U S market.

While this represents 11% year over year decrease we outperformed the market primarily due to stable demand from our location.

Underscoring the strength of our diversified goes.

Looking forward economic and regulatory uncertainty continues to dampen customer demand, particularly with respect to new class eight trucks, we believe that the weak demand. The industry is currently balancing will negatively impact new class eight truck sales for at least the next two quarters.

That said if stricter emission laws.

W.M. Rush: That said, if stricter emission laws become effective as planned, and if capacity continues to exit the market due to bankruptcies, retail sales being below replacement levels, and continued enforcement of government policies regarding English language proficiency and non-domiciled drivers, Class 8 truck sales may be strong in the H2 of 2026. In the medium-duty market, we delivered 2,979 Class 4 through 7 medium-duty commercial vehicles in the US in Q3, representing an 8.3% year-over-year decrease and a 5.6% market share. We also sold 448 Class 5 through 7 commercial vehicles in Canada, which represents 10.7% of the new Canadian Class 5 through 7 commercial vehicle market. Despite ongoing industry headwinds, our medium-duty results in Q3 outpaced the broader market.

Rusty Rush: That said, if stricter emission laws become effective as planned, and if capacity continues to exit the market due to bankruptcies, retail sales being below replacement levels, and continued enforcement of government policies regarding English language proficiency and non-domiciled drivers, Class 8 truck sales may be strong in the H2 of 2026. In the medium-duty market, we delivered 2,979 Class 4 through seven medium-duty commercial vehicles in the US in Q3, representing an 8.3% year-over-year decrease and a 5.6% market share. We also sold 448 Class 5 through 7 commercial vehicles in Canada, which represents 10.7% of the new Canadian Class 5 through 7 commercial vehicle market. Despite ongoing industry headwinds, our medium-duty results in Q3 outpaced the broader market.

Become effective as planned and have capacity continues to exit the market due to bankruptcies retail sales being below replacement levels and continued enforcement of government policies regarding English language proficiency and Nondomiciled drivers classic truck sales may be strong in the second half of 2026.

In the medium duty market, we delivered 20 979 class four through seven medium duty commercial vehicles in the U S. In the third quarter, representing an eight 3% year over year decrease and a five 6% market share.

We also sold 448 class five through seven commercial vehicles in Canada, which represents 10, 7% of the new Canadian canoes Canadian class five through seven commercial vehicle market.

Despite ongoing industry headwinds our medium duty results in the third quarter outpaced the broader market.

Our performance was bolstered by a significant increase in bus sales following our acquisition of IC bus franchise in Canada with.

W.M. Rush: Our performance was bolstered by a significant increase in bus sales following our acquisition of an IC Bus franchise in Canada, which further diversified our customer base. Looking ahead, we expect medium-duty commercial vehicle sales to remain stable through the remainder of the year. We sold 1,814 used commercial vehicles in Q3, essentially flat compared to the same period in 2024. While financing remains a challenge for used truck buyers, we believe our inventory is right-sized and that our used truck sales strategy is on track. Unlike the new truck market, the used truck market is less exposed to tariff concerns and regulatory uncertainty, which may provide customers more confidence and incentive to consider used trucks as part of their fleet mix in the near term. We expect Q4 used truck sales to be in line with Q3.

Rusty Rush: Our performance was bolstered by a significant increase in bus sales following our acquisition of an IC Bus franchise in Canada, which further diversified our customer base. Looking ahead, we expect medium-duty commercial vehicle sales to remain stable through the remainder of the year. We sold 1,814 used commercial vehicles in Q3, essentially flat compared to the same period in 2024. While financing remains a challenge for used truck buyers, we believe our inventory is right-sized and that our used truck sales strategy is on track. Unlike the new truck market, the used truck market is less exposed to tariff concerns and regulatory uncertainty, which may provide customers more confidence and incentive to consider used trucks as part of their fleet mix in the near term. We expect Q4 used truck sales to be in line with Q3.

Which further diversified our customer base.

Looking ahead, we expect medium duty commercial vehicle sales to remain stable through the remainder of the year.

We sold 1800 40 used commercial vehicles in the third quarter essentially flat compared to the same period in 2021.

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

Unlike the new drug market. The used truck market is less exposed to tariff concerns and regulatory uncertainty, which may provide customers more confidence and incentive consider used drugs as part of their fleet mix in the near term.

We expect fourth quarter used truck sales to be in line with the third quarter.

Rush truck leasing achieved record revenues of $93 3 million in the third quarter up four 7% year over year.

W.M. Rush: Rush Truck Leasing achieved record revenues of $93.3 million in Q3, up 4.7% year over year. Our full service leasing revenue increased as we brought new vehicles into service, which also helped lower operating costs and increase profitability. Rental utilization was lower year over year, but improved sequentially, and we are confident our leasing and rental performance will be solid for the remainder of the year. On the capital allocation front, we remain focused on returning value to shareholders during Q3. We purchased $9.2 million of our common stock as part of our expanded $200 million repurchase authorization, and we also paid a cash dividend, $14.8 million in the quarter.

Rusty Rush: Rush Truck Leasing achieved record revenues of $93.3 million in Q3, up 4.7% year over year. Our full service leasing revenue increased as we brought new vehicles into service, which also helped lower operating costs and increase profitability. Rental utilization was lower year over year, but improved sequentially, and we are confident our leasing and rental performance will be solid for the remainder of the year. On the capital allocation front, we remain focused on returning value to shareholders during Q3. We purchased $9.2 million of our common stock as part of our expanded $200 million repurchase authorization, and we also paid a cash dividend, $14.8 million in the quarter.

Our full service leasing revenue increased as we brought new vehicles into service, which also helped lower operating cost and increase profitability rental utilization was lower year over year, but improved sequentially and we are confident our leasing and rental books will be solid remainder of the year.

On the capital allocation front, we remain focused on returning value to shareholders. During the third quarter, we've repurchased $9 2 million of our common stock as part of our expanded $200 million repurchase authorization and we also face related cash dividends of $14 $8 million in the quarter.

In summary, despite the after mentioned industry headwinds I believe we delivered solid results and I am proud of our team's performance in the third quarter, our employees across the U S and Canada continue to demonstrate resilience and I'm deeply grateful for their dedication.

W.M. Rush: In summary, despite the aforementioned industry headwinds, I believe we've delivered solid results, and I am proud of our team's performance in Q3. Our employees across the US and Canada continue to demonstrate resilience, and I am deeply grateful for their dedication. With that, I'll take your questions.

Rusty Rush: In summary, despite the aforementioned industry headwinds, I believe we've delivered solid results, and I am proud of our team's performance in Q3. Our employees across the US and Canada continue to demonstrate resilience, and I am deeply grateful for their dedication. With that, I'll take your questions.

With that I'll take your question.

Thank you we will now begin the question and answer session feels better than it would like to ask a question. Please press star one on your telephone keypad to raise your hand and joined the queue. If he would like to withdraw your question simply press Star. One again, if you are called upon to ask a question in our lifting by a speaker phone and your device. Please pick up your hand.

Operator: Thank you. We will now begin the question and answer session. Our first question comes from Andrew Obin from Bank of America. Please go ahead.

To ensure that phone is not on mute when asking a question.

And our first question comes from Andrew Oldman from Bank of America.

Yes, good morning, good morning, Ross great execution.

Andrew Obin: Yes, good morning. Good morning, Rusty.

Thank you Andrew.

W.M. Rush: Good morning, Andrew.

Rusty Rush: Good morning, Andrew.

Andrew Obin: Great execution.

W.M. Rush: Hey, thank you, Andrew. Appreciate that.

Rusty Rush: Hey, thank you, Andrew. Appreciate that.

I'm sure. The team worked very hard just a question could you just tell US you know we've been stuck in this cycle.

Andrew Obin: I'm sure the team works very hard. Just a question. Could you just tell us, you know, we've been stuck in this cyclical malaise for a while now. We've been waiting for the turn of the cycle, you know, for a while now. Can you just expand and tell us what are you seeing? You know, when do you feel things actually bottom, and what's the path going forward? What gets this thing sort of on course and, you know, just lets the sales actually go up eventually? Thank you.

Cyclical malaise for a while now we've been waiting for the turn of the cycle.

We also sold 448 class 5 through 7, commercial vehicles in Canada, which represents 10.7% of the new Canadian of the canoe Canadian class 5 through 7 commercial vehicle Market.

For a while now can you just expand and tell US what are you seeing.

despite ongoing industry, headwinds, our media beauty results in the third quarter, outpace the broader Market,

When do you feel things actually bottom and what's the path going forward. What gets this thing sort of on core Tam just let the sales actually go up eventually thank you.

Our performance was bolstered by a significant increase in Bus Sales, following our acquisition of an IC Bus franchise in Canada which which further Diversified our customer base.

Right.

Looking ahead. We expect medium duty commercial vehicle sales to remain stable through the remainder of the year.

I'm guessing Andrew if Youre speaking about from my customer's perspective is that correct, yes, correct yes.

W.M. Rush: Right. I'm guessing, Andrew, that you're speaking about from my customer's perspective. Is that correct?

Rusty Rush: Right. I'm guessing, Andrew, that you're speaking about from my customer's perspective. Is that correct?

Okay, well, great well I, just so happen that I've spent the last couple of days and 11 in San Diego, California at Ada, which is the largest drug convention customer Brooklyn mentioned there is.

Andrew Obin: Yeah. Correct. Yeah.

We sold 1814 used commercial vehicles in the third quarter, essentially flat compared to the same period in 2024.

W.M. Rush: Okay. Well, great. Well, I just so happened that I spent the last couple days in lovely San Diego, California at ATA, which is, you know, the largest truck convention or a customer truck convention there is. So I met with quite a few customers while I was out there. I think as I mentioned in one of the paragraphs there in the press release, and I mentioned a little bit earlier, this is the first time I'm gonna say, man, we've been 3 years in a freight recession, man. Three. This usually doesn't last, but 12 to 16 months, I have never seen in my career it go so long. You couldn't figure out why supply was not coming out. There's supply, and then, you know, there's demand. I can't really speak to demand as well.

Rusty Rush: Okay. Well, great. Well, I just so happened that I spent the last couple days in lovely San Diego, California at ATA, which is, you know, the largest truck convention or a customer truck convention there is. So I met with quite a few customers while I was out there. I think as I mentioned in one of the paragraphs there in the press release, and I mentioned a little bit earlier, this is the first time I'm gonna say, man, we've been 3 years in a freight recession, man. Three. This usually doesn't last, but 12 to 16 months, I have never seen in my career it go so long. You couldn't figure out why supply was not coming out. There's supply, and then, you know, there's demand. I can't really speak to demand as well.

While financing remains a challenge for used truck buyers. We believe our inventory is right size and that our used truck sales strategy is on track.

<unk> met with quite a few customers, while I was out there.

As I mentioned in one of the paragraphs in our press release, and I mentioned, a little bit earlier.

This is the first time I'm going to say I mean were been three years in a freight recession man three okay. That's usually doesn't last but 12 to 16 months I have never seen in my career. It go so long right and you couldn't figure out why supply was not coming out right their supply and then there is demand.

Unlike the new truck Market, the used truck Market is less exposed to tariff concerns and Regulatory uncertainty, which may provide customers more confidence and incentive to consider used trucks as part of their Fleet mix in the near term.

We expect fourth quarter, use truck sales to be in line with third quarter.

Work up 4.7% year-over-year.

I can't really speak to demand as well that's more of an economic revenue on the economy driven stuff.

W.M. Rush: That's more of an economic driven, you know, the economy-driven stuff around tariffs and just around the economy itself. From a supply side, the crazy thing is it just has not come out of the market, which comes out faster. I think, you know, after rates were way up in 2021, 2022, and they started coming down. That's been that three-year run, just keeping them depressed freight rates from the customer perspective, especially on the truckload side. Not so much on the LTL side, but on the truckload side for sure.

Rusty Rush: That's more of an economic driven, you know, the economy-driven stuff around tariffs and just around the economy itself. From a supply side, the crazy thing is it just has not come out of the market, which comes out faster. I think, you know, after rates were way up in 2021, 2022, and they started coming down. That's been that three-year run, just keeping them depressed freight rates from the customer perspective, especially on the truckload side. Not so much on the LTL side, but on the truckload side for sure.

Around tariffs and just around the economy itself, but from a supply side. The Crazy thing is it just has not come out of the market which comes out faster.

And leasing Revenue increased as we brought new vehicles into service which also helped lower operating costs and increased profitability. Rental utilization was lower year-over-year but improved sequentially. And we are confident our Leasing and Rental performance will be solid remainder of the year.

And I think you know.

If you look at it effort.

Way way up in 'twenty, one 'twenty, two and they started coming down and that's been that three year Road.

Depressed.

On the capital allocation front, we may remain focused, on returning value to shareholders during the third quarter. We purchased 9.2 million of our common stock as part of our expanded 200 million repurchase authorization.

Freight rates from a customer perspective, especially on the truckload side not so much on the <unk> side, but on the truckload side for sure.

And we also placed plan of cash dividend, 14.8 billion in the quarter.

And.

I think the government's finally got their arms around some of this when I mean, one of the things I learned while I was there.

W.M. Rush: I think the government's finally got their arms around some of this. I mean, one of the things I learned while I was there is, you know, you read a lot and, you know, people are saying this non-domiciled driver thing and, you know, the English-speaking proficiency, but really around the non-domiciled driver. Some of the numbers, you know, I'd heard before, well, if we can enforce that, now it's gonna be up to the states to enforce that, okay? You know, I'd heard numbers of 5% or something. While I was there, some of the carriers I talked to said that was way understated. You know, that like 15 to 20 of the states are really starting to enforce it right now and that they all have to get on board.

Rusty Rush: I think the government's finally got their arms around some of this. I mean, one of the things I learned while I was there is, you know, you read a lot and, you know, people are saying this non-domiciled driver thing and, you know, the English-speaking proficiency, but really around the non-domiciled driver. Some of the numbers, you know, I'd heard before, well, if we can enforce that, now it's gonna be up to the states to enforce that, okay? You know, I'd heard numbers of 5% or something. While I was there, some of the carriers I talked to said that was way understated. You know, that like 15 to 20 of the states are really starting to enforce it right now and that they all have to get on board.

You read a lot and people are saying this non domiciled driver thing.

In summary, despite the after mentioned industry, headwinds, I believe we've delivered solid results and I'm proud of our team's performance in the third quarter, our employees across the US and Canada continue to demonstrate resilience and I'm deeply grateful for their dedication.

In the English speaking proficiency, but really around the non domiciled driver like most some of the numbers you know I had heard before well we're going to if we can enforce that and that's going to be up to the stage to enforce that okay.

With that, I'll take your question.

And I've heard numbers of 5% or something while I was there some of the carriers I talked to said that was way understated.

And like.

15% to 20 of the states are really start to enforce it right out and that they all have to get on board and so over the next little bit.

Thank you. We will now begin the question and answer session if you have dialed in and would like to ask a question. Please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1. Again, if you are called upon to ask your question in our listening via speaker phone on your device, please pick up your handset to ensure that phone is not on use when asking your question.

W.M. Rush: Over the next little bit, it could take out up to 15% of the drivers, which are probably some of the smaller carriers have been using to hang on and stay. Those are the carriers that usually go out in a freight recession first, not your more well-capitalized bigger guys, but the smaller carriers that are always that variable piece. They get in and get out based upon where rates are. That's one of the things that I believe will for sure, you know, help. Also, I think we, you know, people continue to buy trucks. After we came off of allocation, we should have slowed down selling trucks or producing trucks quicker than we did. Because there's 2 sides to it, right? That's the attrition side.

Could take out up to 15% of the drivers which are probably some of the smaller carriers have been using to hang on and stay those are the carriers. They usually go out.

Rusty Rush: Over the next little bit, it could take out up to 15% of the drivers, which are probably some of the smaller carriers have been using to hang on and stay. Those are the carriers that usually go out in a freight recession first, not your more well-capitalized bigger guys, but the smaller carriers that are always that variable piece. They get in and get out based upon where rates are. That's one of the things that I believe will for sure, you know, help. Also, I think we, you know, people continue to buy trucks. After we came off of allocation, we should have slowed down selling trucks or producing trucks quicker than we did. Because there's 2 sides to it, right? That's the attrition side.

And our first question comes from Andrew Oben from Bank of America, please? Yes, good morning. Good morning, Rusty. Great execution.

And the freight recession first not sure more well capitalized bigger guys, but the smaller carriers that are always that variable piece, they get in and get out based upon where rates are.

Hey thank you, Andrew, appreciate that. Uh I'm I'm sure the team works very hard. Uh just a question. Could you just tell us, you know, we've been stuck in this

Cyclical, malaise for a while. Now, we've been waiting for the turn of the cycle.

And so.

That's one of the things that I believe will for sure help also I think you know people continue to buy trucks.

If we came off of allocation, we should not squished slowed down and selling drugs are producing drugs quicker than we did so because theres two sides to it right. That's the attrition side well. The other side is what are you producing right well right now the lasts.

You know, for a while now, can you just expand and tell us what you're seeing? When do you feel things actually bottom out, and what's the path going forward? What gets this thing sort of on course and, you know, just lets the sales actually go up eventually? Thank you.

and I and I

I'm, I'm guessing Andrew that you're speaking about from my customers perspective. Is that correct? Yeah, correct. Yes.

W.M. Rush: Well, the other side is, what are you producing, right? Well, right now, the last the H2 of this year, I mean, you're talking we're gonna be down in production 30%, 35%, 40% at all the OEMs combined. I'm not sure exactly where it is. It's down dramatically. I think that's gonna continue into Q1 for sure, maybe H1. If you add that, you know, you think about that, you're, you're shutting down the supply side, you know, the intake side. You're taking people out of the attrition side. Well, you should start to get a more right-sized or balanced fleet out there with what market demand is, right? What freight tonnage is. I think you can see that if you look out.

Rusty Rush: Well, the other side is, what are you producing, right? Well, right now, the last the H2 of this year, I mean, you're talking we're gonna be down in production 30%, 35%, 40% at all the OEMs combined. I'm not sure exactly where it is. It's down dramatically. I think that's gonna continue into Q1 for sure, maybe H1. If you add that, you know, you think about that, you're, you're shutting down the supply side, you know, the intake side. You're taking people out of the attrition side. Well, you should start to get a more right-sized or balanced fleet out there with what market demand is, right? What freight tonnage is. I think you can see that if you look out.

Lastly, the back half of this year, I mean, you're talking and we're going to be down in production 30, 35, 40% at all the Oems combined I'm not sure exactly where it is.

<unk> dramatically and I think that's going to continue into the first quarter for sure maybe the first half.

Okay, well, great. Well, well, I just so happened and I spent the last couple of days and lovely San Diego, California at ATA, which is, you know, the largest truck convention or a customer truck commission. There is, uh, so I met with quite a few customers while I was out there. And I think, as I mentioned in, uh, 1 of the paragraphs there in the press release, and I mentioned a little bit earlier,

If you add that you'd think about that so you're you're shutting down the supply side.

Intake side, you're taking people out of the nutrition side, well you should start to get.

A more right sized or balanced fleet out there.

With market demand is ripe or what freight tonnage is.

This is the first time I'm going to say man we're being 3 years in a freight recession Man 3 okay that's usually doesn't last but 12 to 16 months I have never seen in my career. It goes so long right? And you you couldn't figure out why Supply was not coming out. Right? There's Supply and then you know, there's demand.

And I think.

You can see that if you look at.

On top of that.

W.M. Rush: Now on top of that, even though the carriers, and I'm on their side, would prefer that it's changed, you know, the law that's going into effect right now. The current law, the way it stands is, you know, 35, you know, give me this, it's changing to 35 particulates on monoxide. It's 200 currently. Okay, the new law says 35. I'm with the carriers. They would prefer a pause on 35. I'm not in the middle of that. You see folks and customers that are, you know, putting pressure on the EPA to pause that law. Right now I can't tell you where it goes, but if it stays as is and goes into effect, I do believe it will change.

Rusty Rush: Now on top of that, even though the carriers, and I'm on their side, would prefer that it's changed, you know, the law that's going into effect right now. The current law, the way it stands is, you know, 35, you know, give me this, it's changing to 35 particulates on monoxide. It's 200 currently. Okay, the new law says 35. I'm with the carriers. They would prefer a pause on 35. I'm not in the middle of that. You see folks and customers that are, you know, putting pressure on the EPA to pause that law. Right now I can't tell you where it goes, but if it stays as is and goes into effect, I do believe it will change.

Even though the carriers and I'm on their side, we'd prefer that it's changed the law, it's going into effect right at the current law the way it stands.

I can't really speak to demand as well, that's more of an economic driven, you know, the economy driven stuff around tariffs and just around the economy itself. But from a supply side, the crazy thing is it just has not come out of the market. It always comes out faster.

<unk>.

35, you won't give me.

Changing to 35 particulates on the Nox side. It's 200 currently new losses 35, I'm with the carriers they would prefer a pause on 35 and they are there, but I'm not in the middle of that but you see folks and customers that are putting pressure on the EPA to a pause to that.

All right.

Right now I can't tell you work goes but if it stays as it is and it goes into effect I do believe it will change.

As you will see change in the warranties will come down because a lot of the cost for that was going to be a morning, but he's still going to add more cost work.

W.M. Rush: If it stays as is, you will see change, and the warranties will come down because a lot of the cost for that was gonna be a warranty. It's still gonna add more cost, where tariffs has added more cost to an industry that's been in a 3-year recession. People are asking for it. Like I said, carriers are asking to stay at 200, and I support them on that. I don't know, but currently if you look at the law, it says it's gonna go to 35. Well, that's gonna add more cost also by the end of next year. You tie that in with tariff costs, which are happening for sure, starting Saturday with the new tariffs.

Rusty Rush: If it stays as is, you will see change, and the warranties will come down because a lot of the cost for that was gonna be a warranty. It's still gonna add more cost, where tariffs has added more cost to an industry that's been in a 3-year recession. People are asking for it. Like I said, carriers are asking to stay at 200, and I support them on that. I don't know, but currently if you look at the law, it says it's gonna go to 35. Well, that's gonna add more cost also by the end of next year. You tie that in with tariff costs, which are happening for sure, starting Saturday with the new tariffs.

Tariffs has added more cost to an industry that's been in the three recessions, but people are asking for it but like I said the carriers are asking for.

200, and I support them on that I don't know, but currently if you look at the loss is going to go to 35, well that's going to add more cost also by the end of next year. So you tie that in with tariff costs, which are at and then for sure Scott on Saturday.

And I think, you know, uh, if you look at it, you know, after rates, were way, way up in 21 228 from the customer perspective, especially on the truckload side, not so much on the lto side, but on the truckload side for sure. And you know, I think the government's finally got their arms around some of this. When I mean, 1 of the things I learned while I was there is I, you know, you read a lot and, you know, people are saying this non-domicile driver thing and, you know, the English speaking proficiency, but really around the non-domicile driver, like, most of the numbers, you know, I had heard before. Well, we're if we can enforce that, that's going to be up to the states, to enforce that, okay? And you know, I've heard numbers of 5% or something.

I was there some of the carriers I talked to said that was way understated.

With the new tariffs I mean defend tariffs already all year, but with a new 232 rule and how that's how that affects everything youre going to put.

W.M. Rush: I mean, they’ve been tariffs already all year, with the new Section 232 pollutant rule and how that affects everything, you’re gonna put the EPA thing will only increase, you know, cost on trucks at the end of next year. You add that with a better right-size fleet for the environment, that’s why I wrote you can see a much stronger H2 of next year. Now, I would prefer that we also have freight tonnage growth with that, so it’s not just regulatory driven. I think if we can get, you know, some freight growth, which I hope we’ll get some certainty, man. Uncertainty for everybody has been the craziest thing, trying to run a business all year, okay? We get some certainty around whatever it is, add that in, like I said, take it some buy-out.

Rusty Rush: I mean, they’ve been tariffs already all year, with the new Section 232 pollutant rule and how that affects everything, you’re gonna put the EPA thing will only increase, you know, cost on trucks at the end of next year. You add that with a better right-size fleet for the environment, that’s why I wrote you can see a much stronger H2 of next year. Now, I would prefer that we also have freight tonnage growth with that, so it’s not just regulatory driven. I think if we can get, you know, some freight growth, which I hope we’ll get some certainty, man. Uncertainty for everybody has been the craziest thing, trying to run a business all year, okay? We get some certainty around whatever it is, add that in, like I said, take it some buy-out.

And you know that like the 15 to 20 of the states are really starting to enforce it right now and that they all have to get on board. And so over the next little bit it could take out up to 15% of the drivers which are probably some of the smaller carriers have been using to hang on and stay. Those are the carriers that usually go out.

The EPA Zhang will only increase.

Cost from folks at the end of next year So I.

You add that with a better <unk>.

<unk> fleet for the environment. That's why I wrote you can see a much stronger back half of next year now I would prefer that we also have freight tonnage growth with that so it's not just regulatory driven but I think if we can get some.

Bright road, which I hope, we get some certainty and uncertainty for everybody's been the craziest thing trying to run a business all year okay.

But we get some certainty around whatever it is and then like I said taken supply out and even if it stays at 35 will help truck sales, but I'd like for my customer to be more healthy and I think getting a right sized fleet is the most important thing with a pickup in.

W.M. Rush: Even if it stays at 35, will help truck sales. I'd like for my customer to be more healthy, and I think to get me right-size fleet is the most important thing with a pickup in, you know, freight tonnage. That's why you see some optimism. I'm more optimistic now for that, you know, the big over-the-road market. Look, that's still 2/3 of the market that's out there, all right? Well, vocational is awesome, and we do more in vocational than 1/3 of our business, but that's still the largest segment, and it has been obviously headwinds for everyone, my customers more than me, for the last, yeah, 3 years. I know that's a long-winded answer, but you're used to my long-winded answers, I'm hoping.

Rusty Rush: Even if it stays at 35, will help truck sales. I'd like for my customer to be more healthy, and I think to get me right-size fleet is the most important thing with a pickup in, you know, freight tonnage. That's why you see some optimism. I'm more optimistic now for that, you know, the big over-the-road market. Look, that's still 2/3 of the market that's out there, all right? Well, vocational is awesome, and we do more in vocational than 1/3 of our business, but that's still the largest segment, and it has been obviously headwinds for everyone, my customers more than me, for the last, yeah, 3 years. I know that's a long-winded answer, but you're used to my long-winded answers, I'm hoping.

A pickup in freight tonnage.

That's why you see some optimist I'm more optimistic now for that.

Continue to buy trucks. If we came off of allocation, we should have not. We should have slowed down selling drugs or producing drugs quicker than we did, so because there's 2 sides to it, right? That's the attrition side. Well, the other side is, what are you producing, right? Well, right now, the last Stow, uh, last the back half of this year, I mean, you're talking we're going to be down in production, 30, 35, 40%, and all the oems combined. I'm not sure exactly where it is. I had I didn't check, but it's bound dramatically and I think that's going to continue into the first quarter for sure, and maybe the first half.

Big over the road market like Nashville, two thirds of the market that's out there alright, well locations will also but we do more on location within a third of our business, but that's still the largest segment and it has been obviously headwinds for everyone my customers more than me.

For the last three years, so I know that's a long winded answer, but you used to my long winded answers I'm open and that's sort of the way I see it right now I have a little more optimism that I have had after coming back where San Diego, that's not happening right now Okay. Remember we had five months six months of the lowest order intake since two.

If you add that, you know, you think about that. So you're you're you're you're shutting down the supply side, you know, the the intake side you're taking people out of the attrition side. Well, you should start to get your a more right size or balanced Fleet out there uh with with with, with market demand is right, or what Freight tonnage is and I think

W.M. Rush: That's sort of the way I see it right now. I have a little more optimism than I have had after coming back from San Diego. That's not happening right now, okay? Remember, we had 5 months, 6 months of the lowest order intake since 2009. I'm the tail on the dog, so we are going to feel it in Q4 and Q1 without question. At the same time, it feels good to you know, to really believe that you can see real drivers to get back, get the market right sized as long as the economy stays in good shape. That's sort of the way I see it.

Rusty Rush: That's sort of the way I see it right now. I have a little more optimism than I have had after coming back from San Diego. That's not happening right now, okay? Remember, we had 5 months, 6 months of the lowest order intake since 2009. I'm the tail on the dog, so we are going to feel it in Q4 and Q1 without question. At the same time, it feels good to you know, to really believe that you can see real drivers to get back, get the market right sized as long as the economy stays in good shape. That's sort of the way I see it.

you can see that if you look out now, on top of that,

<unk> thousand nine.

The tail on them at all so we are going to feel it in Q4 and Q1 without question at the same time.

It feels good.

To really believe they should can see real drivers to get back to get the market right sized lousy economy stays in good shape, that's sort of the way I see it.

Even though the carriers and I'm on their side would prefer that it's changed, you know, the law if it's going into effect right now, the current law the way it stands is, you know, 35, you don't give me this. The, it's changing to 35 particulates on the nox side, it's 200 currently. Okay, but the new law says, 35. I'm with the carriers. They would prefer a pause on 35 and they're, you know,

And just a follow up question.

Andrew Obin: Just a follow-up question. You know, I ask it on every call, you know, what's your read on the macro, just general macro, outside of, you know, the stuff that feeds into your customer base? Is it getting better? Is it getting worse? What are you excited about? What are you worried about? Thank you.

I ask it on every call, but whats your read on the macro just general macro.

Side of.

At this time that feeds into your customer base is it getting better is it getting worse. What are you excited about what are you worried about thank you.

Oh boy.

[laughter] I'm not an economist.

W.M. Rush: Oh, boy. I'm not an economist, Andrew. What do I worry about? I worry about unemployment, which for sure would, you know, affect consumer demand. That bothers me. I don't feel that we have seen the full effect of tariffs. No way. We had a free buy, you know, prior to August, but we're draining those. You know, as we drain those inventories down, we've got to restock. I have seen many large companies, manufacturers, customers, you know, across all segments that have eaten a lot of those costs. I don't see them eating those costs forever, which ends up being pushed down to the consumer at the end of the day. You know, those are the two things that bother me more than anything. I'm hoping we can, you know, get around all that.

Rusty Rush: Oh, boy. I'm not an economist, Andrew. What do I worry about? I worry about unemployment, which for sure would, you know, affect consumer demand. That bothers me. I don't feel that we have seen the full effect of tariffs. No way. We had a free buy, you know, prior to August, but we're draining those. You know, as we drain those inventories down, we've got to restock. I have seen many large companies, manufacturers, customers, you know, across all segments that have eaten a lot of those costs. I don't see them eating those costs forever, which ends up being pushed down to the consumer at the end of the day. You know, those are the two things that bother me more than anything. I'm hoping we can, you know, get around all that.

What I worry about.

We're about unemployment.

Which for sure would affect consumer demand.

That bothers me I worry about I don't feel that we have seen the full effect of tariffs no way, we had a pre buy.

Prior to August, but we're granting those.

As we bring those inventories down we've got a risk up I've seen many large companies manufacturers customers.

They're they're, but I'm not in the middle of that. But you see folks and customers that are, you know, putting pressure on the EPA to pause that law. Uh, right now I can't tell you where it goes, but if it stays as is and goes into effect, I do believe, it will change. If it stays as, as you will see, change in the warranties will come down because a lot of the cost for that was going to be more but it's still going to add more cost where tariffs is added more cost to an industry that's been in the 3 year recession. But people are asking for it to like I said carriers are asking to say 200 and I support them on that, I don't know. But currently, if you look at the law, it says it's going to go to 35. Well that's going to add more cost to also by the end of next year. So you tie that in with tariff costs which are admin for sure, starting Saturday uh with the new tariffs, I mean the FED tariffs already all year but with the new 232 Flint Rule and how that how that affects everything you're going to put.

All across all segments.

It has eaten a lot of those costs.

See those I don't see them eating those costs forever.

Which ends up being pushed down to the consumer.

At the end of the day.

Those are the two things that bothered me more than anything.

Hoping we can you know.

Get around all of that.

But I do feel that inflationary a little more inflationary environment, if tariffs get pushed through because.

W.M. Rush: I do, you know, an inflationary, a little more inflationary environment if tariffs get pushed on through, because everybody knows that people pre-bought prior to August, but we're draining those. You know, and you put that in with, we get some more, if unemployment, you read some of the stuff you see. I see little anecdotes out there myself that have me a little nervous, a little concerned. I can't say, This is the number. This is what gonna happen. I do have some concerns, as I look at, just look around myself and try to pay attention to what's going on, right? You know, I Like I said, I'm not an economist.

Rusty Rush: I do, you know, an inflationary, a little more inflationary environment if tariffs get pushed on through, because everybody knows that people pre-bought prior to August, but we're draining those. You know, and you put that in with, we get some more, if unemployment, you read some of the stuff you see. I see little anecdotes out there myself that have me a little nervous, a little concerned. I can't say, This is the number. This is what gonna happen. I do have some concerns, as I look at, just look around myself and try to pay attention to what's going on, right? You know, I Like I said, I'm not an economist.

Using the the DPA thing will only increase uh you know costs and trucks at the end of next year. So I you add that with a better right-size Fleet for the environment. That's why I I wrote you can see a much stronger back half of next year now I would prefer that we also have Freight tonnage growth with that so it's not just regulatory Rhythm. I think that we can get, you know, some Freight rope which I hope we get some certainty, man. Uncertainty

Everybody knows that people pre bought prior to August, but we're draining those so you know and you put that in we get some more if unemployment you read some of the stuff you see.

I see a little anecdotes out there myself.

Me, a little nervous a little concern I can't say this is going this is a number of this is what's going to happen, but I do have some concerns.

And as I looked at look around myself and try to pay attention to what's going on right now.

Like I said I'm not an economist I'm just looking at some modest street level, but I do have quite a bit of a touch and feel of a lot of different companies and things out there. So besides all the big stuff you read about when you read about.

W.M. Rush: I'm just looking at it from my street level, but I do have quite a bit of touch and feel with a lot of different companies and things out there. Besides all the big stuff you read about, when you read about, you know, when you read about UPS and these you know, these big companies that are laying off right now, Amazon and everybody laying all these people off. There you go. That's what I'm worried about.

Rusty Rush: I'm just looking at it from my street level, but I do have quite a bit of touch and feel with a lot of different companies and things out there. Besides all the big stuff you read about, when you read about, you know, when you read about UPS and these you know, these big companies that are laying off right now, Amazon and everybody laying all these people off. There you go. That's what I'm worried about.

They read about in the U S and these guys.

Big companies that are laying off right now and it was honored by the way all these people off.

There you go that's what I'm worried about.

Just feeding into that I'll, just take advantage to ask one last question.

Andrew Obin: I'll just feeding into that, I'll just take advantage to ask one last question. How is your parts and service business trending on daily basis into the year-end? Is it getting better? Is it getting worse? Because that's also a good indication and also, you know, obviously, has quite a bit of torque to your financials. Thank you. Thank you very much.

How is your parts and service business training on daily basis into the year and is it getting better is it getting worse because that's also a good indication and also obviously.

For, everybody's been the craziest thing trying to run a business all year, okay? But we get some certainty around, whatever it is, add that in like I said, taking some buy out, and even if it stays at 35 will help truck sales. But I'd like, for my customer to be more healthy and I think it's getting the right size, Fleet is the most important thing with a pickup and, you know, a pickup and, you know, Frank tonnage, and that's why you see some options. I'm more optimistic. Now, for that, you know, the big over the road market, look, that's still 2/3 of the market, that's out there. Okay, vocational is awesome. And we, we do more in locations than a third of our business, but that's still the largest segment and it has been obviously headwinds for everyone, my customers more than me, um, for the last, you know, 3 years. So I know that's a long-winded answer, but you're used to my long-winded answers. I'm hoping, and that's sort of the way I see it right now. I have a little more optimism than I have had after coming back from San Diego. That's not happening right now, okay?

Has quite a bit of.

Talk to our financials. Thank you. Thank you very much.

Remember, we had five months, six months of the lowest order intake since 2009? I'm the tail on the dog, so we are going to feel it in Q4 and Q1, without question. It's the same time.

Yeah, well it was flat to slightly up for the third quarter, but September was softer than I would've liked remember we naturally are wrong.

W.M. Rush: Well, it was flat to slightly up for Q3, but September was softer than I would have liked. Remember, we naturally have seasonality. You know, I've always told folks if I could get rid of sometimes November, December, January and February, and I might keep the holidays for the kids. Other than that, from a business perspective, I could sometimes. You know, we're in the South. It can help a lot of our stores in the South, the majority of them are. If that's at, you know, a little harder, a little softer, you have fewer working days. We typically tick down 3% or so, 3% to 4%, from Q3 and Q4 to Q1. It'll start picking back up, hopefully by late February, March.

Rusty Rush: Well, it was flat to slightly up for Q3, but September was softer than I would have liked. Remember, we naturally have seasonality. You know, I've always told folks if I could get rid of sometimes November, December, January and February, and I might keep the holidays for the kids. Other than that, from a business perspective, I could sometimes. You know, we're in the South. It can help a lot of our stores in the South, the majority of them are. If that's at, you know, a little harder, a little softer, you have fewer working days. We typically tick down 3% or so, 3% to 4%, from Q3 and Q4 to Q1. It'll start picking back up, hopefully by late February, March.

It it feels good to you know to really believe that you can see real drivers to get back and get the market right sized as long as the economy stays in good shape. That's sort of the way I see it.

Yes, we naturally have seasonality.

I have always told folks if I could get rid of some ground in November December.

We're in February now might keep the holidays for the kids, but other than that from a business perspective.

If I get sometimes we are in the south.

Can help us build out of our stores are themselves or majority of them are so low.

And and and just to follow up question, uh, you know, I ask it on every call but you know, what's your read on the macro? Just general macro uh, outside of uh, you know, the stuff that feeds into your customer base. Is it getting better? Is it getting worse? What are you excited about? What are you worried about? Thank you.

Oh boy.

A little harder old software you have fewer working days, we typically ticked down 3% or so.

I'm not an economist Andrew.

Um,

I worried about unemployment.

2% to 4%.

Which for sure would, you know, affect consumer demand?

For Q3, and Q4 Q1, you'll start picking back up hopefully by late February March.

Insolvent, a little quicker in September I'm going to get October finished tomorrow, and I am hoping that we can try to get pretty close to flat with last year I will be really close I think.

W.M. Rush: It's softening a little quicker in September. I'm waiting to get October finished tomorrow night. I'm hoping that we can try to get pretty close to flat with last year. We'll be really close, I think. You know, it's still to be. How about TBD? To be determined. You know, there's certain things I look at that show month-over-month, we got the same amount of backlog in our working process in the parts and service. I do, you know, I'm hoping it's just like normal seasonality, and we have a slight downtick. We get one less working day, which is, you know, quite a bit of gross profit.

Rusty Rush: It's softening a little quicker in September. I'm waiting to get October finished tomorrow night. I'm hoping that we can try to get pretty close to flat with last year. We'll be really close, I think. You know, it's still to be. How about TBD? To be determined. You know, there's certain things I look at that show month-over-month, we got the same amount of backlog in our working process in the parts and service. I do, you know, I'm hoping it's just like normal seasonality, and we have a slight downtick. We get one less working day, which is, you know, quite a bit of gross profit.

But you know.

Still we have a TBD to be determined there are certain things I look at Nic show bugged over but we get the same amount of backlog in our work in process and the parts and service, but I do you know.

Uh, that bothers me. I worry about, I don't feel that we have seen the full effect of terrorists. No way. We had a free buy, you know, prior to August, but we're draining those, uh, uh, you know, as we drain those inventories. Now we've got to restart. I've seen many large companies, manufacturers customers, you know that all across all segments,

That have eaten, a lot of those costs.

I don't see those. I don't see them eating those costs forever.

Which ends up being pushed down to the consumer.

At the end of the day.

I'm, hoping it's just like normal seasonality.

And we have a slight downtick unless we got one less working day, which as you know.

Yeah, those are the 2 things that bother me more than anything. I'm hoping we can you know, get around all that.

Quite a bit of gross profit.

Because of our parts and service operations are so holidays.

W.M. Rush: It's, as big as our parts and service operations are, and it's the holidays and, you know, factories shut down between Christmas and New Year, but you deal with that every year. I'm hoping we stay in the range of what we typically do. I was a little, you know, disappointed with September. Typically, we'll start at October, but we'll see here by the end of the end of the working, the month, by midnight tomorrow night on Halloween, 'cause they'll be closing tickets and doing what they do every month, getting it all in. We'll see. I expect it to be fairly close and to flat with last year's number, which if we're there, given the environment, I'll be okay with it. You know? I'll be okay with that.

Rusty Rush: It's, as big as our parts and service operations are, and it's the holidays and, you know, factories shut down between Christmas and New Year, but you deal with that every year. I'm hoping we stay in the range of what we typically do. I was a little, you know, disappointed with September. Typically, we'll start at October, but we'll see here by the end of the end of the working, the month, by midnight tomorrow night on Halloween, 'cause they'll be closing tickets and doing what they do every month, getting it all in. We'll see. I expect it to be fairly close and to flat with last year's number, which if we're there, given the environment, I'll be okay with it. You know? I'll be okay with that.

Factories shut down between Christmas and new year, but you deal with that every year. So it will I'm, hoping would stay in the range of what we typically do I was a little.

You know disappoint was September typically will start in October.

But we will see here by the end of the wind into the working mothers.

Tomorrow night on Halloween.

Because there'll be close the tickets and doing what they do every month.

Getting it all in so we'll see but I expect it to be fairly close.

To flat with last year's number, which if were there given the environment.

But uh, I I, I do, you know, an inflationary a little more inflationary environment if tariffs get pushed on through because everybody knows that people pre-bought prior to August, but we're draining those. So, you know, and you put that in with we get some more on its unemployment. You read some of the stuff you see. I I see a little antidotes out there myself that have me a little nervous, but a little bit concerned. I can't say this is going to, this is a number, this is what going to have to happen. But I do have some concerns uh as I look at just look around myself and try to pay attention to what's going on right? You know I I like I said I'm not an economist. I'm just looking at it from my

Street level.

I'll be okay with it.

I'll be okay with that thank.

Thank you very much Rusty and I appreciate your on your team's hard work. Thank you.

Andrew Obin: Thank you very much, Rusty, and appreciate your and your team's hard work. Thank you.

Andrew Thank you so much.

W.M. Rush: Thank you, Andrew. Thank you so much.

Rusty Rush: Thank you, Andrew. Thank you so much.

But I do have quite a bit of touch and feel with a lot of different companies and things out there. So, besides all the big stuff you read about when you read about, you know, when you read about new PS and these guys, you know, these big companies that are laying off right now, Amazon and buy laying all these people off. Uh,

Our next question comes from Randy <unk> from Stephens.

Operator: Our next question comes from Brady Lierz from Stephens. Please go ahead.

Go ahead.

Okay, great. Thanks, good morning, everyone.

Brady Lierz: Okay, great. Thanks. Morning, everyone.

Rusty I wanted to start.

W.M. Rush: Good morning.

Rusty Rush: Good morning.

Yeah morning, Rusty I wanted to start.

Brady Lierz: Yeah, morning, Rusty. I wanted to start, you know, kinda just with the outlook for the remainder of 2025 and the H1 of 2026. You know, you've mentioned a couple times on the call that you expect a challenging end to 2025 and for that to persist into Q1. Can you expand just a little on that? I mean, what are your customers telling you as to why they're not placing orders? Is it just uncertainty around regulation, or is it uncertainty around tariffs or is it both? You know, if we got more certainty around those items, you know, could we see a meaningful improvement? Then maybe just kinda related, your vocational customers seem more resilient.

Just with the outlook for the remainder 25% in the first half of 'twenty six.

You've mentioned a couple of times on the call that you expect a challenging end to 25 and for that to persist into <unk>, but can you expand just a little on that I mean, what are your customers telling you as to why they're not placing orders is it just uncertainty around regulation or is it uncertainty around tariffs or is it both and you know if we got more certainty.

there you go. That's what I'm worrying about and and I'll just just feeding into that. I'll just take advantage of 1 last question. Uh, how is your, uh, parts and service business training on daily basis into the air? And is it getting better? Is it getting worse? Because that's also a good indication. And also, you know, obviously uh has quite a bit of uh torque to a financials. Thank you. Thank you very much.

Around those items could we see a meaningful improvement.

And then maybe just kind of related you your vocational customers seem more resilient. So are there some company specific opportunities you have to help offset this weakness in and outperformed the market.

Brady Lierz: Are there some company-specific opportunities you have to help offset this weakness and outperform the market?

Well from a delivery perspective, we slightly outperformed the class a dip well below market was up more than that I think in Q3, but around get will go to your first part of Q4.

W.M. Rush: Well, from a delivery perspective, we slightly outperformed the Class 8, you know, diff. Like, we were up 11, market was up more than that, I think, in Q3. Around We'll go to your first part. Q4 and, you know, first Q1, maybe partially into Q2, I can't tell. Look, remember, like I said earlier, we're the tail on the dog. When you look at the order intake from April, May, June, July, August, September, you know, it's like September, there was 20,000 units. We had months, it was 7,400 units. This is North America, 11,000. Those were the worst order intake months since 2009. I know every manufacturer has taken more down days over the last since July. Everybody built as much as they could in H1.

Rusty Rush: Well, from a delivery perspective, we slightly outperformed the Class 8, you know, diff. Like, we were up 11, market was up more than that, I think, in Q3. Around We'll go to your first part. Q4 and, you know, first Q1, maybe partially into Q2, I can't tell. Look, remember, like I said earlier, we're the tail on the dog. When you look at the order intake from April, May, June, July, August, September, you know, it's like September, there was 20,000 units. We had months, it was 7,400 units. This is North America, 11,000. Those were the worst order intake months since 2009. I know every manufacturer has taken more down days over the last since July. Everybody built as much as they could in H1.

First Q1, maybe partially into Q2 I cant tell look remember like I said I mean, one of the tail on the dog and when you look at the order intake from April May June July August September is like.

Yeah. Well, it was flat to slightly up for the third quarter but September was softer than I would have liked. Remember we, we naturally are naturally. Yes, we naturally have seasonality. You know, I always told folks, if I could get rid of sometimes November December January and February and I might keep the holidays for the kids. But other than that, from a business perspective, uh, if I could sometimes, you know, we're in the South, uh, it can help a lot of our stores in the South. We're majority of them are. So if that's that, you know, a little harder, a little softer, you have fewer working days. We typically tick down, 3% or so, uh, 3 to 4%, uh, from Q3 and Q4 and q1, it'll start picking back up. Hopefully by

September It was 20000 units we have monster 7400 units. This is North America 11000, those were the worst order intake months since 2009.

Like February and March. Um, it solved me a little quicker in September. I'm waiting to get October finished tomorrow night. I'm hoping that we can try to get pretty close to Flat with last year. I will be really close. I think

um,

I know every manufacturer has taken more down days over the last since July one built as much as I could in the first half there is not one manufacturer not one that hasnt taken many down days and weeks, okay. So far in this quarter okay.

W.M. Rush: There is not one manufacturer, not one, that hasn't taken many down days and weeks so far in this quarter. You know, we're building less trucks. I guess that's less to sell, 'cause there's been less demand. You can circle E as all the above. You hit it. It's, you know, really three things. It's their business. It's, you know, got everybody's business. The uncertainty, you know, tariffs have made freight go up and down and cost of trucks go up and down. You add in, can we get an answer on emissions next year?

Rusty Rush: There is not one manufacturer, not one, that hasn't taken many down days and weeks so far in this quarter. You know, we're building less trucks. I guess that's less to sell, 'cause there's been less demand. You can circle E as all the above. You hit it. It's, you know, really three things. It's their business. It's, you know, got everybody's business. The uncertainty, you know, tariffs have made freight go up and down and cost of trucks go up and down. You add in, can we get an answer on emissions next year?

So you know we're building less drugs I guess, that's less itself because nobody.

Theres been less demand and you can certainly as all of the above when you say you hit it.

but you know, uh, still do we, how about TBD 2B determined? You know, there's certain things I look at that show month over month, we got the same amount of backlog and are working process and the parts and service. But I do, you know, I I'm hoping it's just like normal seasonality, uh, and we have a slight downtick and unless we get 1 less working day, which is you know uh quite a bit of gross profit as big as our parts and service operations are and it's the holidays and you know the factory is shut down during Christmas and New Year. But you deal with that every year

Really three things it's their business.

Everybody's business with the uncertainty.

so it will. I'm hoping we stay in the range of what we typically do. I was a little

Should make freight go up and down and cost of the trucks go up and down and then you add in can we get an answer on ambitions next year, because everyone I spoke too if their business can get a little bit you know a little bit.

W.M. Rush: Everyone I spoke to, if their business can get a little bit, you know, a little, which we're not, I'm not saying they're getting it now, because you gotta take care of those supply issues that I rambled on and talked about earlier, you know, when I talk about the amount of trucks on the road, has to get in line with, with freight. If you can get that back in line, bring some certainty to here's what the emissions regulations are, whatever they are. If they stay as they are currently under the law, I don't think there's any question, in spite of, you know, the large freight customers, they'll probably try to pull a little bit forward. Not have huge pre-buys, but they will try to, you know, shift some stuff.

Rusty Rush: Everyone I spoke to, if their business can get a little bit, you know, a little, which we're not, I'm not saying they're getting it now, because you gotta take care of those supply issues that I rambled on and talked about earlier, you know, when I talk about the amount of trucks on the road, has to get in line with, with freight. If you can get that back in line, bring some certainty to here's what the emissions regulations are, whatever they are. If they stay as they are currently under the law, I don't think there's any question, in spite of, you know, the large freight customers, they'll probably try to pull a little bit forward. Not have huge pre-buys, but they will try to, you know, shift some stuff.

I'm not saying, they're getting it now with regard to take care of those supply issues that I rambled on and talked about earlier.

The amount of trucks on the road.

It has to get in line with with freight.

You know, disappointed with September typically, we'll start at October, um, but we'll see here by the end of the week, end of the workings of the month by midnight tomorrow night on Halloween, uh, because they'll be close to tickets and doing what they do every month, uh, getting it all in, so we'll see. But I expect it to be fairly close and to Flat with last year's number, which if we're there, given the environment,

I'll be okay with it. You know, I'll be okay with that.

If you can get that back in line brings some certainty here's what the emissions regulations are wondering where they are and if they stay as they are currently under the law I don't think Theres any question inspire.

Thank you very much, Rusty, and appreciate your and your team's hard work. Thank you. Thank you Andrew. Thank you so much.

The large freight customers they'll they'll probably try to pull a little bit, but we're not not have huge pre buys but they will try to you know.

Our next question comes from Brady, leers from Stevens. Please go ahead.

Shift some stuff maybe they do in Q1 of 2007 are Q2 and try to shift some of those purchases into the back half of the year. If it stays as it is written right now it doesn't get there is not a pause and they get a little relief, which I said before for their sake.

Okay great. Thanks. Uh morning everyone Rusty. I wanted to

W.M. Rush: Maybe they do it in Q1 of 2027 or Q2 and try to shift some of those purchases into H2 of the year if it stays as it's written right now and doesn't get, there's not a pause and they get a little relief, which I said before, for their sake, you know, it might hurt my truck sales in H2. you know, for their sake, I just assume they get it, get that relief. you know, it's what you said. Really, they need to get aligned. Really, we've gotta get the supply aligned with tonnage and to where they can get a little contract raise.

Rusty Rush: Maybe they do it in Q1 of 2027 or Q2 and try to shift some of those purchases into H2 of the year if it stays as it's written right now and doesn't get, there's not a pause and they get a little relief, which I said before, for their sake, you know, it might hurt my truck sales in H2. you know, for their sake, I just assume they get it, get that relief. you know, it's what you said. Really, they need to get aligned. Really, we've gotta get the supply aligned with tonnage and to where they can get a little contract raise.

Hurt by truck sales in the back half but.

But for their sake I'd just as soon they get it.

Get that relief.

But you know it is.

What you said, but really we need they need to get aligned.

We've got to get the supply align with tonnage.

To where they can get a little contract rates I mean, if you look at the <unk> side I mean.

W.M. Rush: I mean, if you look at the TL side, I mean, I mean, if they got 2%, they were lucky this last year 'cause they were going down, down 10%, 15% plus the prior couple of years. Well, while price, the cost of trucks and everything operationally and inflation went up and up, they have not You've seen the ORs in some of these things, and they're not what they historically have been on that side. Now, LTL started to fare better. Of course, 2 years ago, they got a little tailwind with the demise of Yellow and stuff. When their 3rd largest carrier goes out and there's, you know, many fewer barriers to entry. There's more, excuse me, barriers to entry in LTL with all the doors and terminals and all the stuff that's required in that space.

Rusty Rush: I mean, if you look at the TL side, I mean, I mean, if they got 2%, they were lucky this last year 'cause they were going down, down 10%, 15% plus the prior couple of years. Well, while price, the cost of trucks and everything operationally and inflation went up and up, they have not You've seen the ORs in some of these things, and they're not what they historically have been on that side. Now, LTL started to fare better. Of course, 2 years ago, they got a little tailwind with the demise of Yellow and stuff. When their 3rd largest carrier goes out and there's, you know, many fewer barriers to entry. There's more, excuse me, barriers to entry in LTL with all the doors and terminals and all the stuff that's required in that space.

I mean, if they got 2% labor.

They were lucky this last year, because they were going down down down 10, 15 plus percent. The prior couple of years, well quite the cost of trucks and everything operationally and inflation went up up and up and they have not so you've seen the oars in some of these things and they're not what they historically have been on that side and Iot also fared better of course.

Ander 25 and in the first half of 26, um, you know you you've mentioned a couple times on the call that you expect a challenging end to 25 and and, and for that to persist into 1 Cube, but can you expand just a little on that? I mean, what are your customers telling you as to, why they're not placing orders is, is it just uncertainty around regulation, or is it uncertainty around tariffs or, or is it both? And, you know, if we got more certainty around those items, you know, could we see a meaningful Improvement? Um, and then maybe just kind of related your vocational customers, see, more resilient. So are there some companies specific opportunities? You have to help offset this weakness and and outperform the market.

Two years ago, they got a little tailwind with.

With the demise of yellow and stuff so when the third largest carrier goes out and theirs.

Any fewer barriers to entry Theres more excuse me more barriers to entry and LTE, all the doors and terminals and all of the stopes require in that space. So they've weathered it better.

Well, from a delivery perspective, we slightly outperformed the class A, you know, dip like we were all below and Market was off more than that. I think in Q3. But around, can we go to your first part Q4? And you know, first q1, maybe partially in the Q2? I can't tell. Look, remember, like I said earlier, we're the tail on the dog and when you look at the order intake from April May June, July, August September, you know, it's like September, it was 20,000 units. We have months, it was 7,400 units. This is North America. 11 thousand. Those were the worst order intake months since 2009.

W.M. Rush: They weathered it better than the TL side. I just got to tell you, I, you know, I, the next couple of quarters is gonna be tough. You know, you can tell by the order intake that's been there, and it wasn't like everybody was ordering trucks hand over fist. Some people, it's difficult to give a price on a truck still. Remember the tariffs, the definition of it just came out a week and a half ago, okay? These manufacturers are just pouring through it, trying to make sure they clearly understand it, okay? Because it gets pretty complicated, you know, as to where, you know, how these tariffs are figured out, and from where you build and what your suppliers, because people use different suppliers and where that comes from, et cetera.

Rusty Rush: They weathered it better than the TL side. I just got to tell you, I, you know, I, the next couple of quarters is gonna be tough. You know, you can tell by the order intake that's been there, and it wasn't like everybody was ordering trucks hand over fist. Some people, it's difficult to give a price on a truck still. Remember the tariffs, the definition of it just came out a week and a half ago, okay? These manufacturers are just pouring through it, trying to make sure they clearly understand it, okay? Because it gets pretty complicated, you know, as to where, you know, how these tariffs are figured out, and from where you build and what your suppliers, because people use different suppliers and where that comes from, et cetera.

<unk> side, but.

I've just got to tell you.

The next couple of quarters going to be tough.

You can tell by the order intake, it's been there and it wasn't like everybody was or in trucks or hand over fist.

Some people it was we werent even is.

It's difficult to give a price or trucks deal.

Remember the tariffs the the definition of it just came out a week and a half ago. Okay and these manufacturers are just pouring through it trying to make sure they clearly understand it okay.

Because it gets pretty complicated.

Now as to where these tariffs are figured out.

Where are you build and what your suppliers can people use different suppliers and where that comes from et cetera. I would tell you that we will probably have a whole lot more clarity.

W.M. Rush: I would tell you that we'll probably have a whole lot more clarity as to how things are gonna pick up in the next 30 to 45 days. You know, I tell you, there wasn't a lot of clarity at ATA because people, it was good for some manufacturers and bad for others. They're trying to sort it out with the Rule 232 is what I'm talking about. That just came out, whatever, 10, 12 days ago, 10, 11 days ago, and folks are just pouring through it, making sure that they understand it right. I mean, I'll be honest, you couldn't price a lot of people right now. When you can't do that from a manufacturer, how is somebody supposed to buy stuff?

Rusty Rush: I would tell you that we'll probably have a whole lot more clarity as to how things are gonna pick up in the next 30 to 45 days. You know, I tell you, there wasn't a lot of clarity at ATA because people, it was good for some manufacturers and bad for others. They're trying to sort it out with the Rule 232 is what I'm talking about. That just came out, whatever, 10, 12 days ago, 10, 11 days ago, and folks are just pouring through it, making sure that they understand it right. I mean, I'll be honest, you couldn't price a lot of people right now. When you can't do that from a manufacturer, how is somebody supposed to buy stuff?

Instead of how things are going to pick up in the next 30 to 45 days.

I know what every manufacturer has taken more down days over the last since July, everybody built as much as they could in the first half year there is not 1 manufacturing 1 that hasn't taken many down days and weeks, okay? So far in this quarter, okay? So you know, we're building Less trucks. I guess that's less to sell because nobody there's been less demand and you can circle e, that's all the above. When you see you hit it. It's you know, really 3 things, it's their business. It's, you know, everybody's business. But the uncertainty, you know, tariffs would make Freight go up and down and cost the trucks go up and down and then you add in. Can we get an answer on Ambitions next year because everyone I spoke to if their business can get a little bit, you know, a little, which I we're not, I'm not saying they're getting it now because we got to take care of those supply issues that I rambled on and talked about earlier.

Okay.

There wasn't a lot of clarity at ATI because people thought it was good for some manufacturers and bad for others.

You know, when I talk about the amount of trucks on the road, uh it has to get in line with with the with Freight.

They are trying to sort it out with a rule 230 twos when I'm talking about.

It came out whatever 10 12 days ago.

And folks are just pouring through it.

Making sure that they understand it right. So I mean I'll be honest with you.

Couldnt price a lot of people right now and what you can't do that from a manufacturers out somebody's going to buy something.

If you can get that back in line, bring some certainty. So here's what the emissions regulations are, or whatever they are. And if they stay as they are currently under the law, I don't think there's any question. In spite of, you know, the large freight customers, they'll probably try to pull a little bit forward. We're not going to have huge free pies, but they will try to, you know, shift.

It's been Crazy all your could you would price like you would give quotes that were only good for 90 days right and maybe 120 based upon the ever changing environment around tariffs.

W.M. Rush: You know, it's been crazy all year because you would give quotes that were only good for 90 days, right? Or maybe 120 based upon the ever-changing environment around tariffs. Well, that's difficult. You know, you got all these question marks. If this happens, this will. If not, you know, it's no good. I mean, that's the world we've been living in for the last 6 plus months, which has made it extremely difficult. You know, that's all I can tell you is clarity, clarity, and less uncertainty and continue taking supply out and hopefully get a little bump in freight or in tonnage here.

Rusty Rush: You know, it's been crazy all year because you would give quotes that were only good for 90 days, right? Or maybe 120 based upon the ever-changing environment around tariffs. Well, that's difficult. You know, you got all these question marks. If this happens, this will. If not, you know, it's no good. I mean, that's the world we've been living in for the last 6 plus months, which has made it extremely difficult. You know, that's all I can tell you is clarity, clarity, and less uncertainty and continue taking supply out and hopefully get a little bump in freight or in tonnage here.

Well that's difficult you know you've got you've got all these questions.

Question marks if this happens this will if not.

No. Good I mean, we've been living in for the last six plus months.

She has made it extremely difficult.

That's all I can tell you is clarity clarity clarity.

Lesser uncertainty.

And continued taken supply out and hopefully get a little above <unk> right.

Tonnage here I don't see it right now, but I would hope as we get into the first part of next year, we do see something by the time, we get out of Q1 into Q2, southern there, while you're taking supply out over here, while you're building less trucks. So you're intakes less so you should buy net by naturally be a squeeze.

W.M. Rush: I don't see it right now, but I would hope as we get into the first part of next year, we do see something by the time we get into Q1, into Q2, something there while you're taking supply out over here, while you're building less trucks, so your intake's less. You should, you know, naturally be, you know, squeezing down, you know, the supply of trucks. That's all. It's the best way I can describe it, which for me, the hard part was while we were in a freight recession, we just kept building and selling trucks longer than we probably should have. Now we're on that right-sizing piece, along with the government activities around, you know, around drivers that are going on, the things I mentioned earlier. Anyway, I have some optimism.

Rusty Rush: I don't see it right now, but I would hope as we get into the first part of next year, we do see something by the time we get into Q1, into Q2, something there while you're taking supply out over here, while you're building less trucks, so your intake's less. You should, you know, naturally be, you know, squeezing down, you know, the supply of trucks. That's all. It's the best way I can describe it, which for me, the hard part was while we were in a freight recession, we just kept building and selling trucks longer than we probably should have. Now we're on that right-sizing piece, along with the government activities around, you know, around drivers that are going on, the things I mentioned earlier. Anyway, I have some optimism.

Some stuff. Maybe they do a q1 or 27 or Q2 and try to shift some of those purchases into the back half of the year if it stays as it's written right now and doesn't get there's not a pause and they get a little relief which I said before for their sake you know it might hurt my truck sales in the back half but you know but for their sake I just assumed they get it. Um, get that relief um but you know it it's what you said but really we need they need him to get aligned really with that. Again this is a supply aligned with tonnage and to where they can get a little contract rates. I mean if you look at the TL side I mean not I mean if they got 2% they were lucky this last year because they were going down down down down, 10 15 plus percent the prior couple years. Well, well price the cost of trucks and everything operationally and inflation went up up and up, and they have not. So, you've seen the OS and some of these things, and they're not what they historically have been on that side. I

Down the supply of trucks I mean, that's all.

So the best way I can describe it which for me.

The hard part was while we were in a freight recession, we just kept building and selling trucks longer than we probably should but now we're on that right sizing fees along with the government activities.

You know.

Around drivers that are going on and the things that I mentioned earlier so anyway.

started praying better, of course, 2 years ago, they got a little tail with them uh, with the demise of yellow and stuff. So when the third largest carrier goes out and there's, you know, there's many fewer barriers to entry, you know, there's more, excuse me, more barriers to entry and LTL with all the doors and Terminals and all the stuff that's required in that space. So they weathered it better uh, than the TL side but

I have some optimism it's just not over the next six months okay.

W.M. Rush: It's just not over the next 6 months. Okay.

Rusty Rush: It's just not over the next 6 months. Okay.

That's very helpful color. Thank you.

Brady Lierz: That's very helpful, Rusty. Thank you. If I could just follow up on medium duty. You know, medium duty has continued to kinda be a stable growth driver, for your business. You know, can you talk about what you're seeing in medium duty in, into the end of the year and just maybe any preliminary thoughts on medium duty in 2026?

And if I could just follow up on on medium duty medium duty has continued to kind of the.

Stable growth driver for your business.

Can you talk about what youre seeing in medium duty and into the end of the year and just maybe any preliminary thoughts on medium duty and in 2026.

Medium duty is different environment right.

W.M. Rush: You know, medium duty is a different environment, right? A different market by far than the Class 8 world. I would tell you we expect it to be fairly flat in Q4 with Q3 on the medium side. Most of the downturn will be, for us, will be on the Class 8 side for sure. Like I've mentioned, there's no question we're gonna deliver fewer trucks and things because you can see order intake, that kinda tells you what you're gonna eventually come to. Regardless of what our share percentage might be, there's gonna be a lot less deliveries in this country because we haven't taken many orders in for the last 6 months. I would tell you know, there's a lot of leasing around medium duty, okay?

Rusty Rush: You know, medium duty is a different environment, right? A different market by far than the Class 8 world. I would tell you we expect it to be fairly flat in Q4 with Q3 on the medium side. Most of the downturn will be, for us, will be on the Class 8 side for sure. Like I've mentioned, there's no question we're gonna deliver fewer trucks and things because you can see order intake, that kinda tells you what you're gonna eventually come to. Regardless of what our share percentage might be, there's gonna be a lot less deliveries in this country because we haven't taken many orders in for the last 6 months. I would tell you know, there's a lot of leasing around medium duty, okay?

Market by far than the class eight world.

I would tell you we expect it to be fairly flat in Q4 with Q3.

On the medium side.

Most of the downturn will be for us will be on the class eight side.

For sure like I've mentioned, it's there's no question, we're going to deliver fewer trucks.

Use different suppliers and where that comes from Etc. I would tell you that, we'll probably have a whole lot more clarity, uh, as to how things are going to pick up and the next 30 to 45 days.

Things.

Because you can see order intake that kind of tells you what you're going to eventually come to.

Regardless of what our share percentage might be there's going to be a lot less deliveries in this country, because we haven't taken any orders into the last six months.

I would tell you there's a lot of leasing around late medium duty, Okay and also what we call our ready to roll inventory. It's just you know it's more about the general economy, and what's going on around there.

W.M. Rush: Also what we call our Ready to Roll inventory. It's just, you know, it's more about the general economy and what's going on around there. You know, housing has a lot to do with. The leasing companies, I would tell you, we're working some stuff that have me somewhat hopeful for the entire year next year, but it too will probably suffer some, maybe not to the degree, right? It'll be more stable, I believe, than the Class 8 business will for the next 2 quarters. At the same time, I don't believe we'll comp to the same that we did this year, but it won't have as big of hit, say, as the heavy-duty side will right now. That's about all I can tell you about it.

Rusty Rush: Also what we call our Ready to Roll inventory. It's just, you know, it's more about the general economy and what's going on around there. You know, housing has a lot to do with. The leasing companies, I would tell you, we're working some stuff that have me somewhat hopeful for the entire year next year, but it too will probably suffer some, maybe not to the degree, right? It'll be more stable, I believe, than the Class 8 business will for the next 2 quarters. At the same time, I don't believe we'll comp to the same that we did this year, but it won't have as big of hit, say, as the heavy-duty side will right now. That's about all I can tell you about it.

Housing has a lot to do with theirs.

The leasing companies I would tell you we're working on some stuff that had been somewhat hopeful for the entire year next year, but.

It too will probably suffer.

Maybe not to the degree right it'll be more stable I believe than the class eight business will for the next couple of quarters, but at the same time.

I don't know that we can comp I don't believe we'll comp to the same that we did this year, but it won't have as big of hit.

Um, you know I I there wasn't a lot of clarity at ATA because people, it was good for some manufacturers and bad for others. And, and they're trying to sort it out with the rule. 232 is what I'm talking about but that just came out whatever, 10 12 days ago, 10 11 days ago. And folks are just pouring through it, uh, making sure that they understand it, right? So I mean I mean honest you couldn't price a lot of people right now and what you can't do that from a manufacturers have somebody supposed to buy something, you know, it's been crazy all year because you would price, like, you would give quotes that were only good for 90 days, right? Or maybe 120 based Department Ever Changing environment around terrorists. Well, that's difficult, you know, you got, you got all these question marks. If this happens, this will if not, you know, it's no good. I mean, that's that's the world. We've been living in for the last 6 months and which has made it.

As the heavy duty side, we'll right now.

That's about all I can tell you about it it's pretty much in and got that out there still right now right. If your drug is still built into this year.

W.M. Rush: It's pretty much hand-to-hand combat out there still right now, right? If you want a truck, I can still build you a few this year. All you gotta do is tell me. There's lots of slots open, you know, for everyone, for all manufacturers. That's what's, you know, it's gonna be 1 November, we shut down. Most manufacturers shut down, you know, the last 10 days of the month of December, they're still not full by any stretch in their backlogs, that's why they keep taking shutdown days. I'm talking about all manufacturers. Some will probably, you know, do better than others, I'm not gonna get into all that right now.

Rusty Rush: It's pretty much hand-to-hand combat out there still right now, right? If you want a truck, I can still build you a few this year. All you gotta do is tell me. There's lots of slots open, you know, for everyone, for all manufacturers. That's what's, you know, it's gonna be 1 November, we shut down. Most manufacturers shut down, you know, the last 10 days of the month of December, they're still not full by any stretch in their backlogs, that's why they keep taking shutdown days. I'm talking about all manufacturers. Some will probably, you know, do better than others, I'm not gonna get into all that right now.

Got news tell me, there's lots of slots open.

<unk>.

For everyone for all manufacturers, so which as you know it's.

It's going to be November one and.

And we shut down most manufacturers shut out.

10 days of the month of.

Of December so and there is still not full by any stretch in their backlog. So that's why they keep taking shutdown days and I'm talking about all the way all my exotics.

Some will probably do better than others, but I'm not going to get into all that right now but.

Extremely difficult. So you know that's all I can tell you is Clarity Clarity Clarity and less uncertainty and continue taking Supply out and hopefully get a little bump and Freight or, you know, in a tonnage here. I don't see it right now but I would hope as we get into the first part of next year. We do see something by the time we get out of in the q1 into Q2 something there while you're taking Supply out over here while you're building Less trucks, so your intakes less so you should buy now buy now and that's all I. So the best way I can describe it, which for me,

All I can tell you is it medium duty should weather better from a downturn perspective.

W.M. Rush: You know, all I can tell you is that medium duty should weather better from a downturn perspective, given the diversity of its of the markets it serves, because it serves so much of the general economy. You know, it's not, it will suffer some for sure, though.

Rusty Rush: You know, all I can tell you is that medium duty should weather better from a downturn perspective, given the diversity of its of the markets it serves, because it serves so much of the general economy. You know, it's not, it will suffer some for sure, though.

Given the diversity of its of the.

The hard part was while we were in a freight recession. We just kept building and selling trucks longer than we probably should have. But now we're on that. Right? Sizing piece along with the government activities is about

The markets. It serves because it serves so much the general economy.

But you know it's not it's not totally it does it will it will suffer some for sure though.

You know, uh, around drivers that are going on the things I mentioned earlier. So anyway, uh, I have some optimism; it's just not over the next 6 months. Okay.

That's super helpful. Thank you Rusty maybe just a final quick follow up.

Brady Lierz: That's super helpful. Thank you, Rusty. Maybe just a final quick follow-up.

Sure could you share what what youre seeing in the used truck market you know, particularly how is used truck pricing trending just just given this like you said volatile backdrop to to say the least.

W.M. Rush: Sure, you got it.

Rusty Rush: Sure, you got it.

Brady Lierz: could you share what you're seeing in the used truck market? You know, particularly how is used truck pricing trending just given this, you know, like you said, volatile backdrop to say the least?

Well I think it's been fairly stable and when I say that you know normal depreciation unlike say a year ago. He asked me that I would've told you know depreciation for two years for sure.

That's that's very helpful color, thank you. Um, if I could just follow up on on medium duty, you know, medium duty has continued to kind of be be a stable growth driver uh for your business. Um, you know, can you talk about what you're seeing in medium duty and into the end of the year and just maybe any preliminary thoughts on medium duty and in 2026?

W.M. Rush: Well, I think it's been fairly stable. What I mean to say that at, you know, normal depreciation, unlike, say, 1 year ago, if you asked me that, I would've told you no, depreciations or 2 years for sure, were double depreciating. I would tell you now depreciation is more in line with what you typically would see from a percentage perspective. That's good, you know. You know, our used trucks, while, you know, it's always more difficult in wintertime with used, but we know we've done a really nice job. I'm proud of the job we've done on the used side all year long, managing our inventories and, you know, staying, you know, and doing what we have to do to support our customer base.

Rusty Rush: Well, I think it's been fairly stable. What I mean to say that at, you know, normal depreciation, unlike, say, 1 year ago, if you asked me that, I would've told you no, depreciations or 2 years for sure, were double depreciating. I would tell you now depreciation is more in line with what you typically would see from a percentage perspective. That's good, you know. You know, our used trucks, while, you know, it's always more difficult in wintertime with used, but we know we've done a really nice job. I'm proud of the job we've done on the used side all year long, managing our inventories and, you know, staying, you know, and doing what we have to do to support our customer base.

On your medium duties, different environment, right? Uh, a different different Market by far than the class A World. Um, I would tell you, we expect it to be fairly flat.

Doubled depreciating I would tell you know depreciation and it gets more in line.

in Q4 with Q3, uh, on the medium side, uh,

What you typically would see from a percentage perspective. So that's good you know and you know are used drugs.

So you know, it's always more difficult winter done with.

Any most of the downturn will be for us will be on the Class 8 side, for sure. Like I've mentioned it's there's no question. We're going to deliver fewer trucks.

Use, but we know we've done a really nice job on probably got job who've been on the used side all your all managing our inventories.

And staying on and doing what we have to do to support our customer base.

Because remember worrying about used as you have.

W.M. Rush: You know, because remember, one thing about used is you take trades, right? You have to have the flexibility and the ability to take trades. We've taken our inventory up a little on purpose during this last couple quarters to try to move more, We've taken it way down, okay? We've probably split the middle on where our inventory is currently, from where I used to carry it to where we do now, because you got to turn your used inventory. Our turns are, they're maybe not as tight as they were at one time, but our production overall, you got to have inventory to do that for sure.

Rusty Rush: You know, because remember, one thing about used is you take trades, right? You have to have the flexibility and the ability to take trades. We've taken our inventory up a little on purpose during this last couple quarters to try to move more, We've taken it way down, okay? We've probably split the middle on where our inventory is currently, from where I used to carry it to where we do now, because you got to turn your used inventory. Our turns are, they're maybe not as tight as they were at one time, but our production overall, you got to have inventory to do that for sure.

If you take trades right. So you have to add the flexibility and the ability to take trades, we manage we've taken our inventory up a little on purpose.

During this last couple of quarters should try to move more of that to work well.

We've taken it weighed out okay, I think we've probably split the middle on where our inventory is currently where I used to carry it to where we do now because you got to churn your used inventory and our turns are.

And things, and because you can see order intake, they kind of tell you what you're going to miss, when they come to you, uh, regardless of what our share percentage might be, uh, there's going to be a lot less deliveries in this country, because we have to take many orders into the last 6 months. Um, I we're, I would tell you, you know, there's a lot of leasing around late medium duty, okay? And also what we call our ready to roll inventory, it's just, you know, it's more about the general economy and what's going on around there, you know, housing has a lot to do with. There's a lot of the leasing companies. I would tell you we're working some stuff. They'd have me somewhat hopeful for the entire year to next year. But

Maybe not as tight as they were at one time, but our production overall, you've got to have inventory to do that for sure.

Um, it too, will probably suffer some maybe not to the degree, right? It'll be more stable, I believe than the Class, 8 business will, for the next couple quarters. But at the same time, um,

As always when you think about it as I mentioned in my comments to open used drugs. They don't have to worry about tariffs remissions do that okay. So there is somewhat elevated advantage to that.

W.M. Rush: You know, as always, when you think about, as I mentioned in my comments to open, used trucks, they don't have to worry about tariffs or emissions, do they? Okay. There is somewhat of an advantage to that, you know, to When you There's certainty around used trucks, so, they're not worried about, you know, tariffs or as I said, emissions, when you're buying a used. That's, that's a plus. We've had a really nice year, and we expect it to be solid going forward. I mean, the problem is it just, the volumes just can't make up for, you know, the, when heavy-duty drops down.

Rusty Rush: You know, as always, when you think about, as I mentioned in my comments to open, used trucks, they don't have to worry about tariffs or emissions, do they? Okay. There is somewhat of an advantage to that, you know, to When you There's certainty around used trucks, so, they're not worried about, you know, tariffs or as I said, emissions, when you're buying a used. That's, that's a plus. We've had a really nice year, and we expect it to be solid going forward. I mean, the problem is it just, the volumes just can't make up for, you know, the, when heavy-duty drops down.

Did you you know too.

No theres not theres certainty around used trucks so they're.

They're not worried about tariffs are you as I've said admissions.

When you're buying a used so that's a plus so we better way last year and we expect it to be solid.

Going forward.

Problem is it just the volumes just can't make up.

For the heavy duty drops down but remember.

W.M. Rush: You know, remember, you know, the thing about the company, and I think sometimes people lose sight of, is we have many revenue streams. Remember, I got a great leasing fleet. We're super profitable in our leasing operations. We're profitable in our parts and services. You can tell all the time. You know, everybody's focused always on truck sales, and they are a big piece of what we do. At the same time, they're not the most. You know, parts and services is the one stable piece that you. When I say it does not have the, you know, it does not have the volatility, say, of the truck, Class 8 truck sales market.

We usually think about the company and I think sometimes people lose sight of is we have many revenue streams wherever I got a great leasing fleet.

Rusty Rush: You know, remember, you know, the thing about the company, and I think sometimes people lose sight of, is we have many revenue streams. Remember, I got a great leasing fleet. We're super profitable in our leasing operations. We're profitable in our parts and services. You can tell all the time. You know, everybody's focused always on truck sales, and they are a big piece of what we do. At the same time, they're not the most. You know, parts and services is the one stable piece that you. When I say it does not have the, you know, it does not have the volatility, say, of the truck, Class 8 truck sales market.

I don't know that we can come. I don't believe we'll come to the same that we did this year, but it won't have as big of hit say as the heavy duty side will right now. So that's about all I can tell you about it. It's pretty much hand to hand combat out there. Still right now, right? You just if you want a truck, I can still build you a few this year. All you got to do is tell me, there's there's lots of slots open, uh, you know, for everyone for all manufacturers. So, um, that's which is, you know, it's going to be November 1st and we shut down most manufacturers shut down, you know, in the last 10 days of the month, so of December. So, and they're still not full by any stretch and their backlogs, and that's why they keep taking shutdown days. And I'm talking about all the all magazines. Uh, some will probably, you know, do better than others, but I'm not going to get into all that right now. But, you know, um,

Super profitable in our leasing operations, we're probably in our parts and service you can tell all the time.

Everybody's focused always on truck sales and they are a big piece of what we do but at the same time, they're not the most parts and services to one stable piece.

Of the markets, it serves, because it serves so much of the general economy. Uh, but, you know, it's not, it's not totally it. Yeah, it it will get. It will suffer some for sure, though.

When I say it has does not have the.

You know it does not have the volatility.

Of.

The truck class eight truck sales market so.

Fortunately, we have all of those at revenues inched. It helped us weather the storm we top it up.

W.M. Rush: You know, fortunately, we have all those revenue streams to help us weather the storm, but we top it up, you know, knock it out of the park. You need to have all pieces contributing. The good part is, unlike some other businesses where they're tied to just one or two revenue streams, we have many more, which allow us to get through environments like we're seeing right now and continue to put out the kind of results we do. Are they the best results we've ever had? Of course not. We're not gonna sell as many trucks, but they're gonna be solid, and they're gonna be good. You know, forgiving the environment, a whole lot better than my customer base has had to put up with.

Rusty Rush: You know, fortunately, we have all those revenue streams to help us weather the storm, but we top it up, you know, knock it out of the park. You need to have all pieces contributing. The good part is, unlike some other businesses where they're tied to just one or two revenue streams, we have many more, which allow us to get through environments like we're seeing right now and continue to put out the kind of results we do. Are they the best results we've ever had? Of course not. We're not gonna sell as many trucks, but they're gonna be solid, and they're gonna be good. You know, forgiving the environment, a whole lot better than my customer base has had to put up with.

And knock it out of the park when you're not you need to you need to have all pieces contributing with the good part is.

That that's that's super helpful. Thank you, Rusty. Um, maybe just a, a final quick follow-up. Um, could you share, could you share, what what you're seeing in the used truck Market? You know, particularly how is used truck pricing trending, just just given this you know, like you said volatile backdrop to, to say the least.

Unlike some other businesses, where they're tied to just one or two revenue streams, we have many more which allow us to get through environments. Like we're seeing right now and continue to put out the type of results we do.

The best results, we've ever had of course, not but we're not going to sell as many trucks, but they're going to be solid but are we good at.

Forgive me the environment, a whole lot better than my customer measures that they put up with.

I feel sorry, sometimes what they are going to go through the last three years a lot of them have anyway, especially like I said on the truckload side some of the other so anyway.

W.M. Rush: I feel sorry sometimes what they've had to go through the last three years. A lot of them have anyway, especially, like I said, on the truckload side and some of the others. Anyway, I know it's probably more than you wanted to hear about, but that's just how I see it. Okay. No, we're good where we're at on used and hope to continue to have a solid quarter, sir.

Rusty Rush: I feel sorry sometimes what they've had to go through the last three years. A lot of them have anyway, especially, like I said, on the truckload side and some of the others. Anyway, I know it's probably more than you wanted to hear about, but that's just how I see it. Okay. No, we're good where we're at on used and hope to continue to have a solid quarter, sir.

I know, it's probably more than you wanted to hear about but.

That's.

Okay.

But now we're good where we're at on used and hope to continue to have a solid quarter.

Not that that's that's great. Thank you so much rusty and thanks, so much for the time. This morning I'll go ahead and leave it there.

Brady Lierz: That's great. Thank you so much, Rusty, and thanks so much for the time this morning. I'll go ahead and leave it there.

Yeah.

W.M. Rush: You bet.

Rusty Rush: You bet.

Our next question comes from.

Operator: Our next question comes from Avinatan Jaroslawicz from UBS. Please go ahead.

Well, I think it's been fairly stable. And when I mean to say that, you know, normal depreciation, unlike say, a year ago, you asked me that I would have told, you know, I'm depreciation for 2 years, for sure. Or, or double depreciating, I would tell you now. It's appreciation is more in line, uh, with what you typically would see from a percentage perspective. So that's good, you know. And you know, are you use drugs? Well, you know, it's always more difficult in winter time, uh, with used, but we, we know we've done a really nice job. I'm probably got a job, but we've been on the used Side all year long managing our inventories and, you know, staying you know, and doing what we have to do to support our customer base. Uh, you know, because remember, 1 thing about used is you have, you know, you've got to you, take trades, right? So you have to have the flexibility and the ability to take trades. We managed, we, we've taken our inventory up a little on purpose during this last couple.

<unk> <unk> from UBS. Please go ahead.

Hey, good morning, guys. Thanks, good morning.

Avinatan Jaroslawicz: Hey, good morning, guys. Thanks for taking me.

Avi Jaroslawicz: Hey, good morning, guys. Thanks for taking me.

W.M. Rush: Good morning.

Rusty Rush: Good morning.

And I know parts and service business is a pretty big focus area for you guys and trying to grow that.

Avinatan Jaroslawicz: I know, parts and service business is a pretty big focus area for you guys and trying to grow that. Can you just remind us, you know, what you're doing to pick up more share in that part of the business? Is that more challenging to pick up more share in a softer market like that, like what we're seeing now? Also where are you still seeing opportunity within that space?

Avi Jaroslawicz: I know, parts and service business is a pretty big focus area for you guys and trying to grow that. Can you just remind us, you know, what you're doing to pick up more share in that part of the business? Is that more challenging to pick up more share in a softer market like that, like what we're seeing now? Also where are you still seeing opportunity within that space?

Can you just remind us.

What youre doing to pick up more share in that part of the business is that more challenging to pick up more share.

In a in a softer market like that like what we're seeing now and.

Also where do you where are you still seeing opportunity within that space.

Well it is more challenging without question right because the overall market is down.

W.M. Rush: Well, it is more challenging without question, right? The overall market is down. I would tell you we're holding our own. This year, I don't know that we've picked up as much as we would like to. You know, when you get in this type of environment, it becomes much more highly competitive, and especially with the inflation stuff we've seen in the parts arena this year. You know, it becomes more competitive, to be quite honest. You know, some folks are just looking to turn cash, right? Sometimes margin takes a back seat. You have to balance what you're doing between, you know, taking share, margin, and results at the same time. That becomes a challenge in this type of environment, you know, when it's not a growing sector.

Rusty Rush: Well, it is more challenging without question, right? The overall market is down. I would tell you we're holding our own. This year, I don't know that we've picked up as much as we would like to. You know, when you get in this type of environment, it becomes much more highly competitive, and especially with the inflation stuff we've seen in the parts arena this year. You know, it becomes more competitive, to be quite honest. You know, some folks are just looking to turn cash, right? Sometimes margin takes a back seat. You have to balance what you're doing between, you know, taking share, margin, and results at the same time. That becomes a challenge in this type of environment, you know, when it's not a growing sector.

Orders to try to move more not to, not to work. Well, we had taken it way down. Okay. And then we probably split the middle on where our inventory is currently and where I used to carry it to, where we do now because you got to turn your used inventory. And our turns are they're, they're maybe not as tight as they were at 1 time, but our production overall, you got to have inventory to, uh, to do that for sure. Uh, you know, as always, when you think about, as I mentioned in my, uh, comments to open use trucks, they don't have to worry about tariffs remissions, do they? Okay, so there is someone that have advantage.

I would tell you we're holding our own this year I don't know that we've picked up as much as we would like to you know because when you get into this type of environment. It becomes much more highly competitive and especially with the inflation stuff we've seen in the parks arena this year.

To that uh, to you, you know, to when you there's not. There's there's certainly around used trucks, so

They're not worried about, you know, tariffs are you, as I said emissions.

You know it becomes more competitive be quite honest.

Uh, when you're buying a used, so that's, that's a plus. So we we we better wait on Ice a year and we expect it to be solid uh going forward. But the problem is it just the volume, just can't make up.

Some folks are just looking to turn cash right.

And sometimes margins sometimes takes a back seat so you have to balance what you're doing between.

Taking share and margin and results at the same time.

And so that becomes a challenge in this type of environment.

When it's not growing.

Sector, we've remained fairly flat all year right I would tell you we're in line might be a little bit better than the overall from a dealer.

W.M. Rush: We've remained fairly flat all year, right? I would tell you we're in line, might be a little bit better than the overall from a dealer, from. You have to break it into independents and to dealers. I would tell you from a dealer perspective versus other dealers, I think we're in pretty good shape. Independents, you know, they can get down and dirty when it comes to this type of environment. You know, our overall deal is this. Over time, I don't wanna look at it as just every quarter. I'd rather look at it, you know, annualized and, you know, over a couple, 3 years. You know? If a market goes up, let's make a simple math, 5%, we wanna go up 6, okay? Why? That means we're taking share.

Rusty Rush: We've remained fairly flat all year, right? I would tell you we're in line, might be a little bit better than the overall from a dealer, from. You have to break it into independents and to dealers. I would tell you from a dealer perspective versus other dealers, I think we're in pretty good shape. Independents, you know, they can get down and dirty when it comes to this type of environment. You know, our overall deal is this. Over time, I don't wanna look at it as just every quarter. I'd rather look at it, you know, annualized and, you know, over a couple, 3 years. You know? If a market goes up, let's make a simple math, 5%, we wanna go up 6, okay? Why? That means we're taking share.

Uh, for you know, the 1 heavy duty drops down. But, you know, remember I we, you know, the thing about the company and I think sometimes people lose sight of it. We have many revenue streams. Remember, I got a great leasing Fleet. We're super profitable in our leasing operations, we're probably on our parts and service and you can tell all the time. You know, everybody's focused always on truck shows and they are a big piece of what we do. But at the same time they're not the most, you know, parts and services

1 stable piece.

That you when I say, it has does not have the

Reagan and independents into dealers and I would tell you from a dealer perspective versus other dealers I think we're pretty good shape.

Independence, they can get down and dirty.

When it comes to this type of environment, but you know our overall deal is this and.

Over time, I don't want to look at it as just every quarter I'd rather than looking at it you know annualized.

You know, it does not have the volatility site of the of the truck, classic Truck Sales market. So you know, fortunately we have all those revenues for instance, to help us weather the storm but we top it up, you know, knock it out of the park. When you're not, you need to have, you need to have all pieces contributing, but the good part is

As you know over a couple three years you know if the market if a market goes up.

Just like the simple math five per ship.

We want to go up six okay. Why that mean, then that means we're taking share we have historically been able to do that and then throw a little M&A in there.

W.M. Rush: We have historically been able to do that, then throw a little M&A in there and, you know, do better than that some years, right? I'm not gonna say we've done that this year, but I think we've taken some, maybe not as much as I would like. We wanna be 20% better, right? If you're 20% better, if you're taking a little bit more, you're eating You know, you're just slowly ramping up your share. It's not a add water and stir arena. As far as what we do, I think our technology and our, and our data is second to none, okay? It's continuing to take that. Without getting into each and every project that we have out there, we always have projects going on to help enhance it, that support growth, right?

Rusty Rush: We have historically been able to do that, then throw a little M&A in there and, you know, do better than that some years, right? I'm not gonna say we've done that this year, but I think we've taken some, maybe not as much as I would like. We wanna be 20% better, right? If you're 20% better, if you're taking a little bit more, you're eating You know, you're just slowly ramping up your share. It's not a add water and stir arena. As far as what we do, I think our technology and our, and our data is second to none, okay? It's continuing to take that. Without getting into each and every project that we have out there, we always have projects going on to help enhance it, that support growth, right?

And do better than that some years right, but so you know I'm I'm not going to say we've done that this year, but I think we've taken so maybe not as much as I would like we wouldn't be 20% better than the 20% better everything a little bit more you're eating.

Slowly ramping up your share, it's not add water and stir arena and as far as what we do well I think our technology and our data is second to none.

Unlike some other businesses where they're tied to just 1 or 2 revenue streams. We have many more which allow us to get through environments like we're seeing right now and continue to put out the kind of results. We do are they the best results we've ever had? Of course not but we're not going to sell as many trucks but they're going to be solid. They're going to be good and you know forgiving the environment a whole lot better than my customer base has had to put up with. I feel sorry sometimes what they had to go through the last 3 years. A lot of them have anyway especially like I said I'm a truckload side and some of the others so anyway uh I know it's probably more than you want to hear about but that's just how I use it. Okay. Uh but now we're we're good where we're at. I don't use and hope to continue to have a solid quarters there.

That that that's, that's great. Thank you so much Rusty and and thanks so much for the time this morning. I'll go ahead and leave it there.

Okay. So is continuing to take that and without getting into each and every project that we have out there. We always have projects going on to help enhance their support growth right Theyre not just we don't go about it the same way every year, we go about our business, but we keep enhancing and adding.

Our next question comes from Avi General slovic from UBS. Please go ahead.

Hey, good morning guys, uh thanks good morning.

W.M. Rush: We don't go about it the same way every year like what we go about our business, but we keep enhancing and adding, you know, technology and stuff to make it easier and easier for our customers to do business with us, you know. That's the key piece, from our perspective as we look at going forward. Our industry is, you know, it's not like consumer, right? It tends to operate a little behind the times, okay? Well, which can, you know, be challenging because you have to keep pace with your customers, right? When I say that, I don't want to downgrade our industry, but it's typically, you know, still a little more hands-on than, say, some other consumer-type things and how you go about it.

Rusty Rush: We don't go about it the same way every year like what we go about our business, but we keep enhancing and adding, you know, technology and stuff to make it easier and easier for our customers to do business with us, you know. That's the key piece, from our perspective as we look at going forward. Our industry is, you know, it's not like consumer, right? It tends to operate a little behind the times, okay? Well, which can, you know, be challenging because you have to keep pace with your customers, right? When I say that, I don't want to downgrade our industry, but it's typically, you know, still a little more hands-on than, say, some other consumer-type things and how you go about it.

Technology and stuff to make it easier and easier.

Easier for our customers to do business with and Thats. The key piece from our perspective as we look at going forward our industry as you know.

No it's not like consumer rights it tends to operate a little behind the times okay.

And which can be challenging because you have to keep base with your customers right.

Well, it is more challenging without question, right? Because the overall Market is down.

I say that I don't want to downgrade our industry, but it's typically you know still a little more hands on than say.

Some other consumer type things and how you go about it but technology continues to be a bigger piece of it and without I don't want to get into some of the things. We do this because I consider proprietary.

Uh, I would tell you, we're holding our own this year. I don't know that we've picked up as much as we would like to, you know, because when you get in this type of environment, it becomes much more, highly competitive and especially with the inflation stuff we've seen in the parts Arena this year, um,

W.M. Rush: Technology continues to be a bigger piece of it. Without I don't like to get into some of the things we do just because I consider them proprietary. I think those investments and also our investments in folks and people, our growth in the mobile service area, you know, those types of things. We have goals that, you know, are pretty well stated out there. I think a lot of investors understand that because we expound on them quite a bit when we go to conferences. I got three of them here coming up in the next month.

Rusty Rush: Technology continues to be a bigger piece of it. Without I don't like to get into some of the things we do just because I consider them proprietary. I think those investments and also our investments in folks and people, our growth in the mobile service area, you know, those types of things. We have goals that, you know, are pretty well stated out there. I think a lot of investors understand that because we expound on them quite a bit when we go to conferences. I got three of them here coming up in the next month.

I think those investments and also our investments in folks and people our growth in the mobile service area. You know those types of things we have goals.

But you know, we're pretty well stated out there I think most a lot of investors understand that because we will expound on them quite a bit when we go to conferences.

We are in here coming up in the next month.

You know to let people know those types of.

W.M. Rush: You know, to let people know those types of, you know, investments, whether we wanna grow our mobile service fleet to X, and then we wanna take our, you know, total technicians, and we wanna, you know, grow our outside service, you know, Excuse me, our outside parts and service, what we call ASRs. You know, take those guys more Grow that part of our business too. Sometimes you gotta be careful because in a market that's getting really tight, you need to have a market out there, you know. We still think there's a lot of runway, and we will continue to do it and have the goals we have around, like I said, Try to do about 20% better from a growth perspective.

Rusty Rush: You know, to let people know those types of, you know, investments, whether we wanna grow our mobile service fleet to X, and then we wanna take our, you know, total technicians, and we wanna, you know, grow our outside service, you know, Excuse me, our outside parts and service, what we call ASRs. You know, take those guys more Grow that part of our business too. Sometimes you gotta be careful because in a market that's getting really tight, you need to have a market out there, you know. We still think there's a lot of runway, and we will continue to do it and have the goals we have around, like I said, Try to do about 20% better from a growth perspective.

Investments, whether we want to grow our mobile service Fleet X then we won't take our total technicians and we want to we want to grow our <unk>.

Outside service.

Excuse me, our outside parts and service, what we call <unk>.

Take those guys.

Grow that part of our business too, but sometimes you have to be careful because in.

Market, that's getting really tight you needed to have a market out there, but we still think there's a lot of runway.

You know, it becomes more competitive be quite honest. You know, some folks are just looking to turn cash, right? And and sometimes margins, sometimes takes a backseat so you have to balance what you're doing between, you know, taking share and and margin and results at the same time. Uh and so that becomes a challenge in this type of environment. Where, you know, when when it's not a growing uh sector we've remained fairly flat all year, right? I would tell you, we're in line, might be a little bit better than the overall from a dealer from you, to break it to the independence and the dealers. And I would tell you from a dealer perspective versus other dealers. I think we're pretty good shape. Um, Independence, you know, they can get down and dirty, uh, when it comes to this type of environment. But, you know, our overall deal is this and over time, I don't want to look at it as just, every quarter. I'd rather look at it, you know, annualized and you

We will continue to do it and have the goals we have around like I said to do try to do about 20% better from a growth perspective, and BARDA goes up by we want to go up six because its not somewhere you're going to go from five to 15 per share at August five we're not going to take 15% right means I'm, giving stuff away are doing this and doing that and that.

over a couple 3 years you know if the market if a market goes up that we just make a simple math 5%,

W.M. Rush: Market goes up 5, we want to go up 6, because it's not somewhere you're going to go from 5 to 15%. If market's 5, we're not going to take 15%, or that means I'm giving stuff away or doing this and doing that, and that would not be, I don't believe that's the right way to go about it.

Rusty Rush: Market goes up 5, we want to go up 6, because it's not somewhere you're going to go from 5 to 15%. If market's 5, we're not going to take 15%, or that means I'm giving stuff away or doing this and doing that, and that would not be, I don't believe that's the right way to go about it.

Would not be.

I don't believe that's the right way to go about it.

Right.

That makes perfect sense to me.

Avinatan Jaroslawicz: Right. That makes perfect sense to me. Appreciate the perspective. Thank you.

Avi Jaroslawicz: Right. That makes perfect sense to me. Appreciate the perspective. Thank you.

The perspective, thank you.

You bet.

W.M. Rush: You bet.

Rusty Rush: You bet.

That concludes the question and answer session I would like to turn the call back over to Rusty Rush, President CEO and chairman Wheeler for closing remarks.

Operator: That concludes the question and answer session. I would like to turn the call back over to Rusty Rush, President, CEO, and Chairman of the Board, for closing remarks.

Well everyone.

This is the longest gap between earnings calls, we won't be talking to everybody till February.

W.M. Rush: Well, everyone, this is the longest gap between earnings calls. We won't be talking to everybody till February. You know, in the meantime, I wish everyone a happy holidays and safe holidays and we'll talk to you in February. God bless you all. Thank you.

Rusty Rush: Well, everyone, this is the longest gap between earnings calls. We won't be talking to everybody till February. You know, in the meantime, I wish everyone a happy holidays and safe holidays and we'll talk to you in February. God bless you all. Thank you.

So in the meantime, I wish everyone, a happy holidays and safe holidays and.

We will talk to you in veterinary God Bless you all thank you.

This concludes today's conference call you may now disconnect.

Operator: This concludes today's conference call. You may now disconnect.

We want to go up 6 okay, why does that mean? Then that means we're taking share, we have historically been able to do that and then throw a little m&a in there and, you know, do better than that some years, right? But so, you know, I'm I'm not gonna say we've done that this year, but I think we've taken some maybe not as much as I would like, we want to be 20% better, right? Because if you're 20% better, if you take a little bit more, you're eating, you know, you're you're using slowly, ramping up your share, it's not a add water and stir uh Arena. And as far as what we do, well, I think our technology and our in our data is second to none. Okay. So it's continuing to take that and without getting into each and every project that we have out there, we always have projects going on to help enhance it. This support growth, right? They're not just we don't go about the same way every year when we go about our business. But we keep enhancing and adding

Uh, you know, technology and stuff to make it easier. And, you know, it's easier for our customers to do business with us, you know? And that's the key piece, uh, from our perspective. As we look at going forward. Our industry is

You know, it's not like the consumer, right? It tends to operate a little behind the times. Okay. Well and which can, you know, be challenging because you have to keep Pace with your customers, right? And uh, when I say that and I don't want to downgrade our industry but it's typically, you know, still a little more Hands-On than say uh,

Some other consumer type things and how you go about it. But technology continues to be a bigger piece of it. And without I don't like to get into some of the things we do just because I consider proprietary. Uh, I think those Investments and also our investments in folks, and people our growth in the mobile service area. You know, those types of things we have goals that, you know, are pretty well stated out there. I think most a lot of investors understand that because we we we expound on them quite a bit. When we go to conferences, I have 3 up here, coming up in the next month. Um,

You know, to let people know those types of, you know, Investments, whether we want to grow our mobile service, sleep to X and then we want to take our, you know, total technicians. And we want to, we want to, you know, grow our our outside Service. Uh, you know, excuse me, our outside parts and service what we call asrs, you know, take those guys more more grow that part of our business, too. But sometimes you got to be careful because in a market that's getting really tight. You need to have a market out there, you know, but we still think there's a lot of Runway

And we will continue to do it and have the goals. We have around, like I said to to try to do about, 20% better from a growth perspective, and Market goes up by. We want to go up 6, because it's not somewhere, you're going to go from 5 to 15% and Marcus 5. We're not going to take 15% or that means I'm giving stuff away or doing this and doing that. And that would not be, uh, that I don't believe that's the right way to go about it.

Right? That makes perfect sense to me. I appreciate the perspective. Thank you.

You bet.

The question and answer session, I would like to turn the call back over to Rusty Rush, president, CEO, and chairman of the board for closing remarks.

Well, everyone, uh, this is the longest gap between earnings calls. We won't be talking to everybody until February. So, you know, in the meantime, I wish everyone happy holidays and safe holidays, and, uh, we'll talk to you in bed or, God bless you all. Thank you.

this concludes today's conference call, you may now disconnect

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