Q3 2025 Rush Enterprises Inc Earnings Call

October 30, 2025

Speaker #1: Ladies and gentlemen , thank you for standing by . At this time , I would like to welcome everyone to the rush Inc. reports third quarter 2020 earnings results .

Operator: Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Rush Enterprises, Inc. Reports Q3 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 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 W.M. Rush, President, CEO, and Chairman of the Board. You may begin.

Operator: Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Rush Enterprises, Inc. Reports Q3 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 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 Rusty Rush, President, CEO, and Chairman of the Board. You may begin.

Speaker #1: 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 #1: If you would like to ask a question during this time , simply press star , followed by the number one on your telephone keypad .

Speaker #1: If you would like to withdraw your question again , press the star one . I would now like to turn the conference over to rusty .

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

Michael Goldstone: Certain statements we will make today are considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. 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.

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.

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. 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.

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 2023. 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. Looking ahead, we anticipate continued challenges in our aftermarket business due to seasonal trends and broader industry headwinds.

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 of 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. Looking ahead, we anticipate continued challenges in our aftermarket business due to seasonal trends and broader industry headwinds.

W.M. Rush: 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: 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 A 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 A trucks. We believe that the weak demand the industry is currently experiencing will negatively impact new Class A truck sales for at least the next 2 quarters.

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 H2 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 H2 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.

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.

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.

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 of $14.8 million in Q3.

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, 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 of $14.8 million in Q3.

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

Rush Truck re policing achieved record, revenues of 93.3 million in the third quarter up 4.7% year-over-year.

In service Leavenworth.

On the capital allocation front, we may remain focused, on returning value to shareholders during the third quarter. We, we purchased 9.2 million of our common stock as part of our expanded 2000 million repurchase authorization.

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.

And we also Place completed cash dividend, 14.8 billion in the quarter.

In summary, despite the after mentioned industry headwinds, I believe we've delivered solid results and I am proud of our team's performance in the third quarter, 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 question.

Operator: 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 one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset to ensure the phone is not on mute when asking your question. Our first question comes from Andrew Obin from Bank of America. Please go ahead.

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 mute when asking your question.

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

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

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

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

Andrew Obin: I'm sure the team worked 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? 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.

Andrew Obin: I'm sure the team worked 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? 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.

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.

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?

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 Quark. Then you know just lets the sales actually go up eventually. Thank you.

Andrew Obin: Yeah. Correct. Yes.

W.M. Rush: 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. 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. 3, okay? This usually doesn't last but 12 to 16 months. I have never seen in my career it go so long, right? You couldn't figure out why supply was not coming out, right? There's supply, 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. 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 three years in a freight recession, man. Three, okay? This usually doesn't last but 12 to 16 months. I have never seen in my career it go so long, right? You couldn't figure out why supply was not coming out, right? There's supply, you know, there's demand. I can't really speak to demand as well.

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

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 our customer Trucking Mission. There is, uh, so I met with quite a few customers while I was out there. And I think it's, I mentioned in, uh, 1 of the paragraphs there in the press release, and I mentioned a little bit earlier,

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. It always comes out faster. I think, you know, if you look at it, you know, after rates were way up in 2021, 2022, and they started coming down. That's been that three-year run of just keeping 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. It always comes out faster. I think, you know, if you look at it, you know, after rates were way up in 2021, 2022, and they started coming down. That's been that 3-year run of just keeping 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.

This is the first time I'm going to say man we're been 3 years in a freight recession Man 3 okay. It'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, I can't really speak to demand as well. That's more of an economic revenue on the economy, driven stuff.

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.

And I think, you know, uh, if you look at it, you know, after rates, were way, way up in 2, 1 , 2 2,

W.M. Rush: You know, 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 I, 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. Like, most of the numbers, you know, I had heard before, well, we're gonna 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: You know, 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 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 had heard before, well, we're gonna 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.

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

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. I that's one of the things that I believe will for sure, you know, help. 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. 'Cause there's 2 sides to it, right? That's the attrition side.

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. I 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. 'Cause there's two sides to it, right? That's the attrition side.

And you know that like the 15 to 20 of the states are really starting to force 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.

W.M. Rush: Well, the other side is what are you producing, right? Well, right now, the last the back half 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. I hadn't checked, but it's down dramatically, and I think that's gonna continue into Q1 for sure, maybe H1. If you add that, you know, you think about that, so 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 your, 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 back half 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. I hadn't checked, but it's down dramatically, and 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? Or what freight tonnage is. I think you can see that if you look 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. Um, and so I I that's 1 of the things that I believe will for sure, you know, help. Also, I think we, you know, that people 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 Stoke, 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 I just found dramatically and I think that's going to continue into the first quarter for sure, maybe the first half,

If you add that, you know, you think about that. So you're you're shutting down the supply side, you know, for 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 uh, with with, with market demand is right or what Freight tonnage is and I think

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 the NOx side. It's 200 currently, okay? The new law says 35. I'm with the carriers. They would prefer a pause on 35, and they're, you know, But 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: 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 the NOx side. It's 200 currently, okay? The new law says 35. I'm with the carriers. They would prefer a pause on 35, and they're, you know, they're. 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.

you can see that if you look out 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 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. 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, 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.

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 in 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 in 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.

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, it will change if it stays as, as you will see, change in the warranties will come down because a lot of the costs for that was going to be in more days, but it's still going to add more costs where tariffs is added more cost to an industry that's been in the 3 year recession. But people are asking for it, like I said, carriers are asking to set 200 and I support them on that, I don't know. But currently, if you look at the law, it says,

Going to go to 35, well, that's going to add more cost. Also by the end of next year.

W.M. Rush: I mean, they've been tariffs already all year, but with the new two thirty-two pollutant rule and how that, how that affects everything, the EPA thing will only increase, you know, cost on trucks at the end of next year. If you add that with a better right-sized 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. 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 some supply out.

Rusty Rush: I mean, they've been tariffs already all year, but with the new 232 pollutant rule and how that, how that affects everything, the EPA thing will only increase, you know, cost on trucks at the end of next year. If you add that with a better right-sized 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. 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 some supply out.

so you tie that in with Sheriff costs which are admin for sure start and Saturday uh with the new tariffs, I mean the FED tariffs already all year but with the new 232 bullet Rule and how that how that affects everything you're going to put

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

Rusty Rush: Even if it stays, that 35 will help truck sales. 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, you know, freight tonnage. That's why you see some optimism. I'm more optimistic now for, you know, the big over-the-road market. Look, that's still 2/3 of the market that's out there, all right? Vocational is awesome, and we do more in vocational than 1/3 of our business. That's still the largest segment, and it has been obviously headwinds for everyone, my customers more than me, for the last, you know, 3 years. I know that's a long-winded answer, you're used to my long-winded answers, I'm hoping. That's sort of the way I see it right now.

using 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 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. I think that we can get, you know, some Freight rope which I hope we get some certainty, man 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, add that in, like I said, take a 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 it's getting the right size. Fleet is the most important thing with a pickup in the, you know, a pickup and, you know, Freight times, and that's why you see some optimists, a lot more optimistic. Now, for that, you know, the big over the road market, look, that's

W.M. Rush: 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: 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. 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.

We're going to feel it in Q4 and q1 without question at the same time.

Andrew Obin: Just a follow-up question, you know, I ask it on every call, but, 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.

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.

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.

W.M. Rush: Oh, boy. I'm not an economist, Andrew. What I worry about, I worry about unemployment, which for sure would, you know, 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 free buy, you know, prior to August, 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 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.

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.

I'm not an economist, Andrew. Um, well, I worry about...

I worried about unemployment.

uh,

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

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, 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.

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 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 gonna, this is the number or 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. I'm just looking at it from my street level.

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

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 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 gonna, this is the number or 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. I'm just looking at it from my street level.

W.M. Rush: 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 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 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 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.

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, 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 are laying off right now, Amazon and buy laying all these people off. Uh,

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 support to your financials. Thank you. Thank you very much.

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? That's also a good indication and also, you know, obviously, has quite a bit of support to your financials. Thank you. Thank you very much.

W.M. Rush: Sure. 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, but other than that, from a business perspective, if I could sometimes, you know, we're in the South, it can help. A lot of our stores are in the South. The majority of them are. That's that, 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 like February, March.

Rusty Rush: Sure. Yeah. Well, it was flat to slightly up for Q3, 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, I might keep the holidays for the kids, other than that, from a business perspective, if I could sometimes You know, we're in the South, it can help a lot of our stores are in the South. The majority of them are. That's that, 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 like February, March.

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.

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 all naturally. Yes, we naturally have seasonality, you know, I was 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 are 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.

W.M. Rush: It softened 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 and we got one less working day, which is, you know, quite a bit of gross profit. It's as big as our parts and service operations are.

Rusty Rush: It softened 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 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 and we got one less working day, which is, you know, quite a bit of gross profit. It's as big as our parts and service operations are.

3% or so, uh, 3 to 4%, uh, from Q3 and Q4 and q1, it'll start picking it back up. Hopefully by late February and March. Um, it's solving it a little quicker in September, I'm waiting to get October tomorrow night. I'm hoping that we can try to get pretty close to Flat with last year. I don't, we'll be really close. I think

um,

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 our working process and the parts and service, but I do

W.M. Rush: 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 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 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 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 working 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 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.

You know, I I'm hoping it's just like normal seasonality, uh and we have a slight downtick in a less. We got 1 less working day which is you know uh quite a bit of gross profit as big as our bars 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

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

Not tomorrow night on Halloween, uh, cuz they'll be closing 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,

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

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

W.M. Rush: Hey, Andrew, thank you so much.

Rusty Rush: Hey, Andrew, thank you so much.

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

Andrew, thank you so much.

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

All right. Next question comes from. Brady, leers from Stevens. Please. Go ahead.

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

W.M. Rush: Good morning, Brady.

Rusty Rush: Good morning, Brady.

Brady Lierz: Yeah, morning, Rusty. I wanted to start, you know, kind of just with the outlook for the remainder of 2025 and H1 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? And then maybe just kind of related, your vocational customers seem more resilient.

Brady Lierz: Yeah, morning, Rusty. I wanted to start, you know, kind of just with the outlook for the remainder of 2025 and H1 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 kind of related, your vocational customers seem more resilient.

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

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

Yeah, morning Rusty. Um, I wanted to start um, you know, kind of just with the outlook for the remainder 25 and and 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 seem more resilient. So are there some companies specific opportunities? You have to help offset this weakness and and outperform the market.

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 the first half of the year.

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.

Well, from a delivery perspective, we slightly outperformed the class A, you know, dip like we were off 11 Market was off more than that, I think in Q3 but around, 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 where 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: There is not one manufacturer, not one, that hasn't taken many down days and weeks, okay, so far in this quarter, okay? You know, we're building less trucks. I guess that's less to sell, that's because nobody, there's been less demand. You can circle E as all of the above. When you see, you hit 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. Then 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, okay, so far in this quarter, okay? You know, we're building less trucks. I guess that's less to sell, that's 'cause there's been less demand. You can circle E as all of the above. When you see You hit 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?

W.M. Rush: Because everyone I spoke to, if their business can get a little bit, you know, a little, which 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 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 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 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 know when 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 manufacturer not 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. That's because nobody, there's been less demand, and you can Circle eat, that's all the above. When you see you hit it. It's you know there's really 3 things, it's their business it's you know, because everybody's business but the uncertainty you know, tariffs have make Freight go up and down and cost the trucks go up. But now 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

W.M. Rush: Maybe they do it in Q1 of 2027 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 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. 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 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, but, 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.

Which I we're not, I'm not saying they're getting it now. We've got to 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, uh, it has to get in line with with the with Freight. If you can get that back in line, bring some certainty. So here's what the emissions, regulations are 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 they'll probably try to pull a little bit forward. We're not not have huge free buys but they will try to you know, shift some stuff. Maybe they'd 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 as soon as they get it um get that relief. Um

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

But, you know it it's what you said but really we need they need him to get aligned, really. We've got to get the 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 of years, well, well price the cost of trucks and everything operationally and inflation went.

W.M. Rush: They weathered it better than the TL side. I just gotta tell you, I, you know, the next couple of quarters gonna be tough. You know, you can tell by the order intake that's been there. It wasn't like everybody was ordering trucks hand over fist. 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 are your suppliers, 'cause people use different suppliers and where that comes from, et cetera.

Rusty Rush: They weathered it better than the TL side. I just gotta tell you know, the next couple of quarters gonna be tough. You know, you can tell by the order intake that's been there. 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 are your suppliers, 'cause people use different suppliers and where that comes from, et cetera.

so they weathered it better uh, than the TL side, but

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 'cause it was good for some manufacturers and bad for others. They're trying to sort it out with the Section 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's 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 'cause people, it was good for some manufacturers and bad for others. They're trying to sort it out with the Section 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's somebody supposed to buy stuff?

I I just got to tell you I you know I the next couple quarters going to be tough you know you could tell by the order intake that's been there and it wasn't like everybody was ordering trucks hand over fist. Some people it was we aren't even it's difficult to give a price on it flux deal. But 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. Uh, because this gets pretty complicated, you know, as to where, you know, how these tariffs are figured out and from where you, build, and where your suppliers, because people 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.

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. 1012 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 when you can't do that from a

W.M. Rush: 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. 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 six-plus months, which has made it extremely difficult. You know, that's all I can tell you is clarity, clarity. Less uncertainty, and continue taking supply out, and hopefully get a little bump in freight or a little in tonnage here.

Rusty Rush: 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 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. Less uncertainty, and continue taking supply out, and hopefully get a little bump in freight or a little in tonnage here.

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 out of Q1, into Q2. Something there while you're taking supply out over here, while you're building less trucks, your intake's less. You should naturally be, you know, squeezing down, you know, the supply of trucks. I mean, 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.

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 out of 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 by nat, you know, naturally be, you know, squeezing down, you know, the supply of trucks. I mean. 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.

Raptors 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 upon the 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 Plus months and which has made it 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 in the 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 n by n, you know, naturally be, uh, you know, squeezing down, you know, the supply of trucks. That's all I got. 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 have. But now we're on that sizing piece, along with the government activities, is about.

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

Rusty Rush: Anyway, I have some optimism. It's just not over the next 6 months. Okay.

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.

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

W.M. Rush: 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 and 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, there's a lot of leasing around medium duty.

Rusty Rush: You know, medium duty is, you know, 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 six months. I would tell you know, there's a lot of leasing around medium duty, okay?

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 and just maybe any preliminary thoughts on medium duty and in 2026?

When you're a medium duty is 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.

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

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

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. There's a lot. The leasing companies, I would tell you, we're working some stuff that have me somewhat hopeful for the entire year next year. 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 of 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. There's a lot. The leasing companies. I would tell you we're working some stuff that have me somewhat hopeful for the entire year next year. 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 of 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.

And things. And because you can see order intake, that kind of tells you what you're going to miss the gum 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 know, there's a lot of leasing around late medium duty, okay? And also what we call are 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

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,

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 2 this year. All you gotta do is tell me. There's lots of slots open, you know, for everyone, for all manufacturers. Which is, you know, it's gonna be 1 November, we shut down. Most manufacturers shut down, you know, in the last 10 days of the month, so of December so they're still not full by any stretch, and their backlogs, that's why they keep taking shutdown days. I'm talking about all the way, 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 2 this year. All you gotta do is tell me. There's lots of slots open, you know, for everyone, for all manufacturers. Which is, you know, it's gonna be 1 November, we shut down. Most manufacturers shut down, you know, in the last 10 days of the month, of December, they're still not full by any stretch, they're backlogs, that's why they keep taking shutdown days. I'm talking about all the way, all manufacturers. Some will probably, you know, do better than others, I'm not gonna get into all that right now.

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 the general economy. you know, it's not totally 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 the general economy. you know, it will suffer some for sure, though.

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 drug, I can still build you and see you 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 shut down 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,

All I can tell you, is that medium duty. Should weather better from a downturn perspective given the diversity of its uh, of the markets? It serves because it serves so much the general economy. Uh, but, you know, it's not, it's not totally. It does. Yeah, it it will get. It will suffer some for sure, though.

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

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?

W.M. Rush: Well, I think it's been fairly stable. What I mean to say that, you know, normal depreciation, unlike a year ago, you asked me that, I would have told you no, if 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, you know, normal depreciation, unlike, say, a year ago, you asked me that, I would have told you no, if 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. 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.

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.

W.M. Rush: You know, because remember, one thing about used is you have, 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. Not to 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. 'Cause you gotta turn your used inventory. Our turns are Well, they're maybe not as tight as they were at one time, but our production overall, you gotta have inventory to do that for sure.

Rusty Rush: You know, because remember, one thing about used is you have, you know, 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. 'Cause you gotta turn your used inventory. Our turns are, well, they're maybe not as tight as they were at one time, but our production overall, you gotta have inventory to do that for sure.

Well, I think it's been fairly stable. And when I mean to say that, you know, normal depreciation, unlike say, a year ago, he asked me that I would have told, you know, depreciations or 2 years, for sure, or, or double depreciating, I would tell you now to 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 used drugs. While, 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 use 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 quarters.

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 there's not, 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 a plus. We've had a really nice year, and we expect it to be solid going forward. I mean, the problem is, the volumes just can't make up for, you know, the, when heavy-duty drops down. You know, remember, our You know, the thing about the company, and I think sometimes people lose sight of, is we have many revenue streams.

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, to you know, to when there's not, 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. You know, remember, our You know, the thing about the company, and I think sometimes people lose sight of, is we have many revenue streams.

To try to move more not to not to work. We had taken it way down, okay? And then we probably split the middle of 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 comments to open use drugs, they don't have to worry about tariffs remissions, do they? Okay. So there is someone that have advantage to that, uh, to you, you know, to when you there's not, there's there's certainly around used trucks. So uh, they're not worried about, you know, tariffs are used. As I said emissions.

Uh, when you're buying it used. So that's, that's a plus. So we we've we've had a really nice year and we expect it to be solid, uh, going forward. I mean, the problem is. It just the volumes just can't make up.

W.M. Rush: 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, 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 has does not have the, you know, it does not have the volatility, say, of the Class 8 truck sales market. You know, fortunately, we have all those revenues streams that help us weather the storm. We top it up, you know, knock it out of the park when you're not. You need to have all pieces contributing.

Rusty Rush: 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 Class 8 truck sales market. You know, fortunately, we have all those revenues streams that help us weather the storm. We top it up, you know, knock it out of the park when you're not. You need to have all pieces contributing.

Uh, for, you know, the when 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 services that 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 to 1 stable piece.

makes you when I say it as does not have the

W.M. Rush: 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. I feel sorry sometimes what they've had to go through the last 3 years. A lot of them have anyway, especially, like I said, on the truckload side and some of the others.

Rusty Rush: The good part is, 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. 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. I feel sorry sometimes what they've had to go through the last 3 years. A lot of them have anyway, especially, like I said, on the truckload side and some of the others.

You know, it does not have the volatility say 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

W.M. Rush: Anyway, I know it's probably more than you wanted to hear about, but that's just how I use 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 know it's probably more than you wanted to hear about, but that's just how I use it. Okay. We're good where we're at on used and hope to continue to have a solid quarter, sir.

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.

W.M. Rush: You bet.

Rusty Rush: You bet.

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.

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

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

Our next question comes from AI General slovic from UBS, please go ahead.

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.

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?

Hey, good morning guys, uh thanks good morning.

Avi Jaroslawicz: So 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?

Uh, so I I know, um, parts of service business is, uh, pretty big Focus area for you guys and trying to grow that. Um, can you just remind us? You know what you're doing to pick up more share in in that part of the business. And is that more challenging to pick up more share, uh, in a, in a softer market like that? Like what we're seeing now? And um, also where do you where are you still seeing opportunity to do within that space?

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. 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 sometimes takes a back seat. You have to balance what you're doing between, you know, taking share and margin and results at the same time. That becomes a challenge in this type of environment when, you know, when it's not a growing sector.

Rusty Rush: Well, it is more challenging without question, right? Because 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, because when you get in this type of environment, it becomes much more highly competitive. 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 sometimes takes a back seat. You have to balance what you're doing between, you know, taking share and margin and results at the same time. That becomes a challenge in this type of environment when, you know, it's not a growing sector.

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

Uh, I would tell you, we're holding our own this year. I don't know that we've picked up this 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: 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. 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 in this type of environment. 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 know, over a couple, 3 years. You know, if a market goes up, let's make a simple math, 5%, we want to go up 6, okay? Why? Then 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. 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 in this type of environment. 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 know, over a couple, three years. You know, if a market goes up, let's make a simple math, 5%, we want to go up six, okay? Why? That means we're taking share.

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 had to break it into 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, the 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 know,

over a couple 3 years, you know, if the market

if the market goes up, if it was just make a simple math 5%.

W.M. Rush: 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? You know, 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? 'Cause 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, like our technology 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 and then throw a little M&A in there and, you know, do better than that some years, right. You know, 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. 'Cause 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, like 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.

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, you know, I'm not going to 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.

W.M. Rush: We don't go about it the same way every year like the way we go about our business, but we keep enhancing and adding, you know, technology and stuff to make it 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 the 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 the way we go about our business, but we keep enhancing and adding, you know, technology and stuff to make it easier and, you know, 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 the consumer, right? It's, 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.

20% better, right? Because if you're 20% better, if you're taking 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, like our technology and our in our data is second to none. Okay. So he'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, 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 time. Okay.

Well, and which can, you know, it'd be challenging because you have to keep Pace with your customers, right? And, uh, when I say that and I don't want you to downgrade our industry, but it's typically, you know, still a little more Hands-On than say uh,

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.

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 grow 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.

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,

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

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

Rusty Rush: Market goes up 5, we wanna go up 6 because it's not somewhere you're gonna go from 5 to 15%. If market's 5, we're not gonna 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.

And 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 Market goes up by. We want to go up 6, because it's not somewhere, you're going to go from 5 to 15%. If 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.

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.

W.M. Rush: You bet.

Rusty Rush: You bet.

Right? That that makes perfect sense to me uh, appreciate the perspective. Thank you.

You bet.

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

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. 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. We'll talk to you in February. God bless you all. Thank you.

That concludes the question and answers session, I would like to turn the call back over to Rusty Rush, president CEO and chairman for 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 a happy holiday and safe holidays, and, uh, we'll talk to you very early. God bless you all. Thank you.

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

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

Q3 2025 Rush Enterprises Inc Earnings Call

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