Rush Enterprises, Inc. Reports Second Quarter 2025 Results, Announces $0.19 Per Share Dividend
Rush Enterprises (NASDAQ: RUSHA) reported Q2 2025 financial results with revenues of $1.931 billion and net income of $72.4 million, or $0.90 per diluted share, down from $2.027 billion and $78.7 million ($0.97/share) in Q2 2024. The company increased its quarterly dividend by 5.6% to $0.19 per share.
Key performance metrics include aftermarket revenues of $636.3 million (up 1.4% YoY), representing 63% of total gross profit, and an improved absorption ratio of 135.5%. New Class 8 truck sales decreased 20.3% YoY, while Class 4-7 vehicle sales increased 1.0%. The company's lease and rental revenue grew 6.3% to $93.1 million.
During Q2, Rush repurchased $83.9 million of common stock and paid $14.5 million in dividends, demonstrating commitment to shareholder returns despite challenging market conditions.
Rush Enterprises (NASDAQ: RUSHA) ha riportato i risultati finanziari del secondo trimestre 2025 con ricavi pari a 1,931 miliardi di dollari e un utile netto di 72,4 milioni di dollari, ovvero 0,90 dollari per azione diluita, in calo rispetto a 2,027 miliardi e 78,7 milioni di dollari (0,97 dollari per azione) nel secondo trimestre 2024. La società ha aumentato il dividendo trimestrale del 5,6%, portandolo a 0,19 dollari per azione.
I principali indicatori di performance includono ricavi aftermarket per 636,3 milioni di dollari (in crescita dell'1,4% su base annua), che rappresentano il 63% del profitto lordo totale, e un miglioramento del tasso di assorbimento al 135,5%. Le vendite di nuovi camion Classe 8 sono diminuite del 20,3% su base annua, mentre le vendite di veicoli Classe 4-7 sono aumentate dell'1,0%. I ricavi da leasing e noleggio sono cresciuti del 6,3%, raggiungendo 93,1 milioni di dollari.
Nel corso del secondo trimestre, Rush ha riacquistato azioni ordinarie per un valore di 83,9 milioni di dollari e ha distribuito dividendi per 14,5 milioni di dollari, dimostrando l'impegno verso il ritorno agli azionisti nonostante le condizioni di mercato difficili.
Rush Enterprises (NASDAQ: RUSHA) informó los resultados financieros del segundo trimestre de 2025 con ingresos de
Las métricas clave incluyen ingresos postventa de 636,3 millones de dólares (un aumento del 1,4% interanual), representando el 63% del beneficio bruto total, y una mejora en la tasa de absorción al 135,5%. Las ventas de camiones Clase 8 nuevos disminuyeron un 20,3% interanual, mientras que las ventas de vehículos Clase 4-7 aumentaron un 1,0%. Los ingresos por arrendamiento y alquiler crecieron un 6,3%, alcanzando 93,1 millones de dólares.
Durante el segundo trimestre, Rush recompró acciones comunes por valor de 83,9 millones de dólares y pagó 14,5 millones de dólares en dividendos, demostrando compromiso con los retornos para los accionistas a pesar de las condiciones de mercado desafiantes.
러시 엔터프라이즈 (NASDAQ: RUSHA)는 2025년 2분기 재무 실적을 발표하며 매출액 19억 3,100만 달러와 순이익 7,240만 달러, 희석 주당순이익 0.90달러를 기록했으며, 이는 2024년 2분기의 20억 2,700만 달러 매출과 7,870만 달러(주당 0.97달러) 대비 감소한 수치입니다. 회사는 분기 배당금을 5.6% 인상하여 주당 0.19달러로 조정했습니다.
주요 실적 지표로는 6억 3,630만 달러의 애프터마켓 매출(전년 대비 1.4% 증가)이 있으며, 이는 총 이익의 63%를 차지하고, 흡수율은 135.5%로 개선되었습니다. 신규 클래스 8 트럭 판매는 전년 대비 20.3% 감소했으나, 클래스 4-7 차량 판매는 1.0% 증가했습니다. 리스 및 렌탈 수익은 6.3% 증가하여 9,310만 달러에 달했습니다.
2분기 동안 러시는 보통주를 8,390만 달러어치 재매입하고, 1,450만 달러의 배당금을 지급하며 어려운 시장 상황 속에서도 주주 환원에 대한 의지를 보였습니다.
Rush Enterprises (NASDAQ : RUSHA) a annoncé ses résultats financiers du deuxième trimestre 2025 avec un chiffre d'affaires de 1,931 milliard de dollars et un bénéfice net de 72,4 millions de dollars, soit 0,90 dollar par action diluée, en baisse par rapport à 2,027 milliards et 78,7 millions de dollars (0,97 dollar par action) au deuxième trimestre 2024. La société a augmenté son dividende trimestriel de 5,6 % à 0,19 dollar par action.
Les indicateurs clés de performance comprennent des revenus après-vente de 636,3 millions de dollars (en hausse de 1,4 % en glissement annuel), représentant 63 % du bénéfice brut total, et un taux d'absorption amélioré de 135,5 %. Les ventes de nouveaux camions de classe 8 ont diminué de 20,3 % en glissement annuel, tandis que les ventes de véhicules des classes 4 à 7 ont augmenté de 1,0 %. Les revenus de location et de leasing ont progressé de 6,3 % pour atteindre 93,1 millions de dollars.
Au cours du deuxième trimestre, Rush a racheté pour 83,9 millions de dollars d'actions ordinaires et versé 14,5 millions de dollars de dividendes, démontrant son engagement envers les rendements pour les actionnaires malgré un contexte de marché difficile.
Rush Enterprises (NASDAQ: RUSHA) meldete die Finanzergebnisse für das zweite Quartal 2025 mit Umsätzen von 1,931 Milliarden US-Dollar und einem Nettogewinn von 72,4 Millionen US-Dollar, bzw. 0,90 US-Dollar je verwässerter Aktie, was einen Rückgang gegenüber 2,027 Milliarden und 78,7 Millionen US-Dollar (0,97 US-Dollar/Aktie) im zweiten Quartal 2024 darstellt. Das Unternehmen erhöhte seine Quartalsdividende um 5,6% auf 0,19 US-Dollar je Aktie.
Wichtige Leistungskennzahlen umfassen Aftermarket-Umsätze von 636,3 Millionen US-Dollar (ein Anstieg von 1,4% im Jahresvergleich), die 63% des Bruttogewinns ausmachen, sowie eine verbesserte Absorptionsrate von 135,5%. Der Verkauf neuer Klasse-8-LKWs ging um 20,3% im Jahresvergleich zurück, während die Verkäufe von Fahrzeugen der Klassen 4-7 um 1,0% zunahmen. Die Leasing- und Vermietungserlöse stiegen um 6,3% auf 93,1 Millionen US-Dollar.
Im zweiten Quartal kaufte Rush Stammaktien im Wert von 83,9 Millionen US-Dollar zurück und zahlte 14,5 Millionen US-Dollar an Dividenden, was trotz herausfordernder Marktbedingungen das Engagement für die Aktionärsrendite unterstreicht.
- Quarterly dividend increased by 5.6% to $0.19 per share
- Aftermarket revenues grew 1.4% YoY to $636.3 million
- Improved absorption ratio to 135.5% from 134.0% YoY
- Lease and rental revenue increased 6.3% to $93.1 million
- Class 4-7 medium-duty vehicle sales grew 1.0% YoY
- Strong stock repurchase program with $83.9 million executed in Q2
- Revenue declined 4.8% YoY to $1.931 billion
- Net income decreased to $72.4 million from $78.7 million YoY
- New Class 8 truck sales dropped 20.3% YoY
- Challenging market conditions with persistent freight recession
- Used commercial vehicle sales decreased 0.5% YoY
- Economic uncertainty and regulatory challenges affecting customer demand
Insights
Rush Enterprises delivered solid Q2 results despite industry headwinds, with strategic cost management offsetting revenue decline.
Rush Enterprises posted
The absorption ratio improved to
Aftermarket performance was a bright spot, with parts and service revenues increasing
While new Class 8 truck sales fell
The company continues prioritizing shareholder returns, increasing its quarterly dividend by
The lease and rental segment posted record quarterly revenue of
Rush is navigating significant headwinds including persistent freight overcapacity, depressed freight rates, economic uncertainty around trade policies, and unclear emissions regulations - all factors delaying customer purchase decisions. Yet their diversification across customer segments (particularly strength in vocational vs. over-the-road) and revenue streams demonstrates a resilient business model built to withstand industry cycles.
- Revenues of
$1.9 billion , net income of$72.4 million - Earnings per diluted share of
$0.90 - Challenging market conditions continue to impact business and overall financial performance
- Absorption ratio
135.5% - Board declares cash dividend of
$0.19 per share of Class A and Class B common stock, a5.6% increase over prior quarter
NEW BRAUNFELS, Texas, July 30, 2025 (GLOBE NEWSWIRE) -- Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), which operates the largest network of commercial vehicle dealerships in North America, today announced that for the quarter ended June 30, 2025, the Company achieved revenues of
“The second quarter of 2025 continued to present challenges for commercial truck operators and the broader industry that supports them. While there have been sporadic signs of recovery from the freight recession that has impacted over-the-road carriers for more than two years, freight rates remain depressed, and overcapacity persists. In addition, ongoing economic uncertainty, particularly around U.S. trade policy and its potential impact on the supply chain and overall economy, combined with a lack of clarity regarding engine emissions regulations, has led many customers to delay vehicle acquisition and maintenance decisions,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Inc. “These factors contributed to continued weak demand for both new vehicles and aftermarket products and services across the industry,” he continued.
“Considering the difficult operating environment, I am pleased with the financial results our team delivered in the second quarter. Our performance was a direct reflection of the dedication and hard work of our employees across the U.S. and Canada, who continued to deliver exceptional service and support to our customers. In a challenging operating environment, they remain focused on managing expenses, driving operational efficiency and executing our strategic priorities. I am deeply grateful for their continued commitment to our organization and their efforts in helping us navigate this challenging period with resilience and discipline,” Rush added.
Operations
Aftermarket Products and Services
Aftermarket products and services accounted for approximately
“Despite tough market conditions, parts and service revenues reached their highest level in the past 12 months in the second quarter and were up slightly compared to the same period in 2024. Technician turnover was at a 12-month low in the quarter, and we increased our aftermarket sales force, further strengthening our ability to support our customers. Additionally, one of our aftermarket strategic initiatives is to identify new customer segments that will drive revenue growth, and we believe we are making significant progress on this goal. Lastly, we saw sequential growth from owner-operators and small fleets during the second quarter – positive indicators that may signal improving demand ahead.” he added.
“Looking toward the third quarter, we expect aftermarket performance to remain stable, with potential for modest growth. While the broader economic environment continues to present uncertainty, we are encouraged by signs of recovery and sequential growth across most customer segments, which we see as a positive shift from the sluggishness of recent quarters. However, providing a reliable outlook beyond the upcoming quarter is difficult, as potential changes in U.S. trade policy may have a material impact – either positive or negative – on customer demand and market conditions,” said Rush.
Commercial Vehicle Sales
New U.S. Class 8 retail truck sales totaled 58,625 units in the second quarter of 2025, down
“The decline in our new Class 8 truck sales on a year-over-year basis in the second quarter was largely due to the timing of several large fleet deliveries that occurred in the second quarter of 2024, which created a challenging year-over-year comparison. Market dynamics also contributed to softer demand, as larger over-the-road fleet customers remained cautious in their approach to vehicle purchases and smaller carriers continued to exit the market. Despite these headwinds, we achieved strong sales in the Class 8 vocational market during the quarter, helping to partially offset the decline in over-the-road fleet activity and demonstrating the strength of our diversified customer base,” Rush said.
“Looking ahead, we expect economic and regulatory uncertainty to continue weighing on new Class 8 truck demand. While we do not anticipate a meaningful recovery in the ongoing freight recession in the near term, we are optimistic that greater clarity around U.S. trade policy and engine emissions regulations could lead to increased order activity late in 2025. Should market conditions improve, our professional sales force is well-positioned to capitalize on opportunities in what remains a highly competitive sales environment. We also expect Class 8 vocational sales to remain strong through the remainder of the year, which will continue to support our overall performance. That said, given the uncertainty regarding U.S. trade policy and engine emission regulations, we believe new Class 8 sales may decrease sequentially in the third quarter, and too much market uncertainty remains to provide a reliable outlook on the new Class 8 truck sales market beyond the third quarter,” he added.
New U.S. Class 4-7 retail commercial vehicle sales totaled 58,176 units in the second quarter of 2025, a decrease of
“We delivered solid results in new Class 4-7 commercial vehicle sales in the second quarter, achieving both year-over-year growth and a significant quarter-over-quarter improvement. We significantly outperformed the market and increased market share, driven by healthy demand across all of our customer segments, but particularly in the lease and rental segment. Our efforts to right-size our medium-duty inventory positioned us to capitalize on sales opportunities, and we believe our unique Ready-to-Roll inventory program was a key differentiator, enabling us to meet customer needs with speed and flexibility,” Rush said.
“Recent medium-duty quoting activity has been encouraging, and our outlook for the second half of the year remains positive. We believe that our current inventory levels are well-positioned to respond to customer demand, and we expect new Class 4-7 commercial vehicle sales in the third quarter to be similar to our second quarter results,” he continued.
The company sold 1,715 used commercial vehicles in the second quarter of 2025, a
Leasing and Rental
Rush Truck Leasing operates PacLease and Idealease franchises across the United States and Canada, with more than 10,000 trucks in its lease and rental fleet and more than 2,000 trucks under contract maintenance agreements. Lease and rental revenue in the second quarter was
Financial Highlights
In the second quarter of 2025, the Company’s gross revenues totaled
Aftermarket products and services revenues were
On May 29, 2025, the Company announced an increase of
“Our Board of Directors approved a
“Given the ongoing economic uncertainty and persistent challenges facing our industry, I believe we delivered solid results in the second quarter. I am especially proud of the way our team remained focused on operational discipline and customer service, which helped us navigate a difficult operating environment while continuing to deliver value to our shareholders, as demonstrated by our dividend increase and stock repurchase activity. While we remain cautious about the potential impact of trade policies and broader macroeconomic headwinds, I have every confidence in our team’s ability to adapt and perform as conditions evolve,” Rush said.
Conference Call Information
Rush Enterprises will host a conference call to discuss earnings for the second quarter of 2025 on Thursday, July 31 at 10:00 a.m. Eastern/9:00 a.m. Central. The call can be heard live via the Internet at
https://edge.media-server.com/mmc/p/wh8houx4.
Participants may register for the call at:
https://register-conf.media-server.com/register/BI8d974fd7c98441dbbe9557908eee102e
While not required, it is recommended that you join the event 10 minutes prior to the start.
For those who cannot listen to the live broadcast, the webcast replay will be available at
http://investor.rushenterprises.com/events.cfm.
Rush Enterprises, Inc. is the premier solutions provider to the commercial vehicle industry. The Company owns and operates Rush Truck Centers, the largest network of commercial vehicle dealerships in North America, with more than 150 locations in 23 states and Ontario, Canada. These vehicle centers, strategically located in high traffic areas on or near major highways throughout the United States and Ontario, Canada, represent truck and bus manufacturers, including Peterbilt, International, Hino, Isuzu, Ford, Dennis Eagle, IC Bus and Blue Bird. They offer an integrated approach to meeting customer needs – from sales of new and used vehicles to aftermarket parts, service and body shop operations plus financing, insurance, leasing and rental. Rush Enterprises' operations also provide CNG fuel systems (through its investment in Cummins Clean Fuel Technologies, Inc.), telematics products and other vehicle technologies, as well as vehicle up-fitting, chrome accessories and tires. For more information, please visit us at www.rushtruckcenters.com www.rushenterprises.com and www.rushtruckcentersracing.com, on Twitter @rushtruckcenter and Facebook.com/rushtruckcenters.
Certain statements contained in this release, including those concerning current and projected market conditions, sales forecasts, market share forecasts s and anticipated demand for the Company’s services, are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements only speak as of the date of this release and the Company assumes no obligation to update the information included in this release. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, competitive factors, general U.S. economic conditions, economic conditions in the new and used commercial vehicle markets, customer relations, relationships with vendors, inflation and the interest rate environment, governmental regulation and supervision, including engine emission regulations, U.S. and global trade policies, product introductions and acceptance, changes in industry practices, one-time events and other factors described herein and in filings made by the Company with the Securities and Exchange Commission, including in our annual report on Form 10-K for the fiscal year ended December 31, 2024. In addition, the declaration and payment of cash dividends and authorization of future share repurchase programs remains at the sole discretion of the Company’s Board of Directors and the issuance of future dividends and authorization of future share repurchase programs will depend upon the Company’s financial results, cash requirements, future prospects, applicable law and other factors that may be deemed relevant by the Company’s Board of Directors. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual business and financial results and could cause actual results to differ materially from those in the forward-looking statements. All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.
| RUSH ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands, Except Shares and Per Share Amounts) | ||||||
| June 30, | December 31, | |||||
| 2025 | 2024 | |||||
| (unaudited) | ||||||
| Assets | ||||||
| Current assets: | ||||||
| Cash, cash equivalents and restricted cash | $ | 211,106 | $ | 228,131 | ||
| Accounts receivable, net | 310,469 | 345,346 | ||||
| Note receivable, affiliate | 3,881 | 9,536 | ||||
| Inventories, net | 1,842,311 | 1,787,744 | ||||
| Prepaid expenses and other | 27,936 | 18,958 | ||||
| Total current assets | 2,395,703 | 2,389,715 | ||||
| Property and equipment, net | 1,675,025 | 1,615,635 | ||||
| Operating lease right-of-use assets, net | 126,262 | 111,408 | ||||
| Goodwill, net | 441,967 | 427,493 | ||||
| Other assets, net | 76,817 | 73,296 | ||||
| Total assets | $ | 4,715,774 | $ | 4,617,547 | ||
| Liabilities and shareholders’ equity | ||||||
| Current liabilities: | ||||||
| Floor plan notes payable | $ | 1,088,779 | $ | 1,081,199 | ||
| Current maturities of long-term debt | 128 | |||||
| Current maturities of finance lease obligations | 36,332 | 38,476 | ||||
| Current maturities of operating lease obligations | 18,529 | 15,866 | ||||
| Trade accounts payable | 297,425 | 244,018 | ||||
| Customer deposits | 107,716 | 109,751 | ||||
| Accrued expenses | 169,540 | 160,809 | ||||
| Total current liabilities | 1,718,449 | 1,650,119 | ||||
| Long-term debt, net of current maturities | 412,845 | 408,440 | ||||
| Finance lease obligations, net of current maturities | 87,045 | 92,235 | ||||
| Operating lease obligations, net of current maturities | 110,259 | 97,874 | ||||
| Other long-term liabilities | 32,366 | 28,060 | ||||
| Deferred income taxes, net | 179,779 | 178,916 | ||||
| Shareholders’ equity: | ||||||
| Preferred stock, par value $.01 per share; 1,000,000 shares authorized; 0 shares outstanding in 2025 and 2024 | – | – | ||||
| Common stock, par value $.01 per share; 105,000,000 Class A shares and 35,000,000 Class B shares authorized; 61,123,036 Class A shares and 16,614,652 Class B shares outstanding in 2025; and 62,604,986 Class A shares and 16,662,633 Class B shares outstanding in 2024 | 831 | 824 | ||||
| Additional paid-in capital | 607,783 | 587,639 | ||||
| Treasury stock, at cost: 3,243,834 Class A shares and 2,156,419 Class B shares in 2025; and 1,387,013 Class A shares and 1,783,806 Class B shares in 2024 | (253,317 | ) | (136,235 | ) | ||
| Retained earnings | 1,802,812 | 1,698,614 | ||||
| Accumulated other comprehensive income (loss) | (4,278 | ) | (9,293 | ) | ||
| Total Rush Enterprises, Inc. shareholders’ equity | 2,153,831 | 2,141,549 | ||||
| Noncontrolling interest | 21,200 | 20,354 | ||||
| Total shareholders’ equity | 2,175,031 | 2,161,903 | ||||
| Total liabilities and shareholders’ equity | $ | 4,715,774 | $ | 4,617,547 | ||
| RUSH ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts) (Unaudited) | |||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Revenues | |||||||||||
| New and used commercial vehicle sales | $ | 1,191,504 | $ | 1,300,308 | $ | 2,322,274 | $ | 2,423,627 | |||
| Parts and service sales | 636,258 | 627,431 | 1,255,326 | 1,276,627 | |||||||
| Lease and rental | 93,124 | 87,646 | 183,377 | 175,567 | |||||||
| Finance and insurance | 5,552 | 5,937 | 10,764 | 11,331 | |||||||
| Other | 4,269 | 5,706 | 9,796 | 11,875 | |||||||
| Total revenue | 1,930,707 | 2,027,028 | 3,781,537 | 3,899,027 | |||||||
| Cost of products sold | |||||||||||
| New and used commercial vehicle sales | 1,087,644 | 1,179,819 | 2,118,177 | 2,185,919 | |||||||
| Parts and service sales | 397,011 | 392,133 | 794,754 | 804,387 | |||||||
| Lease and rental | 66,381 | 62,687 | 131,175 | 126,457 | |||||||
| Total cost of products sold | 1,551,036 | 1,634,639 | 3,044,106 | 3,116,763 | |||||||
| Gross profit | 379,671 | 392,389 | 737,431 | 782,264 | |||||||
| Selling, general and administrative expense | 251,981 | 251,368 | 500,784 | 515,033 | |||||||
| Depreciation and amortization expense | 17,611 | 16,492 | 34,867 | 32,242 | |||||||
| Gain (loss) on sale of assets | 127 | (48 | ) | 295 | 102 | ||||||
| Operating income | 110,206 | 124,481 | 202,075 | 235,091 | |||||||
| Other income (expense) | (372 | ) | 44 | (812 | ) | 221 | |||||
| Interest expense (income), net | 12,726 | 19,464 | 25,589 | 37,437 | |||||||
| Income before taxes | 97,108 | 105,061 | 175,674 | 197,875 | |||||||
| Provision for income taxes | 24,119 | 26,278 | 42,068 | 47,603 | |||||||
| Net income | 72,989 | 78,783 | 133,606 | 150,272 | |||||||
| Less: Net income attributable to noncontrolling Interests | 551 | 122 | 846 | 3 | |||||||
| Net income attributable to Rush Enterprises, Inc. | $ | 72,438 | $ | 78,661 | $ | 132,760 | $ | 150,269 | |||
| Net income attributable to Rush Enterprises, Inc. per share of common stock: | |||||||||||
| Basic | $ | 0.93 | $ | 1.01 | $ | 1.68 | $ | 1.91 | |||
| Diluted | $ | 0.90 | $ | 0.97 | $ | 1.63 | $ | 1.84 | |||
| Weighted average shares outstanding: | |||||||||||
| Basic | 78,300 | 78,270 | 78,975 | 78,706 | |||||||
| Diluted | 80,487 | 80,778 | 81,445 | 81,467 | |||||||
| Dividends declared per common share | $ | 0.18 | $ | 0.17 | $ | 0.36 | $ | 0.34 | |||
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as Adjusted Net Income, Adjusted Total Debt, Adjusted Net (cash) Debt, EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow and Adjusted Invested Capital, which exclude certain items disclosed in the attached financial tables. The Company provides reconciliations of these measures to the most directly comparable GAAP measures.
Management believes the presentation of these non-GAAP financial measures provides useful information about the results of operations of the Company for the current and past periods. Management believes that investors should have the same information available to them that management uses to assess the Company’s operating performance and capital structure. These non-GAAP financial measures should not be considered in isolation or as a substitute for the most comparable GAAP financial measures. Investors are cautioned that non-GAAP financial measures utilized by the Company may not be comparable to similarly titled non-GAAP financial measures used by other companies.
| Three Months Ended | ||||||
| Commercial Vehicle Sales Revenue (in thousands) | June 30, 2025 | June 30, 2024 | ||||
| New heavy-duty vehicles | $ | 632,213 | $ | 789,189 | ||
| New medium-duty vehicles (including bus sales revenue) | 413,662 | 388,817 | ||||
| New light-duty vehicles | 42,573 | 32,778 | ||||
| Used vehicles | 94,993 | 80,360 | ||||
| Other vehicles | 8,063 | 9,164 | ||||
| Absorption Ratio | 135.5 | % | 134.0 | % | ||
Absorption Ratio
Management uses several performance metrics to evaluate the performance of its commercial vehicle dealerships and considers Rush Truck Centers’ “absorption ratio” to be of critical importance. Absorption ratio is calculated by dividing the gross profit from the parts, service and collision center departments by the overhead expenses of all of a dealership’s departments, except for the selling expenses of the new and used commercial vehicle departments and carrying costs of new and used commercial vehicle inventory. When
| Debt Analysis (in thousands) | June 30, 2025 | June 30, 2024 | ||||
| Floor plan notes payable | $ | 1,088,779 | $ | 1,226,651 | ||
| Current maturities of long-term debt | 128 | |||||
| Current maturities of finance lease obligations | 36,332 | 40,076 | ||||
| Long-term debt, net of current maturities | 412,845 | 396,562 | ||||
| Finance lease obligations, net of current maturities | 87,045 | 97,134 | ||||
| Total Debt (GAAP) | 1,625,129 | 1,760,423 | ||||
| Adjustments: | ||||||
| Debt related to lease & rental fleet | (532,853 | ) | (529,736 | ) | ||
| Floor plan notes payable | (1,088,779 | ) | (1,226,651 | ) | ||
| Adjusted Total Debt (Non-GAAP) | 3,497 | 4,036 | ||||
| Adjustment: | ||||||
| Cash and cash equivalents | (211,106 | ) | (167,266 | ) | ||
| Adjusted Net Debt (Cash) (Non-GAAP) | $ | (207,609 | ) | $ | (163,230 | ) |
Management uses “Adjusted Total Debt” to reflect the Company’s estimated financial obligations less debt related to lease and rental fleet (L&RFD) and floor plan notes payable (FPNP), and “Adjusted Net (Cash) Debt” to present the amount of Adjusted Total Debt net of cash and cash equivalents on the Company’s balance sheet. The FPNP is used to finance the Company’s new and used inventory, with its principal balance changing daily as vehicles are purchased and sold and the sale proceeds are used to repay the notes. Consequently, in managing the business, management views the FPNP as interest bearing accounts payable, representing the cost of acquiring the vehicle that is then repaid when the vehicle is sold, as the Company’s floor plan credit agreements require it to repay loans used to purchase vehicles when such vehicles are sold. The Company has the capacity to finance all of its lease and rental fleet under its lines of credit established for this purpose but may choose to only partially finance the lease and rental fleet depending on business conditions and its management of cash and interest expense. The Company’s lease and rental fleet inventory are either: (i) leased to customers under long-term lease arrangements; or (ii) to a lesser extent, dedicated to the Company’s rental business. In both cases, the lease and rental payments received fully cover the capital costs of the lease and rental fleet (i.e., the interest expense on the borrowings used to acquire the vehicles and the depreciation expense associated with the vehicles), plus a profit margin for the Company. The Company believes excluding the FPNP and L&RFD from the Company’s total debt for this purpose provides management with supplemental information regarding the Company’s capital structure and leverage profile and assists investors in performing analysis that is consistent with financial models developed by Company management and research analysts. “Adjusted Total Debt” and “Adjusted Net (Cash) Debt” are both non-GAAP financial measures and should be considered in addition to, and not as a substitute for, the Company’s debt obligations, as reported in the Company’s consolidated balance sheet in accordance with U.S. GAAP. Additionally, these non-GAAP measures may vary among companies and may not be comparable to similarly titled non-GAAP measures used by other companies.
| Twelve Months Ended | ||||||
| EBITDA (in thousands) | June 30, 2025 | June 30, 2024 | ||||
| Net Income attributable to Rush Enterprises, Inc. (GAAP) | $ | 286,644 | $ | 308,594 | ||
| Provision for income taxes | 87,310 | 101,252 | ||||
| Interest expense | 59,010 | 67,133 | ||||
| Depreciation and amortization | 71,174 | 63,213 | ||||
| (Gain) on sale of assets | (1,002 | ) | (569 | ) | ||
| EBITDA (Non-GAAP) | 503,136 | 539,623 | ||||
| Adjustments: | ||||||
| Interest expense associated with FPNP and L&RFD | (60,396 | ) | (68,283 | ) | ||
| Adjusted EBITDA (Non-GAAP) | $ | 442,740 | $ | 471,340 | ||
The Company presents EBITDA and Adjusted EBITDA, for the twelve months ended each period presented, as additional information about its operating results. The presentation of Adjusted EBITDA that excludes the addition of interest expense associated with FPNP and the L&RFD to EBITDA is consistent with management’s presentation of Adjusted Total Debt, in each case reflecting management’s view of interest expense associated with the FPNP and L&RFD as an operating expense of the Company, and to provide management with supplemental information regarding operating results and to assist investors in performing analysis that is consistent with financial models developed by management and research analyst. “EBITDA” and “Adjusted EBITDA” are both non-GAAP financial measures and should be considered in addition to, and not as a substitute for, net income of the Company, as reported in the Company’s consolidated statements of income in accordance with U.S. GAAP. Additionally, these non-GAAP measures may vary among companies and may not be comparable to similarly titled non-GAAP measures used by other companies.
| Twelve Months Ended | ||||||
| Free Cash Flow (in thousands) | June 30, 2025 | June 30, 2024 | ||||
| Net cash provided by operations (GAAP) | $ | 885,188 | $ | 297,222 | ||
| Acquisition of property and equipment | (482,801 | ) | (355,403 | ) | ||
| Free cash flow (Non-GAAP) | 402,387 | (58,181 | ) | |||
| Adjustments: | ||||||
| Draws on floor plan financing, net | (154,716 | ) | 102,889 | |||
| Acquisitions of L&RF assets | 385,624 | 250,925 | ||||
| Non-maintenance capital expenditures | 31,361 | 23,670 | ||||
| Adjusted Free Cash Flow (Non-GAAP) | $ | 664,657 | $ | 319,303 | ||
“Free Cash Flow” and “Adjusted Free Cash Flow” are key financial measures of the Company’s ability to generate cash from operating its business. Free Cash Flow is calculated by subtracting the acquisition of property and equipment included in the Cash flows from investing activities from Net cash provided by (used in) operating activities. For purposes of deriving Adjusted Free Cash Flow from the Company’s operating cash flow, Company management makes the following adjustments: (i) adds back draws (or subtracts payments) on the floor plan financing that are included in Cash flows from financing activities, as their purpose is to finance the vehicle inventory that is included in Cash flows from operating activities; (ii) subtracts lease and rental fleet purchases that are included in acquisition of property and equipment (iii) adds back non-maintenance capital expenditures that are for growth and expansion (i.e. building of new dealership facilities) that are not considered necessary to maintain the current level of cash generated by the business. “Free Cash Flow” and “Adjusted Free Cash Flow” are both presented so that investors have the same financial data that management uses in evaluating the Company’s cash flows from operating activities. “Free Cash Flow” and “Adjusted Free Cash Flow” are both non-GAAP financial measures and should be considered in addition to, and not as a substitute for, net cash provided by (used in) operations of the Company, as reported in the Company’s consolidated statement of cash flows in accordance with U.S. GAAP. Additionally, these non-GAAP measures may vary among companies and may not be comparable to similarly titled non-GAAP measures used by other companies.
| Invested Capital (in thousands) | June 30, 2025 | June 30, 2024 | ||||
| Total Rush Enterprises, Inc. Shareholders' equity (GAAP) | $ | 2,153,831 | $ | 2,003,461 | ||
| Adjusted net debt (cash) (Non-GAAP) | (207,609 | ) | (163,230 | ) | ||
| Adjusted Invested Capital (Non-GAAP) | $ | 1,946,222 | $ | 1,840,231 | ||
“Adjusted Invested Capital” is a key financial measure used by the Company to calculate its return on invested capital. For purposes of this analysis, management excludes L&RFD, FPNP, and cash and cash equivalents, for the reasons provided in the debt analysis above and uses Adjusted Net Debt in the calculation. The Company believes this approach provides management a more accurate picture of the Company’s leverage profile and capital structure and assists investors in performing analysis that is consistent with financial models developed by Company management and research analysts. “Adjusted Net (Cash) Debt” and “Adjusted Invested Capital” are both non-GAAP financial measures. Additionally, these non-GAAP measures may vary among companies and may not be comparable to similarly titled non-GAAP measures used by other companies.
Contact:
Rush Enterprises, Inc., New Braunfels
Steven L. Keller, 830-302-5226
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