Rush Enterprises, Inc. Reports Third Quarter 2026 Results, Announces $0.14 Per Share Dividend
Quarter-end cash and cash equivalents totaled $226.4 million after stock repurchases and dividend payments during the quarter.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Rush Enterprises (RUSHA, RUSHB) reported third-quarter 2026 revenue of $2.113 billion, with higher earnings and increased commercial vehicle deliveries. Net income rose to $78.0 million, or $0.65 per diluted share, from $66.7 million, or $0.55, a year earlier; revenue increased 12.4%. Aftermarket revenue grew 5.8% to $679.9 million, while leasing and rental revenue rose 5.3% to $98.2 million.
The company completed its 50 percent-owned joint venture with MCT Companies, entering refrigerated transportation. Rush expects its backlog to support sales through early 2027, but cited supply constraints and slower orders pending final EPA emissions rules. The board declared a $0.14 quarterly dividend for both share classes, payable December 10 to holders of record November 11, 2026. Per-share figures reflect the three-for-two split completed August 31, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointRevenue increased 12.4% to $2.113 billion in third-quarter 2026 from $1.881 billion a year earlier.
- Moderate pointNet income reached $78.0 million, or $0.65 per diluted share, versus $66.7 million, or $0.55, a year earlier.
- Moderate pointAftermarket revenue grew 5.8% year over year to $679.9 million in third-quarter 2026.
- Moderate pointU.S. Class 8 deliveries increased 24.4% year over year to 3,880, representing 6.5% market share.
- Moderate pointU.S. Class 4-7 deliveries increased 9.6% year over year to 3,265, representing 6.1% market share.
- Moderate pointUsed vehicle deliveries increased 5.5% year over year to 1,913 in third-quarter 2026.
- Moderate pointLeasing and rental revenue increased 5.3% year over year to $98.2 million in third-quarter 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Backlog supports expected sales strength in fourth-quarter 2026 and first-quarter 2027, the company said.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Aftermarket demand is expected to improve gradually through year-end, subject to normal seasonal patterns.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Used vehicle and rental demand are expected to remain strong through fourth-quarter 2026 and early 2027.
6 minor points
- Minor point50 percent-owned MCT Companies joint venture completed, adding a business in refrigerated transportation.
- Minor pointLight-duty deliveries rose to 1,418 in third-quarter 2026 from 858 a year earlier.
- Minor pointLower leasing and rental operating costs contributed to third-quarter performance.
- Minor pointAdditional contract maintenance vehicles generated service business during the quarter.
- Minor pointMedium-duty inventory increased during the quarter to address potential production constraints.
- Minor point. Forward-looking: it has not happened yet and may not happen.Growth plans include acquisitions and investments in adjacent businesses and expansion within existing markets.
Negative
- Moderate pointQuoting and new order activity slowed as the industry awaits final EPA rules for 2027 emissions regulations.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Supply capacity constraints may affect delivery timing from the company's backlog.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Medium-duty production delays and limited manufacturer availability may challenge sales opportunities through early 2027.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Leasing demand may soften in first-quarter 2027, the company said, following customers' advance replacement purchases.
- Minor pointAbsorption ratio fell to 128.3% in third-quarter 2026 from 129.3% a year earlier.
Key Figures
- Revenue
- $2.113 billion
- Q3 2026; up 12.4% from $1.881 billion in Q3 2025
- Net income
- $78.0 million
- Q3 2026; compared with $66.7 million in Q3 2025
- Diluted EPS
- $0.65 per share
- Q3 2026; compared with $0.55 in Q3 2025
- Cash dividend
- $0.14 per share
- Class A and Class B shares; payable Dec. 10, 2026, to holders of record Nov. 11, 2026
- Aftermarket revenue
- $679.9 million
- Q3 2026 parts, service and collision center revenue; up 5.8% year over year
- Absorption ratio
- 128.3%
- Q3 2026; compared with 129.3% in Q3 2025
- New U.S. Class 8 truck sales
- 3,880 trucks
- Q3 2026; up 24.4% year over year and 6.5% of the market
- Share repurchases
- $10.3 million
- Common stock repurchased during Q3 2026
Previous Dividends,earnings Reports
-
Reported Q3 2025 revenue of $1.881 billion and net income of $66.7 million.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
par value financial
auxiliary power units technical
class 8 technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Revenues of
$2.1 billion , net income of$78.0 million - Earnings per diluted share of
$0.65 - Strong Class 8 deliveries during quarter; industry-wide order intake slowed while EPA finalizes regulations
- Absorption ratio
128.3% - Board declares cash dividend of
$0.14 per share of Class A and Class B common stock
NEW BRAUNFELS, Texas, Oct. 27, 2026 (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 September 30, 2026, the Company achieved revenues of
On July 28, 2026, the Company’s Board of Directors declared a three-for-two stock split with respect to both the Company’s Class A and Class B common stock, which was effected in the form of a stock dividend. On August 31, 2026, the Company distributed one additional share of stock for every two shares of Class A common stock, par value
“I am proud of our team and the results we achieved during the third quarter. We delivered solid growth in revenues and earnings compared to the same period last year, primarily due to increased new truck deliveries and aftermarket activity. We believe that our results reflect the continued improvement of freight markets following the extended industry downcycle, and we expect that improvement to continue in the fourth quarter,” Rush said.
“Our performance during the quarter also demonstrates the importance of the diversified business we have built over many years, which allows us to serve commercial vehicle operators across a broad range of needs. Our broad customer base and comprehensive offerings helped us capitalize on improving demand, resulting in strong financial results in the third quarter,” Rush explained. “I was also pleased with our employees’ execution during the quarter, in addition to the numerous ways in which I witnessed them demonstrate their commitment to our customers. We believe that our ability to strengthen customer relationships through superior customer service is a key driver to growing our business as the premier solutions provider to the commercial vehicle industry,” Rush continued.
Strategic Growth and Expansion
During the third quarter, the Company completed its previously announced 50 percent-owned joint venture with MCT Companies, one of the largest Carrier Transicold dealers in the United States. The joint venture operates 17 full-service dealerships and three mobile service locations across California, Nebraska, Kansas, North Carolina, South Carolina and Virginia. MCT Companies provides sales, parts, and service for transport refrigeration systems and auxiliary power units, as well as refrigerated trailer rentals and mobile service.
“Our investment in MCT Companies marks our entrance into the refrigerated transportation sector and represents another step in our strategy to become the total solutions provider to the commercial vehicle industry,” Rush said. “Our strategic growth initiatives are focused on supporting the growth of MCT’s business, continuing to pursue expansion opportunities within our existing markets and acquiring or investing in businesses that are adjacent to the commercial vehicle industry. We believe that the successful execution of these initiatives will allow us to better serve our customers’ needs, which we believe will position us to deliver greater value to both customers and shareholders over the long term,” he continued.
Aftermarket Products and Services
Aftermarket products and services accounted for approximately
“We were encouraged by improved aftermarket demand during the third quarter. We experienced growth across all customer segments, with energy and wholesale customers representing the fastest-growing segments. While the aftermarket recovery has not been as robust as the increase in demand for new commercial vehicles, we saw positive signs of improved aftermarket demand among smaller, local customers as well,” he continued.
“Looking ahead, we expect aftermarket demand to continue to gradually improve through the remainder of the year, subject to normal seasonal patterns. We also believe that new truck deliveries from our backlog that are currently scheduled for the fourth quarter of 2026 through the first quarter of 2027 will generate additional aftermarket activity. We remain focused on executing on certain of our aftermarket strategic initiatives, which include improving operating efficiency and expanding our relationships with local customers through a more disciplined approach to account management. We believe these efforts will help us capture additional aftermarket business and meet more of our customers’ ongoing maintenance and repair needs,” he added.
Commercial Vehicle Sales
New U.S. Class 8 retail truck sales totaled 59,616 units in the third quarter of 2026, up
“Our Class 8 truck sales increased substantially during the third quarter, outpacing the industry and allowing us to gain market share. Our over-the-road customer segment was the primary driver of that improvement, as stronger freight rates and our customers’ need to replace aging equipment supported demand,” Rush stated.
“Our current backlog suggests that our new commercial vehicle sales will be strong in the fourth quarter and into the first quarter of 2027, although supply capacity constraints may affect the timing of deliveries. However, quoting and new order activity have slowed recently as the industry awaits the EPA’s final rules with respect to its 2027 emissions regulations. Until the rules are finalized, manufacturer pricing for 2027 may continue to be fluid, which will likely result in customers delaying purchasing decisions. On a positive note, while the timing of future orders for commercial vehicles remains uncertain, we believe that industry demand for new Class 8 trucks is still healthy and that orders will pick up shortly after the EPA finalizes its rules. We further believe that we are well positioned to serve customers with their near-term equipment needs once they have the necessary information from both the EPA and manufacturers to plan their vehicle replacement strategy,” he explained.
New U.S. Class 4-7 retail commercial vehicle sales totaled 53,580 units in the third quarter of 2026, an increase of
“Our medium-duty sales continued to strengthen during the third quarter, driven in large part by increased deliveries to our larger fleet customers that had delayed their purchases until the second half of 2026. We were pleased to grow sales and outperform the market in a quarter when overall industry sales were essentially flat. Our ready-to-roll inventory also positioned us to meet customer demand as manufacturers’ capacity to accept additional orders became more limited,” Rush noted.
“We remain positive about our medium-duty sales opportunities in the fourth quarter and into early 2027, although production delays and limited availability from certain of the manufacturers we represent may present challenges. In order to address these potential challenges, we increased our inventory during the third quarter to get in front of potential production constraints. We believe our strategy will provide us with a competitive advantage and allow us to serve customers who need medium-duty equipment in the near term,” he continued.
The Company sold 1,913 used commercial vehicles in the third quarter of 2026, an increase of
Leasing and Rental
Leasing and rental revenue in the third quarter of 2026 was
“We expect rental demand to remain strong through the fourth quarter and into early 2027, as customers evaluate alternatives to purchasing higher-priced commercial vehicles. However, we believe that leasing demand may soften in the first quarter of 2027 due to the fact that many customers purchased replacement vehicles ahead of anticipated new 2027 model price increases. Our priorities include adding new lease customers, expanding our contract maintenance customer base and selectively growing our rental fleet as demand supports it. We believe these opportunities position Rush Truck Leasing to continue to be an important contributor to our overall performance,” he added.
Financial Highlights
In the third quarter of 2026, the Company’s gross revenues totaled
Aftermarket products and services revenues were
Rush Truck Leasing operates 72 PacLease and Idealease franchises across the United States and Ontario, Canada with more than 10,000 trucks in its lease and rental fleet and more than 2,400 trucks under contract maintenance agreements. Leasing and rental revenue increased
During the third quarter of 2026, the Company repurchased
“Our third quarter results demonstrate the strength of our diversified business model and our ability to return capital to shareholders while continuing to invest in our business. We believe that our total solutions strategy differentiates us by bringing together the equipment, services and support that customers need throughout the commercial vehicle life cycle. We believe that our approach will help customers manage their fleets in the most efficient manner and keep their vehicles up and running, while also providing us with more opportunities to strengthen those relationships and earn more of each customer’s business in areas where we may not be as strong today. We are focused on executing this strategy and allocating capital responsibly to create long-term value for our shareholders,” Rush stated.
“Finally, I want to thank our employees for their hard work and commitment to our customers and to one another. Their expertise and dedication were essential to our performance this quarter. On behalf of our Board of Directors and leadership team, I want to express our appreciation for their contributions and their continued commitment to Rush Enterprises,” he concluded.
Conference Call Information
Rush Enterprises will host its quarterly conference call to discuss earnings for the third quarter of 2026 on October 28, 2026, at 10 a.m. Eastern/9 a.m. Central. The call can be heard live via the Internet at:
http://investor.rushenterprises.com/events.cfm.
Participants may register for the call at:
https://register-conf.media-server.com/register/BIb0ffed11621b4638812a165f5443c0ae
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 160 locations in 24 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, 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, and leasing and rental solutions. Rush Enterprises' operations also provide CNG fuel systems (through its investment in Cummins Clean Fuel Technologies, Inc.), transportation refrigeration units and auxiliary power units (through its investment in MCT Holdco LLC), telematics products and other vehicle technologies, as well as vehicle modification and upfitting, chrome accessories, and tires. For more information, please visit us at www.rushtruckcenters.com and www.rushenterprises.com, on X @rushtruckcenter, Facebook.com/rushtruckcenters and www.linkedin.com/company/rushenterprises-inc.
Certain statements contained in this release, including those concerning current and projected market conditions, sales forecasts, market share forecasts, 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, increased fuel prices as a result of the conflict in Iran, 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, 2025. In addition, the declaration and payment of cash dividends and authorization of future share repurchase programs remain at the sole discretion of the Company’s Board of Directors, and the declaration and payment 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.
Contact:
Rush Enterprises, Inc., New Braunfels
Steven L. Keller, 830-302-5226
-Tables and Additional Information to Follow-
| RUSH ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands, Except Shares and Per Share Amounts) (Unaudited) | ||||||
| September 30, | December 31, | |||||
| 2026 | 2025 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash, cash equivalents and restricted cash | $ | 226,400 | $ | 212,645 | ||
| Accounts receivable, net | 333,433 | 277,784 | ||||
| Note receivable, affiliate | 10,606 | 11,576 | ||||
| Inventories, net | 1,722,291 | 1,534,471 | ||||
| Prepaid expenses and other | 26,228 | 54,662 | ||||
| Total current assets | 2,318,958 | 2,091,138 | ||||
| Property and equipment, net | 1,694,934 | 1,694,738 | ||||
| Operating lease right-of-use assets, net | 127,026 | 124,130 | ||||
| Goodwill, net | 469,034 | 441,615 | ||||
| Other assets, net | 128,611 | 78,915 | ||||
| Total assets | $ | 4,738,563 | $ | 4,430,536 | ||
| Liabilities and shareholders’ equity | ||||||
| Current liabilities: | ||||||
| Floor plan notes payable | $ | 964,535 | $ | 917,955 | ||
| Current maturities of long-term debt | 121 | 127 | ||||
| Current maturities of finance lease obligations | 29,209 | 34,519 | ||||
| Current maturities of operating lease obligations | 22,043 | 19,285 | ||||
| Trade accounts payable | 302,969 | 230,763 | ||||
| Customer deposits | 109,552 | 112,149 | ||||
| Accrued expenses | 177,340 | 177,292 | ||||
| Total current liabilities | 1,605,769 | 1,492,090 | ||||
| Long-term debt, net of current maturities | 269,705 | 274,798 | ||||
| Finance lease obligations, net of current maturities | 81,156 | 88,149 | ||||
| Operating lease obligations, net of current maturities | 107,941 | 107,698 | ||||
| Other long-term liabilities | 40,054 | 34,225 | ||||
| Deferred income taxes, net | 215,902 | 207,733 | ||||
| Shareholders’ equity: | ||||||
| Preferred stock, par value $.01 per share; 1,000,000 shares authorized; 0 shares outstanding in 2026 and 2025 | – | – | ||||
| Common stock, par value $.01 per share; 105,000,000 Class A shares and 35,000,000 Class B shares authorized; 91,790,881 Class A shares and 25,003,388 Class B shares outstanding in 2026; and 90,172,640 Class A shares and 24,656,864 Class B shares outstanding in 2025 | 1,167 | 835 | ||||
| Additional paid-in capital | 680,128 | 634,266 | ||||
| Treasury stock, at cost: 202,222 Class A shares and 12,624 Class B shares in 2026; and 6,880,187 Class A shares and 3,528,245 Class B shares in 2025 | (10,336 | ) | (331,150 | ) | ||
| Retained earnings | 1,733,399 | 1,904,091 | ||||
| Accumulated other comprehensive income (loss) | (10,262 | ) | (4,813 | ) | ||
| Total Rush Enterprises, Inc. shareholders’ equity | 2,394,096 | 2,203,229 | ||||
| Noncontrolling interest | 23,940 | 22,614 | ||||
| Total shareholders’ equity | 2,418,036 | 2,225,843 | ||||
| Total liabilities and shareholders’ equity | $ | 4,738,563 | $ | 4,430,536 | ||
| RUSH ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Amounts) (Unaudited) | ||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Revenues | ||||||||||||
| New and used commercial vehicle sales | $ | 1,324,922 | $ | 1,134,856 | $ | 3,429,057 | $ | 3,457,130 | ||||
| Aftermarket products and services sales | 679,934 | 642,658 | 1,952,787 | 1,897,984 | ||||||||
| Lease and rental sales | 98,205 | 93,304 | 285,329 | 276,681 | ||||||||
| Finance and insurance | 6,142 | 5,575 | 18,117 | 16,339 | ||||||||
| Other | 3,895 | 4,372 | 11,676 | 14,168 | ||||||||
| Total revenue | 2,113,098 | 1,880,765 | 5,696,966 | 5,662,302 | ||||||||
| Cost of products sold | ||||||||||||
| New and used commercial vehicle sales | 1,219,570 | 1,034,698 | 3,149,569 | 3,152,875 | ||||||||
| Aftermarket products and services sales | 436,833 | 403,811 | 1,250,738 | 1,198,565 | ||||||||
| Lease and rental sales | 69,729 | 67,504 | 204,218 | 198,679 | ||||||||
| Total cost of products sold | 1,726,132 | 1,506,013 | 4,604,525 | 4,550,119 | ||||||||
| Gross profit | 386,966 | 374,752 | 1,092,441 | 1,112,183 | ||||||||
| Selling, general and administrative expense | 259,975 | 256,403 | 748,084 | 757,187 | ||||||||
| Depreciation and amortization expense | 18,655 | 18,155 | 56,441 | 53,022 | ||||||||
| Gain (loss) on sale of assets | (337 | ) | (164 | ) | (523 | ) | 131 | |||||
| Operating income | 107,999 | 100,030 | 287,393 | 302,105 | ||||||||
| Other income (loss), net | 186 | (438 | ) | (804 | ) | (1,250 | ) | |||||
| Interest expense, net | 5,768 | 11,718 | 16,505 | 37,307 | ||||||||
| Income before taxes | 102,417 | 87,874 | 270,084 | 263,548 | ||||||||
| Income tax provision | 23,534 | 20,136 | 56,500 | 62,204 | ||||||||
| Net income | 78,883 | 67,738 | 213,584 | 201,344 | ||||||||
| Less: Net income attributable to noncontrolling Interest | 840 | 1,048 | 1,326 | 1,894 | ||||||||
| Net income attributable to Rush Enterprises, Inc. | $ | 78,043 | $ | 66,690 | $ | 212,258 | $ | 199,450 | ||||
| Net income attributable to Rush Enterprises, Inc. per share of common stock: | ||||||||||||
| Basic | $ | 0.67 | $ | 0.57 | $ | 1.82 | $ | 1.69 | ||||
| Diluted | $ | 0.65 | $ | 0.55 | $ | 1.76 | $ | 1.64 | ||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 116,956 | 117,353 | 116,706 | 118,139 | ||||||||
| Diluted | 120,455 | 120,890 | 120,271 | 121,751 | ||||||||
| Dividends declared per common share | $ | 0.14 | $ | 0.13 | $ | 0.39 | $ | 0.37 | ||||
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as 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. Please note that all non-GAAP financial measures are provided on an unaudited basis. 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) | September 30, 2026 | September 30, 2025 | ||||
| New heavy-duty vehicles | $ | 701,713 | $ | 591,802 | ||
| New medium-duty vehicles (including bus sales) | 436,215 | 393,831 | ||||
| New light-duty vehicles | 74,496 | 49,606 | ||||
| Used vehicles | 101,694 | 95,304 | ||||
| Other vehicles | 10,804 | 4,313 | ||||
| Absorption Ratio | 128.3 | % | 129.3 | % | ||
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) | September 30, 2026 | September 30, 2025 | ||||
| Floor plan notes payable | $ | 964,535 | $ | 1,007,092 | ||
| Current maturities of long-term debt | 121 | 125 | ||||
| Current maturities of finance lease obligations | 29,209 | 36,093 | ||||
| Long-term debt, net of current maturities | 269,705 | 263,007 | ||||
| Finance lease obligations, net of current maturities | 81,156 | 89,603 | ||||
| Total Debt (GAAP) | 1,344,726 | 1,395,920 | ||||
| Adjustments: | ||||||
| Debt related to lease & rental fleet | (376,902 | ) | (385,370 | ) | ||
| Floor plan notes payable | (964,535 | ) | (1,007,092 | ) | ||
| Adjusted Total Debt (Non-GAAP) | 3,289 | 3,458 | ||||
| Adjustment: | ||||||
| Cash and cash equivalents | (226,400 | ) | (242,005 | ) | ||
| Adjusted Net Debt (Cash) (Non-GAAP) | $ | (223,111 | ) | $ | (238,547 | ) |
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 vehicles financed as collateral through a banking institution or the vendor’s financing arm and is required to be repaid as the collateral is sold. The Company has the capacity to finance all of its new and used inventory under its lines of credit established for these purposes but may choose to only partially finance them 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 that 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) | September 30, 2026 | September 30, 2025 | ||||
| Net Income attributable to Rush Enterprises, Inc. (GAAP) | $ | 276,586 | $ | 274,202 | ||
| Provision for income taxes | 74,124 | 83,627 | ||||
| Interest expense | 25,433 | 53,064 | ||||
| Depreciation and amortization | 74,555 | 70,195 | ||||
| (Gain) loss on sale of assets | 239 | (250 | ) | |||
| EBITDA (Non-GAAP) | 450,937 | 480,838 | ||||
| Adjustment: | ||||||
| Less Interest expense associated with FPNP and L&RFD | (31,172 | ) | (54,844 | ) | ||
| Adjusted EBITDA (Non-GAAP) | $ | 419,765 | $ | 425,994 | ||
The Company presents EBITDA and Adjusted EBITDA, for the twelve months ended for 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 provides management with supplemental information regarding operating results and assists investors in performing analysis that is consistent with financial models developed by management and research analysts. “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) | September 30, 2026 | September 30, 2025 | ||||
| Net cash provided by operations (GAAP) | $ | 372,348 | $ | 1,139,643 | ||
| Acquisition of property and equipment | (311,023 | ) | (447,644 | ) | ||
| Free cash flow (Non-GAAP) | 61,325 | 691,999 | ||||
| Adjustments: | ||||||
| Draws on floor plan financing, net | 185,377 | (291,925 | ) | |||
| Cash used for L&RF purchases | 240,388 | 344,016 | ||||
| Non-maintenance capital expenditures | 52,485 | 50,187 | ||||
| Adjusted Free Cash Flow (Non-GAAP) | $ | 539,575 | $ | 794,278 | ||
“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 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) adds back proceeds from notes payable related specifically to the financing of the lease and rental fleet that are reflected in Cash flows from financing activities; (iii) subtracts draws on floor plan financing, net and proceeds from L&RFD related to business acquisition assets that are included in Cash flows from investing activities; (iv) subtracts scheduled principal payments on fixed rate notes payable related specifically to the financing of the lease and rental fleet that are included in Cash flows from financing activities; (v) subtracts lease and rental fleet purchases that are included in acquisition of property and equipment and not financed under the lines of credit for cash and interest expense management purposes; and (vi) 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) | September 30, 2026 | September 30, 2025 | ||||
| Total Rush Enterprises, Inc. shareholders’ equity (GAAP) | $ | 2,393,678 | $ | 2,214,499 | ||
| Adjusted net debt (cash) (Non-GAAP) | (223,111 | ) | (393,459 | ) | ||
| Adjusted Invested Capital (Non-GAAP) | $ | 2,170,567 | $ | 1,821,040 | ||
“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 with 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.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Rush Enterprises' third-quarter 2026 earnings?
Rush Enterprises earned $78.0 million, or $0.65 per diluted share, on revenue of $2.113 billion. In third-quarter 2025, net income was $66.7 million, or $0.55 per diluted share, on revenue of $1.881 billion. Per-share figures reflect the three-for-two stock split.
When will Rush Enterprises pay its $0.14 dividend?
The $0.14 per-share dividend on Class A and Class B common stock is payable December 10, 2026, to shareholders of record as of November 11, 2026.
How much of Rush Enterprises' gross profit came from aftermarket services in third-quarter 2026?
Aftermarket products and services accounted for approximately 62.8% of total gross profit in third-quarter 2026. This business includes parts, service and collision center operations.
Why does Rush Enterprises expect commercial vehicle customers to delay purchasing decisions?
Rush expects customers to delay purchasing decisions because manufacturer pricing for 2027 may remain fluid until the EPA finalizes its emissions rules. The company believes orders will pick up shortly after the rules are finalized, although the timing of future orders remains uncertain.