Rush Enterprises, Inc. Increases Stock Repurchase Program by $50 Million

Rhea-AI Summary

Rush Enterprises, North America's largest commercial vehicle dealership network, has announced a $50 million increase to its stock repurchase program. This expansion brings the total authorization to $200 million, up from the previous $150 million which was nearing its limit. Despite challenges including tariff uncertainty, freight recession, and a difficult commercial vehicle market, CEO W.M. "Rusty" Rush expressed confidence in the company's strong capital position and free cash flow generation. The repurchase program, expiring on December 31, 2025, will be executed through open market transactions, private negotiations, or other means in compliance with federal securities laws. Management will determine the timing and value of repurchases based on market conditions and stock price.

Positive

• Increase of $50 million in stock repurchase program, bringing total authorization to $200 million
• Strong capital position and ability to generate free cash flow despite market challenges
• Company maintains ability to invest in growth while returning capital to shareholders
• Successful diversified customer base and 'One Team' sales approach contributing to solid financial performance

Negative

• Ongoing uncertainty surrounding tariffs affecting business environment
• Company facing continuing freight recession
• Challenging commercial vehicle market conditions

Insights

Financial Analyst

Rush Enterprises' $50M buyback expansion signals management confidence despite industry headwinds and enhances shareholder value through its strong cash position.

Rush Enterprises has expanded its stock repurchase program by $50 million, bringing the total authorization to $200 million as they approach the original $150 million limit. This move demonstrates significant management confidence in the company's financial health despite acknowledging three major headwinds: tariff uncertainties, an ongoing freight recession, and challenging commercial vehicle market conditions.

This capital allocation decision reveals important insights about Rush's financial position. The company clearly maintains strong liquidity and cash flow generation capabilities even in a difficult operating environment. By implementing this buyback during sector weakness rather than waiting for industry recovery, management is signaling they believe their stock represents good value at current levels.

The buyback structure provides considerable flexibility through its December 31, 2025 expiration date. The company has wisely built in discretionary elements regarding timing, amount, and methodology of repurchases, allowing them to adapt to changing market conditions. This strategic optionality enables Rush to be opportunistic in their repurchases while maintaining the financial flexibility to navigate industry challenges.

For shareholders, this program offers potential benefits through reduced share count, which mathematically increases earnings per share and ownership percentage for remaining shareholders. The move also suggests management sees internal investment in their own stock as competitive with other capital allocation alternatives like acquisitions or organic growth initiatives - typically a positive indicator of a company's intrinsic value assessment.

SAN ANTONIO, May 29, 2025 (GLOBE NEWSWIRE) -- Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), which operates the largest network of commercial vehicle dealerships in North America, today announced that its Board of Directors approved an increase of $50 million to its existing stock repurchase program authorizing the Company to repurchase, from time to time, up to an aggregate of $200 million of its shares of Class A common stock, $.01 par value per share, and/or Class B common stock, $.01 par value per share. This increase follows the Company nearing the original authorization limit of $150 million. “Despite the continued uncertainty surrounding tariffs, the continuing freight recession and challenging commercial vehicle market, we remain confident in our strong capital position, liquidity and ability to generate strong free cash flow, and we are pleased to take this opportunity to enhance shareholder value through this $50 million increase to our stock repurchase program,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer and President of the Company. “The Company’s strategic focus on maintaining a diversified customer base and our “One Team” sales approach has served us well, and we believe our solid financial performance during the recent challenging industry and market conditions will allow us to continue to invest in our growth strategy while also returning capital to our shareholders,” Rush stated.

Repurchases will be made at times and in amounts as the Company deems appropriate and may be made through open market transactions at prevailing market prices, privately negotiated transactions or by other means in accordance with federal securities laws. The actual timing, number and value of repurchases under the stock repurchase program will be determined by management in its discretion and will depend on a number of factors, including market conditions, stock price and other factors. The stock repurchase program expires on December 31, 2025, and may be suspended or discontinued at any time.

About Rush Enterprises, Inc.

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 and financial performance, 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.

Contact:
Rush Enterprises, Inc., San Antonio
Steven L. Keller, 830-302-5226

FAQ

What is the new total amount of Rush Enterprises (RUSHA) stock repurchase program?

Rush Enterprises' stock repurchase program has been increased to $200 million total, following a $50 million increase from the previous $150 million authorization.

When does Rush Enterprises' (RUSHA) stock buyback program expire?

The stock repurchase program expires on December 31, 2025.

What challenges is Rush Enterprises (RUSHA) currently facing?

Rush Enterprises is facing challenges including tariff uncertainty, a continuing freight recession, and challenging commercial vehicle market conditions.

How will Rush Enterprises (RUSHA) execute its stock repurchase program?

The company will execute repurchases through open market transactions at prevailing market prices, privately negotiated transactions, or other means in accordance with federal securities laws.

What is Rush Enterprises' (RUSHA) market position in North America?

Rush Enterprises operates the largest network of commercial vehicle dealerships in North America.