Rush Enterprises delivered second-quarter results that beat Wall Street expectations, despite a year-over-year decline in sales. Management pointed to continued weakness in the broader commercial vehicle market, largely due to an ongoing freight recession and regulatory uncertainty around engine emissions and trade policy. CEO W. Marvin Rush attributed the quarter’s relative resilience to robust aftermarket operations, noting, “Our aftermarket operations accounted for approximately 63% of our total gross profit in the second quarter,” with sequential growth from owner-operators and small fleets providing some early signs of demand stabilization.
Is now the time to buy RUSHA? Find out in our full research report (it’s free).
Rush Enterprises (RUSHA) Q2 CY2025 Highlights:
- Revenue: $1.93 billion vs analyst estimates of $1.90 billion (4.8% year-on-year decline, 1.6% beat)
- Adjusted EPS: $0.90 vs analyst estimates of $0.80 (12.5% beat)
- Adjusted EBITDA: $163.4 million vs analyst estimates of $156.2 million (8.5% margin, 4.6% beat)
- Operating Margin: 5.7%, in line with the same quarter last year
- Market Capitalization: $4.48 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Rush Enterprises’s Q2 Earnings Call
- Daniel Imbro (Stephens Inc.): asked about Q3 truck order visibility and OEM production plans. CEO W. Marvin Rush described a “dramatic” reduction in OEM production, citing order intake at a multi-year low due to regulatory and freight market uncertainty.
- Daniel Imbro (Stephens Inc.): inquired about aftermarket performance drivers and potential revenue uplift from recent technician hiring. Rush stated that while only modest sales force expansion occurred, aftermarket growth is a strategic focus, and he sees potential for additional gains as market conditions improve.
- Andrew Obin (Bank of America): questioned whether older fleets could boost parts and service demand. Rush agreed, acknowledging increased utilization of aging trucks should benefit aftermarket revenues, although this depends on customers’ business conditions and fleet usage.
- Andrew Obin (Bank of America): asked about capital return priorities and potential acceleration of share buybacks. Rush explained the board’s prudent approach, highlighting recent buyback increases but emphasizing a conservative stance regarding leverage.
- Andrew Obin (Bank of America): sought insight on macro trends across geographies and verticals. Rush pointed to persistent uncertainty, especially in California, and expressed hope that regulatory clarity would improve decision-making for both customers and manufacturers.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) progress on regulatory clarity around emissions and trade policy, which could unlock deferred demand for new trucks; (2) ongoing stability and potential growth in aftermarket operations, particularly as fleet ages increase; and (3) execution of cost control and workforce initiatives to preserve profitability in a challenging sales environment. Developments in leasing and rental utilization will also serve as key indicators of recovering customer confidence.
Rush Enterprises currently trades at $57.39, up from $53.16 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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