Rush Enterprises(RUSHA) - 2025 Q3 - Quarterly Results

Financial Performance - For Q3 2025, Rush Enterprises reported revenues of $1.881 billion, a 0.8% decrease from $1.896 billion in Q3 2024, and net income of $66.7 million, or $0.83 per diluted share, down from $79.1 million, or $0.97 per diluted share in the same period last year[1][17] - Total revenue for Q3 2025 was $1,880,765, a decrease of 0.7% compared to $1,896,133 in Q3 2024[30] - Net income attributable to Rush Enterprises, Inc. for Q3 2025 was $66,690, down 15.7% from $79,132 in Q3 2024[30] - New heavy-duty vehicle sales revenue for Q3 2025 was $591,802, a decrease of 12.7% from $677,882 in Q3 2024[32] - Net income attributable to Rush Enterprises, Inc. for the twelve months ended September 2025 was $274,202, a decrease of 10.8% from $307,448 in September 2024[35] - Adjusted EBITDA (Non-GAAP) for the twelve months ended September 2025 was $425,994, down 9.7% from $472,169 in September 2024[35] Aftermarket and Sales Performance - Aftermarket products and services accounted for approximately 63.7% of total gross profit, with revenues totaling $642.7 million, up 1.5% compared to Q3 2024[5][18] - New U.S. Class 8 retail truck sales totaled 54,078 units in Q3 2025, down 18.9% year-over-year, with the company selling 3,120 new Class 8 trucks, a decrease of 11.0% compared to Q3 2024[9][10] - New Class 4 through 7 retail commercial vehicle sales totaled 53,174 units, down 17.4% year-over-year, with the company selling 2,979 units, a decrease of 8.3% compared to Q3 2024[11][12] - The company expects continued challenges in aftermarket conditions for the remainder of the year, with weak demand anticipated due to ongoing industry headwinds[8] Dividends and Shareholder Returns - The company declared a cash dividend of $0.19 per share of Class A and Class B common stock, to be paid on December 12, 2025[1][6] - The company declared dividends of $0.19 per common share for Q3 2025, up from $0.18 in Q3 2024[30] - The company repurchased $9.2 million of its common stock during Q3 2025, totaling $130.6 million of the $200.0 million authorized by the Board[19] Assets and Liabilities - Total assets as of September 30, 2025, were $4,553,062, a decrease from $4,617,547 as of December 31, 2024[28] - Total debt (GAAP) as of September 30, 2025, was $1,395,920, down from $1,815,461 in 2024[34] - Adjusted total debt (non-GAAP) was $3,458 as of September 30, 2025, compared to $3,985 in 2024[34] - Cash and cash equivalents increased to $242,005 as of September 30, 2025, from $185,073 in 2024[34] Operational Efficiency - Lease and rental revenue increased by 4.7% to $93.3 million in Q3 2025, highlighting the strength of Rush Truck Leasing as a consistent revenue stream[15] - The absorption ratio for Q3 2025 was 129.3%, compared to 132.6% in Q3 2024, indicating effective management of service and parts operations[5][6] - The absorption ratio for Q3 2025 was 129.3%, slightly lower than 132.6% in Q3 2024[32] Capital Expenditures and Investments - The strategic acquisition of an IC Bus franchise in Canada has allowed the company to capture new customer segments and strengthen its market presence[12][20] - The company reported a significant increase in acquisitions of L&RF assets, totaling $344,016 in September 2025 compared to $285,404 in September 2024[36] Cash Flow and Expenses - Free cash flow (Non-GAAP) for the twelve months ended September 2025 was $691,999, a significant recovery from a negative $72,111 in September 2024[36] - Net cash provided by operations (GAAP) increased to $1,139,643 in September 2025 from $311,922 in September 2024, representing a growth of 264.5%[36] - Depreciation and amortization expenses increased to $70,195 in September 2025 from $66,475 in September 2024, marking a rise of 4.3%[35] - Interest expense for the twelve months ended September 2025 was $53,064, down 25% from $70,603 in September 2024[35] Equity and Capital Structure - Total Rush Enterprises, Inc. shareholders' equity (GAAP) rose to $2,214,499 in September 2025, an increase of 6.3% from $2,083,145 in September 2024[37] - Adjusted invested capital (Non-GAAP) decreased to $1,821,040 in September 2025 from $1,902,057 in September 2024, reflecting a decline of 4.3%[37] - Adjusted net debt (cash) (Non-GAAP) worsened to $(393,459) in September 2025 from $(181,088) in September 2024, indicating increased leverage[37]