Rush Enterprises(US:RUSHA) Globenewswireยท2025-02-18 21:05Financial Performance - For the year ended December 31, 2024, the company achieved revenues of $7.8 billion, a slight decrease from $7.9 billion in 2023. Net income was $304.2 million, or $3.72 per diluted share, down from $347.1 million, or $4.15 per diluted share in the previous year [1][24]. - The company recognized a one-time, pre-tax charge of approximately $3.3 million in Q3 2024 due to Hurricane Helene, compared to a $2.5 million charge in Q3 2023 related to a fire loss [1][24]. - Adjusted net income for 2024 was $306.7 million, or $3.75 per diluted share, compared to $349.0 million, or $4.17 per diluted share in 2023 [1][24]. Market Conditions - The company faced persistent headwinds in 2024, including a freight recession, high interest rates, and economic uncertainty, which negatively impacted demand for Class 8 trucks, particularly from over-the-road carriers [2]. - Despite challenges, vocational and public sector sales of new Class 8 trucks remained strong, helping to offset weak demand from over-the-road customers [2]. - New U.S. and Canadian Class 8 retail truck sales totaled 275,184 units in 2024, down 8.8% from 2023, with the company selling 15,465 new Class 8 trucks, a decrease of 11.4% [14]. Aftermarket Products and Services - Aftermarket products and services accounted for approximately 60.4% of the company's total gross profits in 2024, with revenues totaling $2.5 billion, down 1.8% from 2023 [11][25]. - Parts revenue decreased year-over-year, primarily due to lower sales to over-the-road and wholesale customers, while service and body shop revenues increased, driven by vocational and public sector customers [3][12]. - The company achieved an annual absorption ratio of 132.2% in 2024, compared to 135.3% in 2023, indicating effective management of overhead expenses [11]. Strategic Initiatives - The company expanded its network in 2024 by adding new Rush Truck Centers locations and enhancing vehicle modification capabilities, demonstrating a commitment to better serve customers [9]. - A $150 million stock repurchase program was announced, reflecting confidence in the company's ability to generate strong free cash flow despite challenging conditions [4]. - The company plans to focus on growing its national account customer base and expanding its mobile service fleet to enhance aftermarket service sales in 2025 [13]. Future Outlook - Looking ahead to 2025, the company anticipates a challenging first half for new Class 8 truck sales, with expectations for improvement in freight rates by the end of Q2 [5][17]. - The company expects to maintain its market share in Class 4-7 commercial vehicles, despite a slight market softening, and aims to continue growing its medium-duty market share [5][19]. - The company is monitoring proposed tariffs that may impact vehicle and component prices, which could affect demand in 2025 [7].