Rush Enterprises, Inc. Reports Second Quarter 2025 Results, Announces $0.19 Per Share Dividend

Financial Performance - For the quarter ended June 30, 2025, the company reported revenues of $1.931 billion, a decrease of 4.8% from $2.027 billion in the same quarter of 2024. Net income was $72.4 million, or $0.90 per diluted share, down from $78.7 million, or $0.97 per diluted share, in the prior year [1][20][24] - The company declared a cash dividend of $0.19 per share, representing a 5.6% increase over the previous quarter [1][9][23] Market Conditions - The commercial truck industry continues to face challenges, including depressed freight rates and overcapacity, which have led to weak demand for new vehicles and aftermarket products [2][11] - New U.S. Class 8 retail truck sales totaled 58,625 units in Q2 2025, down 0.6% year-over-year, with the company selling 3,178 new Class 8 trucks, a decrease of 20.3% compared to 2024 [10][11] Aftermarket Products and Services - Aftermarket products and services accounted for approximately 63.0% of the company's total gross profit in Q2 2025, with revenues of $636.3 million, up 1.4% from the same period in 2024 [5][21] - The company achieved a quarterly absorption ratio of 135.5%, compared to 134.0% in Q2 2024, indicating strong operational efficiency [5][9] Commercial Vehicle Sales - The company sold 3,259 new heavy-duty trucks, 3,803 new medium-duty commercial vehicles, and 1,715 used commercial vehicles in Q2 2025, with medium-duty sales showing a year-over-year increase of 1.0% [21][14] - The company expects new Class 4-7 commercial vehicle sales in Q3 2025 to be similar to Q2 results, driven by healthy demand across customer segments [15][14] Leasing and Rental Operations - Rush Truck Leasing reported lease and rental revenue of $93.1 million in Q2 2025, a 6.3% increase compared to the same period in 2024, with record revenues achieved [17][18] - The rental utilization rate has improved throughout the first half of the year, contributing to increased rental revenue year-over-year [18] Strategic Initiatives - The company is focused on managing expenses and driving operational efficiency, with efforts to identify new customer segments for revenue growth [3][6] - Despite ongoing economic uncertainty, there are signs of recovery and sequential growth across most customer segments, which may indicate improving demand ahead [7][12]