Financial Performance - For the third quarter of 2025, the company reported revenues of $1.881 billion, a decrease of 0.8% from $1.896 billion in the same quarter of 2024. Net income was $66.7 million, or $0.83 per diluted share, down from $79.1 million, or $0.97 per diluted share, in the prior year [1][19]. - The company recognized a one-time, pre-tax charge of approximately $3.3 million related to Hurricane Helene in the third quarter of 2024, which impacted year-over-year comparisons [1][19]. - Selling, General and Administrative expenses increased due to higher legal reserves and insurance retentions, contributing to the decline in net income [3][19]. Industry Conditions - The commercial vehicle industry faced challenging conditions in Q3 2025, with depressed freight rates and overcapacity affecting market dynamics. Economic uncertainty and regulatory ambiguity, particularly regarding engine emissions, influenced customers' vehicle replacement decisions [2][11]. - New U.S. Class 8 retail truck sales totaled 54,078 units, down 18.9% year-over-year, with the company selling 3,120 new Class 8 trucks, a decrease of 11.0% [10][11]. - Demand from large over-the-road fleet customers remained weak due to a prolonged freight recession, while vocational customer demand was stable, highlighting the strength of the company's diversified customer base [11]. Aftermarket Products and Services - Aftermarket products and services accounted for approximately 63.7% of the company's total gross profit in Q3 2025, with revenues of $642.7 million, up 1.5% from $633.0 million in Q3 2024 [5][20]. - The company achieved a quarterly absorption ratio of 129.3%, slightly down from 132.6% in the same quarter of the previous year, indicating effective management of overhead expenses [5][36]. - The company remains focused on strategic initiatives in the aftermarket segment, including technician recruitment and expanding the aftermarket sales force, to offset weak demand [6][7]. Commercial Vehicle Sales - The company sold 3,215 new heavy-duty trucks, 3,427 new medium-duty commercial vehicles, and 858 new light-duty commercial vehicles in Q3 2025, compared to 3,604, 3,379, and 574 units, respectively, in Q3 2024 [20]. - New Class 4 through 7 retail commercial vehicle sales totaled 53,174 units, a decrease of 17.4% year-over-year, with the company selling 2,979 units, down 8.3% [12][13]. - The company experienced a significant increase in bus sales due to the acquisition of an IC Bus franchise in Canada, which helped capture new customer segments [13]. Leasing and Rental Operations - Leasing and rental revenue in Q3 2025 was $93.3 million, up 4.7% compared to the same quarter in 2024, reinforcing its role as a consistent revenue stream [16][17]. - The company operates over 10,000 trucks in its lease and rental fleet, benefiting from a modernized fleet and disciplined cost management [17]. Dividend and Stock Repurchase - The company's Board of Directors declared a cash dividend of $0.19 per share, to be paid on December 12, 2025, to shareholders of record as of November 12, 2025 [1][9]. - The company repurchased $9.2 million of its common stock during the quarter, with a total of $130.6 million repurchased out of an authorized $200 million [21].