Rush Enterprises Reports Mixed Q3 Results Amid Challenging Market Conditions

Rush Enterprises, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, reflecting a mixed performance amid challenging market conditions. Total revenue for the three months was $1,896.1 million, a decrease of $84.6 million, or 4.3%, compared to $1,980.7 million in the same period of 2023. This decline was primarily attributed to weak demand for Class 8 trucks, with commercial vehicle sales revenue falling to $1,163.3 million from $1,235.8 million year-over-year.

Gross profit for the third quarter was $379.0 million, down from $394.4 million in the prior year, while operating income slightly decreased to $120.8 million from $121.6 million. Net income for the quarter was $79.4 million, compared to $80.6 million in the same period last year. Despite the decline in net income, net income attributable to Rush Enterprises per share increased to $1.00 from $0.99.

For the nine months ended September 30, 2024, total revenue was $5,795.2 million, down from $5,895.6 million in 2023. Net income for this period was $229.7 million, a decrease from $269.9 million in the previous year. The company reported a gross profit of $1,155.3 million, down from $1,201.0 million, with gross profit margins decreasing to 20.0% from 20.5%.

On the balance sheet, total current assets increased to $2,460.4 million from $2,260.3 million at the end of 2023, while total assets rose to $4,648.5 million from $4,364.2 million. Shareholders' equity also improved, reaching $2,103.0 million, up from $1,890.4 million. The company’s retained earnings increased to $1,638.3 million from $1,450.0 million.

Strategically, Rush Enterprises made two significant acquisitions in 2024: the assets of Freeway Ford Truck Sales, Inc. for approximately $16.3 million in December 2023 and Nebraska Peterbilt for about $16.5 million in July 2024. The company also announced a stock repurchase program authorizing up to $150.0 million, with $77.4 million repurchased as of September 30, 2024.

The company’s operational metrics showed a decrease in new heavy-duty vehicle sales, which fell by 16.7% to 3,604 units in Q3 2024, while new medium-duty vehicle sales increased by 4.2% to 3,379 units. The backlog of commercial vehicle orders significantly declined to approximately $1.3 billion from $3.3 billion a year earlier, reflecting decreased demand for new Class 8 trucks.

Overall, Rush Enterprises continues to navigate a challenging market landscape while focusing on strategic acquisitions and maintaining a strong balance sheet.