Earnings call transcript: Rush Enterprises sees stable Q2 2025, aftermarket shines

Rush Enterprises reported stable financial performance during its Q2 2025 earnings call, highlighting strong aftermarket operations despite ongoing industry challenges. The company’s stock remained steady at $52, reflecting investor confidence in its diversified operations and strategic outlook. According to InvestingPro data, Rush maintains a GOOD financial health score, supported by strong profitability metrics.

Key Takeaways

• Aftermarket operations accounted for 63% of gross profit.
• New Class 8 truck sales represented 5.4% of the U.S. market.
• Technician turnover reached a 12-month low, indicating operational stability.
• Freight recession and regulatory uncertainties continue to impact the market.

Company Performance

Rush Enterprises maintained a solid performance in Q2 2025, with trailing twelve-month revenue of $7.69 billion and EBITDA of $680.38 million, driven by its robust aftermarket operations, which contributed significantly to its gross profit. The company managed to sustain its market share in the Class 8 truck segment despite a challenging economic environment characterized by a prolonged freight recession and regulatory uncertainties. InvestingPro analysis shows the company trading near its Fair Value, with additional insights available in the comprehensive Pro Research Report.

Financial Highlights

• Revenue: $1.9 billion, reflecting stability compared to previous quarters.
• Net Income: $72.4 million, translating to $0.90 per diluted share.
• Cash Dividend: $0.19 per share, marking a 1% increase.
• Parts, service, and collision center revenues: $636.3 million, a 1.4% increase year-over-year.

Outlook & Guidance

The company expressed optimism about stable aftermarket demand in Q3 2025, with potential for modest sequential growth. However, new Class 8 truck sales may decline, and regulatory uncertainties surrounding EPA emissions remain a concern. Rush Enterprises is hopeful for market improvement should regulatory clarity be achieved.

Executive Commentary

CEO Rusty Rush emphasized the importance of aftermarket operations, stating, "Two thirds of my profits come from parts and service." He also highlighted the need for regulatory stability, noting, "Once customers know the rules, they’ll be able to make decisions."

Risks and Challenges

• Ongoing freight recession impacting truck sales.
• Regulatory uncertainties affecting market conditions.
• Potential decline in new Class 8 truck sales.
• Production shutdowns across OEMs due to weak order intake.
• Trade policy uncertainties and their impact on operations.

Rush Enterprises remains focused on strengthening its aftermarket operations and maintaining its competitive position in the vocational market. The company continues to navigate industry challenges while seeking opportunities for growth and stability in the coming quarters. With the next earnings report scheduled for October 29, 2025, investors can access comprehensive analysis and forecasts through InvestingPro’s detailed Research Report, which provides deep insights into Rush’s financial health and growth prospects.

Full transcript - Rush Enterprises A Inc (RUSHA) Q2 2025:

Conference Operator: Good day and thank you for standing by. Welcome to the Rush Enterprises Q2 Earnings Release Conference Call. At this time, all participants are in the listen-only mode. After the speaker’s presentation, there will be a question and answer session. To ask a question during the call, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand to raise. To withdraw your question, please press star 11 again. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your first speaker today, Rusty Rush, CEO. Please go ahead.

Rusty Rush, CEO, Rush Enterprises: Vice President, Controller, and Michael Goldstone, Senior Vice President, General Counsel, and Corporate Secretary. Turn over to Steve for a few.

Legal Disclaimer Speaker: Certain statements we will make today are considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Because these statements include risks and uncertainties, our actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in our annual report on Form 10-K for the year ended December 31, 2024, and in our other filings with the Securities and Exchange Commission.

Rusty Rush, CEO, Rush Enterprises: As indicated in our news release, we achieved second quarter revenues of $1.9 billion and net income of $72.4 million or $0.90 per diluted share. I am pleased to announce that the Board of Directors approved a $0.19 per share cash dividend, a 1% increase over our prior quarterly dividend and our ninth increase since announcing our intent to begin paying a quarterly cash dividend in July 2018. Market conditions remain difficult in the second quarter as the industry continues to face a freight recession that has persisted for more than two years and continues to face uncertainty with respect to trade policies and engine emissions regulations. As a result of these factors, many of our customers are delaying vehicle acquisitions and maintenance decisions.

However, despite these many challenges, our employees remain focused on the operational discipline and customer service in the quarter, which helped us deliver solid results, so I want to thank them for their hard work and dedication. Our aftermarket operations accounted for approximately 63% of our total gross profit in the second quarter, with parts, service, and collision center revenues reaching $636.3 million, an increase of 1.4% compared to the second quarter of 2023, and our absorption ratio was 135.5% in the second quarter. Aftermarket revenues reached their highest level in the past 12 months and we saw sequential growth from owner operators and small fleets, which we hope and believe may be early indicators of improving demand. Technician turnover reached a 12-month low and we expanded our aftermarket sales force, further strengthening our ability to support our customers.

Looking ahead, we expect stable aftermarket demand in the third quarter with potential for modest sequential growth. With respect to truck sales, we sold 3,178 new Class 8 trucks in the U.S. during the second quarter, accounting for 5.4% of the total U.S. market. While this represents a 20% year-over-year decrease, it is important to note that it is primarily due to the timing of several large fleet deliveries that occurred in the second quarter of last year, which made for a difficult year-over-year comparison. In Canada, Class 8 sales totaled 81 units, representing 1.2% of the market. Although demand from large over-the-road fleets remains weak, we achieved strong sales in the Class 8 vocational market, highlighting the strength of our diversified customer base. We expect vocational demand to remain solid for the remainder of the year.

However, due to ongoing uncertainty around trade policy and engine emissions regulations, new Class 8 truck sales may decline sequentially in the third quarter, and the market outlook beyond the third quarter is difficult to project at this point. In the medium duty market, we delivered 3,626 new Class 4 through 7 commercial vehicles in the U.S. in the second quarter, representing a 1% year over year increase and 6.2% market share. We sold 177 medium duty vehicles in Canada, which represents 4.6% of the Canadian Class 4–7 market. Our medium duty results were solid in the second quarter with both year over year and quarter over quarter sales growth. Demand was broad based across all of our customer segments, and we saw particular strength with lease and rental customers.

We believe that our ready to roll inventory program continues to differentiate us, enabling faster delivery and improved flexibility for customers. Looking ahead, we expect Class 4 through 7 truck sales in the third quarter to be consistent with our second quarter. We sold 17 used commercial vehicles in the second quarter, essentially flat compared to the same period in 2023. While financing remained a challenge for used truck buyers, we believe our inventory is the right size and our used truck strategy is on track. Unlike the new truck market, the used truck market is less exposed to trade and regulatory uncertainty, which could give truck buyers more confidence and incentive to consider used trucks as part of their fleet mix. In the near term, we expect third quarter used truck sales to be in line with the second quarter.

Rush Truck Leasing achieved record revenues of $93.1 million in the second quarter, up 6.3% year over year. Our full service leasing revenue increased as we brought new units into service, which also helped lower operating costs and increased profitability. Rental utilizations were lower year over year, but improved sequentially. We are confident our leasing and rental performance will be solid for the remainder of the year. On the capital allocation front, we remain focused on returning value to shareholders. During the second quarter, we repurchased $83.9 million of our common stock as part of our expanded $200 million repurchase authorization. We also paid a cash dividend of $14.5 million in the quarter. As I previously mentioned, we just increased our quarterly dividend by 5.6%. In summary, I am proud of our team’s performance in the second quarter.

Through disciplined execution, we continue to deliver solid financial results and return value to shareholders. As we move forward, we will continue to remain focused on operational efficiency and providing our customers with best-in-class service. With that, I’ll take your questions.

Conference Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press Star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press Star 11 again. Please stand by while we compile the Q and A roster. Our first question comes from the line of Daniel Imbro with Stephens Inc. Your line is now open.

Rusty Rush, CEO, Rush Enterprises: Yeah.

Daniel Imbro, Analyst, Stephens Inc.: Hey, good morning, guys. Thanks for taking our questions.

Rusty Rush, CEO, Rush Enterprises: You bet, Daniel. Good morning to you, sir.

Daniel Imbro, Analyst, Stephens Inc.: Good morning. Rusty, I’ll start maybe on the industry a little bit. I’m sure visibility into orders is about as clear as mud, but how are you thinking about the third quarter as we sit today?

Rusty Rush, CEO, Rush Enterprises: From a strategic standpoint, just.

Daniel Imbro, Analyst, Stephens Inc.: Related to that, with the lack of visibility, what are the OEMs communicating? Are they taking down production? Are they still pumping out new trucks and telling you guys to deal with them? What’s the order backdrop and how is that changing with the OEMs?

Rusty Rush, CEO, Rush Enterprises: Good question, sir. Dramatically different in the back half of the year from the first half of the year. Every OEM is taking production down. Every OEM has shutdown days. I’m not going to get into specifics, but you can broadly say across all brands, all manufacturers, it is going to. You’re going to see a lot less trucks built. You say, so what causes all that? As I talked about, it’s the uncertainty. I’ll get to the emissions stuff and if anybody wants to know my opinions on all that. You know where we stand from a Section 232 and a tariff perspective there. Let’s just look at April, May, and June. April, May, and June were the worst three months of order intake since 2009. The U.S., Canada, and Mexico took in less than 30,000 Class 8 trucks. That eventually comes to fruition.

Inside of the build that we see, there’s just still so much uncertainty to know what you know, we had, we built a lot of trucks really. Actually, Q2 retail deliveries were flat to slightly up for the whole country. I think that everyone pulled everything forward that they could and right now production is going to take as dramatic of a hit from poor sequentially as we’ve seen since COVID. When you and I put COVID as an outlier, really since you go back way further than that to see you’re going to see from a production, not necessarily all the way through retail. Retail will be down too, but production will be drastically down across all OEMs currently because there’s just not any demand out there because uncertainty is there. I don’t look, I guess what was it, Tuesday? We pulled the, you know, the EPA’s GHG3 stuff.

That still has not given any clarity as to what we’re going to, what we’re going to get from an emissions perspective. Is it going to stay 200, is it going to be 0.035, is it going to go to somewhere in the middle? These four engine manufacturers and OEMs don’t even have direction yet from the government. By what we’re dealing with creates uncertainty on through the chain to the end user on top of the fact that we’re still in a freight recession, et cetera. As I’ve said in the release, for sure I’m expecting to be down in third quarter.

Don’t even ask me what the fourth quarter is going to look like because you know it’s hand to mouth and with less trucks for sure going to be built with people canceling shifts, folks laying off employees, folks taking shutdown days, large numbers of these taking two, three weeks off. Every manufacturer has their own philosophy. No one is right now currently as we sit, everybody’s handling it the same, to be honest with you. Different, but the same. There really is not any demand because there’s still no firm knowledge of where we’re going to be. From an EPA perspective in January of 2027, is it going to stay at $0.035? Is it going to stay at 200, you know, stay at $0.035, which is what the rule and the law says it is right now. That is very much in question right at the moment somewhere, buddy.

I have no exact idea.

Andrew Obin, Analyst, Bank of America: And I.

Rusty Rush, CEO, Rush Enterprises: Customers by nature are just waiting to get some direction. I think I said somewhere in the release that maybe things will start shaking out and looking a little better. What I’m talking about is activity. I’m not saying orders. By the time we get to Q4, I hope in the latter part of the year that we can finally get some solid trade stuff down from a tariff perspective as the Congress and the administration is looking at the Section 232 tariffs. If that gets where we stand on that and we get where we stand from an emission perspective, then you know how to play your game. You know what to do with your business. If it goes and stays at 0.35, we’re probably going to see, probably we will see a pickup next year, I think in order demand.

If it stays at 200, not sure what that means. You won’t have the additional cost. You won’t have the change in technology to deal with. Fleets won’t be looking. I hate to use the word, I heard anybody use the word in a while pre buy, but I didn’t say it. There might be a slight pre buy if we go to 0.3, stay at 0.35 next year. I know I’m answering, I’m trying to give you a broader answer. You know me, I can’t help myself, maybe your question, but trying to give you some outlook beyond where we are right now in Q3 and Q4, but into next year. I think that’s what’s important to understand is to try to get an outlook into where it’s really going to go. I can’t tell you because I don’t have the answers to these questions right now.

All that does is create uncertainty and we’re finally seeing the fulfillment, true fulfillment of the uncertainty we talked about in the last call back in April. It only continues to intensify because the further down you still don’t know. It just continues to breed this. What do I do? What should I do? Are engines going to go up X? Are they going to, we need some clarification. I think once we get that, I think we should maybe regardless of how much activity I’m not going to get into. It’ll depend on what some of these rulings are, also some of these tariff trade policy decisions. I think we’ll be able to get kicked off really. I think we’re almost in a lull till we still, we get these answers, to be honest with you.

I would tell you from what I’ve been reading in the last couple weeks, most of your public carriers, I would say the reports are slightly better than they were in Q1. They’re not outstanding by any such, you know, but I think more people have gotten to their numbers as depressed as they are than what, you know, you can see slight green shoots in there, but not a lot. It’s still a tough road out there because we’re still out of balance. Right. I know I keep throwing out all these things, but we still got too much capacity. I think it’s continuing to come out slowly out of the marketplace and to meet the demand level that’s out there. There you go. I’ll shut up.

Daniel Imbro, Analyst, Stephens Inc.: No, always helpful and appreciate the answer there. I guess maybe on what is more in your control right now? I guess the parts and service improvement in 2Q was notable. I think revenue was up. It sounds like technician retention got better. I guess one, can you talk about what you guys changed to actually drive that or improve retention and hiring? Two, if you were to size up maybe what the earnings power or revenue uplift you can get from the hiring you’ve done, how should we think about the earnings power that you could add that’s more in your control from growing parts and service over the next year relative to everything else out of your control like the Class 8 demand?

Rusty Rush, CEO, Rush Enterprises: I think right now by maintaining flat to slightly up, I think we’re growing compared to the market. I think we’re doing better than the aftermarket from the reports. Remember, getting aftermarket comps is probably the most difficult thing there is because you get it from different sources. It’s not like vehicles. Vehicles are real simple and they’re titled. It’s easy to count those, getting to understand what the overall aftermarket is, but I think we’re doing slightly better than the overall aftermarket. I would tell you that I think our historical traditional way we go to market is what’s allowing us to be fairly good. I would tell you that we’re working really hard.

We just finished a strategic offsite here in June to really try to, not refocus, but even more double up with some more strategic initiatives to try to really accelerate the growth in our aftermarket business, especially going into next year. Right now, if we can maintain, which I will tell you, since I’m on the box, I guess I can say what I want now that I’ve released earnings. July continued and maybe a little better than June. Not great. Let’s just call it flat. We’re continuing to maintain, which, from a company perspective, given the environment, I almost feel like we’re growing.

Conference Operator: Okay.

Rusty Rush, CEO, Rush Enterprises: I mean, it may have said 1.4 to revenue with a little expanded margin. To me it was better than that, just given the environment. Right. To quantify it exactly, what those, because they were slightly, we grew our sales force slightly. I’m not going to sit here and get you. We didn’t add double digits or anything like that because I’m not sure the market’s accepting of that right now. I’ll tell you what, we’re positioned to do things like that. We’ve got a few other things. Some of this stuff’s proprietary from my perspective, so I’m not going to get into everything, but trust me, we’re hands down committed to continue to do what we have traditionally done, plus throw a few new things at it as we move forward, especially into 2026 and 2027.

Like I said, I believe we can maintain where we’re at in parts and service. Based on what I’m saying, we haven’t seen anything go way out of whack or out of line. As you know, as I was at the earning, anywhere, 63% last quarter of our profits come from parts and service. That being the much more stable, that’s why sometimes I think our business model is underappreciated in the fact whether it’s truck sale, that’s new, it’s heavy, it’s used, it’s medium, our leasing operations and what they contribute to the company, obviously our parts and service operations and the stability, and then our ability to manage expenses where, if you look at the earnings this quarter, first quarter over the last three or four, that we weren’t down 4% or 5% in GNA, we were slightly up, but basically flat.

You have to go back and understand that we made those cuts over a year ago. Being able to maintain that, I’m very proud of people. In spite of inflationary pressures and things like that, we’ve been able to maintain that piece of it. Like I said, I’m rambling off on other tangents, but at the same time I’m trying to give you a flavor. I was really proud of the quarter. When you look at the truck sales pressures that we had and compare them to year over year, be less than 10% off of what we were last year with 25% less trucks or so, I was, like I said, I was really proud of that. It was driven by the parts and service operations. I do believe we have growth. Back to the original question in there.

I’m not sure that it takes place dramatically this year, but I am very comfortable. Like I said, what makes me feel good is even though we’re only slightly up, I feel like it’s more than that given the environment that we’re dealing with.

Daniel Imbro, Analyst, Stephens Inc.: No, always helpful. Appreciate all the color. I’ll leave it there. Best of luck, guys.

Rusty Rush, CEO, Rush Enterprises: Thank you, Daniel. Any other questions, I’ll be happy to take.

Conference Operator: Thank you again. As a reminder, to ask a question, you will need to press star 11 on your telephone. Our next question comes from Andrew Obin of Bank of America. Your line is now open.

Andrew Obin, Analyst, Bank of America: Good morning, gentlemen.

Rusty Rush, CEO, Rush Enterprises: Good morning, Mr. Obin.

Andrew Obin, Analyst, Bank of America: Just a follow-up on the parts and service question. As it seems that a lot of the production shutdowns have to do with the fact that it’s more regulatory uncertainty more than anything else, meanwhile, your parts and service business would indicate that people will continue to utilize the trucks in the field. Wouldn’t the setup result in more wear and tear on all the trucks, just lack of natural replacement, wouldn’t it drive an uptick in parts and service over the next 6 to 12 months?

Rusty Rush, CEO, Rush Enterprises: You’re right on, Andrew. That’s what we’re hoping for. Okay, theoretically, you’re correct. There’s one caveat. What’s your business like? Okay, theoretically, you’re 100% correct, but you have to take into account, you know, what does a customer’s business truly look like, right? Are they squeezing it down because their business isn’t that good? For sure, you’re going to drive older age trucks, but first you got to make sure you’re utilizing all of them too. What’s your utilization and how is your business? If all those align, then there’s no question what you’re saying is totally correct. Those are caveats to that that you have to take into account also. Yes, without question I mentioned it. In the back of my mind, that’s what I’m hoping for. I’ve got these caveats that ride with it, right.

Andrew Obin, Analyst, Bank of America: I totally get it.

Rusty Rush, CEO, Rush Enterprises: Their business has to be decent.

Andrew Obin, Analyst, Bank of America: Another question for you, and I appreciate the fact that you accelerated buyback, but if you look at your track record, if you look where we are in the cycle, can you share with us the latest thoughts of the board on maybe stepping up the buyback? Because historically you’ve been very conservative with your balance sheet and I appreciate the reasons for it, but the pushback we get is the execution is fantastic. Stocks are inexpensive. They have capacity on the balance sheet. How is the board’s and your thinking evolving on the share buyback?

Rusty Rush, CEO, Rush Enterprises: I think we announced during the quarter that we added $50 million to it. I think I’ve got about $75 million or so left to spend of the $200 million. I would hope that the opportunities present themselves. We wouldn’t be approving it if we didn’t plan on trying to spend it. You know, we do it prudently. I’m just not out there. We do it under a 10B5. Right. What happens sometimes is you set prices and you don’t touch it for a while because we’re in a quiet period now. We were reading Steve, and I’ll be relooking at that tomorrow as we reset the matrices up to continue making sure we’re purchasing right. The stock fluctuated some in the quarter. We got down a little bit and back up, and we set a matrix June 10th, and we’ll be.

Don’t touch it till now and we’ll be looking at it. We wouldn’t approve the money that we’ve got out there if we didn’t want to spend it. We feel real good. We had our cash position. Heck, we’ll pick up, I don’t know, $35 million, $40 million with a big beautiful bill in cash from a tax perspective this year. As you know, our balance sheet’s nice and flush and we have the capability to do it.

Daniel Imbro, Analyst, Stephens Inc.: So.

Rusty Rush, CEO, Rush Enterprises: As you said, we have been, over time, typically fairly conservative. I’m not going to go out and, you know, but we, I think we have proven the ability and the want to and the desire to buy stock back. Maybe not at the pace that some people want, maybe at the pace that some do, maybe too much for others, but it’s at the pace that we feel comfortable with. We believe in this organization. We think it’s a great opportunity to buy stock back every moment. I mean, look, I’ll just let the track.

Andrew Obin, Analyst, Bank of America: 20 year history, 20 year history says there’s never one bad moment to lever.

Rusty Rush, CEO, Rush Enterprises: Up and buy back Rush stock. Don’t you use the word. You’re not going to ever get me to do lever up. Let’s step back here a minute, Andrew.

Andrew Obin, Analyst, Bank of America: Buyback. I get it, I get it.

Rusty Rush, CEO, Rush Enterprises: I know it’s not Rush. I’m sorry.

Daniel Imbro, Analyst, Stephens Inc.: I appreciate it.

Rusty Rush, CEO, Rush Enterprises: Fire me. I’m too conservative. A little bit more leverage. A little bit more leverage. A little bit more leverage. How about a little bit more leverage?

Andrew Obin, Analyst, Bank of America: Let me ask. As I said, the execution has been stellar. We appreciate it. Thank you. Can you talk about just what are you seeing on Macri? I keep asking this question. You have fantastic systems. Maybe walk us across key verticals, across key geographies. More importantly, how has your thinking evolved over the past, you know, let’s call it three, four months since we’ve been liberated. Thanks so much.

Rusty Rush, CEO, Rush Enterprises: Oh gosh. I always look back to the 1st of April every day, Andrew, and think of what a liberation it’s been. More uncertainty than you shake a stick at. How have I changed in three to four months? I know this. You asked about geographies. I don’t want to be like the whole country, like California has been the last year and a half. Let’s just say that. No disrespect to my lovely California stores and anyone out there, but from a business perspective, industry specific perspective, it has been very, very difficult on the truck sales side. No one, it’s almost like gridlock. No one has spent. If the whole country was to act like California spent from a truck sales perspective, it’d be really, we’d be woo. It’d be really tough.

Fortunately, obviously we are doing different things here with the rest of the country as the political sides fight it out with the Feds, you know, having obviously a difference of opinion than CARB does out there. I’m staying out of that. Fortunately, you know, that’s loosening up and going to a little, you know, a more what I would call realistic. Look, I asked what’s changed? That’s a lot that’s changed. No, quick. No matter where the EPA ends up, it is way different than what it was November 5th or whatever it was of last year. It’s moved to what I would say I’m not going to get moved too far or whatever, but it’s moved in the right direction. Direction to a more realistic view of what the involvement should be from the EPA’s perspective. That makes sense for this country. Not.

I’m not going to get into how far each way, but I’m going to say that’s, you know, obviously changed a lot over the last few months. Now it has. The problem is it hasn’t settled down. Once that gets settled down, I think we’ll all be able to play the game. Right? It’s like, tell me the rules and then I’ll play the game. I don’t care if they’re good or bad or whatever, whatever the tariff is. Stop changing all this stuff. If I’m a manufacturer, I know manufacturers had to hire 20 people just to try to figure this stuff out on a daily basis, right, as to where they’re at. We need a little stability with a little looking forward. I think that’ll be good for everyone. I really do believe that we’re going to get some of that later this year.

I couldn’t have told you in April. I feel like it’s coming. I feel like we’re closer to norms from the EPA and firm trade policies. I hope so that, you know, whether it’s the inflow or outflow of freight for our customer base or for manufacturing, trying to figure out what vehicles cost or what they have to spend and what do they have to have their engines or. We just need some stability. We need some. This is what it’s going to be. We’re in the middle of it. We’re getting closer, I think, to getting those answers, a whole lot closer than we were in April. That’s why I’m kind of proud of the quarter, just because, hey, we took a 25% hit in truck sales.

We took way more than $0.07 difference in gross profit from trucks from Q2 of last year to Q2 of this year. We went from 97 to 90. Why? Because we executed like hell on everything else that we have in our touch. That’s why I know this organization will continue to be fluid enough to be able to keep managing. If this has proven anything to me, it’s that we do have that ability. I’ll put our numbers up against anybody’s numbers, but I’m the only public, really. Anyway, singular front dealer out there of execution in Q2. We plan on doing it beyond Q2 and into the future. Andrew, I just, you know, I feel closer to knowing the rules.

Once I, once we do, it’s not just once customers know the rules, they’ll be able to make decisions, but we don’t have the rules of the game yet. I think what you see right now is just gridlock on folks ordering trucks. They want to know what’s going to happen, right?

Andrew Obin, Analyst, Bank of America: That trumps everything, right? It’s hard to get a read what the macro sentiment axed at because.

Rusty Rush, CEO, Rush Enterprises: This uncertainty, no question that trumps everything right now. What are they going to do? Am I going to have to go to, is it going to stay at 0.35? Excuse me, is it going to stay at 200 mg? I mean there’s a very good chance it could stay. Look, I don’t know. I’m not involved. I’m not in Washington, D.C. I don’t have a phone number to anybody at the EPA, but I know a lot of people that do. I get a lot. By the way, those opinions I’m getting are varied. I’m just trying to form an opinion when it’s secondhand information. I am pretty close to a lot of folks. The funny part is that they’re not all the same thought processes. When you hear this, if you put yourself in my shoes, I understand why a customer is stuck in gridlock. I get it.

Besides my business being somewhat tough, I’m going to buy what I have to buy and I mean, I just really should have to buy. I’m not going to step out until I know. At the same time, I want my business to get, if I’m an over the road carrier, which is still 65% of everything out there or better, I want my business to also be a little better. Even though retail was good right now, we’ve hit that screech point. I do believe, as I said, just get us some stuff. I think activity, now that activity will start. Remember, for me it’s next year business. Rusty’s not saying this is all fourth quarter great business for us. I’m the tail of the dog. It’s got to start with activity.

Then it starts with pricing and quoting and orders and then manufactured and then all the stuff that has to be done to a truck sometimes after it comes off the line till it gets to that retail space. I do believe now the volumes of how much will be determined. If it goes to 0.35, stays at 0.3, stays where the law is right now, not where we’re not, the 200 we’re at, then you’re probably going to get, you’re going to get some uptick without question. I don’t know about the ability to be able to volume wise produce because we’re getting so late in the game. I’m confident the administration will come with something, I hope in the next 60 days, just to give clarity to everybody out there. This is from a truck sales perspective.

Thank God two thirds of my profits come from parts and service though as a company. I do need that other piece too. I want that other piece with it, that truck sale piece at the same time. Again, our leasing business is solid. We expect it to remain solid. Not going to grow exponentially, but guarantee it’s pretty good and, you know, keep our parts and service stock, maintain discipline inside our expense base. I don’t really want to go out there and rip this place apart. We cut it back last year. It was the right thing to do. We’ve maintained basically exact flat headcount other than adding revenue creation positions. We’re just going to keep hanging in there, producing solid results till we see a catalyst to really drive the market to better than what it’s been right now.

The truck sales market and also, like you said, guess what? When you talked earlier, your first question earlier. Hey Rusty, if they get older, should you work on them more? True, right. As long as their business is in line with the expenditures needed as the fleet ages, without question people have to do more parts and service. That benefits us too. It’s better margin business. We do want to sell trucks. We need that whole thing working. The truck sales side is just on a little bit of a hold right now until we get a little more clarity.

Andrew Obin, Analyst, Bank of America: Thank you very much, Rusty. Really appreciate it.

Rusty Rush, CEO, Rush Enterprises: You’re more than welcome, sir.

Conference Operator: Okay, I’m showing no further questions at this time. I would now like to turn it back to Rusty Rush for closing remarks.

Rusty Rush, CEO, Rush Enterprises: Sure. Nothing big here. We appreciate everybody’s participation. We will look forward to speaking to everyone in late October. I do believe so. Take care. We’ll see you now.

Conference Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.

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