Rush Enterprises, Inc. reported a total revenue of $1.85 billion for the first quarter of 2025, a decrease of 1.1% compared to $1.87 billion in the same period last year. The decline was primarily attributed to a 4.6% drop in Aftermarket Products and Services revenue, which totaled $619.1 million, reflecting ongoing challenges in the freight market and a reduction in customer service projects. In contrast, sales of new and used commercial vehicles saw a slight increase, rising to $1.13 billion from $1.12 billion, driven by a favorable product mix despite a 7.8% decrease in new Class 8 truck sales.
The company's net income for the quarter was $60.6 million, down from $71.5 million in the prior year, resulting in diluted earnings per share of $0.73 compared to $0.88. The decrease in profitability was influenced by a reduction in gross profit, which fell to $357.8 million from $389.9 million, primarily due to lower demand for Aftermarket Products and Services. Gross profit margins also contracted, decreasing to 19.3% from 20.8% year-over-year.
In terms of operational developments, Rush Enterprises continues to expand its footprint, operating over 125 franchised Rush Truck Centers across 23 states and Ontario, Canada. The company reported a backlog of commercial vehicle orders valued at approximately $1.4 billion as of March 31, 2025, a significant decrease from $2.05 billion a year earlier. This reduction reflects the current economic uncertainties and potential cancellations due to tariff concerns. The company also anticipates selling approximately 11,500 to 12,500 new Class 8 trucks in 2025, maintaining a market share forecast of 5.4% to 5.9%.
Looking ahead, Rush Enterprises expects continued challenges in the commercial vehicle market, with forecasts indicating a 13.8% decrease in new U.S. Class 8 retail truck sales for 2025. The company plans to focus on maintaining its market position through strategic acquisitions and expanding its product offerings. Additionally, it aims to enhance its Aftermarket Products and Services, although revenues in this segment are projected to remain flat to down 2% compared to 2024. The company remains committed to its dividend policy, having declared a cash dividend of $0.18 per share for June 2025, reflecting its ongoing financial stability despite current market pressures.
About RUSH ENTERPRISES INC \TX\
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