Rush Enterprises Reports $7.8 Billion Revenue for Fiscal Year 2024, Down 1.5%

Rush Enterprises, Inc. reported a total revenue of $7.8 billion for the fiscal year ending December 31, 2024, reflecting a decrease of 1.5% from $7.9 billion in 2023. The company's gross profit also declined, falling by $61.7 million, or 3.9%, to $1.53 billion, resulting in a gross profit margin of 19.6%, down from 20.1% in the previous year. The decrease in revenue was primarily attributed to a significant drop in new Class 8 heavy-duty truck sales, which fell by 11.4% to 15,465 units, amid ongoing freight recession and high interest rates. In contrast, sales of new medium-duty trucks increased by 5.1%, and light-duty truck sales rose by 13.9%.

In terms of operational changes, Rush Enterprises made strategic acquisitions, including the purchase of assets from Nebraska Peterbilt for approximately $16.5 million in July 2024 and Freeway Ford Truck Sales for $16.3 million in December 2023. These acquisitions are part of the company's ongoing strategy to expand its dealership network and enhance its market presence. The company also consolidated its operations in Canada, where it holds an 80% equity interest in Rush Truck Centres of Canada, which operates 12 International dealership locations.

The company’s workforce as of December 31, 2024, comprised 7,388 employees in the U.S. and 550 in Canada, with less than 1.4% classified as part-time. The turnover rate for technicians, a critical segment of the workforce, increased to 38.1% from 33.6% in 2023, reflecting industry-wide challenges in retaining skilled labor. The company is implementing strategies to improve technician retention, including conducting stay interviews and enhancing career advancement opportunities.

Looking ahead, Rush Enterprises anticipates a modest recovery in the commercial vehicle market, with projections indicating a slight increase in new Class 8 truck sales to 252,000 units in 2025. The company expects to maintain a market share of 5.8% to 6.3% in this segment, translating to sales of approximately 14,500 to 16,000 new Class 8 trucks. Additionally, the company is optimistic about a rebound in demand for Aftermarket Products and Services as the freight market stabilizes. Overall, Rush Enterprises aims to leverage its extensive dealership network and diverse product offerings to navigate the evolving market landscape.