Rush Enterprises (RUSHA) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $1.68 billion, down 9% year-over-year, with net income of $61.5 million and $0.77 per diluted share, as aftermarket and leasing operations offset weak new vehicle sales.

• Declared a $0.19 per share cash dividend, with $14.7 million paid in Q1 and the next dividend payable June 10, 2026.

• Navigated historic lows in commercial vehicle sales, with industry-wide new truck sales at their lowest since COVID and medium-duty demand at its lowest since 2015.

• Aftermarket, leasing, and rental businesses provided stability and profitability, with aftermarket revenue up 1.3% to $627.2 million and leasing/rental revenue up 2.2% to $92.3 million.

• Signed agreement to acquire Peterbilt dealerships in Louisiana and Mississippi, expanding market presence.

Financial highlights

• Gross profit for Q1 2026 was $343.8 million, with gross margin improving to 20.4% from 19.3% year-over-year.

• Aftermarket products and services revenue rose 1.3% year-over-year to $627.2 million, accounting for 66% of gross profit.

• Leasing and rental revenue increased 2.2% to $92.3 million.

• SG&A expenses fell 2.5% to $242.6 million, but increased as a percentage of revenue to 14.4%.

• Net interest expense dropped 50.6% to $6.4 million due to lower rates and borrowings.

Outlook and guidance

• Management expects Q1 to be the trough, with gradual improvement in commercial vehicle sales and aftermarket demand through 2026.

• U.S. Class 8 truck sales forecast to rise 5.7% in 2026, with company market share projected at 5.3%-7.2%.

• Medium-duty vehicle sales expected to be flat, with cautious customer replacement activity.

• Order intake remains strong, driven by improving freight conditions and anticipation of 2027 emissions regulations.

• Effective tax rate for 2026 expected between 21.0% and 23.0%.