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1. Company Snapshot

1.a. Company Description

Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States.The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name.Its Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, or Blue Bird.


The company also provides new and used commercial vehicles, and aftermarket parts, as well as service and repair, financing, and leasing and rental services; and offers property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance to its commercial vehicle customers.In addition, it provides equipment installation and repair, parts installation, and paint and body repair services; new vehicle pre-delivery inspection, truck modification, and natural gas fuel system installation services; body, chassis upfitting, and component installation services, as well as sells tires for use on commercial vehicles, new and used trailers, and vehicle telematics products; and manufactures compressed natural gas fuel systems and related component parts for commercial vehicles.The company serves regional and national fleets, corporations, local and state governments, and owner operators.


It operates a network of centers located in the states of Alabama, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Missouri, Nevada, Nebraska, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, and Virginia.Rush Enterprises, Inc.was incorporated in 1965 and is headquartered in New Braunfels, Texas.

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1.b. Last Insights on RUSHA

Rush Enterprises, Inc.'s recent performance was driven by increased institutional investment and a solid Q4 2025 earnings call. The company's stock saw significant buying activity from various hedge funds and institutional investors, including Econ Financial Services Corp, SG Americas Securities LLC, and Elo Mutual Pension Insurance Co, which acquired new stakes in the company. Additionally, Rush Enterprises' Q4 2025 earnings call transcript suggests a strong financial performance, although the details of the call are not specified.

1.c. Company Highlights

2. Rush Enterprises' FY2025 Earnings: A Resilient Performance Amidst Industry Challenges

Rush Enterprises reported revenues of $7.4 billion for the fourth quarter and year-end 2025, with net income of $263.8 million, or $3.27 per diluted share. The company's aftermarket parts and service revenues totaled $2.5 billion, with an annual absorption ratio of 130.7%. Earnings per share (EPS) for the quarter came in at $0.81, beating analyst estimates of $0.75. The company's Board of Directors approved a cash dividend of $0.19 per share, reflecting its commitment to returning value to shareholders.

Publication Date: Feb -19

📋 Highlights
  • Record Revenues and Earnings:: 2025 revenues hit $7.4B; net income of $263.8M ($3.27 per diluted share), with a $0.19/share dividend approved.
  • Class 8 Truck Demand Recovery:: Fourth-quarter demand improved, with quoting and order intake rising, carrying momentum into Q1 2026.
  • Aftermarket Resilience:: Parts/service revenue of $2.5B (flat YoY) achieved 130.7% annual absorption ratio, maintaining strong cash flow.
  • Leasing/Rental Growth:: Leasing and rental revenue climbed 4.1% to $369.6M in 2025, driven by disciplined operations.
  • 2026 Outlook:: Q1 challenges expected, but Q2-Q4 optimism due to elevated fleet ages; 37% blended parts/service margin in Q4 (aligned with historical trends).

Operational Highlights

The commercial vehicle industry faced significant challenges in 2025, including freight rate pressure, excess capacity, and trade policy uncertainty. Despite these headwinds, Rush Enterprises performed well, remaining disciplined and generating strong cash flow. The company expanded its network in 2025 through strategic acquisitions, including IC Bus dealerships in Ontario, Canada, and a full-service Peterbilt dealership in Tennessee.

Outlook and Guidance

Rush Enterprises expects market conditions to remain challenging in the first quarter of 2026, but anticipates improvement in the second quarter driven by elevated fleet ages and maintenance needs. The company is optimistic about the remainder of the year, citing improved order intake and a diversified customer base. As W. Marvin Rush, CEO, noted, "I've spoken to numerous OEMs and customers, and while some are still struggling, many are experiencing a resurgence in business."

Valuation and Growth Prospects

With a P/E Ratio of 21.08 and an expected revenue growth rate of 6.4% in the next year, Rush Enterprises appears to be reasonably valued. The company's Dividend Yield stands at 1.03%, providing a relatively stable source of return for investors. Additionally, the company's ROIC of 7.75% and ROE of 12.07% indicate a strong ability to generate returns on invested capital.

Industry Trends and Company Positioning

The company's vocational business is expected to remain solid, albeit flat, in 2026. Rush Enterprises is well-positioned to capitalize on the improving industry trends, with a diversified customer base and a strong aftermarket parts and service business. As the company continues to expand its national account business and improve its delivery processes, it is likely to drive growth and profitability in the coming quarters.

3. NewsRoom

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Rush Enterprises, Inc. Conference Call Advisory for First Quarter 2026 Earnings Results

Apr -02

Source: globenewswire.com

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Rush Enterprises announces appointment of Jody Pollard as Chief Operating Officer

Mar -23

Source: globenewswire.com

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Fieldview Capital Management LLC Reduces Stock Position in Rush Enterprises, Inc. $RUSHA

Mar -11

Source: defenseworld.net

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Citigroup Inc. Has $1.94 Million Stake in Rush Enterprises, Inc. $RUSHA

Mar -09

Source: defenseworld.net

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Elo Mutual Pension Insurance Co Invests $978,000 in Rush Enterprises, Inc. $RUSHA

Mar -06

Source: defenseworld.net

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Rush Enterprises (NASDAQ:RUSHA) SVP Jody Pollard Sells 11,250 Shares of Stock

Feb -24

Source: defenseworld.net

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Rush Enterprises (NASDAQ:RUSHA) Director Michael Mcroberts Sells 8,000 Shares

Feb -24

Source: defenseworld.net

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Rush Enterprises, Inc. (RUSHA) Q4 2025 Earnings Call Transcript

Feb -18

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.20%)

6. Segments

Truck

Expected Growth: 1.2%

Rush Enterprises, Inc.'s truck segment growth of 1.2% is driven by increasing demand for commercial vehicles, fueled by a strong economy, rising freight volumes, and growing e-commerce sales. Additionally, the company's strategic expansion into new markets, investments in digital technologies, and focus on customer service have contributed to its growth momentum.

All Other

Expected Growth: 0.8%

Rush Enterprises' 'All Other' segment growth of 0.8% is driven by increased demand for aftermarket parts and services, expansion of its truck rental fleet, and strategic acquisitions. Additionally, the company's focus on digital transformation and cost savings initiatives have contributed to the segment's growth.

7. Detailed Products

New Heavy-Duty Trucks

Rush Enterprises sells new heavy-duty trucks from top manufacturers like Peterbilt, International, Ford, and Isuzu.

Used Heavy-Duty Trucks

Rush Enterprises offers a wide selection of pre-owned heavy-duty trucks from various manufacturers.

Truck Parts and Accessories

Rush Enterprises provides a vast inventory of genuine and aftermarket parts and accessories for heavy-duty trucks.

Truck Repair and Maintenance

Rush Enterprises offers comprehensive repair and maintenance services for heavy-duty trucks, including routine maintenance, repairs, and diagnostics.

Leasing and Rental Services

Rush Enterprises provides flexible leasing and rental options for heavy-duty trucks, trailers, and equipment.

Financing and Insurance

Rush Enterprises offers financing and insurance solutions for heavy-duty trucks and equipment, including customized financing options and insurance products.

8. Rush Enterprises, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Rush Enterprises, Inc. is medium due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.21%
Debt Cost 3.99%
Equity Weight 53.79%
Equity Cost 9.30%
WACC 6.85%
Leverage 85.91%

11. Quality Control: Rush Enterprises, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Penske Automotive Group

A-Score: 6.1/10

Value: 6.8

Growth: 7.0

Quality: 4.6

Yield: 5.0

Momentum: 5.0

Volatility: 8.3

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Group 1 Automotive

A-Score: 5.0/10

Value: 7.0

Growth: 7.8

Quality: 3.5

Yield: 0.0

Momentum: 5.0

Volatility: 6.7

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Rush Enterprises

A-Score: 4.8/10

Value: 7.1

Growth: 4.7

Quality: 5.2

Yield: 2.0

Momentum: 3.0

Volatility: 7.0

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Asbury Automotive Group

A-Score: 4.7/10

Value: 7.7

Growth: 7.3

Quality: 3.7

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

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Lithia Motors

A-Score: 4.4/10

Value: 6.3

Growth: 6.7

Quality: 3.4

Yield: 1.0

Momentum: 3.0

Volatility: 6.0

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ACV Auctions

A-Score: 3.2/10

Value: 6.8

Growth: 5.4

Quality: 4.2

Yield: 0.0

Momentum: 0.5

Volatility: 2.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

65.74$

Current Price

65.74$

Potential

-0.00%

Expected Cash-Flows