In This Article:
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Annual Revenue: $7.8 billion for 2024.
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Quarterly Revenue: $2 billion for the fourth quarter.
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Annual Net Income: $304.2 million for 2024.
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Quarterly Net Income: $74.7 million for the fourth quarter.
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Earnings Per Share (EPS): $3.72 per diluted share annually; $0.91 per diluted share for the fourth quarter.
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Cash Dividend: $0.18 per common share.
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Aftermarket Revenue: $2.5 billion, down 1.8% from 2023.
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Absorption Ratio: 132.2% compared to 135.3% in 2023.
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New Class A Truck Sales: 15,465 units in 2024, down 11.4% year over year.
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New Class 4 to 7 Truck Sales: 13,935 units in 2024, up 5.1% year over year.
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Used Truck Sales: 7,110 units in 2024, flat year over year.
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Leasing and Rental Revenue: $354.9 million, flat compared to 2023.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Rush Enterprises Inc (NASDAQ:RUSHA) reported $7.8 billion in annual revenues for 2024, with a net income of $304.2 million.
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The company announced a cash dividend of $0.18 per common share, reflecting a commitment to returning value to shareholders.
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Strong performance in Class 4 to 7 truck sales, with a 5.1% year-over-year increase, outperforming the market.
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Despite a challenging market, Rush Enterprises Inc (NASDAQ:RUSHA) managed to grow its market share in the aftermarket segment by expanding its national account sales force.
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The leasing division continues to be a key contributor to overall performance, with leasing revenue increasing as the company replaced 1,500 units in its fleet.
Negative Points
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The company faced a challenging year due to the ongoing freight recession, high interest rates, and economic uncertainty, impacting demand for new Class A trucks.
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Aftermarket revenue was down 1.8% from 2023, with an absorption ratio decrease from 135.3% to 132.2%.
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New Class A truck sales were down 11.4% year-over-year, with high inventory levels and competitive pricing affecting performance.
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The used truck market was challenging due to declining values and tight credit conditions.
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Potential tariffs on vehicles and component parts manufactured in Canada, Mexico, or China could significantly increase the aggregate price of new commercial vehicles or parts, potentially decreasing demand in 2025.
Q & A Highlights
Q: Rusty, your commentary about second half recovery, how should we think about earning seasonality in 2025 versus a normal seasonal pattern? And specifically, when does parts and service turn positive again? A: The first half of 2025 will still feel the effects of the freight recession, but signs of activity are emerging. We expect a ramp-up throughout the year, with a stronger second half. Parts and service should see growth in the mid-single digits in the latter half of the year. We aim to maintain a conservative outlook while focusing on strategic initiatives to drive growth. W. M. Rush, CEO