Major truck dealers reported decreased aftermarket parts and service revenues in the first quarter while seeing mixed results in other segments.
Penske F&I revenue slides 15%
Bloomfield Hills, Mich.-based Penske Automotive Group’s finance and insurance (F&I) revenue for commercial trucks totaled $4.5 million in Q1, down 15.1% year over year, according to its April 30 earnings statement.
The company’s parts and service revenue for commercial trucks fell 0.7% YoY to $222 million, but total revenue in its commercial trucks segment rose 4% YoY to $823.7 million.
Penske sold 4,714 new and used trucks in Q1, up 3.8% YoY and driven by a 9.1% surge in used-truck sales. Total floorplan notes payable rose 2.8% YoY to $4 billion.
The commercial trucking industry “remains very fluid” as fleet operators, dealers and OEMs navigate the uncertainty of tariffs, Chief Executive Roger Penske said during the company’s earnings call.
“We believe the administration is encouraging companies in individual countries to come to the table to discuss their plans,” he said. “We remain in close contact with our OEM partners,” with many holding prices steady as “tariff negotiations continue.”
Looking ahead, the company expects Class 8 sales to be primarily driven by replacement demand rather than fleet growth, Rich Shearing, chief operating officer of North America, said during the call.
Rush sees 7.4% drop in new Class 8 sales
San Antonio-based Rush Enterprises’ F&I revenue totaled $5.2 million in Q1, down 3.4% YoY, according to its April 30 earnings statement.
Aftermarket product and service revenue declined 4.6% YoY to $619.1 million, and total revenue dipped 1.1% YoY to $1.9 billion.
The company sold 3,154 new Class 8 trucks, down 7.4% YoY, and Class 4 to Class 7 sales fell 3.8% YoY to 3,204 units. Total floorplan notes payable dropped 13.5% YoY to $1.1 billion.
While economic uncertainty and lingering effects of a yearslong freight recession continue to hinder sales, the company is optimistic about its aftermarket business moving forward, President and CEO W.M. “Rusty” Rush said during its earnings call.
“We added service technicians during the first quarter, which will allow us to decrease customer dwell time going forward,” he said. “We also continue to optimize our parts delivery routes and improve our call center operations, which help us serve more customers efficiently.”
Custom Truck One revenue rises nearly 3%
Kansas City, Mo.-based Custom Truck One Source reported $422.2 million in total revenue in Q1, up 2.7% YoY, according to its April 30 earnings statement.
The company’s aftermarket parts and service revenue dropped 1.3% YoY to $32.1 million. Its fleet utilization rate rose 4.4 percentage points YoY to 77.7%, driving a 9.5% YoY increase in rental revenue to $116.3 million.
Equipment sales rose 0.5% YoY to $273.9 million, and its sales order backlog decreased 21.8% YoY to $420.1 million.
CTOS expects more small fleet companies to rent vehicles moving forward as economic challenges delay purchasing decisions, CEO Ryan McMonagle said during the company’s earnings call.
“Continued high interest rates and caution regarding the economy resulting from changing U.S. tariff policy appear to be the primary factors influencing this,” he said.
CTOS plans to continue investing in its rental fleet this year to meet current and projected demand, he said.
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