Rush and Penske Automotive Group reported a drop in finance and insurance revenue in 2024 as lingering effects of a yearslong freight recession challenged the truck dealers.
High interest rates, economic uncertainty and inflated used-truck prices were among challenges facing the trucking industry last year, according to the companies’ recent earnings calls. However, stabilized pricing and a more balanced market could yield better results in 2025.
Rush Enterprises
San Antonio-based Rush Enterprises’ finance and insurance (F&I) revenue totaled $22 million in 2024, down 9.4% from 2023, according to its Feb. 18 earnings statement.
Revenue from aftermarket products and services fell 3.8% year over year to $2.5 billion. Total revenue fell 1.5% YoY to $7.8 billion.
The company sold 15,465 new Class 8 trucks in 2024, down 11.4% YoY, but new Class 4 to Class 7 truck sales increased 5.1% YoY to 13,935.
Over-the-road carriers felt the impact of high interest rates and economic turbulence last year, contributing to decreased Class 8 sales, Chief Executive W.M. “Rusty” Rush said during the company’s Feb. 18 earnings call.
“However, our strength in public sector and vocational markets helped balance things out, and we managed to hold our ground in a tough Class 8 market,” he said. “Our Class 4 to 7 truck sales were strong across various customer segments, and we outperformed the market in the medium-duty truck sales.”
The company also reduced debt last year, with floorplan notes payable falling 5.1% YoY to $1.1 billion at yearend.
Penske
Bloomfield Hills, Mich.-based Penske Automotive Group reported a 14.2% YoY decline in F&I revenue for commercial trucks to $18.8 million in 2024, according to its Feb. 13 earnings statement.
Parts and service revenue for commercial trucks fell 2.3% YoY to $866.3 million, and total commercial truck revenue dropped 4.4% YoY to $3.5 billion. Penske sold 20,551 new and used trucks, down 3.9% from 2023. Total floorplan notes payable were up 6.7% YoY to $4 billion.
Decreased sales were partly due to “timing of deliveries, as supply shortages pushed out deliveries from the first half to the second half of the year in 2023.” Richard Shearing, chief operating officer of North America, said during the company’s earnings call.
Looking ahead, the company expects Class 8 truck demand to be “driven primarily by replacement purchases in 2025,” he said.
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