Commercial truck dealer Rush Enterprises’ aftermarket revenue from services and parts flattened in the first quarter of 2024, a trend the company expects will continue as freight rates remain low.
Aftermarket revenue from body shops and parts service was $649.2 million, fairly flat compared with $648.2 million in the first quarter of 2023. During last year, aftermarket revenue made up 59.5% of Rush Enterprises’ overall revenue.
Lease and rental revenue increased 1.4% in Q1 year over year to $87.9 million. Rush Enterprises’ overall revenue in the first quarter was $1.87 billion, down 2.1% YoY.
Commercial truck sales, by the numbers:
- Rush sold 3,494 Class 8 trucks in the quarter, down 20% YoY, which it said accounts for 6% of total United States market sales and 1.4% of Canadian market sales;
- The company sold 3,331 Class 4 through 7 trucks in the first quarter, up 9.6% YoY, roughly 5.4% of the U.S. market;
- Used-truck sales were 1,818 units in Q1, up 8% over 2023; and
- New- and used-truck sales totaled $1.12 billion, down slightly from $1.16 billion in Q1 2023.
The company is still coping with troubles that plague the entire trucking industry, including sliding equipment values and a lack of freight.
“We continue to experience weak demand and depressed values for used trucks, largely due to low freight volumes and high interest rates,” Chief Executive and President W.M. “Rusty” Rush said during the company’s earnings call today. “Even with those difficult conditions, great execution on our used-truck inventory and sales strategy allows us to achieve strong results in the first quarter.
“As we look forward, the rate of decline in used-truck values is slowing, but we believe it may continue to decline somewhat,” he said. “But with our strategically diverse product mix, we expect our second-quarter used-truck sales to be similar to our first-quarter results.”
Rush Truck Centers has 150 locations in 23 states and Ontario, Canada, including 125 franchised dealership locations, representing truck and bus manufacturers including Peterbilt, International, Hino, Isuzu, Ford, Dennis Eagle, IC Bus and Blue Bird. The company counts more than 9,800 trucks in its lease and rental fleets and 2,100 under contract agreements for maintenance.
Shares of Rush Enterprises Inc. [NASDAQ: RUSHA & RUSHB] were trading at $46.44 at market close Tuesday, down 5.67% from market open. The company has a market cap of $3.6 billion.
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