Rush Enterprises, Inc. (NASDAQ: RUSHA) reported fourth-quarter and full-year 2025 results on February 17, 2026, for the period ended December 31, 2025.
Company Description
Rush Enterprises operates the largest network of commercial vehicle dealerships in North America under the Rush Truck Centers name. The company sells new and used heavy-, medium-, and light-duty trucks from manufacturers including Peterbilt, International, Hino, Ford, Isuzu, IC Bus, Blue Bird, Dennis Eagle, Blue Arc, and Battle Motors. It generates revenue from vehicle sales, aftermarket parts and service, leasing and rentals, finance and insurance products, primarily serving commercial fleets, vocational operators, and other end markets in the U.S. and Canada.
Current Stock Price and Market Capitalization
As of February 19, 2026, RUSHA shares trade at $72.64. This values the company at a market capitalization of approximately $5.73 billion.
52-Week Context and Recent Trend
The stock trades within a 52-week range of $45.67 to $74.19. Shares have shown strength recently, rising toward the upper end of the range following the earnings release, supported by positive market reaction to EPS beat and outlook comments.
Valuation
RUSHA trades at a forward P/E of approximately 11.07, below its trailing P/E of 21.55. This suggests the market prices in expectations of earnings recovery amid anticipated industry improvement in 2026.
Latest Quarterly Results
For the fourth quarter of 2025, revenues totaled $1.8 billion, down 11.9% year-on-year from $2.0 billion, driven by weaker new and used vehicle sales amid depressed freight rates and excess capacity. New and used commercial vehicle sales revenues fell to $1,046.4 million from $1,301.9 million. Parts and service revenues rose 3.1% to $625.2 million, while lease and rental revenues increased 3.0% to $92.9 million. Gross profit declined to $348.5 million from $370.1 million, with operating income at $91.7 million versus $112.2 million. Net income was $64.3 million, or $0.81 per diluted share, compared with $74.8 million, or $0.91 per diluted share, a year earlier. The results exceeded analyst EPS estimates.
For the full year 2025, revenues reached $7.4 billion, down 4.9% from $7.8 billion in 2024. Net income was $263.8 million, or $3.27 per diluted share, versus $304.2 million, or $3.72 per diluted share (or $3.75 adjusted for a one-time hurricane-related charge in 2024).
Earnings Call Talking Points
W.M. “Rusty” Rush, Chairman, Chief Executive Officer and President, highlighted the company’s diversified model and disciplined execution in a challenging environment marked by low freight rates, trade policy uncertainty, emissions regulation concerns, and excess capacity, which pressured new truck demand, especially from large over-the-road fleets. He noted resiliency in the aftermarket business, which contributed significantly to profitability and reduced earnings volatility. Late Q4 improvements in Class 8 quoting and order intake were cited, with demand for new vehicles strengthening in early 2026.
Outlook and Guidance
The company expects challenging conditions in Q1 2026 but remains cautiously optimistic for the rest of the year. Signs include aging fleets driving maintenance needs, potential freight recovery, increased quoting activity, and clarity on tariffs for medium- and heavy-duty vehicles plus anticipated EPA confirmation of 2027 NOx standards, reducing uncertainty and supporting replacement demand. Retail sales are expected to rise from Q2 2026. Aftermarket demand should strengthen with deferred maintenance addressed, while full-service leasing remains a strong contributor.
Geopolitical risk exposure centers on U.S. trade policy, with recent tariff clarity on medium- and heavy-duty vehicles noted as a positive factor that has eased market uncertainty and supported improved demand planning by fleets.
SWOT Analysis
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Strengths
- Largest North American commercial vehicle dealership network; diversified revenue from resilient aftermarket parts/service (contributing ~64% of gross profits) and leasing; strong cash flow generation enabling dividends and repurchases.
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Weaknesses
- Heavy reliance on cyclical new vehicle sales, which weakened in 2025 due to soft freight market and capacity overhang; margin pressure from lower volumes.
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Opportunities
- Aging fleet replacement cycle; potential freight rate recovery; regulatory clarity on emissions and tariffs boosting demand; network expansions and technology investments for long-term growth.
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Threats
- Prolonged depressed freight rates or excess capacity; ongoing trade policy/geopolitical uncertainties; competition in dealership and aftermarket segments; economic slowdown impacting commercial vehicle demand.