Rush Says Parts Shortages Are Parking 1,000-Plus Nearly Finished Trucks Across Every Maker
The CEO of the truck dealer says supplier strain will stretch out deliveries, though he feels good about the fourth quarter and first quarter.
Rush Enterprises CEO Rusty Rush said on the company's third-quarter earnings call Wednesday that supplier shortages are stalling more than 1,000 nearly finished trucks across all manufacturers, stretching out deliveries. Rush Enterprises, which runs the Rush Truck Centers commercial vehicle dealerships, still expects a strong fourth quarter and first quarter.
Trucks parked out back
Rush said strain on second- and third-tier suppliers, plus one first-tier item, has surfaced in the last couple of weeks. He said it affects every manufacturer, including those his company does not represent.
Manufacturers, he said, have well over 1,000 trucks built except for a couple of small parts, sitting in back lots. "The bottleneck is across the board," he said. When a part such as a gauge or lens is short, he explained, the truck comes off the line, gets tested and waits for the piece.
He attributed the strain to makers ramping up repeatedly this year, some with six to eight production increases, and said it happens in every surge.
Confident on two quarters, silent on the third
Rush said he has fourth-quarter numbers but will not guarantee them, since some deliveries could slip into the first quarter. He declined to quantify the first quarter. He said he is unsure about the second quarter because no manufacturer has much backlog.
Asked by a UBS analyst about spillover, Rush guessed that makers will build old-technology engines roughly three more weeks into January. When the analyst said that could carry retail sales through February, Rush agreed: "Pretty much through February."
He expects the issues to sort out within 60 days. Customers, he said, are waiting on clarity about the EPA's 2027 emission rules and on manufacturer pricing, which has slowed quoting and orders.
A strong quarter underneath
Revenue was about $2.1 billion, up 12.4% from a year earlier. Net income was $78 million, or $0.65 a diluted share, up 18.2%. Rush credited higher new truck deliveries and improving aftermarket activity for the quarter's growth.
The company sold 3,880 new Class 8 trucks in the U.S., up 24.4% against industry growth of just over 10%, for a 6.5% share. Parts, service and collision revenue was about $680 million, up 5.8%, and its absorption ratio was 128.3%. Rush also bought back $10.3 million of stock, paid $16.4 million in dividends and ended September with $226 million in cash.
Rush said the next call will come in mid-February, the longest gap between his calls.
Sources
- Rush GAAP EPS of $0.65 in-line, revenue of $2.11B beats by $60M (NASDAQ:RUSHA) | Seeking Alpha — seekingalpha.com
- Rush Enterprises, Inc. Reports Third Quarter 2026 Results, — globenewswire.com
