RUSHA - Earnings call transcript Q4 2024

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Operator

Good day, and thank you for standing by. Welcome to the Rush Enterprise Reports Fourth Quarter 2024 Earnings Results.

[Operator Instructions]

Please be advised that today's conference is being recorded. to Rusty conference Executive Rush, President. like first to Officer now today, speaker Chairman would hand over the your and I of Chief go Please ahead.

W. Rush

year-end joining Well, Michael today, me Goldstone, Controller; General Jay Chief Keller, President, fourth Thanks Hazelwood, morning, Steve Wilder, call. Counsel for Senior Officer; Secretary. Financial good quarter have Vice everyone. Jason and and and Chief XXXX Operating with Vice conference I and our Corporate Officer; President

few words a forward-looking Now statements. Steve say Keller regarding will

Steven Keller

Certain materially December Reform statements. statements from XXXX, actual that could to, today materially not are actual make those Important factors and on Form include are the considered in the results include, our the forward-looking defined forward-looking with differ implied XX-K our report we Exchange expressed will our XXXX. limited statements those statements forward-looking Securities Commission. statements by expressed annual Private Act XX, differ for from these and ended uncertainties, to in such may as Securities cause other Because or and but Litigation filings implied risks those in results such discussed of or by year

W. Rush

XXXX $X.X million our billion income net quarter. we diluted fourth we $X.XX As revenues share for mentioned per news $XXX.X release, and or in in had our annual was for the

net $XX.X or million diluted. was and income revenues were $X our billion, Our $X.XX per

economic $X.XX dividend recession, for We freight headwinds, common are rates the the persistent also faced of XXXX interest per which including was high happy cash a challenging and industry, announce share. a year to uncertainty. ongoing

the A from demand road that over customer hard, carriers factors weak Class leading trucks for segment. new These to hit

Class in markets managed inter things sector X public and tough market. ground our help However, we balance in vocational a strength our to hold out, and

to market execute challenging, outperformed The Our across continue truck customer sales our strategy, but market used well able truck remains Class medium-duty to the segments, and were sales. sales the strong we and in we're profits. various X-X we strong on truck deliver

conditions impacted the aftermarket new The X challenging impact truck operating Class same that industry. sales also

helped we very For to industry that XXXX. our sales to faced I strategic environment despite dedication slightly of the in difficult the our operating financial am us our outperform proud results. force's initiatives

the on parts, shop aftermarket, revenues $X.X XXXX. body down our last of X.X% Focusing year, and service billion from

we to Our by XXX.X% us share road, slightly Demand enhance and was sales our [indiscernible] allowed energy though accounts. compared in aftermarket Even leasing [indiscernible] which national sourcing medium-duty the sale vocational, over expanding sluggish sector our customers, was sales service ratio large revenues to we XXXX. XXX.X% to really force, [indiscernible]. strategic public but grew our saw our down, were and strong to market

to few due In the expect the remain market to which aftermarket to over-the-road XXXX, we in first results soft months struggle, in utilization a rates. lower freight continuing demand fleet

initiatives optimistic demand national the and strategic will on will revenue that year. improves, as result goes and believe focus market are we account on and growing However, that, other our rate this year this our our growth base we customer that in pick aftermarket up

expanding increased time dwell our We XXXX, in serve which to in share. our to better our are also to will reduce counterpart allow committed mobile technician customers us vehicle particularly market grow sales shops, technicians, workforce back

of in competitive trucks were sales, inventory tough, pricing. market new Market representing Regarding XX.X% U.S. Canadian market. we and and X.X% truck XXXX, XX,XXX with the levels of X.X% down sold year-over-year, conditions high the Class X

in to the new XXX,XXX Class market X will be specialty improve offset to weak year and sales the units as sales half XXXX, anticipate half customers. over-the-road of our demand our first U.S. customers and in XXXX Canadian of helped from recover. the ACT the forecast challenging XXXX. be We trucks rates basically we expect However, with freight Research of demand flat second sales to in

we clean around EPS emissions this despite uncertainty engine addition, later regulations, diesel believe some regulations In year. the prebuy will activity drive

along to truck strong sales optimistic achieve XXXX. vocational will with Class that pace market allow X new us sales strong We and the with prebuys are in keep

units Our new Canadian in X-X X.X% market year-over-year, with truck were up Class sales X.X% U.S. and in X.X% of XXXX, representing XX,XXX the sold the market.

stabilized Medium the has times duty production delivery throughout year. lead vehicle improved and

paid outperformed from on X-X truck XXXX. our market focus be drugs customer XXX,XXX in in X-X the large new Canadian ACT off on sales diversifying accounts and of sales. Research XXXX, we strategic base Our Class focusing new U.S. to units and national Class and X.X% forecasts up

flat supply caught in in slow achieve year-over-year. medium-duty our sector the in that demand believe to market program may the we and with XXXX. begin sales XXXX. will up medium-duty has and us XXXX, expertise However, commercial in basically will strong we used ready-to-roll sold our trucks help medium-duty X,XXX Nevertheless, be We

contain showing stabilizing. was values fall but improvement and The helped our to pricing of inventory results strong signs truck to credit, freight market truck with tight used due rates used deliver disciplined challenging strategies and in to value

optimistic are and million, was rental basically cautiously XXXX. revenue $XXX.X XXXX. flat Leasing We from about

Our leasing continues be contributor to a our to [indiscernible] overall key division performance.

increased the X,XXX slightly revenue replaced was in down quarter, While fleet. we units rental in as fourth our revenue leasing

should operating recognize age and our maintenance leasing of and forward. going higher rental decreases, costs lower revenue the we As fleet and

We to expect strong XXXX. our remain business lease enrollment in

benefits the favorable to quarter quarter due remind increases of the in and higher be the fourth wanted G&A every I first the expenses sequentially quarter in of year, that in compared XXXX. everyone we first XXXX expect our that seasonal to of occur taxes to to employee

that a Canada, make vehicles in on may impact parts final component take manufactured to want and the or I proposed comment China. Lastly, Mexico tariffs

the believe XXXX. vehicles situation for tariffs enacted price we new We and are parts, monitoring of vehicles new parts could in decrease truck increased to demand this currently commercial aggregate closely. such are and or the significantly new If commercial

dedication changes, your they I that, for work renewals, reduction the strong achieve Despite expense on in focused initiatives I employees thank questions. and stayed Before we will to our wrap up, strategic take financial their With us XXXX. results. want for helping hard and

Operator

Instructions] [Operator

comes And our of America. from first of Bank Obin line the Andrew of question

Andrew Obin

Excellent. I'll second pattern? about should again. seasonal Rusty, recovery, throw given parts versus 'XX just And think half a turn we seasonality normal how earnings in, positive your commentary about service in and and specifically,

X-part question. a So

W. Rush

You interesting got it. an going No, to be Andrew, it's year.

of to are lingering here last of expect The we get I few the in in better in Vocational we over-the-road that me business the the the question the to think first half getting effects believe without seeing activity they're signs businesses back Regardless still guys, do the the contracts to starting weeks, coming in but freight okay, showed try large numbers But strong. still that with recession, December, of numbers January, are set had quarter. you're half. check year, first We in they tell -- going the seeing are over-the-road of maybe the signs we activity, the maybe that what you in order if up. of digits don't then get were right? down the get that to to low -- we mid-single are on in to we're believe

going happen more parts we a Well, we the start should And little this the fact has up later it about carriers. then confidence are the of comes in prior. as get at believe air when That regulations would But talking the forward about is we're start. right? it the talk service everything all that deliveries just from to it going back year. hold, to I I in U.S. confidence we're okay, from bottomed when going in now it see -- X,XXX of January on on I it I'll the looked shows is get where in I'll down what to to minute believe back retail the what were second. year to that now. year be But take like that, a we in someone the And and overnight. the tougher And year take going sure overall in to government has breach and that to the okay, effect, like into do about the we getting out we going do it at half see right? the a like, ramp and in to -- end, to So over-the-road last believe ask do here in is with the of a year, up the you right look time units comes beginning going I to in But -- the the when by again, we're definitely last half the upswing January. to

firmly do January the in And we because -- many getting I that to continue in it's on a believe all got a we half couple up. would still which mind buys were back last hard thousand, someone like out too into being the ramp I softer it's in But don't regulation starting year there, you year. we So think are from where that you're will if to minute. of of little a uncertainties about talk X

my close we the definitely to That through were the stuff you end. lot it's still lot going it's year Well, be right, it. or to what, call He's XX There I a tariffs sure. new to regulations work a I shake still environment plan. right just ramp-up are now. we've I we're could last going get any back, the stronger XX have you administration. Maybe than days extremely in beginning going with front got got to we always out a the that's obviously, our government hard. 'XX We half, are a would whether didn't back a be to uncertainties, way Look, don't the after built, working to But regular hand that had to to to in in we've and we them throughout we're them what it, that tell there be thoughts figure what are only You're EPA of to right? believe trucks it right now, of do where things, from 'XX. allocation, in back administration. mouth And than does, been not there's I'm in going the the about times normal should overall, be man. year now. work everyone get new see what, have to remember, to office, out. days. And had We're guess XX better of or

service honest to the I with year. still about with -- you, and from -- our -- talk From parts when a see long It's truck sales it where what throughout going be up those I perspective. to right at ramping we're along

margin of on and service we get year, maybe going look make into get said, when we'll few mid-single through to more flat, think will But a sometimes bit again. it see you growth positive all at the the we it months, the not get up I'd up, I totals -- ramp first all. to believe year little of that we the but out into we have like have will how first have But is back effect will them ramping to that how which up shakes a do half fairly when I digits the it. half inflation,

of to XX to left too conservative want get you now, right as me far for but not out really more, skis in wanting years. I I'm my to want You outlook, to want don't know be do my

that begins all we'll I working it over lot So on talk left and we we're we'll always ramp have still still initiatives, the strategic back to -- other market runway up, there's -- I but be behind got of as we scenes a and drive, our and mean that the about. continue confidence

year there sides out So that pretty take get on uncertainties right anyway, both ramping all that up, be would my out similar, once now. especially settled the with we and these it's are

Andrew Obin

just follow-up question. a And

are ramp And things next as the will Will it the to efficiency? about SG&A cycle? Or the savings upside up, any should of about As control into me. cycle? similar the that think you one quarter, you get think look prior it how as we incremental ramp there in SG&A for of how sources was we do be

W. Rush

to [indiscernible] on me put trucks. G&A. tied S sale is the directly the of heat one Remember thing, S. on is S

basis. with it was trucks. [ back XX% G&A. we in look X the if but related the all X I flat business was [ is year-over-year over piece so gross were sequentially, down that we if run the I'm at you manage contributor is not and contributor. all ], of [ on or versus in, going X, profit time what down -- year, -- be daily So I with to X.X% we almost X last and was it a We're like right, similar G&A I sequentially down to We range The X mean big big a that QX. a this IRS were X%. mistaken, X X X And was remember ], feel, like ]. could

job an that So outstating we managing from in my did G&A. perspective

more. keep a XX try the to got out. not service, or gross of money somewhere. it come G&A As ramps ramp owning to you back XX% up a or to profit on typically, to like a to keep to I've so dollar if going it's end, or keep recreated cash goal averages It will be that. goals we're try parts our it up, But with And expense. and owning does

that at XX-some [ lost be X-year cycle, I'm we [ expenses. about doing our bars -- to XXX very direct situation great down and XXX this. that happy stay I average negative that's some a going We're easy, period, service gross [indiscernible] we're parts that goods, we'll So we a ] of And to working because absorption. growth on But range back expenses keep to that. but number to takes it whole close it. We're they're year, with and were ] okay? we to out [ looking not year when we're managed XX% with will that, obviously, doing the people then and like gross And ramp-up that's be do type go number handling a correlation, that you looking all we'll If ramp-up in to in. for parts. continue over profit We give and a or in well a We're produce when in last your can okay? percent period that's that to ] work. right? a to if in

to job. the I us world going But not it expect why into would to going I direction. E-commerce it's to not a get to So way -- helped continues comes evolve. there, all actually only I'm that. when to one to It's better expenses, even but specifics as the continues do believe evolve. it's

So should highly there the technical truck always, we in the all yet. We're to the in cheaper, the the way do We're business, future. okay, business. able in hopefully world. be not most It's not business

it's squeeze the to X,XXX the time, to But do outside service ought on going we same salespeople, better Hopefully, but there ever but a So side. expenses, to those will move expenses. the what it take go is ramps when as right, of able parts we at [ we not the take able all some for to evolving. I that be opportunities out have forward. some us to technology think -- And be normal, trying of to up. be still and with of in we job we'll It's still -- see way, cycle that ]

shift see our I business. going they're But can business, So in a not away.

over you more period et et also but landscape, towards make is continues this more a some cetera, hope bring take competitive it -- too. you cetera, e-com, now. would to it in Now out, can shift cost it to which can longer right

to used a I but there's it. giving But a you going I'm you hang my you're long-winded answer, got So answers. know there that with long-winded

we'll ramp better me, we up job we'll trust back. on -- a have So than think to I do G&A

Operator

from of of Daniel Stephens. next the Our question comes Imbro line

Unknown Analyst

start by I different is This your Daniel. wanted Rusty, ] on asking markets. end Brady Yes. for [ about to

did Class years. fleet side you X the talked How back recover. business XXXX? that has likely been You've the probably are to sales thinking you the year in take until market vocational how of talked in vocational about about recent about will How you while for how resilient in that

W. Rush

and No, still Yes. could to in but the of oilfield do A [indiscernible] happened big I we deep had year to there a starting moment, demand so right that new anything seen we at the remains we good was strong. activity I strict say last a X mean is still implicational. transmission that, while of Okay. mean, away in which vocatioal I -- but -- XXXX. and bad you still believe a little that me can't would our that business, because see demand, it some weren't to for we we the know, I -- possibly gas, seeing it we're am I at able like obviously, believe else. to But So you [indiscernible] haven't like get mean, what business construction a now, as you I you're our said haven't fulfill this, but to it's that, with I crazy a is had strong at think -- in some which pushed pickup, oil there, ago rest actually sector see The you in use and remaining all with administration strong, I still maybe never word. we're we years, as a I the saying a more not offset chewing issue got backlog I had. a around too, right? will

feel backlog not though, [indiscernible]. look, it. I we're pretty good So Again, about

got You these all. case days okay? can up huge if That's like we wanted, in XX in It's okay? at like the build X-year you not we've not 'XX, had backlog

don't this which can line, [indiscernible] and it that is a -- But when such to like that. at build up and demand running they're -- things in because no allocation. quick. really fast something out build ramp -- moment hits There's side in thing factories, deal there's happens now most opportunity shutdown remember the right of believe demand came mean running I full [indiscernible] industry I could is trucks over-the-road So there plenty we're they

-- So call know, to with But has going I back still do allocation as wouldn't the back to your be is we surprised getting strong. could into I'm get things. year, there. of yet. lot see for and 'XX vocational A I to not But original the regulations half see you it in to question,

And good about feel it. so we

Unknown Analyst

gears about Great. on see a very for in could you what just Medium if in duty strength question duty. Can Okay. from and duty been has talk medium my bit strong for years. second little switch guys expecting to that you're medium bit we touch wanted XXXX? a you I recent what's driving to

W. Rush

drove What Sure. that right.

went was make Now running really more it. to them. medium-duty the they medium-duty, a medium when listen, was had it. and heavy take heavy towards in both slowed happens, They put -- manufacturers and and at demand you money 'XX It last out. Well, because big build we down into year, as all away X had that we choose to issues many hard had both. They -- They medium-duty stretched the on pent-up shoot backlog, go have because you Well, to and Class out year 'XX backlog. it fast supply Once components right? media duty what? the that that banks guess gave so of we showed weren't them do back

in I medium-duty not XX Class is hard So get just now you at right okay? moment. can days, the X. to truck that It's medium-duty like a one give

on I'm the not sold opinion. Kenny's right to has personal [indiscernible], great be in a buy I is at that the something the I medium-duty call, all for mine. [indiscernible] This in we while expect per a So that know moment -- mentioned honest. 'XX, for

remain be where about the would know -- if but [indiscernible] have still expect should transaction. -- don't got a fourth truth know throughout think you I do -- in would view. going in And good medium expect we're back I to but it our But in year. That some year. a that's flat we're up to the want to I be the particular quarter, the we half, I medium We've

So that's strong.

see that I more But it but right lot think the being X focus, was created are I because got being results. we by of because we've year side's I don't the not a up pent-up supply in up. as get you stock -- caught with there. expect Like the this the strong medium-duty caught now. demand said, to focus main there that Class supply don't

medium-duty caught up. So has

up -- seeing still don't you So have. demand -- but to these like just It's backlogs there's big used good out there. we're have pent you

do So little that a sends hope on. I color

-- thinking just I'm personally, probably flat. So it's I'm be to going

X, the to I'm the up the think the sides the for ramping [indiscernible]. for that sure, okay, up back half half I backloaded, and on year. medium, both in year say year-over-year. I throughout into probability back -- expect sure. it especially flat of medium-duty backlog be looking But back sure that's do what but I ramping about the to not in can of talked we about But the quite at cost somewhat

Unknown Analyst

Go ahead, Rusty.

W. Rush

to about it -- there will in we're But a in really there are mean minute year, days have our just another out have the clarity here year all about I surrounding and get right that XX uncertainties dictate are on. last environment, confidence I talk they waiting in along but said, as that draw No. like in the like been to things the a now. and that I I'd if ramble some I'll of things there's the minute

tariffs X about the I out of of folks there. hesitation create going I But little earlier, a regulations, did as all for seeing -- that which some not said spite and with activity to So where here. I and to can fall in weeks better bit stuff, regs me, say, in rules couple seeing we're wonderful mentioned and things the real we're out it's are last of non-clarity, uncertainty clear how all the

direct inside have truck people make their business the decisions the business. on a that We correlation very

Unknown Analyst

one. just Maybe final could I if -- quick one

M&A cash pipeline? on there Rusty? quarters. balance you of uses you cash, of are recent for the in the sheet talk just a about what You built Kind seeing XXXX? Can in of Are anything you lot seeing

W. Rush

got We might years for first might my be we spend some try is XX% years, to range. a a been in that X%, -- Yes, the at raised We in our -- We be return in it years. for XX, on doing in set shareholders, lines your committed cash. We've information, to our XX%, look back somewhere second M&A we all dividend depends X XX, I've if we a option X to X, right? that. we've some in run always up redid all committed XX% QX, shape. in we're in to a our -- I dividend X-year December second which opportunistic or consistently pretty have repurchasing. it. raising been pull credit how the be we money, think and we it That to got can has X%, just take got -- need Well, good

sheet, the I if get cash structure need cash good have on great and quickly. balance have We to

places. couple to So just I get do deals find would love imminent, responsibility set that But was say -- yes, need it in there's got always you to in that I I -- talk said, in us. falls for couple We've it, I but a it. don't have I in some we're people, a But probably but me. I'm stores M&A even to a of always greenfield other have as you. do matted summer, up -- -- at looking imminent. I no a couple so tell wouldn't on if you to back Nebraska main right? greenfield with huge trust mean, I small me, tell I conversations. better really I am store anything there's work find -- of believe up And that, deals. the sense anything Nebraska,

a cash We of the isn't approval We return did in first the we the is that prior as first last didn't is we repurchase choice understand our approved shareholders. March year So December. is and to choice second our year.

I million $XXX we I 'XX So after December a December. million we repurchase repurchased year, every we new and -- last a approved prior when that throw what of that when at of $XX look had really first in in

So day, we every be do repurchasing currently X. we [indiscernible] are

the So we now. very time all repurchased quite, it consistently right

expect more you our [indiscernible] shareholders believe 'XX is stock management I outside would a we'll calendar it a the but being be and clear on on than any spend M&A, I throughout from XXXX end because still probably doing more front and up dividend year So in unless repurchase shown belief giving Northwell we repurchasing or our should X consistently there we're go, consistently the cash and great it and years, we it, lot your organization us. you in X the answer. continue this in last value, got because or do there's in -- I and And direction that will of we've believe we've still a

Operator

Our question UBS. comes [indiscernible] from the line of of next

Unknown Analyst

some of you're It that. like so interested unpacking in of uncertainties, some sounds in talking policy about the interested

any looking and So the Are starting with the less? or customers conversations with emissions What hearing regulations uncertainty the you prebuy. more engine like changeover? around are the latest like

W. Rush

was the to is middle I'm am what I'm 'XX California, in was to a and going in to okay? Well, because happen know a things it's new customer, were mean, you anyway as clear where clear to happened I interesting, into and have very someplace am right. also. to as unknown had mud going where speak to we what I right? I'm as guy. going go as got a territories, When happen. a a you Well, I it's map a going always -- what Yes. going you good -- we I'm customer Because in thought to to heading customer Well, map, you're like and go a

got over for is in roll right to okay? They to were thrown coming which I'm which the clean going and is have that much going can electric was ACT for know affects trucks to Friday Truck, That back I or out, -- not these this base. X do be Right back in on dangerous, Clean look if Day, clarity, all in to to this So trucks. was the [indiscernible] I Valentine's ACF last my okay. are going now, last I in for people of a to all as that way stuff time want now, have and many not I OEMs, the to staff new or than get sell intelligent better our how rules am. be electric on or just administration detail frame, challenging all you prior more X regs. the they're to customer EPA

is saying that should got in approved in approved the of because they're air outside So Congress. been it Congress, have up it

it to taking they're So Congress.

the still Now the the obviously itself while promoters technology running truth carbon sort big than is all, But work fuels still we that's the out, which for we how with while administration, issue. the different understand prior environment which all right, there's an piece, were totally administration, thing. in on stay new They're right is for they okay.

it's in know don't emissions shake I that in to diesel regs going to I go the are into place expect change. 'XX place out So don't how to

I think it could line up.

I X.X this XXX. think thing, They'll X.XXX. could be just settling wrong. my at up a is it had and aligning probably I and end personally You they personal do and

that the your and all to bit around opinion, expect diesel other of what's stretched my still rules pushing We're down. greenhouse to going clean we're new do okay? expect to diesel. about okay? to XXXX the more, piece in tied bad years, the stay. taking these It's it out. gas piece up electric diesel. that's That's it Remember, I regs got all talking Well, We're is get to taking you've some and and I stuff, which just -- happen, That's still and

up huge to the the they're going same existed. you've of cost. where long a that never the They context now, way warranties written in they're treatment stay have on after got these lot take Now

and You're all a then we're treatment. about price talking [indiscernible] to with talking $XX,XXX, is and $XX,XXX manufacturer, a after wait surprise. manufactured But going like -- nobody give

is of lot change the Do the a all those the your because around that Now [indiscernible] rumors warranties. time.

So change might they a -- cost. they that lot of might that

what So are will pretty here some don't the vetted going costing of change But won't. it it issues be that all of of I are or types that those quickly. it. would to know

what, cleaned up I to one still time. it truck in trucks then been to in cleaned NOx XXXX. XX cleaning you when mean, 'XX. that. produced long comes crazy a to things up me. are produced go back -- We We That's We we've XXXX, 'XX. I it XX, a for and up number back today say up in cleaned like it diesel if We

but on up going this to just down going Friday, was warranties. to -- valentines treatment They they're preparing this. those the I turn have do, slow all was that it I you tell be, So run announced that it numbers to out for we're again. yet because we're stuff, what to to going too happy the plan OEMs to what those much Congress. day. the after this but way spent try money back EPA can't And

XXX XXX all diesel, going is we're got That's decades, for we talking lot. ml internal I ahead. So there's change The right way got is see going infrastructure it these to just doing out just it mean, do because XXX look, bad give We've in done I we're and X some don't thing a it requirements that's thing We've a okay? up me right combustion push So years to years, sorry, -- around cleaning break. it to -- the do away. of I'm I'm years, man. We've to done plain. nothing of they're that, do.

grid. is different to have it Okay, term? we many thing it don't There trucks. have with than so doing probably Trucks applications. right the a do -- do But also infrastructure. so different don't the Yes. long automotive We is many are

it I different A to road. I [indiscernible] I of from does. Then B, field give we many point when goes be car to concrete, okay? Ferrari. garbage, the time. oil so answer do CARB to short key it on a Trucks, or multi-prong what get don't want don't The over get applications. point a don't up give the That's You It it the expect done pour trucks. They in period but signs. there. doesn't [indiscernible]

years. my [indiscernible]. and Rusty of We'll So be I we But I for get don't this use own [indiscernible] will in the it XX thoughts. our applications about is this and the simple We'll [indiscernible] is in ramping town mean, way. that other. necessary his around a have lot on done components get

dryer, in Some [indiscernible] like air so not. it's people think it's plugging

in because than in easier up of trucks grid way catch cars, the else, more do can it's because right? on different complicated infrastructure we and of Okay, and everything all be applications. that. to will way the the Automobiles

So always you're we're warranties. through going go as could they we much there could to go expect changes, diesel 'XX I or tweak change answer, rambling going some getting I a but because much fashion. long not but say, to diesel flipping been form with the have tweak we we're spent, the the them, again will too through too which prepped in in But if

give is stuff we we've reality. not that -- But the topping We're to it. to got the a are what will our to within refine up, It do do do There And it out technology do all is trying man. that I to I the the will to properly, to and do was bounds get needed pushed the time we got the things industries there, of it okay? were to environment get but other understand better happen answer.

right? typical, we it new something when saying how there and DPS will there is XXX-plus years think dealing issues will everywhere, What don't shake Everything a cetera, all much I'm and with come case. can was this, something dealing to we'll but technology, with on I XXXX, all that's be do it be you work know which with, always not stuff, okay, the But got out works. remember like issue okay? after-treatment because et cetera. -- we've new clogged how the with I time things diesel I is et that prebuy. be you it's any saying, I'm all do [indiscernible] how

behind technologies, it that XX we we'll things the its whether hydrogen will the years. and So to get next in place over cell that all then fuel to the going continues into figure other this electric is while and other, -- and all these do right take be while to progress everything not scenes, is it

Unknown Analyst

That makes sense to me, and I appreciate the perspective there. Shifting tariffs. over to

you know could prospect the and that around demand. increase of that price that uncertainty I noted and So it trucks squeeze the the really

what terms So on doing new that us of be also And inventory the could impact truck? uncertainty, cost things guess you that to with differently risk? the for to X One, try help mitigate managing anything to frame a are I you this in of year your there.

W. Rush

first dogging XX sector, put sector, I'm about but Well, I give Okay. to there me? not really and understand you Saturday, the to on and understand We're the you kidding understand days be automotive it's nothing mean tell more like, everybody's the all part, manufacturers, XX% do off, ago, is understand I down tariffs okay? kidding I maybe it. let a than plants XX, drugs, all just the immigration to now, automotive you're I on Canada. me. I messing Chinese [indiscernible] me issues. But Mexico the Mexico going -- got with are got about stuff. suppliers, And and there the you. an And economy

in who them. believe what. that design a that'd not components down in You're new be a expert I -- another detail U.S., $X,XXX, they'll to have sense trucks $X,XXX since the was you're XX% And you where even absolutely administration -- you're I negotiation. back truck. the I mean But that probably in will that be as in always And tell a the to on depend November it's got it X talking on announced me. $XX,XXX, if right? of remember it's I'm it, makes on for and devil's that. $XX,XXX I manufacturing in there, Automobiles the manufactured all So jogging on and everybody $XX,XXX. in are just told tariff brand, put you, if

on And I there for milk We and it's labor border. it Those believe absolutely better China. border, truly that I born more see Those I've to not from are do stuff not me. We and and have I cannot more own South. it's factories, understand. I a go It's like the strong order that we it's labor okay, I'm on old the in door Brownsville. [indiscernible]. those all can't that. We there, just in would but own see. makes okay. them. the I not and built on raised like We the our plants down I'm do Tijuana are, If the just X doing material way okay? back those all more. we just our all to 'XXs Texas, the solid need stuff. build sense a stuff that. factors.

sense me. be something disruption? can any there Would do? Is make I So it really a Yes. there to doesn't

as out do I realize We anything with No, might the at States. first, my you XX. don't port me goes on Mexico weeks. But a half I Well, but here to way trucks okay? into Laredo, deal X like a it, we know getting [indiscernible] can't biggest X in the going just going work about tell talk ocean or to courts. is it manufacturing about EDA. over but because that, out more in all weeks, for and I own don't these you down we come find my when Texas. do coming the you're the That's our of tell I it's anyway day I I through in to with would all know okay? personal United I window care them. that, freight got that up look it. through There's tripling right of up views the vehicles And don't highway, want to South. workforce about And I'm all

it no to me. sense So just makes

sense see thinking, one off. the it to south, neighbors, I government to got with what risk you border. I'm I to personally, that I've Maybe the making out things sabre-rattling the -- something. don't will doing or when and like X close enough it's only not that slabs believe of your the the know northern, negotiations. don't have to time one build hard some ordering and but we they're a of I really ones on that be especially there

mean, I all drove So we that.

dead and it, it. we believing thinking would yes, going to yes, by my do. their to about to they I OEMs Sure, are dead would hard wrong. they would a** wasn't get But plans people That's have around We're Mexico have as to wrong have yes, do, could scenes, do just it. really that over contingency plans don't excuse [indiscernible]. react. time. costly thought a driven this how we're about have be a cumbersome But what would thought how we it. But believing plans, be implement they take have and time hard time would I in worry -- and just be answer we Ourselves I the we it around what do really buying it. me, opinion. about I it

Unknown Analyst

we're I the makes away from moving what That bit uptick towards guess or today. uncertainty seeing little sense. a

I of know year, bit last a truck of discounting second on new half pricing. was there So

wondering for expecting something just if so as half that And here we well? first be should of the 'XX

W. Rush

Remember, already discounting of slight, we're I discounting on. going the there, expect but flat. Slight lot So last we blended just duty maybe say stuff increase that doing I now year, tell as was don't when well pretty obviously sell gone as have or that, maintain good a I on mean we've media. of We out tuning okay? and one-off most broad-based used. manufacturers, -- sell the we've margin and here right margin there's through on No, us, not maybe to is deal a managed that's taken folks.

I'll job. or pretty better. on we've a keep good blended over So it margin. done X%

Glass compressed compressed yes. a more. getting No. as lot new bit, a So little whole

be -- already we've bit little compressed pretty it. a on we'll been think I

-- think a having right? don't they to margins been they I So I off are we've some. felt So their what trying most what prebuy, OEMs planning were on maintain

take the that. know don't in there's there of no last But more is question. look later back out I can at You much of half to it how year,

increases will any flat there with demand enough stay in to honest things pretty things pretty to without getting I think keep be anything flat. expect you I

Operator

Rusty to remarks. closing for it I'm this I turn to further no at Rush back showing questions now like would time.

W. Rush

Okay. talking And April, for today. I between everybody X look thank everybody months. time your I guess shortage to the to you I in participation it's just about talk forward to calls.

Operator

your for the conference. does today's you Thank conclude program. participation This in

now may disconnect. You

Rush Enterprises (RUSHB) 19 Feb 252024 Q4 Earnings call transcript