Rush Enterprises, Inc. (NASDAQ: RUSHA) announced a new $150 million stock repurchase program that will expire on December 31, 2026. The program authorizes the company to repurchase, from time to time, up to $150 million of its Class A and Class B common stock, giving management flexibility to buy back shares when market conditions are favorable.
The new program replaces a prior repurchase plan that was terminated on December 2, 2025. Under that plan, Rush had already repurchased $199.9 million of shares, a total that exceeded the original $200 million cap set in May 2025. The termination of the old plan and the launch of the new one signal a continued commitment to returning capital to shareholders while maintaining a disciplined approach to capital allocation.
Rush’s Q3 2025 earnings provide context for the repurchase announcement. Revenue rose to $1.9 billion, beating the consensus estimate of $1.78 billion by $120 million, or 5.6 %. The revenue increase was driven by stronger aftermarket parts and service sales, which grew in both volume and margin, offsetting a modest decline in new truck sales caused by depressed freight rates and overcapacity in the commercial‑vehicle market. Earnings per share, however, fell to $0.83 versus the consensus of $0.87, a miss of $0.04 or 4.6 %. The EPS shortfall reflects margin compression in the new‑truck segment, where higher input costs and pricing pressure reduced profitability despite the revenue gain.
Segment analysis shows that aftermarket products and services remain a key driver of gross profit. Parts, service, and collision‑center revenues increased in Q3 2025 compared with Q3 2024, reflecting resilient demand for maintenance and replacement parts. In contrast, new Class 8 truck sales were impacted by lower freight rates and a tighter supply‑demand balance, illustrating the cyclical nature of the industry. Management highlighted that the company’s diversified business model—combining new‑vehicle sales, used‑vehicle sales, and aftermarket services—provides a buffer against the volatility in new‑truck demand.
CEO W.M. "Rusty" Rush emphasized that the repurchase program is a sign of confidence in the company’s free‑cash‑flow generation. "This announcement reflects our continued confidence in our ability to generate strong free cash flow despite the ongoing challenging industry conditions," he said. He added that disciplined expense management and strategic initiatives have improved resilience and earnings power, allowing the company to invest in growth while returning capital to shareholders.
Investors have viewed the repurchase announcement positively, interpreting it as a signal that management believes the company’s balance sheet is strong enough to support share buybacks. The program is expected to support the stock price and improve earnings per share over the long term, while the company continues to navigate headwinds such as low freight rates and high interest rates that affect new truck demand.
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