Oct 28, 2026 earnings call — Regulatory uncertainty and strong aftermarket results
Revenue was approximately 2.1 billion this quarter, and net income was $78 million ($0.65 per share).
Revenue $2.1B (est $2.0B) · EPS $0.65 (est $0.64)
Key quotes
"Quoting and orders have slowed as customers wait for clarity around the EPA's 2027 emissions rules."
"We sold 3.88 thousand new Class 8 trucks in The US, up 24.4% compared with industry growth of just over 10%."
"Parts, service, and collision center revenue approximately $680 million, up 5.8%."
Analyst Q&A 4
EPA rule uncertainty and customer choices
Q (Andrew Obin): Analyst asked how regulatory uncertainty (EPA rule) will affect customer behavior into 2027 and whether OEMs will ship normally given supply issues; he also asked how shipments and orders will look in coming months.
A: Management said the EPA draft left key choices for customers and manufacturers, and the final decree is delayed so behavior is uneven across OEMs. Customers may prefer to delay full adoption and use non-conformance penalties to test new engines; manufacturers are taking different paths, which creates timing uncertainty for deliveries into early 2027.
"But there would be a penalty." — W. Marvin Rush (CEO·CHAIR)
Parts & service drivers and used truck outlook
Q (Brady Lierz · Stephens): Analyst asked what drove the strong parts and service revenue growth, whether big national accounts or smaller accounts drove it, and how sustainable the growth is into 2027; he also asked about used truck sales and any tailwinds from regulatory uncertainty.
A: Management said parts and service growth was driven by national accounts and improving smaller-account activity, and they view the growth as sustainable but gradual. For used trucks, management said market conditions are solid, inventories are well managed, and higher new-truck prices help support used values, so they expect used sales to remain stable into 2027.
"Well, first, I do believe it is sustainable." — W. Marvin Rush (CEO·CHAIR)
Demand strength, margins, supplier delays
Q (Cole Couzens · Wolfe): Analyst asked why management is confident the order lull is temporary heading into 2027, what is driving lower margins, and where the supplier bottlenecks are and when they will clear.
A: Management said confidence comes from customers reporting ongoing demand and an aging fleet that supports replacement demand; the lull is timing related to fleet transitions and emissions clarity. Margins were mainly mixed driven (more fleet/national account business and parts mix), and supplier bottlenecks are across tier 2/3 suppliers; they expect those small issues to be worked through and soften into 2027 as orders normalize.
"Well, that all depends on demand." — W. Marvin Rush (CEO·CHAIR)
Engine build timing and Q1 spillover
Q (Avinatan Jaroslawicz · UBS): Analyst asked whether OEMs can stock up engines before year-end, how much spillover to Q1 that implies, and whether OEM pricing depends on final NCP rules; he also asked if cost spikes reduced parts demand.
A: Management said regulations limit how much OEMs can pre-build and carry, so they may legally stock a modest extra amount but cannot hoard large warehouses; if engines are built into late December, that can push deliveries and retail sales through Q1. On pricing, manufacturers will try to recover inflation and NCP costs once the final rule is clear; parts and service did feel cost pressure but still showed solid sequential performance.
"But there are regulations as to how they could do that." — W. Marvin Rush (CEO·CHAIR)