Oct 28, 2026 earnings call — EPA rules and delivery/backlog update
Revenue was approximately 2.1 billion, up 12.4%, and net income was $78 million ($0.65 per diluted share).
Revenue $2.1B (est $2.0B) · EPS $0.65 (est $0.64)
Key quotes
"I could probably ramble on for 20 minutes talking about it, but there is no question that getting regulatory answers from the EPA, is critical."
"Our backlog gives us a good visibility into the strong fourth quarter and first quarter of next year. but supply constraints could affect the timing of some deliveries."
"And aftermarket operations generated nearly 63% of our total gross profit."
Analyst Q&A 4
EPA rule uncertainty and truck shipments
Q (Andrew Obin): He asked how EPA regulatory uncertainty affects customer decisions into 2027, and whether OEM supply constraints will disrupt shipments and orders over the next quarters.
A: Management said EPA guidance is critical and the draft rule allows choices like non-conformance penalties or new technology, but the final decree is delayed and manufacturers are taking different paths. He said customers may prefer phased testing of new engines and that supply constraints at tier 2/3 suppliers could stretch deliveries into Q1, although demand remains and he feels Q4 and Q1 should be OK.
"There is no question that getting regulatory answers from the EPA, is critical." — W. Marvin Rush (CEO·CHAIR)
Parts & service revenue drivers and sustainability
Q (Brady Lierz · Stephens): He asked what drove strong parts and service growth, whether it was national accounts or smaller accounts, and how sustainable the growth is into 2027. He also asked about used truck sales and any impact from regulatory uncertainty.
A: Management said growth was driven by national accounts and smaller accounts stopped declining as much, so the parts and service increase looks sustainable but will face normal Q4 seasonality. For used trucks, management said inventory is being managed well, used values benefit when new truck prices rise, and he expects used truck results to remain solid into the next few quarters.
"I would tell you national account growth was there. But also smaller accounts did not decline as dramatically as they have been the last couple years." — W. Marvin Rush (CEO·CHAIR)
Order lull and margin drivers
Q (Cole Couzens · Wolfe): He asked why the current order lull is temporary and what gives confidence demand will return in 2027, and he asked what drove margins lower year over year.
A: Management said attendees told him demand remains and fleets still need trucks because fleet age is higher, so orders should resume when pricing and emissions clarity arrive; he expects the lull to be temporary. On margins, he said the year-over-year decline is mainly mix: more fleet business and stronger parts growth versus service, which lowers average margins, though truck margins could improve in coming quarters.
"When it comes to aftermarket, our parts business grew better than our service business." — W. Marvin Rush (CEO·CHAIR)
Engine build timing and Q1 spillover
Q (Avinatan Jaroslawicz · UBS): He asked whether OEMs will stock up engines before December 31, where bottlenecks sit downstream of engines, and how much volume might spill into Q1.
A: Management said regulations limit how many engines OEMs can legally carry, but many will try to build into January if they can; he expects some additional weeks of production to cover part of Q1. He reiterated uncertainty remains until the final EPA rule is set, but he feels reasonably confident about Q4 and Q1 volumes though Q2 is less clear.
"I would imagine OEMs, some for sure. Will want to carry as many as they can legally, and that is what they will do." — W. Marvin Rush (CEO·CHAIR)