A. Aerosoles's questions to Rush Enterprises Inc (RUSHA) leadership • Q2 2024
Question
A. Aerosoles of UBS asked whether the strong demand in the vocational segment is driven by fundamental market health or by leftover pent-up demand. They also sought to dimensionalize the commentary on more competitive truck pricing in the second half, asking if it varies by OEM and if it's a temporary measure or a longer-term battle for market share.
Answer
W. Rush, an executive, attributed the strength in vocational demand to government spending and fleets catching up on their replacement cycles, rather than leftover pent-up demand, and he expects this strength to continue into 2025. On pricing, Rush clarified that while the environment will be more competitive, he does not expect it to be 'crazy' as OEMs will likely show discipline and reduce build rates to manage high industry inventory. He stated he does not expect the company's blended new truck margins to decline from their current levels.