Question · Q4 2025
Brady Lears inquired about the Class 8 market, specifically the potential for a meaningful pre-buy in 2026 ahead of 2027 regulations, customer sentiment, and the sustainability of recent order improvements. He also asked about Q1 parts and service performance, the impact of severe winter weather, and strategic initiatives like technician headcount and mobile service. Finally, he questioned the company's expense management strategy for 2026, balancing cost discipline with anticipated market improvement.
Answer
CEO, President, and Chairman Rusty Rush expressed optimism for a 2026 pre-buy driven by 2027 emissions regulations and improving business conditions, citing increased spot rates and clarity on EPA NOx standards and tariffs. He expects solid Class 8 order intake to continue, potentially leading to supply-side challenges later in the year. For aftermarket, Mr. Rush noted January was tough due to severe winter weather in southern regions. He highlighted mobile service as a key strategic initiative with significant investment in 2025, now representing 30-35% of the business, and affirmed focus on technician growth. Regarding expenses, Mr. Rush aims to keep G&A close to flat in Q1, acknowledging typical Q1 jumps due to payroll taxes and equity costs, and indicated potential spending increases if parts and service gross profits grow.
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