Rush Enterprises, Inc. (NASDAQ:RUSHA) Q1 2024 Earnings Call Transcript

Rusty Rush : Well, I don’t see any upside this year. Okay. I mean, If you take the U.S. first quarter retail, multiply it by four, you’re going to get the 228 number they got out there, okay. So I don’t see a lot, if I see anything, I see a little bit of downside in this year. But I do believe that there will be upside in ‘25 and ‘26. I just believe, especially as people, it comes into focus what this really is. Remember CARB already went in, implementation of CARB in California already happened January 1 of this year. But the effects of it have not been seen because we’re still delivering stuff that was bought in late ‘23 and everybody really accelerated their purchases. So you really won’t see the real effect of that till you get to the last part of this year, I think.

And as people see that, I think they’re going to get really nervous around the rest of the country as to what these new EPA laws are going to mean from a cost perspective. I have concerns, no disrespect to anybody, about performance and the after treatment side of it. I’ve watched this deal with after treatment issues in the last decades. Every time we roll out something new, we do have issues. I think people will be concerned about performance around that. So, I don’t see, for us, it’s diversification. That’s why I’m confident that we’ll end up the year in a better shape than what the overall in Class A sales are, just because of the diversification of our customer base. And I believe ‘25 and ‘26 are still going to be great years as people get their heads around what the true costs are going to be when you get to ‘27.

And I think, we’ll be back, I do believe we’ll be back on allocation sometime later in ‘25, probably.

Andrew Obin: Thanks very much, Rusty.

Rusty Rush : You bet. All right, operator. Well, I guess I’ll be the operator too today. Do we have any more questions? I see no more questions on the board. So, I get a second job for the day. With that, I look forward to speaking to everybody sometimes in the late, mid-late July with our second quarter results. Everyone have a great day. Thank you.