Rush Enterprises, Inc. announced first-quarter 2025 revenues of $1.85 billion, a 1.1% decrease compared to $1.87 billion in Q1 2024. Net income for the quarter was $60.3 million, or $0.73 per diluted share, down from $71.6 million, or $0.88 per diluted share, in the prior year period. Gross profit decreased by 8.2% year-over-year to $357.76 million, resulting in a lower overall gross profit margin of 19.3%.
Aftermarket Products and Services revenues experienced a 4.6% decline, totaling $619.1 million, attributed to the lingering freight recession and fewer working days. Conversely, revenues from new and used commercial vehicle sales saw a slight increase of 0.7% to $1.13 billion, primarily due to a favorable product mix, even as new Class 8 unit sales declined by 7.8%. Lease and rental revenues increased by 2.7% to $90.253 million.
The company demonstrated expense management, with selling, general and administrative (SGA) expenses decreasing by 5.6% to $248.8 million, reducing SGA as a percentage of total revenues to 13.4%. Net interest expense also decreased significantly by 28.4% to $12.863 million. Operating activities provided $153.5 million in cash during the quarter, a notable improvement from using $155.1 million in the prior year period.
The Board of Directors declared a cash dividend of $0.18 per share of Class A and Class B Common Stock. Management's outlook for 2025 projects U.S. Class 8 unit sales between 11,500 and 12,500, outperforming a projected market decline of 13.8%. Aftermarket revenues are projected to be flat to down 2% for the year, with sequential improvement expected in Q2 2025, and lease and rental revenue is expected to increase by approximately 3%.
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