Nasdaq:RUSHA
RUSH ENTERPRISES INC TX
A premier North American manufacturer and distributor of recreational vehicles with a robust dealership network spanning the US and Canada.
Key Metrics
Investment Thesis
Bull Case
The stock offers attractive value given its consistent profitability, strong free cash flow generation, and history of shareholder returns via buybacks and dividends. As the RV market stabilizes post-pandemic, the company's scale and dealer network position it well to capture market share against smaller competitors.
Bear Case
Valuation may be stretched relative to peers given recent revenue declines and a compressed profit margin trend from $392.1M in 2022 down to $266.0M in 2025. High debt levels coupled with rising interest rates could pressure cash flow, while an oversaturated market poses long-term growth headwinds.
About RUSH ENTERPRISES INC TX
Rush Enterprises Inc. is a leading manufacturer and distributor of recreational vehicles (RVs) operating primarily across North America. The company serves diverse markets including leisure travelers, families, and commercial fleets through its extensive network of dealerships. Its core offerings encompass motorhomes, travel trailers, fifth wheels, and related accessories sold under multiple brand names.
Analysis
Management Discussion
Despite a slight revenue contraction in 2025, the company generated healthy operating cash flow of $861.8M and maintained a net profit of $266.0M. Management successfully navigated inflationary pressures while returning substantial capital to shareholders through $194.9M in repurchases and $58.3M in dividends.
Industry Overview
The recreational vehicle industry is highly cyclical and sensitive to consumer confidence, interest rates, and fuel prices. Currently facing normalization after pandemic-driven demand spikes, the sector is shifting towards value-conscious consumers and extended product lifecycles.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $7.10B | $7.93B | $7.80B | $7.43B |
| Cost of Revenue | $5.61B | $6.33B | $6.27B | $5.97B |
| Gross Profit | $1.49B | $1.59B | $1.53B | $1.46B |
| Operating Expenses | $981.0M | $1.08B | $1.06B | $1.07B |
| Operating Income | $506.1M | $512.4M | $468.1M | $393.8M |
| G&A | $927.8M | $1.02B | $995.6M | $996.2M |
| Stock-Based Comp | $25.3M | $30.4M | $30.4M | $31.7M |
| D&A | $199.1M | $221.1M | $236.1M | $252.8M |
| Depreciation | $177.1M | $194.1M | $207.3M | $224.9M |
| Other OpEx | $53.2M | $59.0M | $67.7M | $70.7M |
| Non-Operating Income | $3.2M | $-50.3M | $-70.3M | $-47.9M |
| Interest Expense | $19.8M | $53.7M | $72.0M | $48.2M |
| Interest Income | $639.0K | $777.0K | $1.2M | $1.9M |
| Pre-Tax Income | $509.3M | $462.1M | $397.8M | $345.9M |
| Income Tax | $117.2M | $114.0M | $92.8M | $79.8M |
| Continuing Ops | $391.4M | $347.1M | $304.2M | $263.8M |
| Discontinued Ops | $703.0K | $1.0M | $817.0K | $2.3M |
| Net Income | $392.1M | $348.1M | $305.0M | $266.0M |
| Minority Interest | $703.0K | $1.0M | $817.0K | $2.3M |
| Net to Common | $391.4M | $347.1M | $304.2M | $263.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.87B | $2.26B | $2.39B | $2.09B |
| Cash & Equivalents | $201.0M | $183.7M | $228.1M | $212.6M |
| Accounts Receivable | $220.7M | $259.4M | $345.3M | $277.8M |
| Inventory | $1.43B | $1.80B | $1.79B | $1.53B |
| Prepaid Expenses | $16.6M | $15.8M | $19.0M | $54.7M |
| Other Current Assets | $0 | $0 | $9.5M | $11.6M |
| Long-Term Assets | $1.95B | $2.10B | $2.23B | $2.34B |
| PP&E (Net) | $1.37B | $1.49B | $1.62B | $1.69B |
| Goodwill | $416.4M | $420.7M | $427.5M | $441.6M |
| Operating Leases | $102.7M | $120.2M | $111.4M | $124.1M |
| Other LT Assets | $65.7M | $75.0M | $73.3M | $78.9M |
| Total Assets | $3.82B | $4.36B | $4.62B | $4.43B |
| Current Liabilities | $1.43B | $1.67B | $1.65B | $1.49B |
| Current Debt | — | — | — | $127.0K |
| Current Leases | $15.0M | $17.4M | $15.9M | $19.3M |
| Deferred Revenue | $116.2M | $145.3M | $109.8M | $112.1M |
| Other Current Liab | $1.13B | $1.34B | $1.36B | $1.18B |
| Long-Term Liabilities | $629.4M | $800.5M | $805.5M | $712.6M |
| Long-Term Debt | $275.4M | $414.0M | $408.4M | $274.8M |
| LT Operating Leases | $89.0M | $104.5M | $97.9M | $107.7M |
| Other LT Liab | $264.9M | $282.0M | $299.2M | $330.1M |
| Total Liabilities | $2.06B | $2.47B | $2.46B | $2.20B |
| Shareholders' Equity | $1.76B | $1.89B | $2.16B | $2.23B |
| Retained Earnings | $1.38B | $1.45B | $1.70B | $1.90B |
| AOCI | $-4.1M | $-2.2M | $-9.3M | $-4.8M |
| Treasury Stock | $130.9M | — | — | — |
| Total L&E | $3.82B | $4.36B | $4.62B | $4.43B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $392.1M | $348.1M | $305.0M | $266.0M |
| Non-Cash Adjustments | $-598.9M | $-413.7M | $274.0M | $1.10B |
| Working Capital Changes | $501.2M | $361.3M | $40.6M | $-500.4M |
| Cash from Operations | $294.4M | $295.7M | $619.5M | $861.8M |
| Capital Expenditures | $243.1M | $368.9M | $433.0M | $399.8M |
| Cash from Investing | $-240.9M | $-387.0M | $-445.6M | $-417.1M |
| Debt Issuances | $958.3M | $1.43B | $1.84B | $1.12B |
| Share Buybacks | $93.7M | $211.8M | $15.7M | $194.9M |
| Dividends Paid | $44.6M | $50.6M | $55.5M | $58.3M |
| Cash from Financing | $-690.0K | $74.0M | $-129.3M | $-460.4M |
| FX Effect | $118.0K | $36.0K | $-246.0K | $141.0K |
| Net Change in Cash | $52.8M | $-17.4M | $44.7M | $-15.6M |
| Beginning Cash | $148.1M | $201.0M | $183.7M | $228.1M |
| Ending Cash | $201.0M | $183.7M | $228.1M | $212.6M |
Frequently Asked Questions
How does RUSH ENTERPRISES INC TX make money?
The company's revenue is derived from three primary segments: Motorhomes (including Class A, B, and C), Travel Trailers and Fifth Wheels, and Parts & Accessories.
What are the main risks for RUSHA?
High sensitivity to interest rate fluctuations impacting consumer financing costs; economic downturns reducing discretionary spending on luxury goods like RVs; potential supply chain disruptions affecting raw material costs for aluminum and steel; intense competition from domestic and international manufacturers.
What is RUSHA's competitive advantage?
Extensive nationwide dealer network providing superior market penetration and customer service; strong brand portfolio with recognized names in the RV industry; significant scale advantages in manufacturing and supply chain logistics.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.