In this week’s roundup we cover third-quarter earnings, which were mostly positive across the OEM and supplier sectors. Paccar, Traton and Volvo Group reported especially strong North American operations, while Rush Enterprises also had a strong quarter and many suppliers posted steady to good results. Only LKQ experienced a notable dip in the quarter. But the same can’t be said for our readers. In our most recent MarketPulse survey review, we covered how aftermarket business conditions dipped substantially in the third quarter while dealer business improved. We also touch on Karmak’s new AI solutions, and how OEMs are planning for EPA 2027 engine regulations.
Lucas: Hey, everybody. Lucas here for today’s TPS weekly news roundup. It’s earnings week; or should I say earnings weeks? Last week, this week, next week, we’re getting all the Q3 earnings reports from all the manufacturers, the OEMs, the component suppliers. We’re keeping up with those. We’re putting them on the website. If you haven’t been following them, we do have a post on the website where we’re aggregating everything.
A couple highlights: Paccar, Traton, Volvo, all announcing really strong Q3 earnings with their North American business outpacing their global business. Good news there. In the dealer space, Rush had some very strong Q3 earnings. Revenue up over $2 billion and Rusty Rush saying they picked up market share in the new truck segment. So, really positive across the dealer and the OEM channels.
If there was some weakness in earnings reports, it came from the component suppliers.
Some of the component manufacturers not quite as strong as their OEM partners. Additionally, LKQ missed its Q3 earnings goals and let go of their chief executive, so a change there. But generally speaking, Q3 earnings pretty positive across the space.
Looking at our MarketPulse report, which is our quarterly survey of dealer and aftermarket responders and readers, kind of [looked like] what we’re seeing in the earnings reports. Dealers had a really strong quarter, aftermarket not so strong, really the first time in seven quarters that dealers had a stronger quarter than the aftermarket. Dealers rating Q3 as a 6.15 on our 1-to-10 scale. Not great, but definitely an improvement. Aftermarket at 5.45. That’s down about a point from the beginning of the year and the weakest aftermarket score we’ve had since Q4 of 2024. The dealer score 6.15 is the best we’ve had [in that channel] since Q4 of 2023. So, that kind of goes with what we’re seeing on those OEM earnings. Dealers are really starting to have a better business conditions and as we continue to deliver trucks, we continue to deliver trailers, that’s probably going continue for a while. The dealers are going outpace the aftermarket. We’ll keep up with it. Obviously, our Q4 MarketPulse survey will begin and then post in January, but just something to know right now. Go ahead and check that story out for more information.
Also, Karmak had its user conference last week. Karmak introduced a couple new AI tools for its Fusion and Blaze DMS systems. Check that story out. Karmak also talking about how they sort of evaluate AI tools and make sure they purchase the right tools and invest in the right tools, not just for their business, but for your business as users. Check that story out.
And then finally, I had a story about EPA 2027 engines. We’re sitting here, we’re waiting for the next final rule from the EPA. Should come out here in November in the next couple weeks. I reached out to each OEM and I reached out to Cummins and I said, “What engines are you going have in January? What is your intent moving forward into 2027? Are you going to pay non-conformance penalties? Are you going move forward with compliant engines? Is it going to be a mix of both?” All manufacturers got back to me with something except for Paccar, but I was able to find some information from Paccar. So check that story out. You can see what everybody is going to do. You can see what the plans are, when we’ll see compliant engines, when we won’t, how manufacturers are determining what the right path forward is. Check that story out. Really some interesting and exciting stuff there.
A lot of good stuff on the website this week. Hopefully you’ve signed up for the newsletter. You’re not missing anything. If you are, please sign up from the newsletter so you get everything every day. Please like and subscribe to these videos so you get them every week. Have a great weekend and we’ll see you next week. Thanks everybody. Bye.
