120 days before we deliver to the end user i expect july august you know september and throughout to continue to ramp it's not going to double or anything like that but if you were asked me about truck in this quarter you know we'll be up 15 or something because remember our carry is going to go into next year like i keep saying the stuff we build in december will not be delivered in this year it will get delivered into january and february so the stuff in november will so this will ramp for us and continue to ramp as we go forward um parts and service i already said i expected to continue to get better and i've listed a multitude of reasons why right which the small user being one of them right we saw you want to know we saw a four percent sequential increase from Q1 to Q2. Not a lot, but we did see that. And while still very depressed from what it was, say, three years ago, at least you feel like you're bottoming, right? And so hopefully you're troughing from that perspective. And you've got upside, but that's 30% of our parts and service business that we've been fighting. We've been fighting that really hard the last couple of three years in producing the results we have given the diversification, whether it's by that customer segment or market segment or whatever. We deal with a lot of markets. I know I've talked a lot about just over the road here this morning, but I do not want to forget about our vocational businesses, whether it be in construction or refuse or whichever vocation it might be in, or our medium duty platform, right? I mean, those are all things that we work on everything in our shop. You know, the over road business gets the major focus because it is a huge, it's the biggest market. Yet at the same time, we supplement it with diversity from geography, from a geographic and a market perspective. So, you know, I feel that it's going to continue to get better. I don't want to get over exuberant this morning, but I think there's some legs. I do believe that we got some legs on this now, especially when I talk to customers, when I see what's going on, What I know, now I'm getting, we're not totally done with the EPA. As I said, we're in a commentary period, but we pretty much know that they've cut the warranty, right? Warranty stays where it's been, okay, on the after treatment. It doesn't go to some 10-year warranty that was costing an extra, as the government said, $6,000, $7,000, $8,000 that was going to have to be priced in, right? We've changed the length of the life expectancy. see we've done some things the government has to soften while still going towards the point three five eventually you know not submissions to begin with we have and also the credit perspective and that there's a lot of things that go into all that but I'm not going to get into but there are many I can sit here and talk there are many things that I think are positive right and not all of them will probably come to pass but there's a lot of you know there's a lot of, should I say, you know, positive feelings around our industry right at the moment. So, you know, when you're basically sold out for the year, we haven't done that in a while, six months out. And rolling into, you know, next year, I feel good about us. We've got, we're going to have inventory to sell to that is not sold. So, you know, most, a lot of this business has been fleet business. There's just positive things, man. I could go on and on, and, you know, I'm a rambler. So, but I don't want to get ahead of my skis. I don't want to get out over my skis either. It still has to come to pass. At the same time, I can't sit here and give you negative thoughts that I may have in the past, but allow it. You know, allow it to come to us, and I think that's what we'll see happen. We'll continue to see improvements, like we saw from Q1 to Q2, you know, from a result. Well, even though it wasn't all top line driven or margin driven, we manage this company from a G&A perspective extremely well in the quarter. So I'll be quiet.

Yeah. And last one, any signs on the small and assigned versus the national accounts?

The small? Well, you know, the small guys, if they missed out from a truck sales perspective, tell them I might have some inventory they can buy. from a parks and service perspective. And by the way, they're going to be able to buy next year with not that big of NCP. You know, $7,000 isn't that bad. In reality, when you're talking about vehicle or $1,000 vehicles here, okay, you're not talking about some 10% or 15% price increase here, right? You just may be a little longer to get it as their business improves. That's what's driving used to be better, right, is lack of availability of new and so that's what's going to make the used market stay solid so it's really on the parts and servers i just spoke about i think i said we were four percent sequentially in my mind just call it flat we were troughed we've been gone through three years of year over year double digit decreases so that means it's the health of even the smaller carrier in spite of all these fuel issues right in spite of all the geopolitical stuff that's going on So I've been fairly amazed at the resilience of the market. Of course, that has to do with the business model and the pass-through of fleet to the shippers that have gone into place for the last 30 years. But at the same time, I feel good about it. I think the small carrier, if he's survived this far, he's going to make it. If they've made it this far, that's the good ones, and they're the ones that are going to make it. And they will get their spending habits back more in line with what they would be normalized spending. That doesn't mean they're going to spend it, but they're going to get back to more normalized maintenance and repair. And that just bodes well for us. There's more miles being driven. I mean, you're talking about supply being driven down, so that drives the miles up on the ones that are driving. I mean, you don't want me to, I could go on, but if things just continue to look for solid, you know, sequential improvement, not double or anything like that, but solid sequential improvement, which is good, I think, for a longer period of time. Most people believe that this freight recovery should have 24 months on it, you know, or so. You know, we've been around long enough to know this thing's cyclical, but should have some legs on it for a while, you know, but driven by supply coming out. Now, and we're getting some, we're getting some growth on the other side, too, the coin. So, if that continues to improve from a tonnage and mileage, you know, from a load perspective, then, you know, you have a couple years of legs on this line.

Okay. Helpful, Rusty.

Thank you. I'll turn it back. You bet.

Thank you. Our next call comes from Avi Yarvulik of UBS. Your line is now open.

Thank you. Good morning, guys. Good morning. Yeah, Rusty, I know you've already spent a lot of time talking about it, but just sticking on the dynamics of pre-buying this year versus next year, would you say that you don't really think we've seen or you're seeing pre-buy demand this year, or is it really more about just how much the OEMs can produce? Because, I mean, thinking about, you know, $6,000 to $7,000 NCPs before the FET, it's not nothing for next year. That's right. Wouldn't there still be some incentive to pre-buy this year?

Well, the problem is it's production, right? I think we're fairly sold out. I mean, there's a little left out there, but it's not a lot. And I'm sure it might get a little pricey. You know how it is. But I would tell you, we're fairly sold out, all right? Most OEMs are. They may not say they are, but what they do have left. And by the way, that doesn't mean they cannot figure out how to produce more, okay? I'm based upon current build rates. Now, you could see some build rate increases that will produce a little bit more capacity, right? But they've got to get in place pretty quick here because it's not that easy to ramp up. I don't expect people to be putting on extra shifts. I expect people to be maximizing, you know, from if I'm, and look, I'm speaking for the OEMs themselves, and I don't like doing that. But I would imagine they will tweak as best they can to make sure they're working weekends and doing everything they can. But I would tell you what's going to happen typically happens right now is you're asking the second and third tier suppliers to ramp up. Okay, that is fairly difficult for some of these guys, folks to do. Not necessarily OEM. It's not necessarily OEM constrained. It's constrained with the second and third tier suppliers. So, you know, but they manage that part of it. I realize $6,000, $7,000 is something. But at the same time, with improving business conditions, and then with a known technology that's a proven technology without any changes, that's why I feel the rollover will just roll into 27. and yeah it's a little money but at the same time it's not the end of the world given what's these vehicles cost nowadays i mean the trucks have gone up in the last six years like 35 percent man and by the time we get the next year it's crazy but so i you know it's a production problem but at the same time i go back when you said this word pre-buy i it's still going to be around the average total that's all i can tell you you know if we deliver it delivery wise now the production side might be higher but they're rolling the q1 but again i go back to with the epa saying what they said giving closely if these numbers stick definitive numbers on an ncp and customers business getting better i just think this rolls over and continues into 2027 i could be wrong It's just my opinion without much of a blip. Customers' businesses, from the old road perspective, ramped up quite dramatically here the last six, four, five, six, four, five months. So I see a lot of positive out there. And that was after last year was under, and the first half of this year was way under what replacement was. So, you know, I see replacement catching back up. I still, and I don't think, you know, right now, we're just catching replacement. We'll have to see if anybody tries to grow. They usually do.

And that creates a cycle, right, eventually.

So, but, hey, I, you know, like I said, we're pretty much production constrained outside of any, you know, any other, any OEM increases. And I know they're trying, but I'm going to let you talk to them about what they're able to do.

I understand that. And so one of the things you mentioned there was potential to see some pre-buying next year ahead of the engine change over in 2028. How are you thinking about those dynamics? If $6,000 to $7,000 increase for next year is, you know, manageable enough, broadly speaking, the incremental cost increase in 2028 wouldn't be, you know, in that ballpark even. It would seem to be a little less than that. And there's more time to get these engines tested and work out the bugs in them. So why would you expect a pre-buy potentially next year?

Because it's proven technology, okay? Because it's proven technology. I've been around a long time. I've seen technology changes before. I've never seen one without a blip. That doesn't mean it's the end of the world, but I've never seen one. I go back to 2010 when we switched to death. There was more clogged particulate filters around this country than you could shake a stick at, okay? Our shops were full of them. Anybody with a memory knows that, you know, it's never as smooth as you anticipate. Maybe I'm wrong, but typically in this one, not everybody's using the same technology, right? Not everybody's going to death. And so like it was at that time, everybody's, you know, got different. I'm not an expert on all of it, but different after treatments, not exactly the same as how they go to market. So, you know, I have to believe that, you know, if I'm a customer, I'm willing and wanting to have more of what proven is and be the last one to join the new, even though you're going to, you know, people will say we'll get better fuel mileage and things like that. I know that uptime is the most important thing I have going for me. And proven technology allows you to understand what your uptime is, you know, and your reliability is. And so that's my opinion, okay? It's just an opinion, but it is mine. But, you know, customers would prefer to go with proven technology. There'll still be a little bit of an increase, you know, even for the new technology. You know, I realize, you know, a little bit, maybe it's $4,000 or $5,000, you know, when we get to $28,000 in Houston. I'm not here to tell. You know, I mean, there's some other things behind the scenes you've got to remember that have gone on in the last year that make this an interesting time. There's been tariffs and things like that that affect different OEMs different ways. I'll just say that. And so, you know, we'll wait and see what that pricing will be the first of 28th. The two OEMs I represent have not priced new technology. How about that?

Okay.

So how am I to know what it'll be? I know what I'm roughly told, but it has not been priced.

Yeah, that's fair enough. And definitely interesting times.

There's a lot of variables out there right now. There really is. More variables, and you throw in all the tariff stuff from the last year, and you throw in the EPA stuff. There have been more variables in this whatever 12-month window than I've seen in a long time, a 16-month window, go back to last April of 25 with tariffs starting up and now rolling the EPA variables that we're dealing with now. And there's just a lot of variables out there for manufacturers. There really is.

Right. Yeah, no, that makes sense. I just want to switch topics maybe from talking about the cycle to some of what you guys are doing. Would love to hear more thoughts about the MCT deal and the entry into the refrigerated trailer market, how you're thinking about that as a strategic move and the long-term vision here. um you know how are you thinking about uh continuing to grow within that space um and really is this a launching off point or is this more of a one-off type of deal well first off no it's not a one-off deal we're committed to the space we've studied in space for a while now uh and we think we found the right partner as the launching off point okay you know

a sizable deal inside of a market that is obviously not as large as the truck business, but at the same time, a very similar business model, right? It's refrigeration units. I've been through there a couple of shops with Bill and the gentleman we're doing the JV with, and that's a solid organization we're partnering with. And I do believe it's a solid manufacturer that we will be able to grow with. I'm not going to put numbers on that growth, right? We haven't even closed the first JV or the first deal. But that JV will be looking for growth as we go forward. It's not a one-off for sure. And we've had these discussions. We've had these discussions, and we feel good that we're going to be able to bring, you know, even a stronger balance sheet and partner well with the organization that we're doing the JV with. And, you know, over time, those opportunities that we believe will be there for us for further growth. And that's what we're not getting into it for a one-off, that's for sure. And it aligns perfectly with what we do. There's so much overlap in customer base that we believe that relationships that we have we'll be able to bring to the table and also leverage off relationships that this organization has. So I think it's a win-win for both MCT, for Carrier, and for Rush. Now, the proof of the pudding's in the eating. So we've got work to do, right? But I'm extremely excited about it. We should get it closed by the end of August, I think is the timing for it right now. That's what we've got target. I think August 31st one so you know we'll roll it in later this quarter and you add that to the acquisitions we did during the earlier during this quarter while they may not be hugely accretive to begin with they just those 10 dots those are 10 more dots on the map for rush that allow us to service a customer base better than anyone else from a service perspective no one has as many dealerships as we do, scattered across the U.S. and Canada. And so we leverage off of every, regardless of who we represent, it's Rush Truck Center first and foremost, and when it comes to how we interface with customers. So that ability, don't worry, they will be accretive, but we've got to get our systems and our things into place. But it's great to have the state of Louisiana represented on the Peterborough side and on the international side. What we did up in Canada gives us 20 locations in Canada and just further increases our customer touch of both areas. Louisiana, further across Interstate 10, we've almost got it. We don't have it all covered, but we've got most of it all covered, you know, across the United States, across I-10, which is obviously a large corridor for the South, from a long highway perspective, And even for large, you know, vocational customers where they have operations, you know, when we do one of these deals, I'll tell you something interesting. I went over and visited the stores and I told the stores in Louisiana, I went and visited three of the five. And I told them, I said, look, one thing I can promise you is that a year from now, you're not going to know 50% of the customers in your shop. Why? Because when we take on an acquisition, we bring a huge customer base with it, especially from the national account perspective, right? So now we have to, you know, grow the sales forces, grow our parts and service sales forces, get out there and use our standard operating procedures and get in there and do it. And that's exciting. It's not an add water and stir thing, but I can guarantee it'll be, you know, a couple of years from now, it will look a whole lot different than it does now. for both of those acquisitions, just because of how we go to market, and we're looking forward to growing the other. And I'm telling you this, we will continue, as I mentioned, if you heard me in the script, we will continue to look at other adjacencies that make sense around the core expertise of Russia Enterprises, which is taking care of selling, servicing, and taking care of commercial customers, both large and small, transportation customers. It will be something around that core expertise and their other adjacencies that I do believe that we'll continue to look at while growing the ones we just entered and continue to look for growth across our dealership network at the same time.

All right. Sounds good. Appreciate the thoughts and the time. Thank you. You bet.

Thank you. Our next call comes from Andrew Obin with Bank of America. Andrew, your line is now open.

Hey, how are you? Good morning, Andrew. Good morning. Just a question, you know, more deals in Canada, just how much room do you have in Canada, and is it going to be PACCAR? Is there room to grow Navistar Framework Network, if you can chat about that.

Yeah, the Canadian is on the international side, Andrew, um and that is a without getting specific do i have room for growth yes okay but you know that is a combination of working with our manufacturer both of these acquisitions were not done just on some you know us running off they were working with the manufacturer getting their blessings uh around it and i would tell you that there are other opportunities up there i don't want to get Obviously, I can't get into more details, but we do believe there are other opportunities, and we do believe we have room for growth, given the framework of our agreements with them in Canada. So, I'm not going to get any more specific. If you remember last year, we acquired a bus dealership in Canada last summer, which was very successful for us, school bus business with international. So, we will continue to look at those opportunities, Andrew. I mean, I don't, you know, I have, remember, that's a JV for me. We did that back in 2019. At that time, it was 50-50. We currently have it at 80-20. I was at 80-us. And I'm very pleased with that joint venture and looking to grow it, I'll be honest. But there's room. I just really can't get into the specifics. That obviously involves other people's businesses, proprietary businesses. So I don't want to talk about it. But, yes, we have room in our agreement with the OEM. Now we do it lockstep, hand-in-hand with them, but there is room for sure.

Thank you very much.

You bet.

My apologies. This concludes the question-and-answer session. I would now like to turn it back to Rusty Rush for closing remarks. Rusty, back to you.

Sure. We appreciate everybody's attendance this morning and look forward to a solid Q3. I have a call in October, late October. We'll see you then. Everybody have a great close to their cellar.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.