Q1 revenues fall 9% on weak vehicle sales; gross margin improves 110bp; EPA repeals GHG rules

Filed May 8, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 9, 2025 · ~2 min read

Key Changes

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  EPA repealed Endangerment Finding and eliminated all GHG engine emission standards for model years 2012+; Congress rescinded CARB's federal preemption waivers. Both actions face legal challenges with uncertain outcomes.

  MD&A: Regulatory Environment verify on EDGAR →
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  Q1 2026 revenues declined 9.0% year-over-year to $1.68B as new/used vehicle sales fell 15.5%, driven by 34.8% drop in medium-duty units (vs 25.6% industry decline) and 5.8% drop in Class 8 units (vs 21.0% industry decline).

  MD&A: Revenue Performance verify on EDGAR →
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  Gross margin improved to 20.4% from 19.3% (110bp expansion) despite lower volumes, driven by aftermarket margin recovery to 36.3% from 35.8% on manufacturer rebates and improved pricing execution.

  MD&A: Gross Margin verify on EDGAR →