Lucas: Hey everyone, Lucas here with today’s TPS Weekly News Roundup. I’ll begin with the ATD Truck Beat report released late last week, which provided the final data for 2025 truck sales. The Class 8 truck market totaled about 208, 000 units last year. Meanwhile, the Classes 4 through 7 market also accounted for roughly 208, 000 units. Combined, that’s around 416, 000 units overall, representing a 13. 6% decline compared to 2024. Specifically, medium-duty truck sales dropped 13. 9%, while heavy-duty sales decreased by 13. 3%. Despite the general downturn, some brands saw gains: Mack increased market share in both medium- and heavy-duty sectors; Western Star gained a bit of ground in heavy-duty; and Ford had a strong year in the medium-duty segment. Overall though, 2025 was a challenging year for commercial truck dealers. Looking ahead to 2026, the outlook remains uncertain and likely won’t improve much. ATD forecasts medium-duty sales to be fairly flat or with a slight increase, but heavy-duty sales are expected to fall further, with estimates around 171, 000 units—a decline of about 18%. Hopefully freight rates improve and the market rebounds, but current projections suggest 2026 could mirror or even underperform 2025 in sales terms. This trend was reflected in recent earnings reports. Last week, Daimler and International shared data, and this week Paccar reported their earnings as well. Despite delivering another profitable year—their 87th consecutive—Paccar experienced declines in both sales and revenue, details of which are available on our website. In other news, Eaton announced this week its intention to spin off its mobility business—which includes their truck transmissions and parts—by Q1 2027. Their goal is to concentrate on their core electrical and aerospace divisions. We have reached out to Eaton for further details and will update you with a more comprehensive story once we learn more about the implications for your business. We also covered AI developments.

As I mentioned last week, Noelle Russell, a longtime Amazon programmer who worked on Alexa, was the keynote speaker at HDAW. She discussed how AI can and cannot effectively be integrated into businesses. Additionally, the consulting firm BCG shared survey results from MEMA members at the Heavy Duty Aftermarket Dialogue, which provided valuable insights. According to the survey, 70% of suppliers are currently working on or have already integrated AI into their operations. However, only 14% report deriving significant value from these tools. This aligns with Noelle Russell’s point that 95% of AI pilot programs fail, often because companies overestimate AI’s capabilities or implement it prematurely in unsuitable areas. If you’re considering using AI, take a look at our story to understand common pitfalls and how to apply AI successfully in your business. Next week, we’ll be at the ATD Show in Las Vegas, so be sure to visit the website for updates. We’ll cover more industry news, earnings reports, and more. Don’t forget to check out the newsletter and website to catch up on anything you missed this week. Please like and subscribe to these videos. Have a great weekend, and we’ll see you next week. Thanks, everyone. Bye!