A Peterbilt truck on Interstate 90 in Spokane, Washington, in June 2024. Photo: Ewkada, Wikimedia Commons, CC BY 4.0. Image resized.
PACCAR reported a 44% increase in third-quarter net income Tuesday as higher truck margins helped the maker of Kenworth, Peterbilt and DAF vehicles lift revenue by 19%.
The company earned $847.5 million, or $1.61 per diluted share, compared with $590 million, or $1.12 per share, a year earlier. Revenue increased to $7.94 billion from $6.67 billion, PACCAR said in its earnings release.
The results offer a view of the businesses that buy and maintain the heavy trucks used to move goods and support construction. PACCAR said customers were beginning to refresh fleets with newer, more fuel-efficient trucks, while its parts business reached a quarterly revenue record.
Truck demand and margins lift earnings
PACCAR delivered 40,100 trucks globally during the quarter. Chief Executive Preston Feight attributed the increase in profit to higher truck-segment margins and the company’s broader operating performance.
The Truck, Parts and Other business generated $7.38 billion in revenue, compared with $6.11 billion a year earlier. Its pretax income increased to $858.9 million from $526.6 million.
That industrial-business revenue is separate from consolidated revenue, which also includes financial services. Keeping those figures distinct matters when comparing PACCAR’s sales with forecasts or other manufacturers’ results.
For the U.S. and Canada, the company estimated 2026 industry retail sales of heavy-duty Class 8 trucks at 240,000 to 260,000 vehicles. Its initial 2027 range is 240,000 to 280,000.
PACCAR expects European registrations of trucks above 16 tonnes at 300,000 to 320,000 in both years. Its South American forecast rises from 100,000 to 105,000 this year to 105,000 to 115,000 in 2027. Those are company forecasts for the regional industries, not PACCAR’s own delivery targets.
Parts sales reach a record, though profit slips
PACCAR Parts revenue reached a record $1.78 billion. The unit’s pretax profit was $404.4 million, down from $410 million in the same quarter last year.
The contrast is important: record sales did not translate into record earnings for the parts operation. For the first nine months, parts revenue increased to $5.24 billion from $5.14 billion, while pretax profit declined to $1.22 billion from $1.25 billion.
The company said it plans to add a parts distribution center in France to support DAF dealers and customers. Its existing network includes 21 parts distribution centers supporting more than 2,000 DAF, Kenworth and Peterbilt sales, parts and service locations, along with more than 350 TRP stores.
Financing earnings grow despite lower revenue
PACCAR Financial Services earned $138.1 million before taxes, up 9.4% from $126.2 million a year earlier. Revenue declined to $558.9 million from $565.3 million.
Management cited steady financing margins and an improving used-truck market. The business has a portfolio of 222,000 trucks and trailers and $22.5 billion in assets, including the PacLease truck-leasing operation.
The financing results are relevant to fleet owners because buying a truck and funding it are different parts of the same investment decision. The earnings release does not, however, announce a general reduction in borrowers’ interest rates or truck prices.
Investment plans extend into 2027
PACCAR generated $847.7 million in operating cash during the quarter. It spent $137.6 million on capital projects and $108.9 million on research and development.
For 2026, it expects capital spending of $650 million to $700 million and research and development spending of $440 million to $460 million. Its initial 2027 plans call for the same capital-spending range and $460 million to $500 million in research and development.
The company said those investments cover diesel, hybrid and battery-electric powertrains, connected-vehicle services, parts and manufacturing. Its PACCAR Connect platform is scheduled to become available in Kenworth and Peterbilt Class 8 trucks in early 2027.
Nine-month net income increased to $2.20 billion from $1.82 billion. The prior-year period included a $264.5 million after-tax litigation charge in Europe, a comparison issue that does not apply to the standalone third-quarter figures.
JBizNews Desk | Bellevue, Washington
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