PACCAR Inc.
PCAR · Nasdaq
Next quarter
Expected to report Jan 26, 2027 — estimated from last year’s reporting date.
Consensus is $1.69 EPS for Dec 2026 across 6 estimates, ranging $1.55 to $1.93.
PCAR Sep 2026
- 0.00%
- $1.61
- $1.61
- —
- $7.94B
Reported results
- $7.94B
- 20.48%
- $847.50M
- $1.61
Highlights
- Earnings: Q3 revenue was $7.94 billion and diluted EPS was $1.61, exactly matching consensus; net income of $847.5 million was up 44% year over year and 13% sequentially.
- Truck profitability: Truck segment pretax profit rose to $454.5 million from $102.5 million a year ago, as truck pricing and operating performance lifted results; consolidated truck, parts and other gross margin was 14.5%.
- Deliveries: PACCAR delivered 40,100 trucks, up from 31,900 a year ago, but supplier constraints limited Q3 output; management expects 41,000–43,000 deliveries in Q4.
- Markets: Management forecasts U.S. and Canada Class 8 retail sales of 240,000–260,000 trucks in 2026 and 240,000–280,000 in 2027; it expects Europe to remain at 300,000–320,000 trucks next year.
- Parts: PACCAR Parts posted record Q3 revenue of $1.78 billion, up 3% year over year, while pretax profit eased to $404.4 million from $410.0 million.
- Financial Services: Pretax profit increased 9.4% to $138.1 million, despite revenue declining to $558.9 million from $565.3 million, reflecting steady finance margins and improved used-truck pricing.
- Cash and investment: Nine-month operating cash flow was $2.52 billion versus $3.27 billion a year ago; 2026 capital investment and R&D guidance is $650–$700 million and $440–$460 million, respectively.
Analysis
PACCAR matched consensus with Q3 diluted EPS of $1.61. Revenue of $7.94 billion increased 19% from $6.67 billion a year ago and 5% from $7.55 billion in Q2; net income of $847.5 million rose 44% year over year and 13% sequentially. The most striking change was in trucks: segment pretax profit reached $454.5 million, versus $102.5 million in Q3 2025, with management citing favorable truck pricing and disciplined operations. Deliveries climbed to 40,100 from 31,900 a year ago, although supplier bottlenecks held back production. Management expects 41,000–43,000 deliveries in Q4 and gross margins of 14%–15%, broadly maintaining Q3’s 14.5% level as production inefficiencies offset strong pricing.
Parts and Financial Services provided steadier support: Parts revenue set a quarterly record at $1.78 billion, while PFS pretax income grew 9.4% to $138.1 million. Looking ahead, PACCAR raised its U.S. and Canada 2027 Class 8 market range to 240,000–280,000 trucks from this year’s 240,000–260,000, but customer ordering remains affected by uncertainty over 2027 emissions rules and related costs. Nine-month net income increased to $2.20 billion from $1.82 billion; the prior-year figure included a $264.5 million after-tax European litigation charge, making the reported growth rate unusually strong.
Truck margins and production
- Truck segment: External truck revenue rose to $5.60 billion from $4.38 billion, while pretax profit increased to $454.5 million from $102.5 million. Management attributed the improvement to strong pricing and operating discipline; price/cost remained favorable.
- Production: Deliveries totaled 40,100, including 23,800 in the U.S. and Canada, 10,400 in Europe and 5,900 in other markets. Suppliers struggled to keep pace with rapidly rising build rates, and management said even a small number of missed parts can prevent truck completion.
- Fourth quarter: Management expects deliveries of 41,000–43,000 and truck, parts and other gross margin of 14%–15%. Supply-related production costs and the lag between truck pricing and delivery are expected to weigh on margins despite strong pricing.
Truck market outlook
- Regional markets: PACCAR estimates U.S. and Canada Class 8 retail sales of 240,000–260,000 in 2026 and 240,000–280,000 in 2027. Europe is forecast at 300,000–320,000 above-16-tonne trucks in both years; South America is projected at 100,000–105,000 this year and 105,000–115,000 next year.
- Emissions uncertainty: Customers are beginning to place 2027 orders but want clarity on emissions-related NCP levels and costs. Management said customers generally favor the proven 200-milligram engines while new lower-NOx technology is validated; the timing and final rules remain uncertain.
- Order cadence: Management said the current year is filled and Q1 2027 is being booked, with a clearer view expected over the coming four to eight weeks. It expects Q4 deliveries to rise as suppliers catch up with demand.
Parts and financial services
- PACCAR Parts: Revenue reached a quarterly record of $1.78 billion, compared with $1.72 billion a year ago; pretax profit was $404.4 million versus $410.0 million. Management attributed the profit decline mainly to mix, as customers facing high fuel and operating costs deferred some purchases and focused on required maintenance.
- Parts outlook: The company reiterated its 2026 full-year Parts growth outlook of 3%–5% and expects continued growth in Q4. It cited share gains, Fleet Services, TRP all-makes and support for second owners as growth drivers.
- Financial Services: Q3 revenue was $558.9 million versus $565.3 million, while pretax income rose to $138.1 million from $126.2 million. Management cited steady finance margins and an improving used-truck market; the portfolio comprised 222,000 trucks and trailers and total assets of $22.5 billion.
Cash and investment
- Cash generation: Operating cash flow was $847.7 million in Q3. For the first nine months, it was $2.52 billion, below $3.27 billion a year earlier; the filing shows working-capital movements, including higher trade receivables and inventories, as important uses of cash.
- Capital plans: Nine-month capital investments were $411.8 million and R&D expenses were $332.3 million. For 2026, PACCAR expects $650–$700 million of capital expenditures and $440–$460 million of R&D; 2027 guidance is $650–$700 million and $460–$500 million, respectively.
- Connected products: PACCAR Connect, planned for Kenworth and Peterbilt Class 8 trucks beginning in early 2027, will integrate vehicle data, telematics and customer applications. Management sees potential for application revenue and closer links to parts and predictive maintenance, but gave no revenue target.
