PACCAR Truck Profit More Than Quadruples To $454.5 Million As Third-Quarter Net Income Rises 44%
Higher truck margins and 40,100 deliveries lifted PACCAR's quarter, while record parts revenue came with slightly lower parts profit.
PACCAR, which builds Kenworth, Peterbilt and DAF trucks, said third-quarter net income rose 44% to $847.5 million, or $1.61 per diluted share, from $590.0 million, or $1.12, a year earlier. Revenue climbed 19% to $7.94 billion, and CEO Preston Feight credited higher truck segment margins.
Trucks drive the jump
Pretax profit in the truck segment was $454.5 million, against $102.5 million in the third quarter of 2025. Truck sales and revenues were $5.60 billion, up from $4.38 billion.
Global deliveries reached 40,100 units, up from 31,900. U.S. and Canada deliveries rose to 23,800 from 17,100, Europe to 10,400 from 10,100, and other markets to 5,900 from 4,700.
"The increase in quarterly profits resulted from higher truck segment margins and strong overall business performance," Feight said. For the first nine months, net income was $2.20 billion, or $4.18 per share, against $1.82 billion a year earlier, a period that included a $264.5 million after-tax charge for civil litigation in Europe.
Record parts sales, thinner profit
The parts business, which supplies dealers and TRP stores, posted record revenue of $1.78 billion. Pretax profit slipped to $404.4 million from $410.0 million.
PACCAR Financial Services, the lending and leasing arm, earned $138.1 million before taxes, up 9.4% from $126.2 million, on revenue of $558.9 million versus $565.3 million. Executive Craig Gryniewicz cited steady finance margins and an improving used truck market. The unit holds a portfolio of 222,000 trucks and trailers and $22.5 billion in assets.
The company generated $847.7 million in cash from operations in the quarter, spent $137.6 million on capital projects and $108.9 million on research and development.
Demand outlook for 2027
PACCAR estimates U.S. and Canada Class 8 retail sales of 240,000 to 260,000 trucks in 2026 and 240,000 to 280,000 in 2027. Chief technology officer John Rich said customers are starting to refresh fleets and that PACCAR expects the good demand to continue next year.
The company projects 2026 capital spending of $650 million to $700 million and research spending of $440 million to $460 million. For 2027 it estimates $650 million to $700 million of capital spending and $460 million to $500 million for research.
PACCAR also unveiled PACCAR Connect, a vehicle display platform combining telematics, truck data and electronic driver logs, which will be available in Kenworth and Peterbilt Class 8 trucks beginning in early 2027.
PACCAR held its analyst call at 9:00 a.m. Pacific time on Tuesday, with a recorded webcast available through November 3.
Sources
- 8-K Filing — PACCAR INC (PCAR) — SEC EDGAR
- Exhibit pcar-ex99_1.htm — PACCAR INC 8-K exhibit — SEC EDGAR
- Insights Into Paccar (PCAR) Q3: Wall Street Projections for Key Metrics — Yahoo Finance
