Paccar Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 28 April 2026: press release. Guidance figures: 5 kept. The quarter’s numbers.

Key takeaways

Revenue fell against prior-year quarter: Consolidated revenue was $6.78 billion against $7.44 billion in the first quarter of 2025. Source
Net income rose on prior-year charge: Net income was $605.3 million ($1.15 per diluted share) against $505.1 million ($.96), which included a $264.5 million after-tax EC charge. Source
Truck pretax profit fell sharply: Truck segment pretax income was $176.2 million against $364.9 million in the first quarter of 2025. Source
United States and Canada revenue fell: United States and Canada revenue was $4,051.8 million against $4,627.3 million a year earlier. Source
Europe revenue rose, other regions fell: Europe revenue rose to $1,808.9 million from $1,568.6 million, while other regions fell to $915.8 million from $1,245.8 million. Source
Prior-year EC charge in other expense: The prior-year interest and other line of $325.8 million included a $350.0 million charge for EC-related claims; this quarter's line was $21.3 million of income. Source
Freight rates lift truck market: Kevin Baney said the U.S. and Canada truck market has seen a positive inflection, with higher freight rates from reduced trucking capacity. Source

“PACCAR reported good revenues and increased net income in the first quarter of 2026 compared to the fourth quarter last year,”
Preston Feight, chief executive officer

Guidance

Area	Period	Figure	Against last quarter
Capital expenditures Source	2026	$725-$775 million	Kept
Research and development expenses Source	2026	$450-$500 million	Kept
U.S. and Canada Class 8 retail sales (industry) Source	2026	230,000-270,000 trucks	Kept
European above 16-tonne truck registrations (industry) Source	2026	280,000-320,000 trucks	Kept
South American above 16-tonne truck market (industry) Source	2026	100,000-110,000 trucks	Kept

What changed from last quarter

Guidance kept: The 2026 capital expenditure and R&D estimates were restated in the April release at the same ranges as in January. Source
New: Kenworth unveiled the C580 heavy-duty vocational truck at the CONEXPO trade show in Las Vegas. Source
New: DAF introduced new XG and XG + Electric trucks during the first quarter. Source
New: DAF expanded its battery-electric truck range with multiple-axle tractor and rigid models for vocational applications. Source

Results and growth drivers

Revenue fell against prior-year quarter: Consolidated revenue was $6.78 billion against $7.44 billion in the first quarter of 2025. Source
Net income rose on prior-year charge: Net income was $605.3 million ($1.15 per diluted share) against $505.1 million ($.96), which included a $264.5 million after-tax EC charge. Source
Truck pretax profit fell sharply: Truck segment pretax income was $176.2 million against $364.9 million in the first quarter of 2025. Source
Parts revenue rose, pretax eased: PACCAR Parts revenue was $1.71 billion against $1.69 billion; Parts pretax income was $402.3 million against $426.5 million. Source
Financial Services pretax slightly lower: Financial Services pretax income was $115.5 million against $121.1 million; revenue was $542.2 million against $528.0 million. Source

Segments and regions

United States and Canada revenue fell: United States and Canada revenue was $4,051.8 million against $4,627.3 million a year earlier. Source
Europe revenue rose, other regions fell: Europe revenue rose to $1,808.9 million from $1,568.6 million, while other regions fell to $915.8 million from $1,245.8 million. Source
Truck segment sales declined: Truck segment sales and revenues were $4,526.5 million against $5,225.8 million in the prior-year quarter. Source

“I am very proud of our employees and dealers who have delivered outstanding trucks and transportation solutions to our customers.”
Preston Feight, chief executive officer

Products and customers

DAF XF Electric named eco truck: The DAF XF Electric was recognized as 2026 Eco-Friendly Truck of the Year by the National Transport Awards program in Spain. Source
DAF electric range up to 300 miles: DAF XD, XF, XG and XG+ Electric trucks offer zero-emission ranges of up to 300 miles, depending on duty cycle and battery pack count. Source
Kenworth C580 aimed at vocational work: The C580 is designed for demanding vocational work, including mining and off-highway petroleum field work. Source
Parts network spans 21 distribution centers: PACCAR Parts runs 21 global parts distribution centers, over 4 million square feet, supporting more than 2,000 sales, parts and service locations and 350 TRP stores. Source

Costs and operating expenses

Cost of sales fell with revenue: Truck, parts and other cost of sales and revenues was $5,416.5 million against $5,891.0 million; R&D was $109.1 million against $115.4 million, and SG&A was $149.6 million against $143.3 million. Source
Financial Services credit provision higher: Financial Services provision for losses on receivables was $44.1 million against $18.3 million in the prior-year quarter. Source
Prior-year EC charge in other expense: The prior-year interest and other line of $325.8 million included a $350.0 million charge for EC-related claims; this quarter's line was $21.3 million of income. Source

“The U.S. and Canada truck market has enjoyed a positive inflection as customers benefit from higher freight rates due to reduced trucking industry capacity.”
Kevin Baney, PACCAR president

Demand and order book

Freight rates lift truck market: Kevin Baney said the U.S. and Canada truck market has seen a positive inflection, with higher freight rates from reduced trucking capacity. Source
Customers better understand 2027 costs: Management said customer demand is improving and that customers now have a better understanding of the 2027 emissions cost impact. Source
Kenworth and DAF suit South America: Lance Walters said Kenworth and DAF trucks are suited to the challenging duty cycles of South America. Source

Cash, capital and shareholder returns

Operating cash flow rose: Cash provided by operations was $971.8 million against $910.3 million in the prior-year quarter. Source
Dividend payments fell sharply: Cash dividend payments were $909.4 million against $1,747.0 million; treasury stock purchases were $4.8 million. Source
Cash and securities declined: Cash and marketable securities were $8,595.4 million at March 31, against $9,253.7 million at December 31, 2025. Source
Medium-term notes issued: Financial Services issued $400 million of medium-term notes in the first quarter of 2026. Source
Stockholders' equity increased: Stockholders' equity was $19,756.6 million at March 31, against $19,264.0 million at December 31, 2025. Source

Strategy and investment

Quarterly capital and R&D spend: Capital investment was $135.5 million and R&D expense was $109.1 million in the first quarter. Source
Parts gains credited to investments: Management credited Parts results to investments in new distribution centers, TRP all-makes parts, TRP stores and world-class logistics. Source
Powertrain and autonomy investment rising: Management said it is increasing investment in combustion, hybrid and battery-electric powertrains, connected services, manufacturing and the autonomous vehicle platform. Source

Coming up, as management said on 28 April 2026

Kenworth C580 production starts: Production of the Kenworth C580 is scheduled to begin in January 2027. Source

Figures management reported

Figure	Reported
New truck deliveries, United States and Canada Source	17,800 (Q1 2025: 22,200)
New truck deliveries, Europe Source	11,200 (Q1 2025: 10,400)
New truck deliveries, Other Source	4,100 (Q1 2025: 7,500)
New truck deliveries, total Source	33,100 (Q1 2025: 40,100)

Risks management discussed

Regulatory: European civil claims: court judgments are mixed, some are under appeal, and the company has settled with most claimants. Source
External: Management cited fuel and other operating cost volatility as a factor alongside improving customer demand. Source

Earlier plans management reported on

Not stated: The January release estimated 2026 capital and R&D spend; the April release restates the same ranges.
Not stated: The company has settled with most claimants and continues to pursue resolutions with the rest. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

PACCAR Achieves Good Financial Performance

April 28, 2026, Bellevue, Washington - “PACCAR reported good revenues and increased net income in the first quarter of 2026 compared to the fourth quarter last year,” said Preston Feight, chief executive officer. “These results were generated by strong PACCAR Parts and Financial Services results and growth in the truck businesses. PACCAR’s production backlog is increasing due to stronger demand. I am very proud of our employees and dealers who have delivered outstanding trucks and transportation solutions to our customers.”

PACCAR achieved quarterly revenues of $6.78 billion in the first quarter of 2026, compared to $7.44 billion reported in the same period in 2025. The company reported net income of $605.3 million ($1.15 per diluted share) in the first quarter of 2026, compared to $505.1 million ($.96 per diluted share), which included a $264.5 million after-tax charge related to civil litigation in Europe, in the first quarter of last year.

Highlights - First Quarter 2026

Highlights of PACCAR’s financial results during the first quarter of 2026 include:

Consolidated revenues of $6.78 billion.

Net income of $605.3 million.

PACCAR Parts revenue of $1.71 billion.

PACCAR Parts pretax income of $402.3 million.

PACCAR Financial Services pretax income of $115.5 million.

Cash provided by operations of $971.8 million.

Capital investment of $135.5 million and R&D expense of $109.1 million.

Stockholders’ equity of $19.76 billion.

Global Truck Markets

Kevin Baney, PACCAR president, said, “The U.S. and Canada truck market has enjoyed a positive inflection as customers benefit from higher freight rates due to reduced trucking industry capacity. Customer demand is improving despite fuel and other operating cost volatility as customers now have a better understanding of the 2027 emissions cost impact.” U.S. and Canada Class 8 truck industry retail sales are estimated to be in a range of 230,000-270,000 trucks in 2026.

European truck industry registrations for the above 16-tonne market in 2026 are projected to be in a range of 280,000-320,000 trucks. “The aerodynamic and spacious DAF trucks offer industry-leading fuel efficiency and driver comfort to customers,” said Harald Seidel, DAF president. “In the first quarter, DAF Trucks introduced new DAF XG and XG+ Electric trucks. The DAF XF Electric truck was recognized as the ‘2026 Eco-Friendly Truck of the Year’ by the prestigious National Transport Awards program in Spain.”

The South American above 16-tonne truck market is projected to be in the range of 100,000-110,000 trucks in 2026. “Kenworth and DAF trucks are renowned for their durability and advanced engineering, making them best-in-class for the challenging duty cycles of South America,” said Lance Walters, PACCAR vice president. “Customers value Kenworth and DAF’s strong aftermarket parts and service dealer network, which enhances uptime and profitability.”

Kenworth Introduces C580 Heavy-Duty Vocational Truck

Kenworth unveiled the new Kenworth C580 truck at the CONEXPO trade show in Las Vegas, reinforcing Kenworth’s leadership position in the heavy-duty vocational segment. The C580 is designed to meet the most demanding vocational applications, such as mining and off-highway petroleum field work. The C580 combines proven durability with the modern comfort and technology of Kenworth’s latest cab platform. Production of the C580 is scheduled to begin in January 2027.

Kenworth C580 Vocational Truck

DAF Launches Battery-Electric Vocational Trucks

DAF Trucks has expanded its range of battery-electric trucks to include multiple axle tractor and rigid models for specific vocational applications such as construction. The new chassis models are available for the XD and XF Electric - ‘International Truck of the Year 2026’ - and for the larger XG and XG+ Electric, which feature the most spacious cabs in the European truck market.

DAF XD, XF, XG and XG+ Electric trucks provide zero emissions ranges of up to 300 miles, depending on the application duty cycle and the number of battery packs. Customers benefit from DAF’s close collaboration with leading bodywork manufacturers throughout Europe, so that vocational bodies can be easily mounted on the chassis.

DAF XF Electric Vocational Truck

PACCAR Parts Achieves Excellent Financial Performance

First quarter 2026 revenues were $1.71 billion compared to $1.69 billion reported in the same period last year. PACCAR Parts achieved quarterly pretax income of $402.3 million, compared to $426.5 million earned in the first quarter of 2025. Bryan Sitko, PACCAR vice president and PACCAR Parts general manager, said, “PACCAR Parts provides aftermarket parts and transportation solutions that deliver greater uptime and profitability for customers. PACCAR Parts’ excellent performance reflects the benefit of investments in new parts distribution centers (PDCs), TRP all-makes parts, TRP stores, and world-class logistics capabilities.”

PACCAR Parts’ 21 global PDCs, with over 4 million square feet, support more than 2,000 DAF, Kenworth and Peterbilt sales, parts and service locations, and more than 350 TRP stores. These independent, well-capitalized dealers provide outstanding service to customers, complementing the premium quality of DAF, Kenworth and Peterbilt vehicles.

PACCAR Financial Services Achieves Strong Quarterly Profits

PACCAR Financial Services (PFS) achieved pretax income of $115.5 million in the first quarter of 2026 compared to $121.1 million earned in the first quarter of 2025. First quarter 2026 revenues were $542.2 million compared to $528.0 million in the same quarter of last year. “PFS achieved strong quarterly results due to its high quality portfolio,” said Craig Gryniewicz, PACCAR vice president. “PFS is a leader in the market with its superior Kenworth, Peterbilt and DAF products, innovative technologies that provide seamless credit application and loan processing, and its support of customers in all phases of the business cycle.”

Peterbilt Model 535 Medium-duty Truck

PFS has a portfolio of 221,000 trucks and trailers, with total assets of $22.3 billion. PacLease, a major full-service truck leasing company in North America and Europe with a fleet of approximately 37,000 vehicles, is included in this segment. “PACCAR’s strong balance sheet, complemented by its A+/A1 credit ratings, enables PFS to offer competitive retail financing to Kenworth, Peterbilt and DAF dealers and customers in 26 countries on four continents,” said Terren Drake, PACCAR Financial Corp. president. “PFS has excellent access to the debt markets, issuing $400 million in medium-term notes during the first quarter of 2026.”

Capital and R&D Investments in Products, Technologies and Facilities

PACCAR’s consistent long-term profits, strong balance sheet, and focus on quality, technology, and innovation have enabled the company to invest $9.3 billion in world-class facilities, next generation products, and state-of-the-art technologies during the past decade. PACCAR invested $135.5 million in capital projects and $109.1 million in research and development expenses in the first quarter of 2026. Brice Poplawski, senior vice president and chief financial officer, said, “Capital expenditures are projected to be in the range of $725-$775 million and research and development expenses are estimated to be in the range $450-$500 million in 2026. PACCAR is increasing its investment in next generation internal combustion, hybrid and battery-electric powertrains, integrated connected vehicle services, expanded manufacturing capabilities, and the PACCAR autonomous vehicle platform, that will create value for our customers.”

PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also designs and manufactures advanced powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

PACCAR will hold a conference call with securities analysts to discuss first quarter earnings on April 28, 2026, at 8:00 a.m. Pacific time. Interested parties may listen to the call by selecting “Q1 Earnings Webcast” at PACCAR’s homepage. The webcast will be available on a recorded basis through May 5, 2026. PACCAR shares are traded on the Nasdaq Stock Market, symbol PCAR. Its homepage is www.paccar.com.

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in PACCAR’s filings with the Securities and Exchange Commission.

PACCAR Inc

SUMMARY STATEMENTS OF OPERATIONS (Unaudited)

(in millions except per share amounts)

	Three Months Ended
	March 31
	2026		2025
Truck, Parts and Other:
Net sales and revenues		$6,234.3		$6,913.7
Cost of sales and revenues		5,416.5		5,891.0
Research and development		109.1		115.4
Selling, general and administrative		149.6		143.3
Interest and other (income) expenses, net		(21.3)		325.8	(1)
Truck, Parts and Other Income Before Income Taxes		580.4		438.2
Financial Services:
Revenues		542.2		528.0
Interest and other		342.9		350.3
Selling, general and administrative		39.7		38.3
Provision for losses on receivables		44.1		18.3
Financial Services Income Before Income Taxes		115.5		121.1
Investment income		80.4		83.8
Total Income Before Income Taxes		776.3		643.1
Income taxes		171.0		138.0
Net Income		$605.3		$505.1
Net Income Per Share:
Basic		$1.15	$	.96
Diluted		$1.15	$	.96
Weighted Average Shares Outstanding:
Basic		526.7		525.9
Diluted		527.4		526.9
Dividends declared per share	$	.33	$	.33

(1) Includes a $350.0 million charge related to civil litigation in Europe (EC-related claims).

PACCAR Inc

CONDENSED BALANCE SHEETS (Unaudited)

	March 31	December 31
	2026	2025
ASSETS
Truck, Parts and Other:
Cash and marketable securities	$8,595.4	$9,253.7
Trade and other receivables, net	2,256.9	1,981.1
Inventories, net	2,223.4	2,187.5
Property, plant and equipment, net	4,518.8	4,505.3
Other assets	3,610.8	3,605.2
Financial Services Assets	22,348.2	22,803.4
	$43,553.5	$44,336.2
LIABILITIES AND STOCKHOLDERS' EQUITY
Truck, Parts and Other:
Accounts payable, deferred revenues and other	$7,298.6	$7,890.9
Financial Services Liabilities	16,498.3	17,181.3
STOCKHOLDERS' EQUITY	19,756.6	19,264.0
	$43,553.5	$44,336.2
Common Shares Outstanding	526.2	525.4

PACCAR Inc

CONDENSED CASH FLOW STATEMENTS (Unaudited)

Three Months Ended March 31,	2026	2025
OPERATING ACTIVITIES:
Net income	$605.3	$505.1
Depreciation and amortization:
Property, plant and equipment	100.5	99.7
Other assets	99.6	105.4
Net change in trade receivables, inventory and payables	(74.4)	(42.0)
Net decrease in wholesale receivables on new trucks	198.7	28.8
All other operating activities, net	42.1	213.3
Net Cash Provided by Operating Activities	971.8	910.3
INVESTING ACTIVITIES:
Payments for property, plant and equipment	(147.2)	(165.1)
Acquisitions of equipment for operating leases	(170.7)	(160.7)
Net decrease (increase) in financial services receivables	163.8	(198.3)
Net increase in marketable debt securities	(36.8)	(20.6)
Proceeds from asset disposals and other	115.9	152.1
Net Cash Used in Investing Activities	(75.0)	(392.6)
FINANCING ACTIVITIES:
Payments of cash dividends	(909.4)	(1,747.0)
Purchases of treasury stock	(4.8)	(4.3)
Proceeds from stock compensation transactions	42.4	22.5
Net decrease in debt and other	(679.9)	(405.9)
Net Cash Used in Financing Activities	(1,551.7)	(2,134.7)
Effect of exchange rate changes on cash	(8.2)	73.9
Net Decrease in Cash and Cash Equivalents	(663.1)	(1,543.1)
Cash and cash equivalents at beginning of period	6,307.9	7,060.8
Cash and cash equivalents at end of period	$5,644.8	$5,517.7

PACCAR Inc

SEGMENT AND OTHER INFORMATION (Unaudited)

	Three Months Ended
	March 31
	2026	2025
Sales and Revenues:
Truck	$4,526.5	$5,225.8
Parts	1,710.1	1,689.9
Financial Services	542.2	528.0
Intersegment Eliminations and Other	(2.3)	(2.0)
	$6,776.5	$7,441.7
Pretax Profit:
Truck	$176.2	$364.9
Parts	402.3	426.5
Financial Services	115.5	121.1
Investment Income and Other	82.3	(269.4)	(1)
	$776.3	$643.1

GEOGRAPHIC REVENUE

	Three Months Ended
	March 31
	2026	2025
United States and Canada	$4,051.8	$4,627.3
Europe	1,808.9	1,568.6
Other	915.8	1,245.8
	$6,776.5	$7,441.7

NEW TRUCK DELIVERIES

	Three Months Ended
	March 31
	2026	2025
United States and Canada	17,800	22,200
Europe	11,200	10,400
Other	4,100	7,500
	33,100	40,100

(1) Includes a $350.0 million charge related to civil litigation in Europe (EC-related claims).

	Three Months Ended
PACCAR Inc
SUPPLEMENTARY INFORMATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
“Adjusted net income (non-GAAP)” and “adjusted net income per diluted share (non-GAAP)” are financial measures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”), since they exclude a charge for EC-related claims. These measures differ from the most directly comparable measures calculated in accordance with GAAP and may not be comparable to similarly titled non-GAAP financial measures used by other companies.
On July 19, 2016, the European Commission (EC) concluded its investigation of all major European truck manufacturers and reached a settlement with the Company. Following the settlement, legal proceedings seeking damages were filed against all major European truck manufacturers. In the first quarter of 2023, the Company recorded a pre-tax charge of $600.0 ($446.4 after-tax) for the estimable total cost. Several courts have issued judgments; some have been favorable while others have been unfavorable and have been appealed. The Company has settled with the majority of claimants and continues to pursue appropriate resolutions. Due to higher settlement costs, the Company updated its estimate and recorded an additional pre-tax charge of $350.0 ($264.5 after-tax) for the total estimable remaining costs in Interest and other (income) expenses, net in the first quarter of 2025.
The Company utilizes these non-GAAP measures to allow investors and management to evaluate operating trends by excluding a significant charge that is not representative of company performance.
Reconciliations from the most directly comparable GAAP measures to adjusted net income (non-GAAP) and adjusted net income per diluted share (non-GAAP) are as follows:
($ in millions, except per share amounts)	March 31, 2025
Net income		$505.1
EC-related claims, net of taxes		264.5
Adjusted net income (non-GAAP)		$769.6
Per diluted share:
Net income	$	.96
EC-related claims, net of taxes		.50
Adjusted net income (non-GAAP)		$1.46

Contacts
Public Affairs Department · P.O. Box 1518 · Bellevue, WA 98009
PACCAR Inc · Contact:
Ken Hastings · (425) 468-7530 · ken.hastings@paccar.com