Paccar Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 28 July 2026: press release. Guidance figures: 1 raised, 2 lowered, 2 kept. The quarter’s numbers.

Key takeaways

Net income rose to $752.0 million: Net income was $752.0 million, or $1.43 per diluted share, against $723.8 million, or $1.37, a year earlier. Management said net income rose 24% from the preceding quarter. Source
Build rates rose on orders: Management said build rates increased during the quarter on orders, with customers benefiting from PACCAR trucks and improved freight rates. Source
Truck pre-tax profit rose in quarter: Truck pre-tax income was $360.5 million against $308.8 million a year earlier, on truck revenue of $5,253.1 million against $5,243.1 million. First-half truck pre-tax income was $536.7 million against $673.7 million. Source
Parts revenue hit a record: PACCAR Parts revenue reached $1.75 billion, a record, and pre-tax income was $417.0 million against $416.5 million. First-half Parts pre-tax income was $819.3 million against $843.0 million. Source
Deliveries of 38,700 trucks in quarter: Global truck deliveries were 38,700 units against 39,300. US and Canada 22,000 (23,000), Europe 11,200 (10,600), other 5,500 (5,700). First-half deliveries were 71,800 against 79,400. Source
Freight rates lifted customer economics: Management said customers are benefiting from higher freight rates, which it attributed to constrained industry freight capacity. Source
Europe market range raised: Management raised its estimate for European above-16-tonne registrations in 2026, with both ends of the range higher than in the first-quarter release. Source
Majority of claimants settled: The company has settled with most claimants and continues to pursue appropriate resolutions for the remainder. Source

“PACCAR achieved very good revenues and increased net income by 24% in the second quarter of 2026 compared to the preceding quarter,”
Preston Feight, chief executive officer

Guidance

Area	Period	Figure	Against last quarter
Capital expenditures Source	2026	$700-$750 million	Lowered from $725-$775 million
Research and development expenses Source	2026	$450-$480 million	Lowered from $450-$500 million
Europe above-16-tonne truck registrations Source	2026	290,000 - 330,000 vehicles	Raised from 280,000-320,000 trucks
US and Canada Class 8 retail sales Source	2026	230,000 - 270,000 trucks	Kept
South American above-16-tonne truck market Source	2026	100,000 - 110,000 trucks	Kept

What changed from last quarter

Guidance lowered: 2026 capital expenditure range moved down to $700-$750 million from $725-$775 million. Source
Guidance lowered: 2026 R&D expense range is now $450-$480 million, from $450-$500 million. Source
Guidance raised: European above-16-tonne registration estimate for 2026 raised to 290,000 - 330,000 vehicles from 280,000-320,000 trucks. Source

Second-quarter results and drivers

Net income rose to $752.0 million: Net income was $752.0 million, or $1.43 per diluted share, against $723.8 million, or $1.37, a year earlier. Management said net income rose 24% from the preceding quarter. Source
Quarterly revenue edged up: Net sales and financial services revenues were $7.55 billion, up from $7.51 billion a year earlier. First-half revenues were $14.32 billion, against $14.95 billion. Source
Build rates rose on orders: Management said build rates increased during the quarter on orders, with customers benefiting from PACCAR trucks and improved freight rates. Source
First-half earnings per share higher: First-half net income was $1.36 billion, or $2.57 per diluted share, against $1.23 billion, or $2.33, in the first half of 2025. Source

Truck, parts and financial services

Truck pre-tax profit rose in quarter: Truck pre-tax income was $360.5 million against $308.8 million a year earlier, on truck revenue of $5,253.1 million against $5,243.1 million. First-half truck pre-tax income was $536.7 million against $673.7 million. Source
Parts revenue hit a record: PACCAR Parts revenue reached $1.75 billion, a record, and pre-tax income was $417.0 million against $416.5 million. First-half Parts pre-tax income was $819.3 million against $843.0 million. Source
Parts network and dealer support: Management tied Parts performance to new distribution centers and to transportation solutions such as Managed Dealer Inventory and Fleet Services, plus more trucks with PACCAR powertrains in operation. Source
Financial services pre-tax income edged up: PFS pre-tax income was $124.1 million against $123.2 million, on revenue of $549.7 million. First-half pre-tax income was $239.6 million against $244.3 million; management cited steady finance margins and a used truck market that is improving. Source
PFS portfolio and PacLease fleet: PFS has a portfolio of 222,000 trucks and trailers, with total assets of $22.3 billion. PacLease, a full-service leasing company, has a fleet of 37,000 vehicles and is part of the segment. Source

“Build rates increased during the quarter due to strong orders as customers benefited from PACCAR’s industry-leading trucks and improved freight rates.”
Preston Feight, chief executive officer

Regional revenue and deliveries

Europe and other regions grew: Quarterly revenue was $4,590.4 million in United States and Canada, against $4,748.5 million. Europe was $1,786.0 million against $1,671.2 million, and other regions $1,170.3 million against $1,090.8 million. Source
Deliveries of 38,700 trucks in quarter: Global truck deliveries were 38,700 units against 39,300. US and Canada 22,000 (23,000), Europe 11,200 (10,600), other 5,500 (5,700). First-half deliveries were 71,800 against 79,400. Source
First-half regional revenue detail: First-half revenue was $8,642.2 million in US and Canada against $9,375.8 million, Europe $3,594.9 million against $3,239.8 million, and other regions $2,086.1 million against $2,336.6 million. Source

Costs, margins and freight rates

Cost of sales held near prior year: Truck, Parts and Other cost of sales and revenues was $5,989.0 million against $5,995.4 million, while related sales and revenues were $6,997.0 million against $6,962.8 million. Source
Freight rates lifted customer economics: Management said customers are benefiting from higher freight rates, which it attributed to constrained industry freight capacity. Source
Receivable loss provisions increased: Financial Services provision for losses on receivables was $39.4 million against $29.2 million; the first-half provision was $83.5 million against $47.5 million. Source
R&D and overhead levels year on year: Research and development was $114.3 million against $112.9 million in the quarter; selling, general and administrative expense was $138.6 million against $139.2 million. Source

“The improved North American freight market will increase our customers’ truck utilization, which will deliver increased parts and service business,”
Bryan Sitko, PACCAR vice president and PACCAR Parts general manager

Demand and truck market estimates

US and Canada market range unchanged: Management kept its 2026 estimate for US and Canada Class 8 retail sales, equal to the first-quarter release range. Source
Europe market range raised: Management raised its estimate for European above-16-tonne registrations in 2026, with both ends of the range higher than in the first-quarter release. Source
South America range unchanged: Management kept its 2026 estimate for the South American above-16-tonne market, unchanged from the first-quarter release. Source
EPA emissions clarification for buyers: Management said the EPA's July 9 clarification of emissions regulations would help customers with purchasing decisions for the second half of 2026 and 2027. Source

Capital, cash and shareholder returns

Capital and R&D spend in quarter: Capital investments were $138.7 million in the second quarter and $274.2 million in the first half; R&D expense was $114.3 million and $223.4 million. Source
First-half operating cash flow: Cash generated from operations was $1.67 billion in the first half, shown in the cash flow statement as $1,672.6 million against $1,743.7 million a year earlier. Source
Dividends per share and buybacks: Dividends declared were $0.35 per share in the second quarter against $0.33, and $0.68 for the first half against $0.66. Treasury stock purchases were $4.8 million in the first half, against $35.0 million. Source
Credit ratings support PFS financing: Management cited the company’s A+/A1 credit ratings as enabling PFS to offer competitive retail financing in 26 countries on four continents. Source

Strategy, products and investment

Investing in clean, hybrid and electric: Management said PACCAR continues to invest in clean diesel, hybrid and battery-electric powertrains, connected vehicle services and expanded manufacturing capabilities. Source
$9.4 billion invested over decade: Management said consistent profits and a balance sheet enabled about $9.4 billion of investment over the past decade in facilities, products and technologies. Source
DAF award and special edition truck: DAF Trucks was named Truck Manufacturer of the Year by British Motor Trader magazine. Peterbilt unveiled a Freedom 250 Special Edition Model 589 truck in the quarter. Source
DAF president named as Jim Walenczak: The release names Jim Walenczak as DAF president; the first-quarter release named Harald Seidel in that role. Source

European claims and settlements

Prior-year European charge excluded from adjusted: The first-quarter 2025 European civil litigation charge of $350.0 million pre-tax, $264.5 million after tax, is excluded from adjusted first-half 2025 net income of $1,493.4 million, or $2.83 per diluted share. Source
Majority of claimants settled: The company has settled with most claimants and continues to pursue appropriate resolutions for the remainder. Source
Mixed court judgments under appeal: Some court judgments are favorable and others unfavorable; the unfavorable ones have been appealed. Source

Figures management reported

Figure	Reported
Deliveries Source	38,700 units in Q2 2026 (39,300 in Q2 2025); 71,800 units in first half 2026 (79,400 in first half 2025)

Risks management discussed

Regulatory: European civil litigation remains open: claims are being settled, but some judgments have been appealed. 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 Increases Quarterly Revenues and Profits

July 28, 2026, Bellevue, Washington - “PACCAR achieved very good revenues and increased net income by 24% in the second quarter of 2026 compared to the preceding quarter,” said Preston Feight, chief executive officer. “Build rates increased during the quarter due to strong orders as customers benefited from PACCAR’s industry-leading trucks and improved freight rates. I am very proud of our employees and dealers who delivered these trucks and transportation solutions to our customers.”

PACCAR earned net income of $752.0 million ($1.43 per diluted share) in the second quarter compared to $723.8 million ($1.37 per diluted share) earned in the same period last year. Second quarter net sales and financial services revenues were $7.55 billion, compared to $7.51 billion achieved in the second quarter of 2025.

PACCAR net income in the first half of 2026 was $1.36 billion ($2.57 per diluted share) compared to $1.23 billion ($2.33 per diluted share) in the first half of 2025, which included a $264.5 million after-tax non-recurring charge related to civil litigation in Europe. Net sales and financial services revenues for the first six months of 2026 were $14.32 billion, compared to $14.95 billion in the same period last year.

Financial Highlights - Second Quarter 2026

Highlights of PACCAR’s financial results for the second quarter of 2026 include:

Consolidated net sales and revenues of $7.55 billion.

Consolidated net income of $752.0 million.

Global truck deliveries of 38,700 units.

Record PACCAR Parts revenues of $1.75 billion.

PACCAR Parts pre-tax income of $417.0 million.

PACCAR Financial Services pre-tax income of $124.1 million.

Capital investments of $138.7 million and R&D expenses of $114.3 million.

Cash generated from operations of $700.8 million.

Financial Highlights - First Half 2026

Highlights of PACCAR’s financial results for the first six months of 2026 include:

Consolidated net sales and revenues of $14.32 billion.

Consolidated net income of $1.36 billion.

Capital investments of $274.2 million and R&D expenses of $223.4 million.

PACCAR Parts pre-tax income of $819.3 million.

PACCAR Financial Services pre-tax income of $239.6 million.

Cash generated from operations of $1.67 billion.

Kenworth T880 Vocational Truck

Global Truck Markets 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. “Customers are benefiting from higher freight rates due to constrained industry freight capacity. Fleet age has increased as well, providing an opportunity for customers to refresh their fleets with newer, more fuel-efficient trucks,” said John Rich, PACCAR executive vice president and chief technology officer. “On July 9, the U.S. EPA provided helpful clarification of emissions regulations that will be beneficial to customers as they make truck purchasing decisions for the second half of this year and 2027.”

Peterbilt proudly unveiled in the second quarter the Freedom 250 Special Edition Model 589 truck, honoring America’s historic 250 birthday. This truck delivers the superior quality and pride of ownership that Peterbilt customers expect, with a red, white and blue design that celebrates freedom and the open road.

Peterbilt Freedom 250 Special Edition Model 589 Truck

European truck industry registrations in the above 16-tonne segment are estimated to be in a range of 290,000 - 330,000 vehicles this year. “DAF trucks are delivering the highest fuel efficiency and best-in-class driver comfort in the industry due to their innovative, aerodynamic design,” shared Jim Walenczak, DAF president. In the second quarter, DAF Trucks was named ‘Truck Manufacturer of the Year’ by the leading British Motor Trader magazine at its prestigious Commercial Industry Awards ceremony in the U.K.

The South American above 16-tonne truck market is estimated to be in the range of 100,000 - 110,000 trucks this year. “South American customers appreciate Kenworth and DAF’s industry-leading product quality, complemented by outstanding aftermarket support including PACCAR Parts, PACCAR Financial Services and premium dealerships,” said Lance Walters, PACCAR vice president.

PACCAR Parts Achieves Record Quarterly Revenues

PACCAR Parts earned pre-tax income of $417.0 million in the second quarter of 2026, compared to $416.5 million earned in the same period last year. PACCAR Parts achieved record revenues of $1.75 billion in the second quarter, compared to $1.72 billion reported in the same period last year. First half 2026 revenues were $3.46 billion, compared to $3.41 billion in the same period last year. PACCAR Parts achieved pre-tax profit of $819.3 million in the first six months of 2026, compared to $843.0 million in the first six months of 2025.

“The improved North American freight market will increase our customers’ truck utilization, which will deliver increased parts and service business,” said Bryan Sitko, PACCAR vice president and PACCAR Parts general manager. “PACCAR Parts’ performance reflects investments in new parts distribution centers, transportation solutions such as Managed Dealer Inventory and Fleet Services, and a growing number of PACCAR trucks with PACCAR powertrains in operation.”

PACCAR Parts’ 21 global parts distribution centers, 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.

Financial Services Companies Achieve Good Quarterly Results

PACCAR Financial Services (PFS) earned pre-tax income of $124.1 million in the second quarter of 2026 compared to $123.2 million in the second quarter of 2025. PFS achieved second quarter 2026 revenues of $549.7 million compared to $547.7 million in the same period last year. For the first six months of 2026, PFS earned pre-tax income of $239.6 million compared to $244.3 million in the same period last year. PFS reported first half revenues of $1.09 billion compared to $1.08 billion in the first half of 2025. “PFS achieved good first half results due to its steady finance margins and an improving used truck market,” said Craig Gryniewicz, PACCAR vice president.

PFS has a portfolio of 222,000 trucks and trailers, with total assets of $22.3 billion. PacLease, a major full-service truck leasing company in North America, Europe and Australia with a fleet of 37,000 vehicles, is included in this segment. “PACCAR’s excellent 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 issued $1.38 billion of medium-term notes during the first half of 2026.

DAF Used Truck Center in Warsaw, Poland

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 $9.4 billion in world-class facilities, next generation products, and state-of-the-art technologies during the past decade. PACCAR invested $138.7 million in capital projects and $114.3 million in research and development expenses in the second quarter of 2026. Brice Poplawski, senior vice president and chief financial officer, said, “Capital expenditures are projected to be in the range of $700-$750 million and research and development expenses are estimated to be in the range $450-$480 million in 2026. PACCAR continues to invest in next generation clean diesel, hybrid and battery-electric powertrains, integrated connected vehicle services, and expanded manufacturing capabilities.”

PACCAR will hold a conference call with securities analysts to discuss second quarter earnings on July 28, 2026, at 9:00 a.m. Pacific time. Interested parties may listen to the call by selecting “Q2 Earnings Webcast” at PACCAR’s homepage. The Webcast will be available on a recorded basis through August 4, 2026. PACCAR shares are listed 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				Six Months Ended
	June 30				June 30
	2026		2025		2026		2025
Truck, Parts and Other:
Net sales and revenues		$6,997.0		$6,962.8		$13,231.3		$13,876.5
Cost of sales and revenues		5,989.0		5,995.4		11,405.5		11,886.4
Research and development		114.3		112.9		223.4		228.3
Selling, general and administrative		138.6		139.2		288.2		282.5
Interest and other (income) expenses, net		(16.3)		(9.5)		(37.6)		316.3	(1)
Truck, Parts and Other Income Before Income Taxes		771.4		724.8		1,351.8		1,163.0
Financial Services:
Revenues		549.7		547.7		1,091.9		1,075.7
Interest and other		345.1		355.2		688.0		705.5
Selling, general and administrative		41.1		40.1		80.8		78.4
Provision for losses on receivables		39.4		29.2		83.5		47.5
Financial Services Income Before Income Taxes		124.1		123.2		239.6		244.3
Investment income		86.0		83.9		166.4		167.7
Total Income Before Income Taxes		981.5		931.9		1,757.8		1,575.0
Income taxes		229.5		208.1		400.5		346.1
Net Income		$752.0		$723.8		$1,357.3		$1,228.9
Net Income Per Share:
Basic		$1.43		$1.38		$2.58		$2.34
Diluted		$1.43		$1.37		$2.57		$2.33
Weighted Average Shares Outstanding:
Basic		527.0		525.9		526.8		525.9
Diluted		527.6		526.7		527.5		526.8
Dividends declared per share	$	.35	$	.33	$	.68	$	.66

(1) Includes a $350.0 million charge related to civil litigation in Europe (EC-related claims) in the first quarter 2025.

PACCAR Inc

CONDENSED BALANCE SHEETS (Unaudited)

	June 30	December 31
	2026	2025
ASSETS
Truck, Parts and Other:
Cash and marketable securities	$8,667.4	$9,253.7
Trade and other receivables, net	2,376.3	1,981.1
Inventories, net	2,384.2	2,187.5
Property, plant and equipment, net	4,519.8	4,505.3
Other assets	3,766.9	3,605.2
Financial Services Assets	22,265.5	22,803.4
	$43,980.1	$44,336.2
LIABILITIES AND STOCKHOLDERS' EQUITY
Truck, Parts and Other:
Accounts payable, deferred revenues and other	$7,367.7	$7,890.9
Financial Services Liabilities	16,291.1	17,181.3
STOCKHOLDERS' EQUITY	20,321.3	19,264.0
	$43,980.1	$44,336.2
Common Shares Outstanding	526.3	525.4

PACCAR Inc

CONDENSED CASH FLOW STATEMENTS (Unaudited)

Six Months Ended June 30,	2026	2025
OPERATING ACTIVITIES:
Net income	$1,357.3	$1,228.9
Depreciation and amortization:
Property, plant and equipment	210.6	199.5
Other assets	204.5	212.9
Net change in trade receivables, inventory and payables	(219.3)	(178.2)
Net decrease in wholesale receivables on new trucks	192.4	304.6
All other operating activities, net	(72.9)	(24.0)
Net Cash Provided by Operating Activities	1,672.6	1,743.7
INVESTING ACTIVITIES:
Payments for property, plant and equipment	(292.6)	(387.2)
Acquisitions of equipment for operating leases	(417.1)	(327.5)
Net decrease (increase) in financial services receivables	102.1	(547.5)
Net increase in marketable debt securities	(93.6)	(52.6)
Proceeds from asset disposals and other	269.4	304.7
Net Cash Used in Investing Activities	(431.8)	(1,010.1)
FINANCING ACTIVITIES:
Payments of cash dividends	(1,093.7)	(1,920.3)
Purchases of treasury stock	(4.8)	(35.0)
Proceeds from stock compensation transactions	47.3	24.8
Net decrease in debt and other	(907.2)	(495.3)
Net Cash Used in Financing Activities	(1,958.4)	(2,425.8)
Effect of exchange rate changes on cash	(15.6)	181.3
Net Decrease in Cash and Cash Equivalents	(733.2)	(1,510.9)
Cash and cash equivalents at beginning of period	6,307.9	7,060.8
Cash and cash equivalents at end of period	$5,574.7	$5,549.9

PACCAR Inc

SEGMENT AND OTHER INFORMATION (Unaudited)

	Three Months Ended		Six Months Ended
	June 30		June 30
	2026	2025	2026	2025
Sales and Revenues:
Truck	$5,253.1	$5,243.1	$9,779.6	$10,468.9
Parts	1,746.9	1,720.9	3,457.0	3,410.8
Financial Services	549.7	547.7	1,091.9	1,075.7
Intersegment Eliminations and Other	(3.0)	(1.2)	(5.3)	(3.2)
	$7,546.7	$7,510.5	$14,323.2	$14,952.2
Pretax Profit:
Truck	$360.5	$308.8	$536.7	$673.7
Parts	417.0	416.5	819.3	843.0
Financial Services	124.1	123.2	239.6	244.3
Investment Income and Other	79.9	83.4	162.2	(186.0)	(1)
	$981.5	$931.9	$1,757.8	$1,575.0

GEOGRAPHIC REVENUE

	Three Months Ended		Six Months Ended
	June 30		June 30
	2026	2025	2026	2025
United States and Canada	$4,590.4	$4,748.5	$8,642.2	$9,375.8
Europe	1,786.0	1,671.2	3,594.9	3,239.8
Other	1,170.3	1,090.8	2,086.1	2,336.6
	$7,546.7	$7,510.5	$14,323.2	$14,952.2

NEW TRUCK DELIVERIES

	Three Months Ended		Six Months Ended
	June 30		June 30
	2026	2025	2026	2025
United States and Canada	22,000	23,000	39,800	45,200
Europe	11,200	10,600	22,400	21,000
Other	5,500	5,700	9,600	13,200
	38,700	39,300	71,800	79,400

(1) Includes a $350.0 million charge related to civil litigation in Europe (EC-related claims) in the first quarter 2025.

	Six 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)	June 30, 2025
Net income	$1,228.9
EC-related claims, net of taxes	264.5
Adjusted net income (non-GAAP)	$1,493.4
Per diluted share:
Net income	$2.33
EC-related claims, net of taxes	.50
Adjusted net income (non-GAAP)	$2.83

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