GICS Sector : Industrials
PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally.It operates through three segments: Truck, Parts, and Financial Services.The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods.
PACCAR reported annual revenues of $28.4 billion and adjusted net income of $2.64 billion, the fourth highest profit year in company history. The company's earnings per share (EPS) came in at $1.06, in line with analyst estimates. The company's gross margin for truck parts and other was 12% in the fourth quarter, with an expected increase to 12.5%-13% in the first quarter of 2026 due to the Section 232 tariff, cost reductions, and local for local manufacturing benefits, as noted by Preston Feight, "the margin improvement from Q4 to Q1 is due to the Section 232 tariff going into effect, cost reductions, and the benefit of local for local manufacturing."
Publication Date: Feb -02
PACCAR Parts achieved quarterly and annual revenue records, while PACCAR Financial Services earned record annual revenues with an 11% growth in pretax income. The company's independent Kenworth, Peterbilt, and DAF dealers continued to invest in their businesses, enhancing the industry-leading distribution network. Kenworth and Peterbilt delivered a market share of 30% in the US and Canadian Class 8 truck market, which was 233,000 units in 2025.
The 2026 US and Canadian Class 8 truck market is forecast to be in a range of 230,000 to 270,000 vehicles, driven by economic growth, regulatory clarity, and improving freight conditions. PACCAR's European above 16-ton truck market was 298,000 units, where DAF trucks have a competitive advantage due to their innovative aerodynamic design. The company's deliveries are forecast to be at a comparable level in 2026, with a focus on accelerating growth for its customers, dealers, and PACCAR.
With a P/E Ratio of 27.21 and an EV/EBITDA of 17.04, the market is pricing in a certain level of growth for PACCAR. Analysts estimate next year's revenue growth at 9.0%. The company's ROE is 12.57%, and ROIC is 23.19%, indicating a strong return on equity and invested capital. The Dividend Yield is 2.21%, providing a relatively stable income stream for investors.
Principal Financial Group Inc. Lowers Stock Position in PACCAR Inc. $PCAR
Feb -02
National Pension Service Grows Position in PACCAR Inc. $PCAR
Feb -01
PACCAR Inc. $PCAR Shares Bought by Bank of New York Mellon Corp
Jan -30
F or PCAR: Which Is the Better Value Stock Right Now?
Jan -29
PACCAR (NASDAQ:PCAR) Sets New 1-Year High Following Analyst Upgrade
Jan -29
PACCAR Q4 Earnings Match Estimates, Revenues Decline Y/Y
Jan -28
PACCAR Q4 Earnings Call Highlights
Jan -28
PACCAR Inc (PCAR) Q4 2025 Earnings Call Highlights: Record Revenues and Strategic Advancements Amid Market Challenges
Jan -27
PACCAR's truck segment growth of 4.0 is driven by increasing demand for freight transportation, expansion of e-commerce, and replacement of aging fleets. The company's innovative products, such as the Kenworth and Peterbilt brands, and its strong financial position, enable it to capitalize on these trends and invest in new technologies, like electric and autonomous vehicles.
PACCAR Inc's parts segment growth of 3.5% is driven by increased demand for aftermarket parts, expanding global truck population, and growing sales of high-quality, profitable parts. Additionally, the company's strong relationships with OEMs and its extensive distribution network contribute to its growth.
PACCAR's Financial Services segment growth of 5.0% is driven by increased demand for financing of high-quality trucks and trailers, expanded insurance offerings, and strong portfolio performance. Additionally, the segment benefits from diversified revenue streams, including fees from parts and service operations, contributing to steady growth.
PACCAR Inc's growth is driven by strong demand for trucks, increased market share, and favorable pricing. The company's innovative products, expanded dealership network, and efficient manufacturing processes contribute to its 2.0% growth rate. Additionally, a recovering global economy and infrastructure investments support the company's positive outlook.
Intersegment growth of 0.0 for PACCAR Inc suggests stable segment performance. Fundamental drivers include consistent demand for trucks and parts, efficient supply chain management, and potentially, a focus on maintaining market share rather than aggressive expansion. This stability may reflect a mature market with limited growth opportunities.
Heavy-duty trucks designed for on-highway and vocational applications, offering a range of models with advanced technology and fuel efficiency features.
Medium and heavy-duty trucks designed for on-highway and vocational applications, offering a range of models with advanced technology and fuel efficiency features.
Medium and heavy-duty trucks designed for on-highway and vocational applications, offering a range of models with advanced technology and fuel efficiency features.
A comprehensive range of parts and components for PACCAR's trucks, including engines, transmissions, and axles.
Financial products and services, including financing, leasing, and insurance, designed to support customers in purchasing and operating PACCAR's trucks.
Advanced technologies, including autonomous driving, connected vehicle systems, and alternative fuel solutions, aimed at improving efficiency, safety, and sustainability.
PACCAR Inc's products are highly specialized and have a strong brand reputation, making it difficult for customers to switch to substitutes. Additionally, the company's products are often customized to meet specific customer needs, which further reduces the threat of substitutes.
PACCAR Inc's customers are primarily large transportation companies and governments, which can exert some bargaining power. However, the company's strong brand reputation and high-quality products limit the customers' ability to negotiate prices and terms.
PACCAR Inc has a large and diverse supplier base, which reduces the bargaining power of individual suppliers. Additionally, the company has a strong purchasing function and is able to negotiate favorable prices and terms with its suppliers.
The truck manufacturing industry has high barriers to entry, including high capital requirements, complex manufacturing processes, and stringent regulatory requirements. These barriers make it difficult for new entrants to compete with established companies like PACCAR Inc.
The truck manufacturing industry is highly competitive, with several established players competing for market share. PACCAR Inc competes with companies like Daimler AG, Volvo Group, and Navistar International Corporation, which are all well-established and have strong brand reputations.
| Value | |
|---|---|
| Debt Weight | 47.59% |
| Debt Cost | 4.30% |
| Equity Weight | 52.41% |
| Equity Cost | 9.05% |
| WACC | 6.79% |
| Leverage | 90.79% |
Value: 3.0
Growth: 8.0
Quality: 6.7
Yield: 9.0
Momentum: 7.0
Volatility: 8.3
1-Year Total Return ->
Value: 3.8
Growth: 8.2
Quality: 6.3
Yield: 4.0
Momentum: 9.5
Volatility: 4.7
1-Year Total Return ->
Value: 4.1
Growth: 6.7
Quality: 5.0
Yield: 8.0
Momentum: 4.0
Volatility: 8.3
1-Year Total Return ->
Value: 2.1
Growth: 5.8
Quality: 9.0
Yield: 7.0
Momentum: 2.5
Volatility: 9.3
1-Year Total Return ->
Value: 2.0
Growth: 6.9
Quality: 6.2
Yield: 3.0
Momentum: 8.5
Volatility: 7.3
1-Year Total Return ->
Value: 2.9
Growth: 5.9
Quality: 4.9
Yield: 3.0
Momentum: 7.0
Volatility: 8.7
1-Year Total Return ->