PACCAR posts higher Q1 profit despite lower revenue, deliveries
PACCAR Financial Services revenue fell 2.7% YoY
PACCAR reported improved profitability in the first quarter, amid mixed performance from its parts and financial services segments, as well as lower truck sales and deliveries.
The Bellevue, Wash.-based manufacturer reported revenue of $6.78 billion, down 8.9% year over year, according to today’s earnings release. Net income rose 19.8% YoY to $605.3 million, benefiting from the absence of a prior-year litigation charge.
Truck segment revenue declined to $4.53 billion, down 13.4% YoY, reflecting softer deliveries, which fell 17.5% YoY to 33,100 units.
PACCAR Parts generated revenue of $1.71 billion, up 1.2% YoY, while pretax income declined 5.7% YoY to $402.3 million, according to the release. The segment continues to benefit from investments in distribution and aftermarket capabilities supporting uptime and service networks.
PACCAR Financial Services reported pretax income of $115.5 million, down 4.6% YoY, while revenue increased 2.7% YoY to $542.2 million. The finance arm maintains a portfolio of 221,000 trucks and trailers with total assets of $22.3 billion, supported by strong credit quality and access to capital markets.
The company generated $971.8 million in operating cash flow during the quarter and invested $135.5 million in capital expenditures and $109.1 million in R&D, according to the release. PACCAR expects improving freight fundamentals and regulatory clarity to support truck demand, with U.S. and Canada Class 8 retail sales projected between 230,000 and 270,000 units in 2026.
MARKET OUTLOOK: Shares of Paccar Inc. [Nasdaq: PCAR] were trading at $119.61 at market close today, down 6% or $7.59 from market open. Paccar has a market capitalization of $66.94 billion.
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