PACCAR posts higher Q1 profit despite lower revenue, deliveries

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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