PACCAR Financial Services revenue jumps on increased deliveries
Managed assets increased to $21B
PACCAR Financial Services, the finance arm of truck manufacturer PACCAR, today reported increased revenue for both the fourth quarter and full year 2023 as deliveries increased in the United States and Canada.
- Q4 revenue was $484.8 million, up from $394.8 million in Q4 2022.
- Full-year revenue was $1.8 billion, up from $1.5 billion the year prior.
Managed assets increased 21.2% year over year to $21 billion, according to the company’s earnings report. That includes PacLease, the company’s North American and European leasing firm, which maintains more than 44,000 vehicles in its fleet.
- The captive has been on a growth trajectory for at least the last year. Finance profits soared in Q4 2022, followed by 16% YoY increase in its portfolio in Q1 2023. Used-truck gains pushed up financial services revenue in Q3.
The used-truck market has now normalized after two years of high volume and prices, PACCAR Vice President Todd Hubbard noted in the company’s 8-K filing with the Securities and Exchange Commission today.
Still, PACCAR delivered 297,000 Class 8 industry retail trucks across the U.S. and Canada in 2023, an increase of 210.7% YoY. It expects to deliver between 260,000 to 300,000 in 2024.
North America remains one of the company’s most robust markets, Director of Investor Relations Ken Hastings said on today’s earnings call. Despite a global slowdown in orders, PACCAR has noticed “good order intake and visibility” in the region, he said.
PACCAR has 2,200 dealers across DAF, Kenworth and Peterbilt truck brands as well as a handful of other manufacturers of trucks and parts.
2023 was marked by several new initiatives designed to bolster PACCAR’s manufacturing footprint. The company partnered with Cummins and Daimler in September to construct an advanced battery cell manufacturing plant in Marshall County, Miss., in addition to a new engine remanufacturing facility in nearby Columbus, Miss. PACCAR also expanded its truck factories in Ohio, and Mexico.
Shares of PACCAR [NASDAQ: PCAR] were trading at $101.01 as of market close in New York today, up 4%, or $3.92, from market open. The company has a market cap of $52.8 billion.
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