PACCAR Financial Services, the financing arm of Bellevue, Wash.-based truck maker PACCAR, saw record first-quarter revenues of $509.3 million amid a stabilizing used-truck market.
“PFS achieved good quarterly results due to its growing portfolio and strong portfolio quality. The used-truck market has normalized after two years of high volume and prices,” PACCAR Vice President Todd Hubbard said in an earnings statement today. “PFS is a leader in the market with its superior Kenworth, Peterbilt and DAF products, innovative technologies that provide seamless credit application and loan processing, and its support of customers in all phases of the business cycle.”
BY THE NUMBERS: In the first quarter, PACCAR Financial reported:
- Revenues of a record $509.3 million, up 18.5% from $432.2 million in Q1 2023;
- Pretax income of $113.9 million, down 26.6% year over year;
- The parent company’s delivery of 29,500 trucks in the United States and Canada, , an increase of 500 from the prior year’s first quarter.
- Deliveries by PACCAR did fall in Europe, which pushed the subsidiary’s overall delivery count down 6% YoY to 48,100 vehicles.
- The parent company’s overall managed assets of $21.15 billion, up from $21 billion in Q4 2023.
PACCAR maintains a portfolio of 228,000 trucks and trailers, including its North American and European truck leasing division, PacLease, which maintains 41,000 vehicles.
PACCAR said during its full-year 2023 report in January that it expects to deliver between 260,000 and 300,000 vehicles in the U.S. and Canada during 2024.
The parent is also plans to increase its financing activity. PACCAR Financial President Craig Gryniewicz stated in the company’s regulatory filing today that the company has “excellent access to the debt markets, issuing $950 million in medium-term notes during the first quarter of 2024.”
PACCAR operates in 26 countries on four continents.
“North American truck demand is benefiting from increased infrastructure spending,” Executive Vice President Mike Dozier said in the company’s earnings filing. He added that Kenworth and Peterbilt models combined accounted for 30.3% of Class 8 truck market share in Q1, an increase from 29.5% in Q1 2023.
Shares of PACCAR [NASDAQ: PCAR] were trading at $106.11 as of market close today, down 6.6% from market open. The company has a market cap of $55.6 billion.
Registration is now open for Equipment Finance Connect, the nation’s only dealer-centric equipment lending and leasing event, which will take place May 5-7 in Nashville, Tenn. Learn about the event and free dealer registration at EquipmentFinanceConnect.com.
