10-Q · April 29, 2026
PACCAR reported Q1 2026 revenue of $6.78 billion, down from $7.44 billion in Q1 2025, primarily driven by lower truck sales, although Parts and Financial Services saw slight improvements. Net income, however, rose to…
Earnings analysis · 10-Q
PCAR earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
PACCAR delivered a modest 0.5% year-over-year revenue increase to $7.5467 billion and a 4.4% EPS increase to $1.43, with notably stronger Truck profitability as price realization and lower tariff costs more than offset…
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PACCAR delivered a modest 0.5% year-over-year revenue increase to $7.5467 billion and a 4.4% EPS increase to $1.43, with notably stronger Truck profitability as price realization and lower tariff costs more than offset lower deliveries. Parts revenue grew to $1.7469 billion, led by Europe, while Financial Services earnings were stable but credit costs and charge-offs rose sharply, particularly in Brasil. The balance sheet remains highly liquid, though first-half cash flow faced higher inventory and receivables requirements, and management's industry outlook still implies a soft truck-demand environment.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.43
What stood out
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EPS and revenue increased year over year
Q2 worldwide sales and revenues rose $36.2 million, or 0.5%, year over year to $7.5467 billion from $7.5105 billion. Diluted EPS increased $0.06, or 4.4%, to $1.43, while net income rose $28.2 million to $752.0 million.
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Truck profitability improved despite lower volume
Truck pretax income increased $51.7 million to $360.5 million despite worldwide deliveries declining 2% to 38,700 units. Truck pretax margin improved to 6.9% from 5.9%, and gross margin expanded to 9.4% from 8.7%, driven by price realization and lower tariff costs.
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Parts growth offset softer North America
Parts revenue reached $1.7469 billion, up $26.0 million from $1.7209 billion, led by Europe revenue of $376.3 million versus $353.0 million. Parts pretax income held near record levels at $417.0 million versus $416.5 million.
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Q2 improved materially from Q1
Sequential momentum was substantial: implied Q1 revenue of $6.7765 billion increased $770.2 million in Q2, while implied Q1 EPS of $1.14 rose $0.29 to $1.43. Q2 after-tax return on revenue improved to 10.0% from 9.6% a year earlier.
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Liquidity remains robust
Liquidity remained ample at $8.8343 billion of cash and marketable securities, with $4.00 billion of committed bank facilities and no facility borrowings during the first six months. Operating cash flow was $1.6726 billion for the first six months of 2026.
What to watch
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Truck volume and market-share pressure persist
Underlying truck demand remains soft: worldwide Q2 deliveries fell 2% to 38,700 units, including a 4% decline in U.S./Canada deliveries to 22,000 and a 4% decline in Mexico, South America, Australia and other deliveries to 5,500. First-half worldwide deliveries declined 10% to 71,800 units.
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Credit losses increased sharply in Financial Services
Financial Services credit costs worsened: the Q2 provision for receivable losses rose to $39.4 million from $29.2 million, while net charge-offs increased to $44.9 million from $24.9 million. The increase was primarily tied to Brasil, where 30+ day past-due accounts were 4.7% at June 30, 2026 versus 2.4% a year earlier.
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Inventory and receivables consumed cash
Working-capital demands reduced cash conversion. First-half operating cash flow declined $71.1 million to $1.6726 billion as inventory used $226.5 million more cash and trade and other receivables increased cash usage by $218.2 million; cash and marketable securities declined $681.3 million from year-end to $8.8343 billion.
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No formal risk-factor update; macro uncertainty remains
There were no material changes to stated risk factors during the three months ended June 30, 2026. Nevertheless, management identifies potential further tariff-policy changes, geopolitical uncertainty, emissions regulation, and freight conditions as factors that could affect results; 2026 U.S./Canada industry sales are forecast at 230,000-270,000 units versus 232,800 in 2025.
Management's outlook
No consolidated revenue or EPS guidance was provided in the 10-Q. PACCAR expects 2026 Parts sales to increase 3%-5%; U.S./Canada Class 8 industry sales of 230,000-270,000 units, Europe >16-tonne registrations of 290,000-330,000, and South America >16-tonne registrations of 100,000-110,000. Capital-investment outlook is $700-$750 million, reduced from the prior $725-$775 million range, and R&D is expected to be $450-$480 million.
Earlier filings 4
10-K · February 18, 2026
PACCAR positions itself as a market-leading commercial truck manufacturer (Kenworth, Peterbilt, DAF) with a product roadmap emphasizing fuel-efficiency, zero-emission technologies and battery manufacturing. The 2025…
10-Q · May 1, 2025
PACCAR reported consolidated revenue of $7,441.7 million (Truck, Parts and Other $6,913.7M; Financial Services $528.0M) and diluted EPS of $0.96 for the quarter ended March 31, 2025. Revenue and profitability weakened…
10-K · February 19, 2025
PACCAR positions itself as a market-leading commercial truck manufacturer (Kenworth, Peterbilt, DAF) with a product roadmap focused on fuel-efficiency and zero-emission technologies (SuperTruck 3, battery-electric,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.