PCAR earnings analysis
What we found in PCAR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.43
- Segment
- Truck revenue: $5.2531 billion, up $10.0 million year over year; segment pretax income: $360.5 million, up from $308.8 million.
- Segment
- Parts revenue: $1.7469 billion, up $26.0 million year over year; segment pretax income: $417.0 million, essentially flat versus $416.5 million.
- Segment
- Financial Services revenue: $549.7 million, up $2.0 million year over year; segment pretax income: $124.1 million, up from $123.2 million.
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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