Paccar (PCAR) investor relations material

Executive summary

• Q2 2026 net income rose 24% sequentially to $752 million on revenues of $7.55 billion, with a 10.0% after-tax return on revenues and strong performance from the truck division and record PACCAR Parts sales.

• Global truck deliveries reached 38,700 units in Q2 2026, with Q3 deliveries estimated at 42,000, reflecting robust demand and higher build rates.

• First half 2026 net income was $1.36 billion, up from $1.23 billion in the prior year, excluding a $264.5 million after-tax charge for EC-related claims.

• Adjusted net income for the first half of 2025 was $1.49 billion, excluding a $264.5 million after-tax charge for EC-related claims.

• Truck sales declined year-over-year, while parts and financial services revenues increased, especially in Europe.

Financial highlights

• Q2 2026 revenues were $7.55 billion, net income was $752 million ($1.43 per diluted share), and gross margin improved to 14.4%.

• PACCAR Parts achieved record revenues of $1.75 billion and pre-tax income of $417 million, with a gross margin of 29.8%.

• PACCAR Financial Services reported pre-tax income of $124 million in Q2 2026, with a portfolio of 222,000 trucks/trailers.

• Truck segment Q2 2026 sales were $5.25 billion, with a pretax profit of $360.5 million and gross margin of 9.4%.

• Operating cash flow for the first six months was $1.67 billion.

Outlook and guidance

• U.S. and Canada Class 8 truck industry retail sales projected at 230,000–270,000 units in 2026; European registrations above 16 tonnes estimated at 290,000–330,000 vehicles; South American above 16-ton market expected at 100,000–110,000 units.

• Parts sales growth for the full year estimated at 3%–5%, with higher growth in H2.

• Capital expenditures for 2026 projected at $700–$750 million; R&D expenses at $450–$480 million.

• Guidance anticipates steady demand in North America and Europe, increased parts sales, and continued investment in technology and manufacturing.

• Regulatory environment stable with upcoming emissions standards in 2027 and 2029.