Paccar (PCAR) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 revenues of $6.78 billion and net income of $605.3 million, with strong performance in parts and financial services despite a year-over-year decline in truck sales and revenues.

• Truck deliveries declined to 33,100 units from 40,100 year-over-year, but order visibility and production backlog remain high, with global demand rising.

• Maintained a strong balance sheet with $8.6 billion in cash and marketable securities and no manufacturing debt.

• Launched new models including the Kenworth C580 and expanded DAF electric truck range, with DAF XF Electric winning '2026 Eco-Friendly Truck of the Year' in Spain.

• Capital investments planned at $725–$775 million and R&D at $450–$500 million for advanced manufacturing, powertrains, and autonomous/connected vehicle technologies.

Financial highlights

• Q1 2026 revenues were $6.78 billion, down from $7.44 billion in Q1 2025, with net income of $605.3 million versus $505.1 million (including a $264.5 million after-tax charge) in Q1 2025.

• Gross margin for the Truck segment was 7.0%, down from 9.7% year-over-year; parts segment gross margin was 29.6%.

• PACCAR Parts revenue reached $1.71 billion with pretax profit of $402 million; Financial Services delivered $116 million pretax profit.

• Adjusted return on revenues was 8.9% versus 10.3% year-over-year.

• Operating cash flow for Q1 2026 was $971.8 million, up from $910.3 million in Q1 2025.

Outlook and guidance

• U.S. and Canada heavy-duty truck sales for 2026 are forecast at 230,000–270,000 units; European above 16-ton market at 280,000–320,000 units; South America at 100,000–110,000 units.

• Parts sales are projected to grow 3–6% in 2026, with margins expected to improve sequentially through the year.

• Capital expenditures for 2026 are expected at $725–$775 million and R&D at $450–$500 million.

• Balanced demand between pre-buy and replacement expected in the second half, with strong order visibility into Q3 and Q4.

• Used truck prices are showing signs of improvement.