Paccar (PCAR) investor relations material

Executive summary

• Second quarter 2026 revenues reached $7.55 billion, with net income of $752 million, up 24% sequentially, driven by strong truck division and record parts performance.

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

• The company is well-positioned for a strong second half of 2026 and into 2027, supported by favorable market conditions and regulatory clarity.

• First half 2026 net income was $1.36 billion, up from $1.23 billion in the prior year, which included a $264.5 million after-tax non-recurring charge.

Financial highlights

• Q2 2026 net sales and financial services revenues were $7.55 billion; net income was $752 million ($1.43 per diluted share).

• PACCAR Parts achieved record quarterly revenues of $1.75 billion and pre-tax income of $417 million; gross margins rose to 29.8%.

• PACCAR Financial Services delivered pre-tax income of $124 million, benefiting from steady finance margins and a strengthening used truck market.

• Overall gross margins increased from 13.1% to 14.4% in Q2, with Q3 margins forecast at 14.5% and further improvement expected in Q4.

• Cash generated from operations was $700.8 million in Q2 and $1.67 billion in the first half of 2026.

Outlook and guidance

• U.S. and Canadian heavy truck market expected to reach 250,000 units for the full year, with 105,000 retail sales in H1 and 145,000 projected for H2.

• European above 16-ton market projected at 310,000 trucks for 2026; South American market expected at 100,000-110,000 vehicles.

• Parts sales growth for the full year estimated at 3%-5%, with stronger growth anticipated in the second half.

• Capital investments planned at $700-$750 million and R&D expenditures at $450-$480 million for the year.

• Build slots for 2026 are nearly full, with expected carryover demand into 2027.